HOUSE AND SENATE FISCAL NOTES

House Bill 4679 as introduced

Sponsor:  Rep. Jim Lilly

Committee:  Government Operations

Complete to 6-19-17

SUMMARY:

The bill would amend the Legislative Council Act to apply to fiscal notes prepared by the House and Senate Fiscal Agencies for the legislature.  The bill contains two sections, one applying to the Senate and Senate Fiscal Agency, the other to the House and House Fiscal Agency.  Under the bill:

·         Each fiscal agency would be required to prepare a fiscal note for each bill assigned to a standing committee, with that note to contain (1) a description and an accounting of how the legislation would affect costs or revenues for the state; and (2) a description and an accounting of how the legislation would affect costs or revenues for local units of government.

·         Before a vote by a standing committee, the agency must distribute the fiscal note to the members of the committee.  If a bill is discharged from committee, the agency must distribute the fiscal note to all members of the body before a vote on the bill.

·         The House and Senate could not consider a bill on Third Reading unless the required fiscal note had been distributed to each member.

MCL 4.1502 & 1602

FISCAL IMPACT:

The bill could create additional costs for the state House and Senate Fiscal Agencies.  It is the current practice of both fiscal agencies to try to provide a summary and fiscal analysis on every bill that is taken up in a legislative committee or on the floor, and it is rare that they fail to do so; however, the agencies' ability to do so is subject to the availability of data and the amount of advance notice that a bill is scheduled for a committee meeting or action on the floor. The agencies would require additional staff to meet the bill's requirement that a fiscal note be prepared for every bill assigned to a standing committee, whether or not scheduled for a hearing; this would include all bills introduced in the House and Senate. 

The requirement that the House or Senate could not vote on a bill on Third Reading without a fiscal note could lead to delay in cases when bills are being substituted or amended on the floor without much notice. 

                                                                                         Legislative Analyst:   Chris Couch

                                                                                                 Fiscal Analyst:   Mary Ann Cleary

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.