1     
FISCAL IMPACT OF INITIATIVES

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Deidre M. Henderson

5     
House Sponsor: Brady Brammer

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions relating to estimating the fiscal impact of an initiative.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the length, form, and content of a fiscal impact statement for an initiative;
13          ▸     provides that a fiscal impact statement is based on the time periods that are most
14     useful in understanding the estimated fiscal impact of a proposed law; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          20A-7-202.5, as last amended by Laws of Utah 2019, Chapters 255 and 275
23          20A-7-203, as last amended by Laws of Utah 2019, Chapters 210 and 275
24          20A-7-703, as last amended by Laws of Utah 2012, Chapter 334
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 20A-7-202.5 is amended to read:
28          20A-7-202.5. Initial fiscal impact estimate -- Preparation of estimate -- Challenge
29     to estimate.
30          (1) Within three working days after the day on which the lieutenant governor receives
31     an application for an initiative petition, the lieutenant governor shall submit a copy of the
32     application to the Office of the Legislative Fiscal Analyst.
33          (2) (a) The Office of the Legislative Fiscal Analyst shall prepare an unbiased, good
34     faith initial fiscal impact estimate [of the fiscal impact] of the law proposed by the initiative,
35     not exceeding 100 words plus 100 words per revenue source created or impacted by the
36     proposed law, that contains:
37          (i) a [dollar amount representing] description of the total estimated fiscal impact of the
38     proposed law over the time period or time periods determined by the Office of the Legislative
39     Fiscal Analyst to be most useful in understanding the estimated fiscal impact of the proposed
40     law;
41          (ii) if the proposed law would increase [or] taxes, decrease taxes, or impose a new tax,
42     a dollar amount representing the total estimated increase or decrease for each type of tax
43     affected under the proposed law, a dollar amount showing the estimated amount of a new tax,
44     and a dollar amount representing the total estimated increase or decrease in taxes under the
45     proposed law;
46          (iii) if the proposed law would increase [taxes] a particular tax or tax rate, the tax
47     percentage difference and the tax percentage increase for each tax or tax rate increased;
48          (iv) if the proposed law would result in the issuance or a change in the status of bonds,
49     notes, or other debt instruments, a dollar amount representing the total estimated increase or
50     decrease in public debt under the proposed law;
51          [(v) a listing of all sources of funding for the estimated costs associated with the
52     proposed law showing each source of funding and the percentage of total funding provided
53     from each source;]
54          [(vi) a dollar amount representing the estimated costs or savings, if any, to state and
55     local government entities under the proposed law;]
56          [(vii) a concise explanation, not exceeding 100 words, of the above information and of
57     the estimated fiscal impact, if any, under the proposed law; and]
58          (v) a dollar amount representing the estimated cost or savings, if any, to state or local
59     government entities under the proposed law;
60          (vi) if the proposed law would increase costs to state government, a listing of all
61     sources of funding for the estimated costs; and
62          [(viii)] (vii) a concise description and analysis titled "Funding Source," not to exceed
63     [50] 100 words for each funding source, of the funding source information described in
64     Subsection 20A-7-202(2)(d)(ii).
65          (b) [(i)] If the proposed law is estimated to have no fiscal impact, the Office of the
66     Legislative Fiscal Analyst shall include a summary statement in the initial fiscal impact
67     statement in substantially the following form:
68          "The Office of the Legislative Fiscal Analyst estimates that the law proposed by this
69     initiative would have no significant fiscal impact and would not result in either an increase or
70     decrease in taxes or debt."
71          [(ii) If the proposed law is estimated to have a fiscal impact, the Office of the
72     Legislative Fiscal Analyst shall include a summary statement in the initial fiscal impact
73     estimate in substantially the following form:]
74          ["The Office of the Legislative Fiscal Analyst estimates that the law proposed by this
75     initiative would result in a total fiscal expense/savings of $______, which includes a (type of
76     tax or taxes) tax increase/decrease of $______ and a $______ increase/decrease in state debt."]
77          [(iii) If the estimated fiscal impact of the proposed law is highly variable or is
78     otherwise difficult to reasonably express in a summary statement, the Office of the Legislative
79     Fiscal Analyst may include in the summary statement a brief explanation that identifies those
80     factors affecting the variability or difficulty of the estimate.]
81          [(iv) If the proposed law imposes a tax increase, the Office of the Legislative Fiscal
82     Analyst shall include a summary statement in the initial fiscal impact estimate in substantially
83     the following form:]
84          ["This initiative petition seeks to increase the current (insert name of tax) rate by (insert
85     the tax percentage difference) percent, resulting in a(n) (insert the tax percentage increase)
86     percent increase in the current tax rate."]
87          (3) The Office of the Legislative Fiscal Analyst shall prepare an unbiased, good faith
88     estimate of the cost of printing and distributing information related to the initiative petition in:
89          (a) the voter information pamphlet as required by Chapter 7, Part 7, Voter Information
90     Pamphlet; or
91          (b) the newspaper, as required by Section 20A-7-702.
92          (4) Within 25 calendar days after the day on which the lieutenant governor delivers a
93     copy of the application, the Office of the Legislative Fiscal Analyst shall:
94          (a) deliver a copy of the initial fiscal impact estimate to the lieutenant governor's
95     office; and
96          (b) mail a copy of the initial fiscal impact estimate to the first five sponsors named in
97     the initiative application.
98          (5) (a) (i) Three or more of the sponsors of the petition may, within 20 calendar days
99     after the day on which the [Governor's Office of Management and Budget] Office of the
100     Legislative Fiscal Analyst delivers the initial fiscal impact estimate to the lieutenant governor's
101     office, file a petition with the appropriate court, alleging that the initial fiscal impact estimate,
102     taken as a whole, is an inaccurate estimate of the fiscal impact of the initiative.
103          (ii) After receipt of the appeal, the court shall direct the lieutenant governor to send
104     notice of the petition to:
105          (A) any person or group that has filed an argument with the lieutenant governor's office
106     for or against the measure that is the subject of the challenge; and
107          (B) any political issues committee established under Section 20A-11-801 that has filed
108     written or electronic notice with the lieutenant governor that identifies the name, mailing or
109     email address, and telephone number of the person designated to receive notice about any
110     issues relating to the initiative.
111          (b) (i) There is a presumption that the initial fiscal impact estimate prepared by the
112     Office of the Legislative Fiscal Analyst is based upon reasonable assumptions, uses reasonable
113     data, and applies accepted analytical methods to present the estimated fiscal impact of the
114     initiative.
115          (ii) The court may not revise the contents of, or direct the revision of, the initial fiscal
116     impact estimate unless the plaintiffs rebut the presumption by clear and convincing evidence
117     that establishes that the initial fiscal estimate, taken as a whole, is an inaccurate statement of
118     the estimated fiscal impact of the initiative.
119          (iii) The court may refer an issue related to the initial fiscal impact estimate to a master
120     to examine the issue and make a report in accordance with Utah Rules of Civil Procedure, Rule
121     53.
122          (c) The court shall certify to the lieutenant governor a fiscal impact estimate for the
123     measure that meets the requirements of this section.
124          Section 2. Section 20A-7-203 is amended to read:
125          20A-7-203. Form of initiative petition and signature sheets.
126          (1) (a) Each proposed initiative petition shall be printed in substantially the following
127     form:
128          "INITIATIVE PETITION To the Honorable ____, Lieutenant Governor:
129          We, the undersigned citizens of Utah, respectfully demand that the following proposed
130     law be submitted to the legal voters/Legislature of Utah for their/its approval or rejection at the
131     regular general election/session to be held/ beginning on _________(month\day\year);
132          Each signer says:
133          I have personally signed this petition;
134          I am registered to vote in Utah or intend to become registered to vote in Utah before the
135     certification of the petition names by the county clerk; and
136          My residence and post office address are written correctly after my name.
137          NOTICE TO SIGNERS:
138          Public hearings to discuss this petition were held at: (list dates and locations of public
139     hearings.)"
140          (b) If the initiative petition proposes a tax increase, the following statement shall
141     appear, in at least 14-point, bold type, immediately following the information described in
142     Subsection (1)(a):
143          "This initiative petition seeks to increase the current (insert name of tax) rate by (insert
144     the tax percentage difference) percent, resulting in a(n) (insert the tax percentage increase)
145     percent increase in the current tax rate."
146          (c) The sponsors of an initiative shall attach a copy of the proposed law to each
147     initiative petition.
148          (2) Each signature sheet shall:
149          (a) be printed on sheets of paper 8-1/2 inches long and 11 inches wide;
150          (b) be ruled with a horizontal line three-fourths inch from the top, with the space above
151     that line blank for the purpose of binding;
152          (c) contain the title of the initiative printed below the horizontal line, in at least
153     14-point, bold type;
154          (d) be vertically divided into columns as follows:
155          (i) the edge of the first column shall appear .5 inch from the extreme left of the sheet,
156     be.25 inch wide, and be headed, together with the second column, "For Office Use Only";
157          (ii) the second column shall be .25 inch wide;
158          (iii) the third column shall be 2.5 inches wide, headed "Registered Voter's Printed
159     Name (must be legible to be counted)";
160          (iv) the fourth column shall be 2.5 inches wide, headed "Signature of Registered
161     Voter";
162          (v) the fifth column shall be .75 inch wide, headed "Date Signed";
163          (vi) the sixth column shall be three inches wide, headed "Street Address, City, Zip
164     Code"; and
165          (vii) the seventh column shall be .75 inch wide, headed "Birth Date or Age (Optional)";
166          (e) be horizontally divided into rows as follows:
167          (i) the top of the first row, for the purpose of entering the information described in
168     Subsection (2)(d), shall be .5 inch high;
169          (ii) the second row shall be .15 inch high and contain the following statement printed
170     or typed in not less than 12-point type:
171          "By signing this petition, you are stating that you have read and understand the law
172     proposed by this petition."; and
173          (iii) the first and second rows shall be repeated, in order, leaving sufficient room at the
174     bottom of the sheet for the information described in Subsection (2)(f); and
175          (f) at the bottom of the sheet, contain in the following order:
176          (i) the title of the initiative, in at least 14-point, bold type;
177          (ii) except as provided in Subsection (4), the initial fiscal impact estimate's summary
178     statement issued by the Office of the Legislative Fiscal Analyst in accordance with Subsection
179     20A-7-202.5(2)[(b)](a), including any update in accordance with Subsection 20A-7-204.1(5),
180     and the cost estimate for printing and distributing information related to the initiative petition
181     in accordance with Subsection 20A-7-202.5(3), in not less than 12-point, bold type;
182          (iii) the word "Warning," followed by the following statement in not less than
183     eight-point type:
184          "It is a class A misdemeanor for an individual to sign an initiative petition with a name
185     other than the individual's own name, or to knowingly sign the individual's name more than
186     once for the same measure, or to sign an initiative petition when the individual knows that the
187     individual is not a registered voter and knows that the individual does not intend to become
188     registered to vote before the certification of the petition names by the county clerk.";
189          (iv) the following statement: "Birth date or age information is not required, but it may
190     be used to verify your identity with voter registration records. If you choose not to provide it,
191     your signature may not be verified as a valid signature if you change your address before
192     petition signatures are verified or if the information you provide does not match your voter
193     registration records."; and
194          (v) if the initiative petition proposes a tax increase, spanning the bottom of the sheet,
195     horizontally, in not less than 14-point, bold type, the following statement:
196          "This initiative petition seeks to increase the current (insert name of tax) rate by (insert
197     the tax percentage difference) percent, resulting in a(n) (insert the tax percentage increase)
198     percent increase in the current tax rate."
199          (3) The final page of each initiative packet shall contain the following printed or typed
200     statement:
201          "Verification
202          State of Utah, County of ____
203          I, _______________, of ____, hereby state, under penalty of perjury, that:
204          I am a resident of Utah and am at least 18 years old;
205          All the names that appear in this packet were signed by individuals who professed to be
206     the individuals whose names appear in it, and each of the individuals signed the individual's
207     name on it in my presence;
208          I believe that each individual has printed and signed the individual's name and written
209     the individual's post office address and residence correctly, that each signer has read and
210     understands the law proposed by the initiative, and that each signer is registered to vote in Utah
211     or intends to become registered to vote before the certification of the petition names by the
212     county clerk.
213          Each individual who signed the packet wrote the correct date of signature next to the
214     individual's name.
215          I have not paid or given anything of value to any individual who signed this petition to
216     encourage that individual to sign it.
217     ________________________________________________________________________
218          (Name) (Residence Address) (Date)"
219          (4) If the initial fiscal impact estimate described in Subsection (2)(f), as updated in
220     accordance with Subsection 20A-7-204.1(5), exceeds 200 words, the Office of the Legislative
221     Fiscal Analyst shall prepare a shorter summary statement, for the purpose of inclusion on a
222     signature sheet, that does not exceed 200 words.
223          [(4)] (5) If the forms described in this section are substantially followed, the initiative
224     petitions are sufficient, notwithstanding clerical and merely technical errors.
225          Section 3. Section 20A-7-703 is amended to read:
226          20A-7-703. Impartial analysis of measure -- Determination of fiscal effects.
227          (1) The director of the Office of Legislative Research and General Counsel, after the
228     approval of the legislative general counsel as to legal sufficiency, shall:
229          (a) prepare an impartial analysis of each measure submitted to the voters by the
230     Legislature or by initiative or referendum petition; and
231          (b) submit the impartial analysis to the lieutenant governor no later than the day that
232     falls 90 days before the date of the election in which the measure will appear on the ballot.
233          (2) The director shall ensure that the impartial analysis:
234          (a) is not more than 1,000 words long;
235          (b) is prepared in clear and concise language that will easily be understood by the
236     average voter;
237          (c) avoids the use of technical terms as much as possible;
238          (d) shows the effect of the measure on existing law;
239          (e) identifies any potential conflicts with the United States or Utah Constitutions raised
240     by the measure;
241          (f) fairly describes the operation of the measure;
242          (g) identifies the measure's fiscal effects [for the first full year of implementation and
243     the first year when the last provisions to be implemented are fully effective] over the time
244     period or time periods determined by the director to be most useful in understanding the
245     estimated fiscal impact of the proposed law; and
246          (h) identifies the amount of any increase or decrease in revenue or cost to state or local
247     government.
248          (3) The director shall analyze the measure as it is proposed to be adopted without
249     considering any implementing legislation, unless the implementing legislation has been enacted
250     and will become effective upon the adoption of the measure by the voters.
251          (4) (a) In determining the fiscal effects of a measure, the director shall confer with the
252     legislative fiscal analyst.
253          (b) The director shall consider any measure that requires implementing legislation in
254     order to take effect to have no financial effect, unless implementing legislation has been
255     enacted that will become effective upon adoption of the measure by the voters.
256          (5) If the director requests the assistance of any state department, agency, or official in
257     preparing [his] the director's analysis, that department, agency, or official shall assist the
258     director.