Agenda Item 15
July 27,2010
Introduction
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
Robert H. Drummer, Senior Legislative Attorney
M
Legislative Branch­
Introduction:
Expedited Bill 43-10, Administration
County Council - Fiscal Impact Statements
Expedited Bill 43-10, Administration Legislative Branch - County Council Fiscal
Impact Statements, sponsored by Councilmember Knapp, Council President Floreen, Council
Vice President Ervin, and Councilmembers Andrews and Trachtenberg, is scheduled to be
introduced on July 27,2010. A public hearing is tentatively scheduled for September 21 at 1:30
p.m.
A complete fiscal impact statement is an important tool for the Council to review in
making public policy decisions necessary to enact legislation. The Code does not currently
require a fiscal impact statement. A recent report from the Office of Legislative Oversight
(OLO) concluded that fiscal impact statements should be made uniform and required for each
bill.
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Bill 43-10 would require the Director of OMB to submit a fiscal impact statement to the
Council for each bill under consideration before Council action. The Bill would also establish a
time line for submission and the required content for the statement.
This packet contains:
Expedited Bill 43-10
Legislative Request Report
Circle
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F:ILAW\BILLS\1043 Fiscal And Economic Impact Statementslintro Memo FiscaLDoc
The OLO report is available online at
http://www .montgomervcountymd.gov!content!council/o!o!reports!pdfIFIN ALReport20 10-10.pdf
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Expedited Bill No.
:!;43~-...!..:1O~_-:----:-:-:-:-_
Concerning: Administration - Legislative
Branch - County Council - Fiscal
Impact Statements
Revised: July 22, 2010 Draft No.
_3_
Introduced:
July 27.2010
Expires:
January 27,2012
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _ _ _ _ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmember Knapp, Council President Floreen, Council Vice President Ervin, and
Councilmembers Andrews and Trachtenberg
AN EXPEDITED ACT
to:
(l)
require the Executive to submit a statement to the Council describing the fiscal
impact of a bill before Council action; and
(2)
generally amend the law governing the consideration of bills by the Council.
By adding
Montgomery County Code
Chapter 2, Administration
Article IV, Legislative Branch
Section 2-81A
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill,
The County Council for Montgomery County, Maryland approves the following Act:
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EXPEDITED BILL
No. 43-10
1
Sec. 1. Section 2-81A is added as follows:
2-81A. Fiscal Impact Statements
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Definitions.
In
this Section, the following words and phrases have the
following meanings:
Director
means the Director of the Office of Management and Budget.
Fiscal impact
means an estimate of changes in future County revenue
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and expenditures attributable to
f!
change in the law.
(hl
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Fiscal impact statements.
The Director must submit
f!
statement to the
Council describing the fiscal impact, if any, of each bill under
consideration
Qy
the Council. The Director must submit
f!
separate
statement for each bill.
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Time fOr submission.
A fiscal impact statement should be submitted to
the Council:
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no later than
1
days before the public hearing on each bill
introduced
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the Council President at the request of the County
Executive; and
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no more than 21 days after
f!
bill sponsored
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f!
Councilmember
is introduced.
Content gffiscal impact statement.
Each fiscal impact statement must
include:
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the sources of information, assumptions, and methodologies
used;
an estimate of changes in County revenues and expenditures
regardless of whether the revenues or expenditures are assumed
in
f!
recommended or approved budget;
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revenue and expenditure estimates covering at least the next
.Q
fiscal years;
@f:\laW\biUS\1043fiscal and economic impact statements\bill3 fiscal.doc
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ExPEDITED BILL
No. 43-10
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an actuarial analysis through the entire amortization period for
each bill that would affect retiree pension or group insurance
costs;
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later actions that may affect future revenue and expenditures if
the bill authorizes future spending;
®
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([}
an estimate of the staff time needed to implement the bill;
an explanation of how the addition of new staff responsibilities
would affect other duties;
an estimate of costs when an additional appropriation is needed;
~
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(2)
description of any variable that could affect revenue and cost
estimates;
(lQ)
ranges of revenue or expenditures that are uncertain or difficult to
project; and
(ill
if
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bill is likely to have no fiscal impact, why that is the case.
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Compliance.
Council action on
f!
bill that is otherwise valid is not
invalid because of any failure to follow the requirements ofthis Section.
Sec. 2.
Expedited Effective Date.
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
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Approved:
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Narrey Floreen, President, County Council
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill
43-10
Administration - Legislative Branch - County Council- Fiscal Impact Statements
DESCRIPTION:
The Bill would require the Director of OMB to submit a fiscal impact
statement to the Council for each bill under consideration by the
Council. The Bill would also establish a timeline for submission and
the required content for the statement.
A complete fiscal impact statement is an important tool for the
Council to review in making public policy decisions necessary to
enact legislation. The Code does not currently require a fiscal impact
statement. A recent report from the Office of Legislative Oversight
(OLO) concluded that fiscal impact statements should be made
uniform and required for each bill.
To enhance the information available to the Council when making
public policy decisions necessary to enact legislation.
OLO,OMB
To be requested.
To be requested.
To be requested.
Maryland law requires fiscal impact statements for state legislation.
Robert H. Drummer, Senior Legislative Attorney
NA
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
NA
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