83R6420 JSA-D By: Davis S.B. No. 1369 A BILL TO BE ENTITLED AN ACT relating to providing information to the legislature regarding state and local fiscal impact of legislative measures. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 314, Government Code, is amended by adding Sections 314.006 and 314.007 to read as follows: Sec. 314.006. EFFECT OF MEASURE ON LOCAL GOVERNMENTS. (a) A fiscal note must indicate whether a bill or resolution will have a substantial effect on units of local government. If the measure will have a substantial effect, the fiscal note must include: (1) an estimate of the direct effects on the financial resources of affected classes of local governments; and (2) estimates of the range of potential indirect long-term economic effects on local governments, including an assessment of whether the measure could result in indirect local mandates, costs, or savings or create conditions that would establish a basis for additional local expenditures. (b) For purposes of this section, the board shall solicit and consider information provided by representative local governments, organizations representing local governments, and other interested persons regarding the effects of the measure and shall endeavor to include a broad range of potential economic effects, both positive and negative, for which the board can identify a reasonable basis. Sec. 314.007. INDIRECT EFFECTS OF MEASURE. (a) In addition to any direct fiscal implications that a bill or resolution will have on state finances, a fiscal note must estimate any indirect economic effects that the measure may have on this state, including whether any direct savings to the state may be offset by expenditures or loss of revenue that the state could incur due to the effects of the measure, such as deferred maintenance costs, loss or gain of federal funding, changes in demand for additional services, or effects on employment, investment, or the environment. (b) In estimating the indirect effects of a measure, the board shall provide a range of potential effects. (c) For purposes of this section, the board shall solicit and consider information provided by any interested person regarding the indirect effects of a measure and shall endeavor to include a broad range of potential economic effects, both positive and negative, for which the board can identify a reasonable basis. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.