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Bill Summary · SB 1063

Summary of Bill SB 1063 (Session 2025, North Carolina)

Title

Fiscal Note for All Bills Considered. (Public)

Purpose and Intent

  • To require comprehensive fiscal notes for all bills and resolutions considered by the General Assembly before they are acted upon.
  • The bill aims to improve transparency and early understanding of the financial impact of proposed legislation on the state budget and related resources.

Key Provisions

Section 1: Expansion of Long-Term Fiscal Notes (G.S. 120-36.7)

The bill expands and refines the existing framework for fiscal notes in several areas:

  1. Long-Term Budget Outlook (existing framework retained)

    • Budget outlook must cover a five-year period.
    • Fiscal impact analyses of proposed legislation must estimate effects for the first five fiscal years the measure would be in effect.

  2. State Buildings (new/focused analysis)

    • Upon request, the Fiscal Research Division must prepare a fiscal analysis for proposed legislation that would appropriate funds for a State building.
    • The analysis must estimate projected maintenance and operating costs for the first 20 fiscal years after completion.

  3. New State Programs (new analysis)

    • Upon request, the Fiscal Research Division must prepare a fiscal analysis for proposed legislation creating a new State program.
    • The analysis must identify and estimate all personnel costs for the first five fiscal years of operation.
    • It must include a five-year estimate of space requirements, indicate whether existing State-owned facilities can meet those needs, and estimate costs for occupying leased space if needed.

  4. Increases in Incarceration (new/attached fiscal note requirement)

    • Any bill or resolution proposing changes that could increase incarceration length or the number of incarcerated individuals (even if not previously required to have a fiscal note) shall not be scheduled for committee until a fiscal note is prepared.
    • The fiscal note must be prepared by the Fiscal Research Division and attached to the bill at the time of consideration.
    • The bill’s fiscal note must cover:
      • The first five fiscal years of the proposed change.
      • All costs associated with the proposed changes.
    • Special note requirements:
      • State Buildings: If funds are appropriated, include maintenance/operating costs for the first 20 fiscal years post-completion.
      • New Programs: Identify all personnel costs for the first five years, plus space requirements (five-year outlook) and whether existing facilities can accommodate needs; include costs for leased space if applicable.
      • Incarceration Increases: If the change could increase incarceration, prepare the note in consultation with the Sentencing Policy and Advisory Commission; include costs for the net increase in incarceration (including capital outlay costs if more cell space is needed) for five years.
    • If no dollar estimate is possible, the note must state why.
    • No evaluative comment on merits is allowed in the fiscal note; technical/ mechanical notes may be included.
    • Process timing: The sponsor must provide a copy of the bill to the Fiscal Research Division; the division must prepare and deliver the fiscal note within two weeks of the request, unless an extension is agreed.

  5. Attachment and Handling

    • If a bill or resolution is reported favorably with amendments affecting incarceration, the chair must obtain and attach a fiscal note to the amended bill or resolution.

Section 2: Appropriation for Fiscal Note Implementation

  • Appropriates $50,000 in nonrecurring General Fund money for the 2026-2027 fiscal year to implement the act.

Section 3: Effective Date

  • The act becomes effective upon becoming law.

Who and What Is Affected

  • State Legislature and Committees: Requires mandatory fiscal notes before consideration of bills/resolutions that affect budgets, state buildings, new programs, or incarceration.
  • Fiscal Research Division: Responsible for preparing the detailed fiscal notes (budgetary, programmatic, facilities, and incarceration-related analyses).
  • Legislative Members and Sponsors: Must submit bills to the Fiscal Research Division to obtain notes; notes must accompany favorable reports or be attached to amendments as specified.
  • State Agencies and Programs: Entities proposing new programs, state buildings, or changes impacting incarceration will be analyzed for personnel costs, space needs, and operating costs.

Procedural and Timeline Aspects

  • Fiscal notes must cover specified time horizons (e.g., five-year and, for buildings, twenty-year operating estimates).
  • Notes must be attached to bills/resolutions reported favorably and must be ready within two weeks of the sponsor’s request, subject to extensions.
  • A separate appropriation is provided to fund the note preparation efforts (nonrecurring $50,000 for 2026-2027).

Potential Impact

  • Increases transparency of fiscal implications for proposed legislation.
  • May influence bill scheduling and consideration by ensuring cost analyses are available early.
  • Could affect passage timing for measures with notable fiscal or incarceration-related effects due to mandatory notes before committee consideration.

Compiled from official sources — confirm details with the bill’s official record.

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