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S1339.......................................by COMMERCE AND HUMAN RESOURCES
ADMINISTRATIVE RULES - ECONOMIC IMPACT - Amends existing law to provide
legislative intent; to provide for the preparation of economic impact
statements and regulatory flexibility analyses in agency rulemaking; and to
define terms.
02/16 Senate intro - 1st rdg - to printing
02/17 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE SENATE
SENATE BILL NO. 1339
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO ADMINISTRATIVE RULES; PROVIDING LEGISLATIVE INTENT; AND AMENDING
3 SECTION 67-5222, IDAHO CODE, TO PROVIDE FOR ECONOMIC IMPACT STATEMENTS AND
4 REGULATORY FLEXIBILITY ANALYSES AND TO DEFINE TERMS.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. LEGISLATIVE INTENT. The legislature hereby finds and declares
7 that:
8 (1) A vibrant and growing private business sector is critical to creating
9 jobs in a dynamic economy;
10 (2) Businesses bear a disproportionate share of regulatory costs and bur-
11 dens;
12 (3) Fundamental changes that are needed in the regulatory and enforcement
13 culture of state agencies to make them more responsive to business can be made
14 without compromising the statutory missions of the agencies;
15 (4) When adopting rules to protect the health, safety and economic wel-
16 fare of Idahoans, state agencies should seek to achieve statutory goals as
17 effectively and efficiently as possible without imposing unnecessary burdens
18 on business employers;
19 (5) Uniform regulatory and reporting requirements can impose unnecessary
20 and disproportionately burdensome demands including legal, accounting and con-
21 sulting costs upon businesses with limited resources;
22 (6) The failure to recognize differences in the scale and resources of
23 regulated businesses can adversely affect competition in the marketplace, dis-
24 courage innovation, and restrict improvements in productivity;
25 (7) Unnecessary regulations create barriers in many industries and dis-
26 courage potential entrepreneurs from introducing beneficial products and pro-
27 cesses;
28 (8) Alternative regulatory approaches which do not conflict with the
29 stated objective of applicable statutes may be available to minimize the sig-
30 nificant economic impact of rules on businesses; and
31 (9) The process by which state rules are developed and adopted should
32 require agencies to solicit the ideas and comments of businesses and examine
33 the impact of rules on such businesses.
34 SECTION 2. That Section 67-5222, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 67-5222. PUBLIC PARTICIPATION. (1) Prior to the adoption, amendment, or
37 repeal of a rule, the agency shall afford all interested persons reasonable
38 opportunity to submit data, views and arguments, orally or in writing. The
39 agency shall receive comments for not less than twenty-one (21) days after the
40 date of publication of the notice of proposed rulemaking in the bulletin.
41 (2) When promulgating substantive rules, the agency shall provide an
42 opportunity for oral presentation if requested by twenty-five (25) persons, a
2
1 political subdivision, or an agency. The request must be made in writing and
2 be within fourteen (14) days of the date of publication of the notice of pro-
3 posed rulemaking in the bulletin, or within fourteen (14) days prior to the
4 end of the comment period, whichever is later. An opportunity for oral presen-
5 tation need not be provided when the agency has no discretion as to the sub-
6 stantive content of a proposed rule because the proposed rule is intended
7 solely to comply:
8 (a) with a controlling judicial decision or court order; or
9 (b) with the provisions of a statute or federal rule that has been
10 amended since the adoption of the agency rule.
11 (3) When promulgating substantive rules, the agency shall prepare an eco-
12 nomic impact statement or a regulatory flexibility analysis if requested by
13 twenty-five (25) persons or a business entity. The request must be made in
14 writing and be within fourteen (14) days of the date of publication of the
15 notice of proposed rulemaking in the bulletin, or within fourteen (14) days
16 prior to the end of the comment period, whichever is later. As used in this
17 subsection:
18 (a) "Economic impact statement" means:
19 (i) An identification and estimate of the number of businesses sub-
20 ject to the proposed rule;
21 (ii) The projected reporting, recordkeeping and other administrative
22 costs required for compliance with the proposed rule, including the
23 type of professional skills necessary for preparation of the report
24 or record;
25 (iii) A statement of the probable effect on impacted businesses; and
26 (iv) A description of any less intrusive or less costly alternative
27 methods of achieving the purpose of the proposed rule.
28 (b) "Regulatory flexibility analysis" means a report in which the agency
29 shall, where consistent with health, safety, and environmental and eco-
30 nomic welfare, consider utilizing regulatory methods that will accomplish
31 the objectives of applicable statutes while minimizing the adverse impact
32 on businesses. The agency shall consider, without limitation, each of the
33 following methods of reducing the impact of the proposed rule on busi-
34 nesses:
35 (i) The establishment of less stringent compliance or reporting
36 requirements for businesses;
37 (ii) The establishment of less stringent schedules or deadlines for
38 compliance or reporting requirements for businesses;
39 (iii) The consolidation or simplification of compliance or reporting
40 requirements for businesses; and
41 (iv) The establishment of performance standards for businesses to
42 replace design or operational standards required in the proposed
43 rule.
STATEMENT OF PURPOSE
RS 13984
This bill provides for the preparation of economic impact
statements and regulatory flexibility analyses prior to the
promulgation of agency rules upon written request of twenty-five persons
(25) or a business entity
FISCAL IMPACT
There is no fiscal impact to the general fund. The analysis of the
impacts can be completed with the help of industry/trade
association and service providers.
Contact
Name: Kent Bailey
Phone: 332-1345
STATEMENT OF PURPOSE/FISCAL NOTE S 1339