RELATING TO OFFICE OF LEGISLATIVE ANALYST.

HB296

HOUSE OF REPRESENTATIVES

H.B. NO.

296

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to office of legislative analyst
.

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

����
SECTION 1.
�
The
legislature finds that numerous states incorporate fiscal notes into their legislative
process, which increase public transparency by disclosing the potential
financial impact a measure would have on the state and local government.
�
The Council of State Governments reports that
forty-four states include "projected future cost" in their bill
notes.
�
Some states require fiscal notes
in their house rules, while others require them in statute.
�
In contrast, Hawaii does not require fiscal
notes to accompany measures during the legislative process.
�
Therefore, representatives and senators are
forced to vote on measures without knowing the financial impact of their
decisions.
�
The purpose of this Act is to
require the office of legislative analyst to produce fiscal notes on all fiscal
bills.

SECTION
2
.
�
Section 21F-6,
Hawaii Revised Statutes, is amended to read as follows:

����
"[
[
]�21F-6[
]
]
�
Office
of the legislative analyst established.
�

(a)
�
There is established the
office of the legislative analyst [
to be administered by the committee]
.
�
The [
committee
]
legislature, by a
majority vote of each house in joint session,
shall appoint a legislative
analyst who shall serve for a period of four years.
�
The [
committee, by a three-fourths vote of
its members,
]
legislature, by a majority vote of each house in joint
session,
may remove the legislative analyst from office, but only for
cause.
�
[
The committee shall fix the
salary of the legislative analyst.
]
The salary of the legislative
analyst shall be the same as the salary of the director of the legislative
reference bureau.

����
(b)
�

The legislative analyst may employ [
other clerical and technical
employees
]
a first assistant and other employees
as may be necessary
to carry out the functions of the office.
�

The legislative analyst
, first assistant
and other [
clerical
and technical
] employees shall be entitled to participate in any employee
benefit program plan or privilege generally available to state employees."

����
SECTION
3
.
�
Section 21F-7,
Hawaii Revised Statutes, is amended to read as follows:

����
"[
[
]�21F-7[
]
]
�
General
purposes of analyst.
�
(a)
�
The purpose of the office of the legislative
analyst shall be:

����
(1)
�
To provide the
legislature with research and analysis of current and projected state revenues
and expenditures;

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(2)
�
To provide the
legislature with a report analyzing the governor's proposed levels of revenue
and expenditures for biennial budgets submitted under chapter 37 as well as
other supplemental budget submittals to the legislature by the governor;

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(3)
�
To provide an
analysis of the impact of the governor's proposed revenue and expenditure plans
for the next biennium;

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(4)
�
To conduct
research matters of economic and fiscal policy and to report to the legislature
on the result of the research;

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(5)
�
To provide
economic reports and studies on the state of the State's economy, including
trends and forecasts for consideration by the legislature;

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(6)
�
To conduct budget
and tax studies and provide general fiscal and budgetary information;

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(7)
�
To review and make
recommendations on the operation of state programs in order to appraise the
implementation of state laws regarding the expenditure of funds and to
recommend means of improving their efficiency; [
and
]

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(8)
�
To recommend to
the legislature changes in the mix of revenue sources for programs, in the
percentage of state expenditures devoted to major programs, and in the role of
the legislature in overseeing state government expenditures and revenue
projections[
.
]
; and

����
(9)
�
To prepare a
fiscal note to accompany each fiscal bill before the measure is recommended for
passage by each house committee or senate committee of the legislature to which
the measure is referred.

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(b)
�

In performing the duties under subsection (a), the legislative analyst
shall consider, among other things:

����
(1)
�
The relative
dependence on state tax revenues, federal funds, and user fees to support
state-funded programs, and whether the existing mix of revenue sources is
appropriate, given the purposes of the programs;

����
(2)
�
The relative
percentages of state expenditures that are devoted to major programs such as
education, assistance to local government, aid to individuals, state agencies
and institutions, and debt service; and

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(3)
�
The role of the
legislature in overseeing state government expenditures, including legislative
appropriation of money from the general fund, legislative appropriation of
money from funds other than the general fund, state agency receipt of money
into revolving and other dedicated funds and expenditure of money from these
funds, and state agency expenditure of federal funds."

����
SECTION
4
.
�
Section 21F-8,
Hawaii Revised Statutes, is amended to read as follows:

����
"[
[
]�21F-8[
]
]
�
Agencies
to cooperate.
�
(a)
�
All departments, agencies, and education
institutions of the executive and judicial branches, the office of Hawaiian
affairs, and the University of Hawaii shall comply with requests of the office
of the legislative analyst for information, data, estimates, and statistics on
the funding revenue operations, and other affairs of the department, agency,
education institution, the office of Hawaiian affairs, or University of
Hawaii.
�
The comptroller, the director of
finance, the director of taxation, the administrative director of the courts,
the administrator of the office of Hawaiian affairs, and the president of the
University of Hawaii shall provide the office of the legislative analyst with
full and free access to information, data, estimates, and statistics in the
possession of their respective departments on the state budget, revenue,
expenditures, and tax revenue and expenditures.

����
(b)
�
All departments, agencies, and education
institutions of the executive and judicial branches, the office of Hawaiian
affairs, the University of Hawaii, and county departments and agencies shall promptly
provide any information requested by the legislative analyst for preparing a
fiscal note, including but not limited to an estimate, in dollars, of the
amount by which the bill would increase or decrease the revenues or
expenditures received of made by the department, agency, or office.
"

����
SECTION 5.
�
Chapter 21F, Hawaii Revised Statutes, is
amended by adding a new section to be appropriately designated and to read as
follows:

����
"
�
21F
-_
�
Fiscal
notes.
�
(a)
�
A fiscal note, where possible, shall:

����
(1)
�
Cite the effect
of the measure in dollar amounts;

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(2)
�
Cite the
statutory provisions affected;

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(3)
�
Estimate the
increase or decrease in revenues or expenditures by the state or counties;

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(4)
�
Include the
costs which may be absorbed without additional funds;

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(5)
�
Include the
assumptions used in determining the cost estimates; and

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(6)
�
Specify any
long-range implication.

����
(b)
�
A fiscal note may comment on technical or
mechanical defects in the bill but shall express no opinions concerning the
merits of the proposal.

����
(c)
�
A copy of the fiscal note shall be delivered
to the chair of the senate committee on ways and means, the chair of the house
committee on finance, the chairs of the standing committees to which the bill
has been referred, and to the first primary introducer of the bill.
�
No committee shall make a decision regarding
disposition of a fiscal bill without having received a completed fiscal note
for review and informed decision making.

����
(d)
�
Any fiscal note produced by the office of the
legislative analyst for a measure up for consideration shall be a legislative
document attached as an addendum to the measure's standing committee report and
shall be made available to the public.
"

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SECTION 6.
�
There is appropriated out of the general
revenues of the State of Hawaii the sum of $
����������
�
or so much thereof as may be necessary for
fiscal year 2025-2026 and the same sum or so much thereof as may be necessary
for fiscal year 2026-2027 for the operations of the office of the legislative
analyst, including the payment of salaries of the legislative analyst, first
assistant, and other employees as may be necessary, and the purchase of
necessary equipment.

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The sums

appropriated shall be expended by the office of the legislative
analyst for the purposes of this Act.

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SECTION 7.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

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SECTION 8.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Office of
Legislative Analyst; Fiscal Notes; Minority Caucus Package

Description:

Requires
the office of legislative analyst to produce fiscal notes on all fiscal bills.
�
Prohibits a committee from making a decision
on a fiscal bill without a fiscal note.
�
Mandates
that fiscal notes be made available to the public.
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.