2013 Maryland Code
STATE GOVERNMENT
§ 2-1505 - Fiscal notes and waivers

§2-1505.

(a) Except as otherwise provided in this section, a committee may not vote on a bill unless:

(1) a fiscal note accompanies the bill; and

(2) if the bill affects the funding of a State pension system, an actuarial analysis of the bill is attached to or summarized in the note or the analysis is waived.

(b) (1) If a bill affects the funding of a State pension system and the standing committee to which the bill is referred determines that the fiscal impact on the State warrants an actuarial analysis of the bill, the standing committee shall ask the Department of Legislative Services to obtain the actuarial analysis.

(2) The standing committee may waive the actuarial analysis if the standing committee certifies that prompt action on the bill is needed to conduct legislative business.

(c) (1) The Executive Director of the Department of Legislative Services shall have that Department prepare a fiscal note for each bill.

(2) If the chairman of the committee to which a bill is referred certifies that prompt committee action on the bill is needed to conduct legislative business and, before the Department prepares the fiscal note for the bill, holds a hearing on the bill, the Department shall prepare the note as soon after the hearing as possible.

(3) When a standing committee asks for an actuarial analysis of a bill that affects a State pension system, the Department of Legislative Services shall:

(i) obtain the analysis; and

(ii) summarize the analysis in the fiscal note or attach the analysis to the note.

(4) The Department of Legislative Services shall send a copy of a fiscal note for a bill to the committee to which the bill is referred and to the primary sponsor of the bill.

(d) Upon request of the Department of Legislative Services, a unit of State or local government promptly shall provide any information requested by the Department for preparing a fiscal note.

(e) (1) A fiscal note for a bill shall contain an estimate of the fiscal impact of the bill on the revenues and expenditures of the State government and of local governments:

(i) during the year in which the bill is to become effective and the next 4 years after that year; and

(ii) if the full fiscal impact of a bill is not expected to occur during those years, during each year until and the first year during which that impact is expected to occur.

(2) If a bill, as introduced or amended, imposes a mandate on a local government unit, the fiscal note for the bill shall contain:

(i) a statement that clearly identifies the imposition of the mandate; and

(ii) an estimate of the fiscal impact of the mandate and, if applicable and if data is available, the effect on local property tax rates.

(3) If a bill, as introduced or amended, requires a mandated appropriation, the fiscal note for the bill shall contain:

(i) a statement that clearly identifies the imposition of the mandated appropriation; and

(ii) an estimate of the fiscal impact of the mandated appropriation.

(4) A fiscal note shall identify the sources of the information that the Department used in preparing the estimates of fiscal impact.

(f) As soon as possible after the adoption of an amendment that changes the fiscal impact of a bill, the Department of Legislative Services shall:

(1) prepare a revised fiscal note for the bill; and

(2) send the revised note:

(i) to the chairman of the committee to which the bill is referred in the house of origin;

(ii) if the bill has reached the opposite house, to the chairman of the committee to which the bill is referred in that house;

(iii) if the bill is in the custody of either the Secretary of the Senate or the Chief Clerk of the House, to that officer; and

(iv) to the primary sponsor of the bill.

(g) (1) The Department of Legislative Services shall keep a copy of each fiscal note for 3 years after preparation of the note.

(2) The copies shall be reasonably available for public inspection.

(h) Fiscal notes need not be published in the Senate journal or House journal.

(i) (1) A bill may be introduced without a fiscal note accompanying the bill.

(2) The validity of an enactment is not affected by the presence, absence, or content of the fiscal note.

(j) (1) (i) In its summary report of legislation enacted by the General Assembly that has a fiscal impact, the Department of Legislative Services shall include a list of legislation that:

1. affects local government units; or

2. requires a mandated appropriation in the annual budget bill.

(ii) In the list of legislation described in subparagraph (i)1 of this paragraph, the Department of Legislative Services shall indicate which legislation imposes mandates on local government units.

(2) Where applicable and if data is available, the report shall indicate:

(i) the fiscal impact of the bill on local government units;

(ii) the impact of the bill on local property tax rates;

(iii) the cumulative fiscal impact of all legislation imposing mandates on more than one local government unit; and

(iv) the cumulative fiscal impact of all legislation requiring mandated appropriations.

§ 2-1505 - 1. Economic impact analysis

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Economic impact analysis" means an estimate of the cost or the economic benefit to small businesses that may be affected by a proposed bill introduced at a session of the General Assembly.

(3) "Economic impact analysis rating" means an estimate that a proposed bill will have:

(i) minimal or no economic impact on small businesses; or

(ii) meaningful economic impact on small businesses.

(4) "Small business" means a corporation, partnership, sole proprietorship, or other business entity, including its affiliates, that:

(i) is independently owned and operated;

(ii) is not dominant in its field; and

(iii) employs 50 or fewer full-time employees.

(b) Preparation by Executive Branch agency. --

(1) An economic impact analysis rating and an economic impact analysis, as appropriate, shall be prepared by the appropriate Executive Branch agency for each bill that is introduced at the request of the administration or a department, agency, or commission of the Executive Branch of State government.

(2) A copy of the economic impact analysis rating and the economic impact analysis required under this subsection shall be submitted by the Governor's office:

(i) to the Department of Legislative Services within a reasonable time frame prior to the hearing on the bill to allow the Department to comment on the economic impact analysis rating and the economic impact analysis; and

(ii) to the committee to which the bill is referred prior to the hearing on the bill.

(c) Preparation by Department. --

(1) An economic impact analysis rating and an economic impact analysis, as appropriate, shall be prepared by the Department of Legislative Services for each bill that is introduced by a member of the General Assembly.

(2) A copy of the economic impact analysis rating and the economic impact analysis required under this subsection shall be submitted by the Department of Legislative Services:

(i) to the primary sponsor of the bill; and

(ii) to the committee to which the bill is referred prior to the hearing on the bill.

(d) Determination; written findings. --

(1) If the appropriate Executive Branch agency or the Department of Legislative Services determines that a bill will have minimal or no economic impact on small businesses, the agency or Department shall indicate that determination by a brief written statement.

(2) If the appropriate Executive Branch agency or the Department of Legislative Services determines that a bill will have a meaningful economic impact on small businesses, the agency or Department shall develop a complete written economic impact analysis.

(3) (i) If the appropriate Executive Branch agency or the Department of Legislative Services determines that a bill will have a meaningful economic impact on small businesses and is unable to provide a complete written economic impact analysis, the agency or Department shall provide a written explanation of why the agency determined that the bill will have a meaningful economic impact.

(ii) The explanation may identify the impact in general terms and need not quantify the specific economic impact.

(e) Factors. -- The economic impact analysis rating and the economic impact analysis required under this section shall include estimates directly relating to the following factors, as appropriate:

(1) cost of providing goods and services;

(2) effect on the workforce;

(3) effect on the cost of housing;

(4) efficiency in production and marketing;

(5) capital investment, taxation, competition, and economic development; and

(6) consumer choice.

(f) Consultation with other departments. --

(1) The Executive Branch agency or the Department of Legislative Services preparing the economic impact analysis rating and the economic impact analysis required under this section shall consult with, as appropriate:

(i) other units of State government;

(ii) units of local government; and

(iii) business, trade, consumer, labor, and other groups impacted by or having an interest in the legislation.

(2) On request of the Executive Director of the Department of Legislative Services, a unit of the State or a local government shall provide the Department with assistance or information in the preparation of an economic impact analysis rating and economic impact analysis.

(g) Fiscal note; comment. --

(1) The Department of Legislative Services may include an economic impact analysis rating and economic impact analysis prepared by the Department or by the appropriate Executive Branch agency as part of a fiscal note.

(2) The Department of Legislative Services may comment on the economic impact analysis rating and economic impact analysis prepared by the appropriate Executive Branch agency.

(h) Revision. -- The Department of Legislative Services may revise the economic impact analysis rating and economic impact analysis consistent with an amended version of a bill.

(i) Copies. --

(1) The Department of Legislative Services shall keep a copy of each economic impact analysis rating and economic impact analysis for 3 years after preparation of the rating or the analysis.

(2) The copies shall be reasonably available for public inspection.

(j) Publication. -- Economic impact analysis ratings and economic impact analyses need not be published in the Senate journal or House journal.

(k) Validity of bill. -- The validity of an enactment of a bill is not affected by the presence, absence, or content of an economic impact analysis rating or an economic impact analysis.

§ 2-1505 - 2. Economic impact analyses ratings and economic impact analyses of agency regulations on small businesses

(a) Definitions. --

(1) In this section the following words have the meanings indicated.

(2) "Committee" means the Joint Committee on Administrative, Executive, and Legislative Review.

(3) "Economic impact analysis" means an estimate of the cost or the economic benefit to small businesses that may be affected by a regulation proposed by an agency pursuant to Title 10, Subtitle 1 of this article.

(4) "Economic impact analysis rating" means an estimate that a proposed regulation will have:

(i) minimal or no economic impact on small businesses; or

(ii) meaningful economic impact on small businesses.

(5) "Small business" means a corporation, partnership, sole proprietorship, or other business entity, including its affiliates, that:

(i) is independently owned and operated;

(ii) is not dominant in its field; and

(iii) employs 50 or fewer full-time employees.

(b) Preparation; submission to Committee and Department of Legislative Services. --

(1) An economic impact analysis rating and an economic impact analysis, as appropriate, shall be prepared by the appropriate Executive Branch agency for each regulation that the agency proposes for adoption pursuant to Title 10, Subtitle 1 of this article.

(2) A copy of the economic impact analysis rating and the economic impact analysis required under this subsection shall be submitted by the appropriate agency:

(i) to the Department of Legislative Services no later than the time the agency submits the regulation to the Committee to allow the Department to comment on the economic impact analysis rating and the economic impact analysis; and

(ii) to the Committee at the time the agency submits the regulation to the Committee.

(c) Determination regarding impact; actions required. --

(1) If the appropriate Executive Branch agency or the Department of Legislative Services determines that a regulation will have minimal or no economic impact on small businesses, the agency or Department shall indicate that determination by a brief written statement.

(2) If the appropriate Executive Branch agency or the Department of Legislative Services determines that a regulation will have a meaningful economic impact on small businesses, the agency or Department shall develop a complete written economic impact analysis.

(3) (i) If the appropriate Executive Branch agency or the Department determines that a regulation will have a meaningful economic impact on small businesses and is unable to provide a complete written economic impact analysis, the agency or Department shall provide a written explanation of why the agency determined that the regulation will have a meaningful economic impact.

(ii) The explanation may identify the impact in general terms and need not quantify the specific economic impact.

(d) Contents -- Estimates of certain factors. -- The economic impact analysis rating and the economic impact analysis required under this section shall include estimates directly relating to the following factors, as appropriate:

(1) cost of providing goods and services;

(2) effect on the workforce;

(3) effect on the cost of housing;

(4) efficiency in production and marketing;

(5) capital investment, taxation, competition, and economic development; and

(6) consumer choice.

(e) Consultation with others; assistance. --

(1) The Executive Branch agency or the Department of Legislative Services preparing the economic impact analysis rating and the economic impact analysis required under this section shall consult with, as appropriate:

(i) other units of State government;

(ii) units of local government; and

(iii) business, trade, consumer, labor, and other groups impacted by or having an interest in the regulation.

(2) On request of the Executive Director of the Department of Legislative Services, a unit of the State or a local government shall provide the Department with assistance or information in the preparation of an economic impact analysis rating and economic impact analysis.

(f) Comment by Department of Legislative Services. -- The Department of Legislative Services shall:

(1) comment on the economic impact analysis rating and economic impact analysis prepared by the appropriate Executive Branch agency; and

(2) transmit its comment to the Committee.

(g) Revisions. -- The Department of Legislative Services shall revise the economic impact analysis rating and economic impact analysis consistent with an amended version of a regulation.

(h) Records. --

(1) The Department of Legislative Services shall keep a copy of each economic impact analysis rating and economic impact analysis for 3 years after preparation of the rating or the analysis.

(2) The copies shall be reasonably available for public inspection.

(i) Publication in Maryland Register. -- Economic impact analysis ratings and economic impact analyses shall be published in the Maryland Register at the same time as:

(1) a notice of proposed adoption of a regulation is published in the Maryland Register; or

(2) a notice of emergency adoption for a regulation is published in the Maryland Register.

(j) Effect on regulations. -- The validity of an enactment of a regulation is not affected by the presence, absence, or content of an economic impact analysis rating or an economic impact analysis.