HI HB787

Establishes a temporary State Commission on Fiscal Responsibility within the Department of Taxation to review state expenditures, revenue enhancement, and tax policy improvements.

Commission membership consists of 9 members: 2 appointed by the governor (at least one with state council on revenues experience), 2 state senators (one as co-chair), 2 state representatives (one as co-chair), the director of taxation or designee, the director of finance or designee, and representatives from a nonprofit legal services provider and a nonprofit organization analyzing tax and spending policies.

Commission must identify policies for medium-term revenue enhancement and long-term fiscal security, research and propose spending recommendations, and identify steps to create a more balanced and progressive tax structure.

Commission members serve without compensation but receive reimbursement for necessary expenses including travel; must submit findings and recommendations to the legislature no later than 20 days before the 2025 regular session with approval from at least two-thirds of members.

Commission ceases to exist on June 30, 2026; Act takes effect July 1, 2023.