During the 2024 interim, the Legislative staff have been hard at work designing and testing a new fiscal note system, intended to improve the user experience for policymakers, staff, and state agencies. The updated system, dubbed “FiNS” (Fiscal Note System), is in the final stages of deployment in preparation for the 2025 General Session.
The Fiscal Impact of Legislation
Under UCA 36-12-13, the Office of the Legislative Fiscal Analyst (LFA) prepares a fiscal estimate (aka “fiscal note”) for all proposed bills. The estimates must include:
- Potential state government revenue impacts;
- Anticipated state government expenditure changes;
- Anticipated expenditure changes for county, municipal, special district or special service district governments; and
- Anticipated direct expenditure by Utah residents and businesses.
LFA is also required to indicate whether each proposed bill will change the regulatory burden for Utah residents or businesses.
JR 4-2-403 stipulates that when LFA receives a piece of approved legislation, they have three business days to provide the bill sponsor with a fiscal note. When LFA is notified of a bill, they review it and allow impacted agencies 24 hours to respond with their estimated impacts. On day two, the assigned fiscal analyst reviews the agency responses, requests clarification as needed, and drafts the fiscal note. On the third day, the fiscal note is reviewed twice internally by LFA leadership before it is sent to the sponsor for their review.
This statute also clarifies that when a bill sponsor receives a note, they have 24 hours to release it (make it public), hold it (keep it confidential), or contact LFA in the case that the sponsor disagrees with the fiscal note. The bill sponsor may provide evidence, data, or other information to support a revised fiscal note. If no action is taken by the sponsor, the bill is automatically released after 24 hours. Additionally, if a fiscal note has no impact, the note is immediately released after the sponsor receives a copy.
Rules Impacted by Fiscal Notes
If a fiscal note has a net impact to the General Fund, Income Tax Fund, Uniform School Fund of more than $20,000, it is considered a “fiscal note bill” (JR4-4-101). These bills are held until the 43rd day of the General Session when they are prioritized and approved to pass based on being included in the final budget.
Fiscal notes impact the progress of bills differently in each chamber. House Rule 3-2-402 requires that all bills must have an approved (not held) fiscal note to be heard in a house standing committee. In the Senate, bills are allowed to pass through committees, but must remain circled on the third reading calendar until a fiscal note is received (S.R. 4-3-101).
Improvements to the Legislator Experience
Previously, there was no easy way for Legislators or their interns to see where a fiscal note was at in the drafting or approval process. When a note was approved by the LFA Director, an email notification was sent to the Legislator who would need to contact the LFA Office Manager to release the note. Documentation of that approval was manually attached to the fiscal note in the system. For a legislator with multiple bills in process at the same time, who already receives dozens if not hundreds of emails from constituents every day, keeping track of these notification emails can prove to be challenging.
Beginning in the 2025 General Session, legislators will have a new, streamlined resource to view, release, or hold fiscal notes, as well as contact LFA with questions regarding fiscal impact. As part of the overhaul of the entire fiscal note system, an app will be available on the secure site for Legislators to check on the status of all their notes at once:
Legislators will still receive an email notification when a note is complete that includes a link to this app. However, at any point in the session, policymakers can now view where their bills are in the fiscal note process. Additionally, the app provides the opportunity for legislators (and interns with proper credentials) to act on a completed note:
This change is designed to assist legislators in their duties and provide an automated, secure record of approval or other actions. Legislators and their interns will recognize FiNS by the logo, featuring none other than a shark fin.
