Requires legislative fiscal impact notes to include objective calculations of anticipated economic impacts for next three years on state or political subdivisions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4390
SPONSOR: Galef (MS) TITLE OF BILL: An act to amend the legislative law, in relation to
fiscal impact notes on bills and to repeal certain provisions of such
law relating thereto
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to expand disclosure requirements for
fiscal impact notes attached to proposed legislation.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Section 51 of the Legislative Law is REPEALED and a new
section 51 is added. § 51. Fiscal impact notes on bills affecting the
state or political subdivisions.
1. As used in this section: (a) Defines the term "political subdivi-
sion". (b) Defines the term "qualifying bill".
2. Before discharging qualifying bills from consideration, the Senate
Finance Committee or the Assembly Ways and Means Committee shall prepare
for each such bill a fiscal impact statement clearly detailing the esti-
mated cost or savings, and the source of such estimates.
3. A fiscal impact statement required to be prepared under this section
shall be made and shall remain a part of the bill it describes, and
shall be affixed to the bill before it is brought before members for
consideration.
4. In determining the fiscal impacts of a bill, the Senate Finance
Committee and Assembly Ways and Means Committee shall estimate such
impacts based on the following: (a) individual political subdivisions;
aggregates of political subdivisions either statewide or by a lesser
geographic area; (c) representative political subdivisions with relevant
characteristics such as population, area, average income, weighted aver-
age daily attendance of pupils, or any other relevant characteristics
appropriate to the estimate; or (d) any other appropriate, convenient or
accessible grouping of characteristics or political subdivisions.
5. Estimated or actual fiscal impacts disclosed under this section shall
be reported in units of money, services, personnel, equipment, or any
other appropriate, convenient or accessible unit or units of measure-
ment.
6. If the estimates contained in a fiscal impact statement are inaccu-
rate, such inaccuracies shall not affect, impair or invalidate such
bill.
7. Fiscal impact statements shall not be required for bills: (a) subject
to the provisions of section 50 of this article, or (b) accompanied by
special home rule requests submitted by each affected political subdivi-
sion, or (c) which provide only discretionary authority to political
subdivisions, or (d) submitted pursuant to section twenty-four of the
State Finance Law.
Section 2. Establishes the effective date.
JUSTIFICATION:
New York State legislators deliberate thousands of bills each legisla-
tive session, many of which entail direct or indirect fiscal impacts on
the State, and the political subdivisions within it. The Legislative Law
requires sponsors of bills to describe their fiscal impacts in sponsors'
memoranda. These brief statements often fail to identify the anticipated
economic impacts of legislative proposals. As a result, members vote on
bills of which they have little to no information regarding the fiscal
impacts.
The State of California, operating in a political and economic environ-
ment similar to that of New York, requires most legislative proposals to
undergo objective analyses of expected fiscal impacts for each of three
fiscal years following implementation. The California Assembly and
Senate attach to all legislation explicit fiscal memoranda prepared by
the fiscal committee of the respective legislative houses and distrib-
uted to committees and lawmakers when bills come before them.
The bill is based on regulations in California and other states govern-
ing disclosure of fiscal impacts. Under this chapter, the standing
committee to which a bill is referred must, prior to reporting such
bill; prepare an objective fiscal statement detailing the economic
impact of the bill on the state, county or local governments, school
districts or any other political entities which the bill may affect.
This statement, prepared with the advice of the appropriate fiscal
committee of that house, will be attached to the bill when reported by
the standing committee, and will remain a part of the bill throughout
the legislative process. This will help lawmakers make fully considered
decisions on managing the legislative and economic affairs of the State.
This bill does NOT require cost-benefit analysis, nor govern regulations
promulgated by state agencies. Rather, this bill simply requires a
detailed description of the economic impacts of bills to be given to
lawmakers to help them balance social and economic priorities. Lawmakers
should know that expense or savings will result from enacting legis-
lation put before them. Expanding fiscal note analysis and disclosure
promotes sound fiscal management.
PRIOR LEGISLATIVE HISTORY:
A. 6306 of 2003/2004
A. 3480 and S. 1968 of 2013/2014
A. 3422 and S. 1305 of 2001/2002
A.2718 and S. 926 of 1999/2000
A. 2497 and S. 4220 of 1997/1998
A. 9094 and S. 6468 of 1995/1996
A. 6824 and S. 3456 of 2011/2012
A. 5984 and S. 3829 of 2009/2010
A. 2441 and S. 7422 of 207/2008
A. 2054 of 2005/2006
FISCAL IMPLICATIONS:
There are potential savings to the State, and its political subdivision
through more complete disclosure of proposed expenditure prior to adopt-
ing bills with fiscal impacts.
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
4390
2015-2016 Regular Sessions
IN ASSEMBLY
January 30, 2015
___________
Introduced by M. of A. GALEF, MAGEE, GIGLIO, FAHY, KOLB, CORWIN, SKARTA-
DOS, GRAF, MONTESANO, KATZ, WALTER, STEC -- Multi-Sponsored by -- M.
of A. CERETTO, CROUCH, DUPREY, HAWLEY, LALOR, LOPEZ, McDONALD, McDO-
NOUGH, McKEVITT, RAIA, TEDISCO, THIELE -- read once and referred to
the Committee on Governmental Operations
AN ACT to amend the legislative law, in relation to fiscal impact notes
on bills and to repeal certain provisions of such law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 51 of the legislative law is REPEALED and a new
2 section 51 is added to read as follows:
3 § 51. Fiscal impact notes on bills affecting the state or political
4 subdivisions. 1. As used in this section:
5 (a) the term "political subdivision" means any county, city, town,
6 village, special district or school district, or any agency, authority,
7 commission, department or instrumentality thereof.
8 (b) the term "qualifying bill" means any bill or amendment to a bill
9 filed on or after the effective date of this section which establishes
10 or eliminates a state program, significantly changes services required
11 to be provided by such program, or results in a change in revenues or
12 expenses of the state or any political subdivision.
13 2. Before discharging qualifying bills from consideration, the senate
14 finance committee or the assembly ways and means committee shall prepare
15 for each such bill a fiscal impact statement clearly detailing the esti-
16 mated cost or savings entailed by such bill to the state and affected
17 political subdivision for the three fiscal years following adoption of
18 such bill. Such fiscal impact statement shall also provide the source or
19 sources of such estimates.
20 3. A fiscal impact statement required to be prepared under this
21 section shall be made and shall remain a part of the bill it describes,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00039-01-5
A. 4390 2
1 and shall be affixed to the bill before it is laid upon the members'
2 desks for consideration.
3 4. In determining the fiscal impacts of a bill, the senate finance
4 committee and assembly ways and means committee shall estimate such
5 impacts on the basis of any or all of the following:
6 (a) individual political subdivisions;
7 (b) aggregates of political subdivisions either statewide or by a
8 lesser geographic area;
9 (c) representative political subdivisions with relevant character-
10 istics such as population, area, average income, weighted average daily
11 attendance of pupils, or any other relevant characteristics appropriate
12 to the estimate; or
13 (d) any other appropriate, convenient or accessible grouping of char-
14 acteristics or political subdivisions.
15 5. Estimated or actual fiscal impacts disclosed under this section
16 shall be reported in units of money, services, personnel, equipment, or
17 any other appropriate, convenient or accessible unit or units of meas-
18 urement.
19 6. If the estimates contained in a fiscal impact statement are inaccu-
20 rate, such inaccuracies shall not affect, impair or invalidate such
21 bill.
22 7. Fiscal impact statements shall not be required for bills: (a)
23 subject to the provisions of section fifty of this article, or (b)
24 accompanied by special home rule requests submitted by each affected
25 political subdivision, or (c) which provide only discretionary authority
26 to political subdivisions, or (d) submitted pursuant to section twenty-
27 four of the state finance law.
28 § 2. This act shall take effect on the first of January next succeed-
29 ing the date on which it shall have become a law.
