Interim study on transferring fiscal note production from executive branch to legislative branch

2025 Regular Session Introduced by Katie Sullivan

HJ 40 directs an interim study to move fiscal-note production from the executive to the Legislature, assessing feasibility, costs, data needs, and required legal changes.

(H) Filed with Secretary of State

#legislature #interimstudies #statefinance(seealso:appropriations;taxationsubjects)

Summary — HJ 40

Title: Interim study on transferring fiscal note production from executive branch to legislative branch
Bill type: Joint Resolution
Sponsor: Rep. Katie Sullivan (primary)
Introduced: March 05, 2025 (drafter assigned); formally introduced March 29, 2025
Status: Filed with Secretary of State (H) — final chamber actions completed May 6, 2025

Purpose / Intent

HJ 40 authorizes an interim legislative study to evaluate the feasibility, costs, legal issues, and operational requirements of moving responsibility for preparing fiscal notes (estimates of the fiscal impact of proposed legislation) from the executive branch to the legislative branch. The study is intended to inform whether statutory, budgetary, or organizational changes should be pursued to shift fiscal-note production to the Legislature.

Key elements (as described or implied by the resolution title)

Directs an interim study to examine transferring fiscal-note production from executive agencies to a legislative office or unit.

Tasks the study with identifying:

Organizational models (centralized legislative fiscal office, committee-based support, contracted services).
Staffing and expertise needs (economists, budget analysts, tax experts).
Data access and confidentiality requirements to produce accurate estimates.
Projected start-up and ongoing costs, and potential savings or efficiencies.
Statutory and constitutional changes needed to effect the transfer.
Timelines and transition plans to avoid disruptions to the legislative session.

Requires a report of findings and recommendations to the Legislature (typical for interim studies), though specific reporting deadlines are not provided in the available record.

Who would be affected

Legislature: potential new or expanded legislative fiscal office, changes in legislative workflows and timelines.

Executive branch and state agencies: loss of a statutory or traditional role in preparing fiscal notes; need to provide data and cooperate with the legislative unit.

Governor’s budget office, Department of Revenue, and other central fiscal agencies: operational interface changes.

Lawmakers and committees: different timing/format for fiscal information used in bill consideration.

Taxpayers and stakeholders: possible changes in transparency, timeliness, and perceived independence of cost estimates.

Procedural timeline / status

Introduced (H) March 29, 2025; referred to House Legislative Administration Committee.

House hearings and committee report April 2–8, 2025; House passed 3rd reading April 18, 2025.

Transmitted to Senate April 18; Senate Legislative Administration hearings April 23; Senate concurred April 29.

Enrolled and signed by Speaker and President; filed with Secretary of State May 6, 2025.

Potential impacts and issues to consider

Cost to create and staff a legislative fiscal office vs. current costs under executive production of fiscal notes.

Independence and neutrality of fiscal estimates; potential benefits to legislative autonomy.

Access to agency data, modelling tools, and confidential information.

Need for statutory amendments to reassign duties and funding streams.

Transition planning to avoid delays in session-related fiscal analysis.

Related bill: LC 4440 (replaces).