Agenda Item 18
September 21, 2010
Public
Hearing
MEMORANDUM
TO:
FROM:
SUBJECT:
County Council
Robert H. Drummer, Senior Legislative Attorney
(;\
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Legislative Branch ­
Public
Hearing: 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, Trachtenberg, EIrich, Leventhal, Navarro,
and Berliner was introduced on July 27, 2010. A Management and Fiscal Policy Committee
worksession is tentatively scheduled for September 27 at 10:30 a.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
I
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
timeline for submission and the required content for the statement. A Bill would not be subject
to challenge solely because OMB failed to timely submit a fiscal impact statement to the
CounciL
This packet contains:
Expedited Bill 43-10
Legislative Request Report
F;\LAW\BILLS\1043 Fiscal Impact Statements\Public Hearing Memo Fiscal.Doc
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The OLO report is available online at
http://www.montgomerycountymd.gov/content/counciI/olo/reportsipdf/FINALReport20 I 0-1 O.pdf
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Expedited Bill No.
~43::..-...!.:10~
_ _ _ __
Concerning: Administration - Legislative
Branch - County Council - Fiscal
Impact Statements
Revised: July 28. 2010
_ _ _ _ Draft No. _----!.4_ __
Introduced:
Julv 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, Trachtenberg, EIrich, Leventhal, Navarro, and Berliner
AN EXPEDITED ACT
to:
(1)
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]
UQuble 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 ofthe Office of Management and Budget.
Fiscal impact
means an estimate of changes in future County revenue
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and expenditures attributable to
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change in the law.
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Fiscal impact statements.
The Director must submit
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statement to the
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Council describing the fiscal impact, if any, of each bill under
consideration
Qy
the CounciL The Director must submit
statement for each bill.
~
separate
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{£}
Time/Or submission.
A fiscal impact statement should be submitted to
the Council:
ill
no later than
1
days before the public hearing on each bill
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introduced
Qy
the Council President at the request of the County
Executive; and
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no more than 21 days after
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bill sponsored
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Councilmember
is introduced.
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Content gffiscal impact statement.
Each fiscal impact statement must
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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
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recommended or approved budget;
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revenue and expenditure estimates covering at least the next
Q
fiscal years;
@
f:\law\bills\1043 fiscal impact statements\bill4.doc
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EXPEDITED BILL
No. 43-10
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ill
an actuarial analysis through the entire amortization period for
each bill that would affect retiree pension or group insurance
costs;
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®
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([}
(2}
later actions that may affect future revenue and expenditures if
the bill authorizes future spending;
an estimate ofthe 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;
£!
description of any variable that could affect revenue and cost
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estimates;
QQ)
ranges of revenue or expenditures that are uncertain or difficult to
project; and
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.QD
if
£!
bill is likely to have no fiscal impact, why that is the case.
W
Compliance.
Council action on
£!
bill that is otherwise valid is not
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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.
becomes law.
This Act takes effect on the date on which it
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Approved:
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Nancy Floreen, President, County Council
Date
f:\law\bills\1043 fIScal impact statements\bill4.doc
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LEGISLA'"IVE REQUEST REPORT
Expedited Bill 43-10
Administration - Legislative Branch - County Council
Fiscal Impact Statements
DESCRIPTION:
The Bill would require the Director ofOMB 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
(aLa) 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.
aLa, 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:
COORDINA TION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
NA
F:\LAW\BILLS\I
043
Fiscal And Economic Impact Statements\LRR Fiscal.Doc