Cost-Benefit Analysis Legislation Continues to Move in the House
March 11, 2010

Barney Bishop	Jose Gonzalez

The House Finance and Tax Council brought some clarity to a situation surrounding a proposal that AIF has made a top priority this session.  Two pieces of legislation that closely mirror one another, HB 93 Relating to Cost and Benefit Analysis of Legislation by Representative Steve Crisafulli (R-Melbourne) and HB 121 Relating to Economic and Demographic Research by Representative Ralph Poppell (R-Titusville) were merged this morning and passed unanimously through the committee.  Known as Dynamic Modeling, or Cost Benefit Analysis, these two proposals set in motion slightly different mechanisms that would see the state assess both the positive and negative impacts to economic policy proposals.  Having been closely reported on throughout their committee stops, these proposals have received strong support from AIF. Our very own President & CEO Barney Bishop, along with Vice President of Governmental Affairs Jose Gonzalez have provided extensive testimony in favor of these measures.

Today, with the consent of Representative Poppell, Representative Crisafulli offered a strike-all amendment to HB 121 that strikes a compromise to the different proposals and in doing so generates legislation identical to SB 1178 by Senator Mike Haridopolos (R-Melbourne).  The legislation will empower the Speaker of the House, or the President of the Senate, to ask the state’s economic forecasting entities (Revenue Estimating Conference/ Office of Demographic Research) to utilize versions of a cost benefit analysis and report the economic impacts that a particular proposal may have on the state.  Previously, the proposal stated that any cost benefit analysis must be requested 90 days before the start of the subsequent March session.  However, in the strike all adopted by the committee, that provision no longer exists.

HB 121 still has a long road ahead in the House, having three more committee stops before being heard on the floor.  Following its passage today, HB 121 is scheduled to be considered in the House Full Appropriations Council on Education & Economic Development.

AIF strongly SUPPORTS legislation that addresses the cost-benefit analysis of economic development incentive policies. With the Senate bill moving along, AIF will work alongside the House sponsors to overcome any obstacle that may prevent this vital legislation from passage. (View the AIF position on this issue)