FISCAL ANALYSIS PROCESS

House Bill 4679 (H-2) as Enrolled

Sponsor:  Rep. Jim Lilly

Committee:  Government Operations

Complete to 9-6-18

SUMMARY:

House Bill 4679 would amend the Legislative Council Act to create a statutory fiscal analysis process for both the House and Senate Fiscal Agencies. 

The bill would require that for each bill scheduled for a hearing in a house or senate standing committee, the respective fiscal agency prepare a fiscal analysis containing all of the following:

·         A summary explaining the bill’s changes to existing law.

·         An estimate of the bill’s potential impact on governmental revenues and expenditures, including which funds would be affected and any potential impact on federal funds.

If a bill would change state taxes or fees, an analysis could include an estimate of the impact on taxpayers as well as any other information the fiscal agencies consider necessary to explain the fiscal impact of a bill, including the impact to local units of government.

           

The bill would require that the fiscal agencies provide analyses to the committee clerk and to the public via the internet.  The bill also requires the fiscal agencies to prepare revised analyses to incorporate subsequent changes to a bill.

The bill would take effect 90 days after its enactment date.

Proposed MCL 4.1502 and 4.1602

FISCAL IMPACT:

House Bill 4679 would have no fiscal impact on state or local government as it basically codifies the current practices of the 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.

                                                                                               Fiscal Analysts:   Mary Ann Cleary

                                                                                                                           Bethany Wicksall

■ 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.