SB 2199

Present law provides the notice requirements for agencies that must hold a public hearing as part of their rulemaking process. This bill requires such an agency to prominently publish the new or amended rule on its homepage during the 45-day period prio r to the public hearing for which there is a public comment period regarding the new or amended rule. Further, this bill requires that an agency make a good faith effort to notify each trade association or organization operating in this state that repres en ts the regulated community and that may be impacted by the new or amended rule at least 45 days prior to the public hearing for which there is a public comment period regarding the new or amended rule. Such notice must be sent by electronic mail, includ e a copy of the new or amended rule, and must request that the association or organization provide comments during such public comment period for the purpose of generating a fiscal impact statement. As used in this bill, a "fiscal impact statement"" means the estimate of the actual cost of compliance of a new or amended rule based on its projected and collective fiscal impact on the regulated industry, trade, business, or community, excluding specula tive, anti-competitive, or hypothetical costs, and assumptions and reasoning upon which the actual costs of compliance are based. FISCAL IMPACT STATEMENT This bill requires an agency to generate a fiscal impact statement for a new or amended rule that is anticipated to have a negative fiscal effect on the regulated community. However, this bill prohibits an agency from generating a fiscal impact statemen t for a new or amended rule until after the public hearing with a public comment period on such rule to provide the public and affected industries, businesses, and trades the opportunity to provide input with respect to the fiscal impact of such rule. An a gency must include information related to the actual or potential negative fiscal impact of the new or amended rule to an impacted industry, business, or trade shared during a public comment period, if such information was shared. This bill requires an agency to include, with each fiscal impact statement, proof satisfactory that the agency obtained feedback from representatives of the regulated community likely to be fiscally impacted by the new or amended rule. However, this doe s not prohibit an individual or business from submitting feedback to the agency anonymously. An agency may also include feedback from affected regulatory boards with each fiscal impact statement. Independent Determination of Fiscal Impact This bill authorizes either chair of the joint government operations committee to submit the rule and its fiscal impact statement to the director of the fiscal review committee for an independent determination of fiscal impact if the fiscal impact statem ent generated by the agency for a new or amended rule indicates a negative fiscal impact of more than $750, 000 over a five-year period. For an emergency rule, such threshold is $750, 000 over a year-year period. The director of fiscal review must review an d audit the fiscal impact of the rule and attach written findings to the rule as an addendum for purposes of review by the joint government operations committee and to the agency proposing the rule. This bill requires the house of representatives and the senate to approve a proposed rule by majority vote if the fiscal impact statement or the review and audit of a rule indicates that the negative fiscal impact of the rule is estimated to be greater t han $1 million over a five-year period, or over a one year period for an emergency rule. If the fiscal impact statement exceeds this monetary cap, then the agency must provide written and electronic notice to the governor, the speakers of the senate and ho use of representatives, and the chairs of the joint government operations committee. This bill prohibits an agency from separating one or more proposed new or amended rules for the purpose of segregating the fiscal impact statements to avoid the monetary thresholds described above. ANNUAL REPORT This bill requires an agency to compile an annual report aggregating the fiscal impact statements generated for each new or amended rule that went into effect during the immediately preceding year to illustrate the total and cumulative impact. The annua l report must be filed with the speakers of the senate and house of representatives, the secretary of state, and the chairs of the joint government operations committee. Further, each annual report must be published on the secretary of state's website. REPEAL OF A PERMANENT RULE This bill authorizes an agency to repeal a permanent rule prior to the date on which it expires by providing a notice to repeal the rule to the secretary of state and the chairs of the joint government operations committee. The joint government operatio ns committee must incorporate the rule to be repealed into the rule omnibus bill that is transmitted to the floor of the senate and the house of representatives for consideration in the next regular or special legislative session. However, this does not ap ply to an agency rule that is anticipated to result in the loss of revenue to this state or a local government of more than $5 million over a one-year period. EMERGENCY RULES This bill requires an agency to file a fiscal impact statement with the secretary of state within 45 days after an emergency rule goes into effect, in accordance with the requirements for a fiscal impact statement provided by this bill. If a fiscal impa ct statement is not filed within 45 days, then the emergency rule ceases to be effective the day after the filing period expires. This bill provides that an emergency rule expires 180 days after becoming effective, upon the adjournment of the next special session convened by the general assembly, or on the 14th calendar day of the next regular legislative session if the fiscal impa ct statement of an emergency rule has an anticipated negative fiscal impact greater than $1 million. However, the general assembly may approve an emergency rule that would otherwise expire by adopting the rule by majority vote of both the house of repres en tatives and senate."