Bill Text: IL HB3433 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB3433 Detail]

Download: Illinois-2023-HB3433-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3433 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
5 ILCS 100/1-33 new
5 ILCS 100/5-30 from Ch. 127, par. 1005-30
5 ILCS 100/5-60 from Ch. 127, par. 1005-60
Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately.
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A BILL FOR
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AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Administrative Procedure Act is
amended by changing Sections 5-30 and 5-60 and by adding
Section 1-33 as follows:
(5 ILCS 100/1-33 new)
Sec. 1-33. "Downstate Illinois" means all counties in this
State other than the counties of Cook, DuPage, Kane, Kendall,
Lake, McHenry, and Will. For the purposes of a specific rule,
an agency may define a region as encompassing downstate
Illinois if it finds that the rule affects persons or entities
both within and without downstate Illinois and such definition
is necessary to adapt the rule to address the needs and
concerns of downstate Illinois.
(5 ILCS 100/5-30) (from Ch. 127, par. 1005-30)
Sec. 5-30. Regulatory flexibility. When an agency proposes
a new rule or an amendment to an existing rule that may have an
impact on small businesses, not for profit corporations, or
small municipalities, or persons or entities in downstate
Illinois, the agency shall do each of the following:
(a) The agency shall consider each of the following

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methods for reducing the impact of the rulemaking on small
businesses, not for profit corporations, or small
municipalities, or persons or entities in downstate
Illinois. The agency shall reduce the impact by utilizing
one or more of the following methods if it finds that the
methods are legal and feasible in meeting the statutory
objectives that are the basis of the proposed rulemaking.
(1) Establish less stringent compliance or
reporting requirements in the rule for small
businesses, not for profit corporations, or small
municipalities, or persons or entities in downstate
Illinois.
(2) Establish less stringent schedules or
deadlines in the rule for compliance or reporting
requirements for small businesses, not for profit
corporations, or small municipalities, or persons or
entities in downstate Illinois.
(3) Consolidate or simplify the rule's compliance
or reporting requirements for small businesses, not
for profit corporations, or small municipalities, or
persons or entities in downstate Illinois.
(4) Establish performance standards to replace
design or operational standards in the rule for small
businesses, not for profit corporations, or small
municipalities, or persons or entities in downstate
Illinois.

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(5) Exempt small businesses, not for profit
corporations, or small municipalities, or persons or
entities in downstate Illinois from any or all
requirements of the rule.
(b) Before or during the notice period required under
subsection (b) of Section 5-40, the agency shall provide
an opportunity for small businesses, not for profit
corporations, or small municipalities, or persons or
entities in downstate Illinois to participate in the
rulemaking process. The agency shall utilize one or more
of the following techniques. These techniques are in
addition to other rulemaking requirements imposed by this
Act or by any other Act.
(1) The inclusion in any advance notice of
possible rulemaking of a statement that the rule may
have an impact on small businesses, not for profit
corporations, or small municipalities, or persons or
entities in downstate Illinois.
(2) The publication of a notice of rulemaking in
publications likely to be obtained by small
businesses, not for profit corporations, or small
municipalities, or persons or entities in downstate
Illinois.
(3) The direct notification of interested small
businesses, not for profit corporations, or small
municipalities, or persons or entities in downstate

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Illinois.
(4) The conduct of public hearings concerning the
impact of the rule on small businesses, not for profit
corporations, or small municipalities, or persons or
entities in downstate Illinois.
(5) The use of special hearing or comment
procedures to reduce the cost or complexity of
participation in the rulemaking by small businesses,
not for profit corporations, or small municipalities,
or persons or entities in downstate Illinois,
including the use of audio-visual technology to enable
downstate Illinois witnesses to submit comments by
electronic moving image to any hearing conducted in
Chicago by a rulemaking agency under this Act.
(c) Prior to the filing for publication in the
Illinois Register of any proposed rule or amendment that
may have an adverse impact on small businesses, each
agency must prepare an economic impact analysis which
shall be filed with the proposed rule and publicized in
the Illinois Register together with the proposed rule. The
economic impact analysis shall include the following:
(1) An identification of the types and estimate of
the number of the small businesses subject to the
proposed rule or amendment. The agency shall identify
the types of businesses subject to the proposed rule
using the following 2-digit codes from the North

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American Industry Classification System (NAICS):
11 Agriculture, Forestry, Fishing and Hunting.
21 Mining.
22 Utilities.
23 Construction.
31-33 Manufacturing.
42 Wholesale Trade.
44-45 Retail Trade.
48-49 Transportation and Warehousing.
51 Information.
52 Finance and Insurance.
53 Real Estate Rental and Leasing.
54 Professional, Scientific, and Technical
Services.
55 Management of Companies and Enterprises.
56 Administrative and Support and Waste
Management and Remediation Services.
61 Educational Services.
62 Health Care and Social Assistance.
71 Arts, Entertainment, and Recreation.
72 Accommodation and Food Services.
81 Other Services (except Public
Administration).
92 Public Administration.
The agency shall also identify the impact of the
proposed rule by identifying as many of the following

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categories that the agency reasonably believes the
proposed rule will impact:
A. Hiring and additional staffing.
B. Regulatory requirements.
C. Purchasing.
D. Insurance changes.
E. Licensing fees.
F. Equipment and material needs.
G. Training requirements.
H. Recordkeeping.
I. Compensation and benefits.
J. Other potential impacted categories.
(2) The projected reporting, recordkeeping, and
other administrative costs required for compliance
with the proposed rule or amendment, including the
type of professional skills necessary for preparation
of the report or record.
(3) A statement of the probable positive or
negative economic effect on impacted small businesses.
(4) A description of any less intrusive or less
costly alternative methods of achieving the purpose of
the proposed rule or amendment. The alternatives must
be consistent with the stated objectives of the
applicable statutes and the proposed rulemaking.
The Department of Commerce and Economic Opportunity
shall place notification of all proposed rules affecting

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small business on its website. The notification shall
include the information provided by the agency under this
subsection (c) together with the summary of the proposed
rule published by the Joint Committee on Administrative
Rules in the Flinn Report.
The Business Assistance Office shall prepare an impact
analysis of the rule or amendment describing its effect on
small businesses whenever the Office believes, in its
discretion, that an analysis is warranted or whenever
requested to do so by 25 interested persons, an
association representing at least 100 interested persons,
the Governor, a unit of local government, or the Joint
Committee on Administrative Rules. The impact analysis
shall be completed before or within the notice period as
described in subsection (b) of Section 5-40. Upon
completion of any analysis in accordance with this
subsection (c), the preparing agency or the Business
Assistance Office shall submit the analysis to the Joint
Committee on Administrative Rules, to any interested
person who requested the analysis, and, if the agency
prepared the analysis, to the Business Assistance Office.
For purposes of this subsection (c), "small business"
means a business with fewer than 50 full-time employees or
less than $4,000,000 in gross annual sales.
This subsection does not apply to rules and standards
described in paragraphs (1) through (5) of subsection (c)

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of Section 1-5.
(Source: P.A. 100-688, eff. 1-1-19; 101-81, eff. 7-12-19.)
(5 ILCS 100/5-60) (from Ch. 127, par. 1005-60)
Sec. 5-60. Regulatory agenda. An agency shall submit for
publication in the Illinois Register by January 1 and July 1 of
each year a regulatory agenda to elicit public comments
concerning any rule that the agency is considering proposing
but for which no notice of proposed rulemaking activity has
been submitted to the Illinois Register. A regulatory agenda
shall consist of summaries of those rules. Each summary shall,
in less than 2,000 words, contain the following when
practicable:
(1) A description of the rule.
(2) The statutory authority the agency is exercising.
(3) A schedule of the dates for any hearings,
meetings, or other opportunities for public participation
in the development of the rule.
(4) The date the agency anticipates submitting a
notice of proposed rulemaking activity, if known.
(5) The name, address, and telephone number of the
agency representative who is knowledgeable about the rule,
from whom any information may be obtained, and to whom
written comments may be submitted concerning the rule.
(6) A statement whether the rule will affect small
businesses, not for profit corporations, or small

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municipalities, or persons or entities in downstate
Illinois as defined in this Act.
(7) Any other information that may serve the public
interest.
Nothing in this Section shall preclude an agency from
adopting a rule that has not been summarized in a regulatory
agenda or from adopting a rule different than one summarized
in a regulatory agenda if in the agency head's best judgment it
is necessary. If an agency finds that a situation exists that
requires adoption of a rule that was not summarized on either
of the 2 most recent regulatory agendas, it shall state its
reasons in writing together with the facts that form their
basis upon filing the notice of proposed rulemaking with the
Secretary of State under Section 5-40. Nothing in this Section
shall require an agency to adopt a rule summarized in a
regulatory agenda. The Secretary of State shall adopt rules
necessary for the publication of a regulatory agenda,
including but not limited to standard submission forms and
deadlines.
(Source: P.A. 87-823; 88-667, eff. 9-16-94.)
Section 99. Effective date. This Act takes effect upon
becoming law.