RELATING TO LEGISLATIVE BUDGET OFFICE.

SB1081

THE SENATE

S.B. NO.

1081

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELating
to Legislative Budget office
.

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

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SECTION 1.
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The
legislature finds that the work of the legislature is hampered by a lack of
timely fiscal analysis regarding the impact of proposed legislation on the
revenues and expenditures of the State.
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Without a system of neutral fact-finding and
fiscal analysis, the work of estimating the fiscal impact of legislation falls
upon the shoulders of the members of the legislature and their staff,
individuals who may or may not possess the skills and training needed for such
an endeavor.
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Reports on the fiscal
impact of legislation produced by qualified personnel from a neutral,
nonpartisan point of view would serve as an important tool for the legislature
in the performance of its duties.

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The legislature further finds that fiscal
reports of legislation serve the interests of the public by providing an
additional resource to inform and educate the public on the fiscal impact of
the various proposals in the legislative process.
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The reports would promote transparency and
help demystify the legislative process for the public.

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The legislature further finds that the
existence of various legislative budget offices, whose duties involve the
production of fiscal notes and reports on the fiscal impact of proposed
legislation, at the federal and state level demonstrate the utility and
practicability of establishing a legislative budget office within the
legislature.

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The legislature also finds that Act 347,
Session Laws of Hawaii 1990, established a permanent legislative budget committee,
with the assistance of an office of the legislative analyst, to provide the
legislature with information, facts, and analyses concerning fiscal, budgetary,
and tax matters of the State.
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However,
the joint legislative budget committee and legislative analyst office has not
been implemented or funded since their inception.

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The purpose of this Act is to:

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(1)
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Establish
the legislative budget office to provide reports and notes on the fiscal impact
of legislation appearing before the legislature; and

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(2)
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Repeal
the existing non-functional joint legislative budget committee and office of
the legislative analyst.

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SECTION 2.
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The Hawaii Revised Statutes is amended by adding a new chapter to be
appropriately designated and to read as follows:

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Chapter

Legislative
Budget Office

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� -1
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Legislative budget office; director,
appointment, tenure, removal, compensation, vacancy.
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(a)
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There is established a legislative budget office.
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The legislature, by a majority vote of each
house in joint session, shall appoint a director for the office who shall serve
for a period of six years and thereafter until a successor shall have been
appointed.
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The legislature, by
two-thirds vote of the members in joint session, may remove or suspend the
director from office but only for neglect of duty, misconduct, or disability.

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(b)
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If
the director dies, resigns, becomes ineligible to serve, or is removed or
suspended from office, the first assistant to the director shall become the
acting director until a new director is appointed.

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(c)
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The salary of the director shall be the same as the salary of the
director of the legislative reference bureau.
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The salary of the director shall not be
diminished during the director's term of office, unless by general law applying
to all salaried officers of the State.

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� -2
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Assistant; staff.

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(a)
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The
director shall appoint a first assistant and other employees as may be
necessary to carry out the functions of the office.
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All employees, including the first assistant,
shall be hired by the director and shall serve at the director's pleasure.

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(b)
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In determining the salary of the employees of
the office, the director shall consult with the department of human resources
development; provided that the salary of the first assistant shall not be more
than ninety-two per cent of the salary of the director.

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(c)
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The director and the director's full-time
staff shall be entitled to participate in any employee benefit program plan or
privilege.

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� -3
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Duties.

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(a)
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In
any regular session of the legislature, if a bill introduced appears to affect
the revenues or expenditures of the State or a county, the legislative budget
office shall prepare a fiscal analysis of the bill before the bill is:

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(1)
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Recommended
for passage by each house committee or the senate committee of the legislature
to which the bill is referred; and

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(2)
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Taken
up for third reading and final reading by either house of the legislature.

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(b)
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The
fiscal analysis shall include an estimate, in dollars, of the amount by which
the bill would increase or decrease revenues or expenditures and any other
information the legislative budget office considers necessary to explain the
fiscal effect of the bill.

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(c)
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The
legislative budget office shall distribute copies of a fiscal analysis to:

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(1)
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The
primary introducer of the bill;

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(2)
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Each
standing committee member to which a bill is referred; and

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(3)
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Each
member of the house that is considering the bill for third reading and final
reading.

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(d)
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In
preparing a fiscal analysis, the legislative budget office may request any
state or county department, office, or agency to provide any of the following
information:

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(1)
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An
estimate, in dollars, of the amount by which the bill would increase or
decrease the revenues or expenditures received or made by the agency, officer,
or entity; and

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(2)
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Any
other information the legislative budget office considers necessary for it to
understand or explain the fiscal effect of the bill.

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(e)
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An
agency, officer, or entity shall comply with a request pursuant to subsection
(d) within five days after it receives the request.
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The legislative budget office shall specify
the manner of compliance in its request, and if necessary, may specify a longer
period of time than five days for compliance.
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The legislative budget office may consider any
information provided in preparing a fiscal analysis.

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(f)
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The
failure of the legislative budget office to prepare a fiscal analysis before a
bill is taken up for consideration by the house or senate committees, or by
either house for third reading or final reading shall not be construed to
impair the validity of any bill passed by either house of the legislature.

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� -4
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Publication of fiscal analyses and reports.

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(a)
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Any fiscal analysis produced by the
legislative budget office for a bill up for consideration shall be a
legislative document attached to the bill and made available to the public
through the legislature's website.

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(b)
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The
legislative budget office shall annually compile a volume of all completed
fiscal analyses and any other reports published by the legislative budget
office to be delivered to the legislative reference bureau reference
library."

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SECTION 3.
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Chapter 21F, Hawaii Revised Statutes, is repealed.

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SECTION 4.
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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
establishment and implementation of the legislative budget office.

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The sums

appropriated shall be expended by the legislature for the purposes
of this Act.

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SECTION 5
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This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Legislative
Budget Office; Fiscal Analysis; Appropriations

Description:

Establishes
the legislative budget office to produce fiscal analyses and reports on bills
impacting state or county finances.
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Repeals the joint legislative budget committee and the office of the
legislative analyst.
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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.