Bill Text: IN SB0121 | 2013 | Regular Session | Introduced

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Bill Title: Limitation on adoption of agency rules.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-01-07 - First reading: referred to Committee on Tax and Fiscal Policy [SB0121 Detail]

Download: Indiana-2013-SB0121-Introduced.html

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Introduced Version

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SENATE BILL No. 121

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DIGEST OF INTRODUCED BILL

Citations Affected: IC 4-22-2-28.

Synopsis: Limitation on adoption of agency rules. Provides that after July 1, 2013, a state agency may not adopt a rule that will have a total estimated economic impact of any amount on the state, an instrumentality of the state, or a political subdivision unless the rule is required to comply with a court order or with a federal law, a federal regulation, or the terms of a federal grant or loan. For a rule that meets this requirement, requires the agency proposing it to submit the rule to the office of management and budget for a fiscal analysis and preparation of a fiscal impact statement.

Effective: Upon passage.

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Leising

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    January 7, 2013, read first time and referred to Committee on Tax and Fiscal Policy.

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Introduced

First Regular Session 118th General Assembly (2013)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

SENATE BILL No. 121

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    A BILL FOR AN ACT to amend the Indiana Code concerning state offices and administration.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-22-2-28; (13)IN0121.1.1. -->     SECTION 1. IC 4-22-2-28, AS AMENDED BY P.L.110-2010, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 28. (a) The following definitions apply throughout this section:
        (1) "Ombudsman" refers to the small business ombudsman designated under IC 5-28-17-5.
         (2) "Political subdivision" has the meaning set forth in IC 36-1-2-13.
        (2) (3) "Total estimated economic impact" , with respect to a proposed rule, means the following:
             (A) With the respect to the rule's impact on persons regulated by the rule, the estimated total annual economic impact of a the rule on all regulated persons after the rule is fully implemented under subsection (g).
             (B) With respect to the rule's impact on the state, including an agency that submits the rule to the office of management and budget under subsection (c), the

estimated total annual fiscal impact of the rule on the administrative costs of the state after the rule is fully implemented under subsection (g).
            (C) With respect to the rule's impact on any affected instrumentality of the state, including an instrumentality that submits the rule to the office of management and budget under subsection (c), the estimated total annual fiscal impact of the rule on the administrative costs of the instrumentality after the rule is fully implemented under subsection (g).
            (D) With respect to the rule's impact on any affected political subdivision, the estimated total annual fiscal impact of the rule on the administrative costs of the political subdivision after the rule is fully implemented under subsection (g).
    (b) The ombudsman:
        (1) shall review a proposed rule that:
            (A) imposes requirements or costs on small businesses (as defined in IC 4-22-2.1-4); and
            (B) is referred to the ombudsman by an agency under IC 4-22-2.1-5(c); and
        (2) may review a proposed rule that imposes requirements or costs on businesses other than small businesses (as defined in IC 4-22-2.1-4).
After conducting a review under subdivision (1) or (2), the ombudsman may suggest alternatives to reduce any regulatory burden that the proposed rule imposes on small businesses or other businesses. The agency that intends to adopt the proposed rule shall respond in writing to the ombudsman concerning the ombudsman's comments or suggested alternatives before adopting the proposed rule under section 29 of this chapter.
    (c) Subject to subsection subsections (f) and (h), and not later than fifty (50) days before the public hearing required by section 26 of this chapter, an agency shall submit a proposed rule to the office of management and budget for a review under subsection (d) if the agency proposing the rule determines that the rule will have a total estimated economic impact:
         (1) greater than five hundred thousand dollars ($500,000) on all regulated persons; or
        (2) of any amount on the state, an instrumentality of the state, or a political subdivision.
In determining the total estimated economic impact under this

subsection, the agency shall consider any applicable information submitted by the regulated persons affected by the rule, along with any applicable information submitted by the state, an affected instrumentality of the state, or an affected political subdivision. To assist the office of management and budget in preparing the fiscal impact statement required by subsection (d), the agency shall submit, along with the proposed rule, the data used and assumptions made by the agency in determining the total estimated economic impact of the rule.
    (d) Except as provided in subsection (e), before the adoption of the rule, and not more than forty-five (45) days after receiving a proposed rule under subsection (c), the office of management and budget shall prepare, using the data and assumptions provided by the agency proposing the rule, along with any other data or information available to the office of management and budget, a fiscal impact statement concerning the effect that compliance with the proposed rule will have on:
        (1) the state;
         (2) all affected instrumentalities of the state;
         (3) all affected political subdivisions; and
        (2) (4) all persons regulated by the proposed rule.
The fiscal impact statement must contain the total estimated economic impact of the proposed rule and on the state, all affected instrumentalities of the state, all affected political subdivisions, and all regulated persons. The fiscal impact statement must also contain a determination concerning the extent to which the proposed rule creates an unfunded mandate on a any affected state agency, any affected instrumentality of the state, or any affected political subdivision. The fiscal impact statement is a public document. The office of management and budget shall make the fiscal impact statement available to interested parties upon request. The agency proposing the rule shall consider the fiscal impact statement as part of the rulemaking process and shall provide the office of management and budget with the information necessary to prepare the fiscal impact statement, including any economic impact statement prepared by the agency under IC 4-22-2.1-5. In preparation of the fiscal impact statement, the office of management and budget may also receive and consider applicable information from the regulated persons affected by the rule, in preparation of the fiscal impact statement. along with any applicable information submitted by the state, an affected instrumentality of the state, or an affected political subdivision.
    (e) With respect to a proposed rule subject to IC 13-14-9:

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        (1) the department of environmental management shall give written notice to the office of management and budget of the proposed date of preliminary adoption of the proposed rule not less than sixty-six (66) days before that date; and
        (2) the office of management and budget shall prepare the fiscal impact statement referred to in subsection (d) not later than twenty-one (21) days before the proposed date of preliminary adoption of the proposed rule.
    (f) In determining under subsection (c)(1) whether a proposed rule has a total estimated economic impact greater than five hundred thousand dollars ($500,000) on all regulated persons, the agency proposing the rule shall consider the impact of the rule on any regulated person that already complies with the standards imposed by the rule on a voluntary basis.
    (g) For purposes of this section, a rule is fully implemented after:
        (1) the conclusion of any phase-in period during which:
            (A) the rule is gradually made to apply to certain regulated persons; or
            (B) the costs of the rule are gradually implemented; and
        (2) the rule applies to all regulated persons that will be affected by the rule.
In determining the total estimated economic impact of a proposed rule under this section, the agency proposing the rule shall consider the annual economic impact on all regulated persons beginning with the first twelve (12) month period after the rule is fully implemented. The agency may use actual or forecasted data and may consider the actual and anticipated effects of inflation and deflation. The agency shall describe any assumptions made and any data used in determining the total estimated economic impact of a rule under this section.
     (h) After July 1, 2013, an agency may not adopt a rule that will have a total estimated economic impact of any amount on the state, an instrumentality of the state, or a political subdivision unless the rule is required to comply with a court order or with a federal law, a federal regulation, or the terms of a federal grant or loan.

SOURCE: ; (13)IN0121.1.2. -->     SECTION 2. An emergency is declared for this act.