SENATE, No. 139
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Senators LYNCH and KENNY
An Act requiring the preparation of fiscal notes for all bills having a potential fiscal impact on State or local government and concerning legislative procedures for the consideration of such bills, amending P.L.1980, c.67 and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1980, c.67 (C.52:13B-6) is amended to read as follows:
1. Whenever any bill is introduced in either the Senate or General Assembly, and that bill receives first reading pursuant to the rules of the House in which it is introduced, the bill shall be immediately reviewed by the Legislative Budget and Finance Officer in the Office of Legislative Services. If, upon his review, the Legislative Budget and Finance Officer determines that the bill will not increase or decrease expenditures or increase or decrease revenues of the State or any political subdivision thereof, he shall certify that fact, on a statement signed by him and filed in his office. If he determines that the bill may increase or decrease expenditures or increase or decrease revenues of the State or any political subdivision thereof, he shall immediately forward a statement to the sponsor and the chairman of the committee, if any, to which the bill was referred, or to the presiding officer of the House in which the bill originated if no such reference was made, that, in his judgment, a fiscal note is required to be prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.). [If the sponsor, or the committee chairman, or the presiding officer request it] Thereupon, the Legislative Budget and Finance Officer shall immediately forward a request for a fiscal note to the Director of the Division of Budget and Accounting in the Department of the Treasury.
(cf: P.L.1980, c.67, s.1)
2. Section 2 of P.L.1980, c.67 (C.52:13B-7) is amended to read as follows:
2. a. It shall be the duty of the director, upon receipt of a request for a fiscal note, to forward the request within 5 business days to the State department, commission or agency which would be authorized or required to carry out the purposes of the bill or, if the bill would affect the expenditures or revenues of any political subdivision of the State, to the State department, commission or agency having the most adequate information pertaining thereto.
b. Within 20 business days after receiving a request for a fiscal note from the director, the State department, commission or agency shall prepare and return to him a fiscal note containing the most accurate estimate possible, in dollars, concerning the amount by which expenditures or revenues will be increased or decreased for the State or any of its political subdivisions. The fiscal note shall contain information relating to as many fiscal years as can reasonably be foreseen, as determined by the Legislative Budget and Finance Officer, and may include any additional information, data, calculations, comments or observations the purpose of which is to provide a more accurate portrayal of the fiscal implications of the bill for which the fiscal note is prepared.
c. Within 5 business days after receiving a fiscal note from a State department, commission or agency, the director shall return the fiscal note to the Legislative Budget and Finance Officer. The director shall include with the fiscal note a statement (1) concurring with the fiscal note, (2) suggesting alternative dollar amounts, or (3) indicating any other information which he deems relevant.
(cf: P.L.1980, c.67, s.2)
3. (New section) a. Except as provided in subsection b. of this section, no bill for which a fiscal note is required shall be reported by any committee to which the bill has been referred unless a fiscal note or legislative fiscal estimate has been completed and made available to all members of the committee prior to the time of a committee vote on a motion to report the bill.
b. Notwithstanding the provisions of subsection a. of this section, a bill for which a fiscal note is required but for which no fiscal note or legislative fiscal estimate has been completed, may be reported by a committee, but only after the adoption of a separate motion to consider such bill for purposes of reporting. The motion to consider such bill for purposes of reporting shall be voted upon by recorded roll call vote and shall be carried by not less than a two-thirds vote of the authorized committee membership.
c. A bill reported by a committee pursuant to subsection b. of this section without a fiscal note or legislative fiscal estimate shall have included within the committee statement accompanying such bill a separate statement identical or substantially similar to the following: "This bill is reported by the (name) Committee without a fiscal note or legislative fiscal estimate pursuant to section 3 of P.L. . ., c. . . . (C. . . )(now pending before the Legislature as this bill). The committee moved to consider the bill for purposes of reporting by a vote of (number) , with the following committee members voting in the affirmative on the motion: (names) ; the following committee members voting in the negative on the motion: (names) ; and the following committee members abstaining on the motion: (names) .
4. (New section) No bill for which a fiscal note is required shall be considered on third reading by either house of the Legislature unless a fiscal note or legislative fiscal estimate has been completed and made available to all members of the house at least twenty-four hours in advance of consideration of the bill; except that, upon a motion carried by a recorded roll call vote of not less than three-fourths of the authorized membership of the house, a bill may be considered on third reading which requires a fiscal note, but for which neither a fiscal note or a legislative fiscal estimate has been completed and made available.
5. This act shall take effect immediately except that sections 3 and 4 shall take effect 30 days following enactment.
STATEMENT
The purpose of this bill is to require that a fiscal note be prepared on every bill for which there is a potential fiscal impact to the State or to a political subdivision, as certified by the Legislative Budget and Finance Officer in the Office of Legislative Services (OLS). Currently, fiscal notes are prepared only at the direction of the bill sponsor, the chairperson of the committee to which the bill has been referred or the presiding officer of the house of origin. This bill would also empower the Legislative Budget and Finance Officer to determine the scope of the estimates that will be required to prepare an accurate and informative fiscal note. At the present time, fiscal notes generally cover only the current fiscal year and the next two succeeding fiscal years.
The bill further provides that no bill which requires a fiscal note shall be reported by any committee of the Legislature unless a fiscal note or legislative fiscal estimate (a document prepared by OLS in the absence of having received fiscal note information from the Executive branch) has been completed and made available to the members of the committee prior to a vote on reporting the bill. An exception is allowed whereby a bill without a fiscal note or legislative fiscal estimate may be reported from committee by simple majority vote if at least two-thirds of the members of the committee first approve a separate motion to consider the bill for purposes of reporting, notwithstanding the absence of the required fiscal information. When a bill is reported under this exception, the committee statement will reflect the vote on the motion to consider, along with the names of the committee members and how they voted on the motion.
A similar restriction would apply to house consideration of a bill requiring a fiscal note. No such bill could be considered on third reading in either house of the Legislature unless a completed fiscal note or legislative fiscal estimate were made available to all house members at least twenty-four hours in advance of consideration. An exception is allowed for consideration and subsequent action provided that at least three-fourths of the full membership of the house first approve a motion to allow house consideration on third reading, despite the absence of the required fiscal information.
Requires fiscal note to be prepared on all bills with potential fiscal impact on State or local government; prescribes legislative procedure on such bills.