As the curtains close on policy committee hearings in the first
house, our legislative spotlight now shifts dramatically towards
the fiscal committees. In the weeks ahead, bills will navigate
through a labyrinth of legislative deadlines, each more critical
than the last. Amidst this intricate dance of governance, the
fate of many bills hinges on a pivotal distinction: their fiscal
impact on the state as determined by the Office of Legislative
Counsel.
Nonfiscal bills, those without a financial impact on the state,
are not required to undergo review in an Assembly or Senate
fiscal committee as they progress through the legislative
process. They generally adhere to later legislative calendar
deadlines than fiscal bills. Bills are considered “fiscal bills”
if they contain an appropriation of funds, require a state agency
to spend money for any purpose, or result in a substantial loss
of revenue to the state. These bills necessitate review in both
fiscal and appropriate policy committees. The term “fiscal
committees” refers to the Senate Appropriations Committee and the
Assembly Appropriations Committee, as shorthand.
Upon approved by policy committees, nonfiscal bills proceed to
the floor of that house [Assembly or Senate] for a vote of the
full house. Fiscal bills, however, must first pass out of the
fiscal committee of the respective house by a specified deadline
before reaching the floor. This year’s deadline for policy
committees to review legislation with fiscal impacts introduced
in the house of origin was Friday, April 26. Policy committees
had until Friday, May 3 (an extra week) to hear nonfiscal bills
introduced in that house and report those bills to the floor.
Fiscal committees have only two weeks to hear and report fiscal
bills to the floor, ending on Friday, May 17. Any fiscal bill not
passed out of a fiscal committee by this deadline is considered
“dead” unless it receives a rule waiver allowing for further
consideration. Due to cost concerns, particularly during deficit
years, many bills are held in fiscal committees by being set
aside in the “suspense file” and never taken up for a vote to
pass out of the committee. Alternatively, fiscal bills may be
significantly amended by a fiscal committee to reduce cost
impacts without the consent of the bill’s author.
Amidst this flurry of legislative fiscal considerations, the
governor announced that he will release the annual revision to
the proposed state budget for the upcoming fiscal year on Friday,
May 10.
