H-3138.2  _______________________________________________

                          HOUSE BILL 2397

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Representatives Scott, Mulliken, Doumit, Mielke, Fisher, Reardon, Edwards, Fortunato, Haigh, Wolfe and Ogden

Read first time 01/12/2000.  Referred to Committee on Local Government.

Revising provisions relating to local government fiscal notes.

    AN ACT Relating to the process of preparing local government fiscal notes and the review of fiscal impacts of legislation; amending RCW 43.132.020, 43.132.040, and 43.132.060; adding new sections to chapter 43.132 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  It is the intent of the legislature to enhance the local government fiscal note process by providing for updated fiscal information on pending legislation and to establish a process for a more comprehensive report on the fiscal impacts to local governments arising from laws that have been enacted.  Further, it is the intent of the legislature that the varying effects of legislation on different local governments be recognized.  This act is enacted in recognition of the responsibilities imposed by RCW 43.135.060.

    Sec. 2.  RCW 43.132.020 and 1995 c 399 s 79 are each amended to read as follows:

    The director of financial management or the director's designee shall, in cooperation with appropriate legislative committees and legislative staff, establish a mechanism for the determination of the fiscal impact of proposed legislation which if enacted into law would directly or indirectly increase or decrease revenues received or expenditures incurred by counties, cities, towns, or any other ((political subdivisions of the state)) units of local government.  The office of financial management shall, when requested by a member of the state legislature, report in writing as to such fiscal impact and said report shall be known as a "fiscal note".

    Such fiscal notes shall indicate by fiscal year the total impact on the ((subdivisions)) local governments involved for the first two years the legislation would be in effect and also a cumulative six year forecast of the fiscal impact.  Where feasible and applicable, the fiscal note also shall indicate the fiscal impact on each individual county or on a representative sampling of cities, towns, or other ((political subdivisions)) units of local government.

    A fiscal note as defined in this section shall be provided only upon request of any member of the state legislature.  A ((legislator also may)) request ((that such)) for a fiscal note ((be revised to reflect the impact of proposed amendments or substitute bills)) on legislation shall be considered to be a continuing request for a fiscal note on any formal alteration of the legislation in the form of amendments to the legislation that are adopted by a committee or a house of the legislature or a substitute version of such legislation that is adopted by a committee and preparation of the fiscal note on the prior version of the legislation shall stop, unless the legislator requesting the fiscal note specifies otherwise or the altered version is first adopted or enacted in the last week of a legislative session.

    Fiscal notes shall be completed within ((seventy-two hours)) one week of the request unless a longer time period is allowed by the requesting legislator.  In the event a fiscal note has not been completed within ((seventy-two hours)) one week of a request, a daily report shall be prepared for the requesting legislator by the director of financial management which report summarizes the progress in preparing the fiscal note.  If the request is referred to the director of community, trade, and economic development, the daily report shall also include the date and time such referral was made.

    Sec. 3.  RCW 43.132.040 and 1986 c 158 s 18 are each amended to read as follows:

    When a fiscal note is prepared and approved as to form and completeness by the director of financial management, the director shall transmit copies immediately to:

    (1) The requesting legislator;

    (2) With respect to proposed legislation held by the senate, the chairperson of the committee which holds or has acted upon the proposed legislation, the chairperson of the ways and means committee or equivalent committees with jurisdiction over matters normally considered by a ways and means committee, the chairperson of the local government committee or equivalent committee that considers local government matters, and the secretary of the senate; and

    (3) With respect to proposed legislation held by the house of representatives, the chairperson of the committee which holds or has acted upon the proposed legislation, the chairpersons of the ((revenue and taxation and appropriations committees)) ways and means committee or equivalent committees with jurisdiction over matters normally considered by a ways and means committee, the chairperson of the local government committee or equivalent committee that considers local government matters, and the chief clerk of the house of representatives.

    Sec. 4.  RCW 43.132.060 and 1977 ex.s. c 19 s 6 are each amended to read as follows:

(1) Nothing in this chapter shall prevent either house of the legislature from acting on any bill or resolution before it as otherwise provided by the state Constitution, by law, and by the rules of the senate and house of representatives, nor shall the lack of any fiscal note as provided in this chapter or any error in the accuracy thereof affect the validity of any measure otherwise duly passed by the legislature.

(2) Subsection (1) of this section shall not alter the responsibilities of RCW 43.135.060.

NEW SECTION. Sec. 5.  A new section is added to chapter 43.132 RCW to read as follows:

    (1) The office of financial management, in consultation with the department of community, trade, and economic development, shall annually prepare a report on the fiscal impacts to counties, cities, towns, and other units of local governments, arising from selected laws enacted in the preceding five-year period.  The office of financial management, in consultation with the department of community, trade, and economic development, shall annually select up to five laws to include within this report from a recommended list of laws approved by the legislature.  The office of financial management, in consultation with the department of community, trade, and economic development, may select up to five laws to include within this report if the legislature does not approve a recommended list.

    (2) The preparation of the reports required in subsection (1) of this section is subject to available funding.

NEW SECTION. Sec. 6.  A new section is added to chapter 43.132 RCW to read as follows:

    The office of financial management, in consultation with the department of community, trade, and economic development, shall prepare a report for the legislature on or before December 31st of every even-numbered year on local government fiscal notes, and reports on the fiscal impacts on local governments arising from selected laws, that were prepared over the preceding two-year period.

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