2004 Legislation
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SENATE BILL NO. 1339 – Admin rules/econ impact statement


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Bill Status

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

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                       IN THE SENATE
                                    SENATE BILL NO. 1339
  1                                        AN ACT
  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
  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 / Fiscal Impact

                        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.

Name:  Kent Bailey
Phone:   332-1345