Bill Text: FL S1706 | 2014 | Regular Session | Introduced
Bill Title: Administrative Procedures
Spectrum: Committee Bill
Status: (Failed) 2014-05-02 - Died in Judiciary [S1706 Detail]
Download: Florida-2014-S1706-Introduced.html
Florida Senate - 2014 SB 1706 By the Committee on Governmental Oversight and Accountability 585-03272-14 20141706__ 1 A bill to be entitled 2 An act relating to administrative procedures; amending 3 s. 120.54, F.S.; revising requirements for the content 4 of notices of rule development; revising the scope of 5 public workshops to include information gathering for 6 the preparation of statements of estimated regulatory 7 costs; revising requirements for notices of proposed 8 rules; authorizing electronic delivery of notices to 9 persons who have requested advance notice of agency 10 rulemaking proceedings; revising requirements for an 11 agency’s filing of specified information with the 12 Administrative Procedures Committee; creating a 13 presumption of adverse impact on small business in 14 specified circumstances; requiring certain agency 15 personnel to attend public hearings on proposed rules; 16 requiring an agency to publish a notice of convening a 17 separate proceeding in certain circumstances; tolling 18 rulemaking deadlines during such separate proceedings; 19 revising requirements for the contents of a notice of 20 change; amending s. 120.541, F.S.; revising 21 requirements for substantially affected persons to 22 submit proposals for lower cost regulatory 23 alternatives to a proposed rule following a notice of 24 change; revising requirements for an agency’s 25 consideration of such lower cost regulatory 26 alternatives; providing for an agency’s revision and 27 publication of a revised statement of estimated 28 regulatory costs in response to such lower cost 29 regulatory alternatives; deleting the definition of 30 the term “transactional costs”; providing additional 31 requirements for the calculation of estimated 32 regulatory costs; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1. Subsections (2) and (3) of section 120.54, 37 Florida Statutes, are amended to read: 38 120.54 Rulemaking.— 39 (2) RULE DEVELOPMENT; WORKSHOPS; NEGOTIATED RULEMAKING.— 40 (a) Except when the intended action is the repeal of a 41 rule, agencies shall provide notice of the development of 42 proposed rules by publication of a notice of rule development in 43 the Florida Administrative Register before providing notice of a 44 proposed rule as required by paragraph (3)(a). The notice of 45 rule development shall indicate the subject area to be addressed 46 by rule development, provide a short, plain explanation of the 47 purpose and effect of the proposed rule, cite the grant of 48 rulemaking authority pursuant to which the rule is proposed and 49 the section or subsection of the Florida Statutes or the Laws of 50 Florida being implemented or interpreted by the proposed rule 51specific legal authority for the proposed rule, and include the 52 preliminary text of the proposed rules, if available, or a 53 statement of how a person may submit comments on the proposal, 54 provide the agency with information regarding the potential 55 regulatory costs, or promptly obtain, without cost, or access 56 online, a copy of any preliminary draft, whenifavailable. 57 (b) All rules should be drafted in readable language. The 58 language is readable if: 59 1. It avoids the use of obscure words and unnecessarily 60 long or complicated constructions; and 61 2. It avoids the use of unnecessary technical or 62 specialized language that is understood only by members of 63 particular trades or professions. 64 (c) An agency may hold public workshops for purposes of 65 rule development and information gathering for the preparation 66 of the statement of estimated regulatory costs. If requested in 67 writing by an affected person, an agency must hold public 68 workshops, including workshops in various regions of the state 69 or the agency’s service area, for purposes of rule development 70 and information gathering for the preparation of the statement 71 of estimated regulatory costif requested in writing by any72affected person, unless the agency head explains in writing why 73 a workshop is unnecessary. The explanation is not final agency 74 action subject to review pursuant to ss. 120.569 and 120.57.The75failure to provide the explanation when required may be a76material error in procedure pursuant to s. 120.56(1)(c).When a 77 workshop or public hearing is held, the agency must ensure that 78 the persons responsible for preparing the proposed rule and the 79 statement of estimated regulatory costs are available to receive 80 public input, to explain the agency’s proposal, and to respond 81 to questions or comments regarding the rule being developed and 82 the statement of estimated regulatory costs. The workshop may be 83 facilitated or mediated by a neutral third person, or the agency 84 may employ other types of dispute resolution alternatives for 85 the workshop that are appropriate for rule development, 86 including the preparation of any statement of estimated 87 regulatory costs. Notice of a rule development workshop shall be 88 by publication in the Florida Administrative Register not less 89 than 14 days beforeprior tothe date on which the workshop is 90 scheduled to be held and shall indicate the subject area which 91 will be addressed; the agency contact person; and the place, 92 date, and time of the workshop. 93 (d)1. An agency may use negotiated rulemaking in developing 94 and adopting rules. The agency should consider the use of 95 negotiated rulemaking when complex rules are being drafted or 96 strong opposition to the rules is anticipated. The agency should 97 consider, but is not limited to considering, whether a balanced 98 committee of interested persons who will negotiate in good faith 99 can be assembled, whether the agency is willing to support the 100 work of the negotiating committee, and whether the agency can 101 use the group consensus as the basis for its proposed rule. 102 Negotiated rulemaking uses a committee of designated 103 representatives to draft a mutually acceptable proposed rule and 104 to develop information necessary to prepare a statement of 105 estimated regulatory costs, when applicable. 106 2. An agency that chooses to use the negotiated rulemaking 107 process described in this paragraph shall publish in the Florida 108 Administrative Register a notice of negotiated rulemaking that 109 includes a listing of the representative groups that will be 110 invited to participate in the negotiated rulemaking process. Any 111 person who believes that his or her interest is not adequately 112 represented may apply to participate within 30 days after 113 publication of the notice. All meetings of the negotiating 114 committee shall be noticed and open to the public pursuant to 115 the provisions of this chapter. The negotiating committee shall 116 be chaired by a neutral facilitator or mediator. 117 3. The agency’s decision to use negotiated rulemaking, its 118 selection of the representative groups, and approval or denial 119 of an application to participate in the negotiated rulemaking 120 process are not agency action. Nothing in this subparagraph is 121 intended to affect the rights of a substantiallyanaffected 122 person to challenge a proposed rule developed under this 123 paragraph in accordance with s. 120.56(2). 124 (3) ADOPTION PROCEDURES.— 125 (a) Notices.— 126 1. BeforePrior tothe adoption, amendment, or repeal of 127 any rule other than an emergency rule, an agency, upon approval 128 of the agency head, shall give notice of its intended action, 129 setting forth a short, plain explanation of the purpose and 130 effect of the proposed action; the full text of the proposed 131 rule or amendment and a summary thereof; a reference to the 132 grant of rulemaking authority pursuant to which the rule is 133 adopted; and a reference to the section or subsection of the 134 Florida Statutes or the Laws of Florida being implemented or 135 interpreted. The notice must include a statement as to whether 136 the agency held a public workshop for the purpose of development 137 of the proposed rule, and if not, whether a workshop was 138 requested in writing. If a rule development workshop was not 139 held, the notice must include a copy of the written explanation 140 from the agency head as to why a workshop was unnecessary. The 141 notice must include a summary of the agency’s statement of the 142 estimated regulatory costs, including an electronic hyperlink to 143 a copy of the statement of estimated regulatory costs on the 144 agency’s website, if a statementonehas been prepared, based on 145 the factors set forth in s. 120.541(2); a statement that any 146 person who wishes to provide the agency with information 147 regarding the statement of estimated regulatory costs, or to 148 provide a proposal for a lower cost regulatory alternative as 149 provided by s. 120.541(1), must do so in writing within 21 days 150 after publication of the notice; and a statement as to whether, 151 based on the statement of the estimated regulatory costs or 152 other information expressly relied upon and described by the 153 agency if no statement of regulatory costs is required, the 154 proposed rule is expected to require legislative ratification 155 pursuant to s. 120.541(3). The notice must state the procedure 156 for requesting a public hearing on the proposed rule. Except 157 when the intended action is the repeal of a rule, the notice 158 must include a reference both to the date on which and to the 159 place where the notice of rule development that is required by 160 subsection (2) appeared. 161 2. The notice shall be published in the Florida 162 Administrative Register at leastnot less than28 days before 163prior tothe intended action. The proposed rule shall be 164 available for inspection and copying by the public at the time 165 of the publication of notice. 166 3. The notice shall be mailed to all persons named in the 167 proposed rule and mailed or delivered electronically to all 168 persons who, at least 14 days beforeprior tosuch mailing, have 169 made requests of the agency for advance notice of its 170 proceedings. The agency shall also give such notice as is 171 prescribed by rule to those particular classes of persons to 172 whom the intended action is directed. 173 4. The adopting agency shall file with the committee, at 174 least 21 days beforeprior tothe proposed adoption date, a copy 175 of each rule it proposes to adopt; a copy of any material 176 incorporated by reference in the rule; a detailed written 177 statement of the facts and circumstances justifying the proposed 178 rule; a copy of any statement of estimated regulatory costs that 179 has been prepared pursuant to s. 120.541; a statement of the 180 extent to which the proposed rule relates to federal standards 181 or rules on the same subject; and the notice required by 182 subparagraph 1. In lieu of filing a required statement or copy 183 with the committee for each such rule, the agency may file with 184 the committee information providing an electronic hyperlink to a 185 readily accessible copy of the required statement or copy. 186 (b) Special matters to be considered in rule adoption.— 187 1. Statement of estimated regulatory costs.—Before the 188 adoption, amendment, or repeal of any rule other than an 189 emergency rule, an agency is encouraged to prepare a statement 190 of estimated regulatory costs of the proposed rule, as provided 191 by s. 120.541. However, an agency must prepare a statement of 192 estimated regulatory costs of the proposed rule, as provided by 193 s. 120.541, if: 194 a. The proposed rule will have an adverse impact on small 195 business; or 196 b. The proposed rule is likely to directly or indirectly 197 increase regulatory costs in excess of $200,000 in the aggregate 198 in this state within 1 year after the implementation of the 199 rule. 200 2. Small businesses, small counties, and small cities.— 201 a. For purposes of this subsection and s. 120.541(2), an 202 adverse impact on small business is presumed if, for any small 203 business: 204 (I) An owner, officer, operator, or manager must complete 205 any education, training, or testing to comply, or is likely to 206 either expend 10 hours or purchase professional advice to 207 understand and comply with the rule in the first year; 208 (II) Taxes or fees assessed on transactions are likely to 209 increase by $500 or more in the aggregate in 1 year; 210 (III) Prices charged for goods and services are restricted 211 or are likely to increase because of the rule; 212 (IV) Specially trained, licensed, or tested employees will 213 be required; 214 (V) Operating costs are expected to increase by at least 215 $1,000 annually; or 216 (VI) Capital expenditures in excess of $1,000 are necessary 217 to comply with the rule. 218 b. Each agency, before the adoption, amendment, or repeal 219 of a rule, shall consider the impact of the rule on small 220 businesses as defined by s. 288.703 and the impact of the rule 221 on small counties or small cities as defined by s. 120.52. 222 Whenever practicable, an agency shall tier its rules to reduce 223 disproportionate impacts on small businesses, small counties, or 224 small cities to avoid regulating small businesses, small 225 counties, or small cities that do not contribute significantly 226 to the problem the rule is designed to address. An agency may 227 define “small business” to include businesses employing more 228 than 200 persons, may define “small county” to include those 229 with populations of more than 75,000, and may define “small 230 city” to include those with populations of more than 10,000, if 231 it finds that such a definition is necessary to adapt a rule to 232 the needs and problems of small businesses, small counties, or 233 small cities. The agency shall consider each of the following 234 methods for reducing the impact of the proposed rule on small 235 businesses, small counties, and small cities, or any combination 236 of these entities: 237 (I) Establishing less stringent compliance or reporting 238 requirements in the rule. 239 (II) Establishing less stringent schedules or deadlines in 240 the rule for compliance or reporting requirements. 241 (III) Consolidating or simplifying the rule’s compliance or 242 reporting requirements. 243 (IV) Establishing performance standards or best management 244 practices to replace design or operational standards in the 245 rule. 246 (V) Exempting small businesses, small counties, or small 247 cities from any or all requirements of the rule. 248 c.b.(I) If the agency determines that the proposed action 249 will affect small businesses as defined by the agency as 250 provided in sub-subparagraph b.a., the agency shall send 251 written notice of the rule to the rules ombudsman in the 252 Executive Office of the Governor at least 28 days before the 253 intended action. 254 (II) Each agency shall adopt those regulatory alternatives 255 offered by the rules ombudsman in the Executive Office of the 256 Governor and provided to the agency no later than 21 days after 257 the rules ombudsman’s receipt of the written notice of the rule 258 which it finds are feasible and consistent with the stated 259 objectives of the proposed rule and which would reduce the 260 impact on small businesses. When regulatory alternatives are 261 offered by the rules ombudsman in the Executive Office of the 262 Governor, the 90-day period for filing the rule in subparagraph 263 (e)2. is extended for a period of 21 days. 264 (III) If an agency does not adopt all alternatives offered 265 pursuant to this sub-subparagraph, it shall, before rule 266 adoption or amendment and pursuant to subparagraph (d)1., file a 267 detailed written statement with the committee explaining the 268 reasons for failure to adopt such alternatives. Within 3 working 269 days after the filing of such notice, the agency shall send a 270 copy of such notice to the rules ombudsman in the Executive 271 Office of the Governor. 272 (c) Hearings.— 273 1. If the intended action concerns any rule other than one 274 relating exclusively to procedure or practice, the agency shall, 275 on the request of any affected person received within 21 days 276 after the date of publication of the notice of intended agency 277 action, give affected persons an opportunity to present evidence 278 and argument on all issues under consideration. The agency may 279 schedule a public hearing on the proposed rule and, if requested 280 by any affected person, shall schedule a public hearing on the 281 proposed rule. When a public hearing is held, the agency must 282 ensure that the persons responsible for preparing the proposed 283 rule and the statement of estimated regulatory costsstaffare 284 available to explain the agency’s proposal and to respond to 285 questions or comments regarding the proposed rule, the statement 286 of estimated regulatory costs, and the agency’s decision whether 287 to adopt a lower cost regulatory alternative submitted pursuant 288 to s. 120.541(1)(a). If the agency head is a board or other 289 collegial body created under s. 20.165(4) or s. 20.43(3)(g), and 290 one or more requested public hearings is scheduled, the board or 291 other collegial body shall conduct at least one of the public 292 hearings itself and may not delegate this responsibility without 293 the consent of those persons requesting the public hearing. Any 294 material pertinent to the issues under consideration submitted 295 to the agency within 21 days after the date of publication of 296 the notice or submitted to the agency between the date of 297 publication of the notice and the end of the final public 298 hearing shall be considered by the agency and made a part of the 299 record of the rulemaking proceeding. 300 2. Rulemaking proceedings shall be governed solely by the 301 provisions of this section unless a person timely asserts that 302 the person’s substantial interests will be affected in the 303 proceeding and affirmatively demonstrates to the agency that the 304 proceeding does not provide adequate opportunity to protect 305 those interests. If the agency determines that the rulemaking 306 proceeding is not adequate to protect the person’s interests, it 307 shall suspend the rulemaking proceeding and convene a separate 308 proceeding underthe provisions ofss. 120.569 and 120.57. The 309 agency shall publish notice of convening a separate proceeding 310 in the Florida Administrative Register. Similarly situated 311 persons may be requested to join and participate in the separate 312 proceeding. Upon conclusion of the separate proceeding, the 313 rulemaking proceeding shall be resumed. All timelines in this 314 section are tolled during any suspension of the rulemaking 315 proceeding under this subparagraph, beginning on the date that 316 the notice of convening a separate proceeding is published and 317 resuming on the day immediately after conclusion of the separate 318 proceeding. 319 (d) Modification or withdrawal of proposed rules.— 320 1. After the final public hearing on the proposed rule, or 321 after the time for requesting a hearing has expired, if the 322 proposed rule has not been changed from the proposed rule as 323 previously filed with the committee, or contains only technical 324 changes that do not affect the substance of the rule, the 325 adopting agency shall file a notice to that effect with the 326 committee at least 7 days beforeprior tofiling the proposed 327 rule for adoption. Any change, other than a technical change 328that does not affect the substance of the rule, must be 329 supported by the record of public hearings held on the proposed 330 rule, must be in response to written material submitted to the 331 agency within 21 days after the date of publication of the 332 notice of intended agency action or submitted to the agency 333 between the date of publication of the notice and the end of the 334 final public hearing, or must be in response to a proposed 335 objection by the committee. In addition, when any change is made 336 in a proposed rule, other than a technical change, the adopting 337 agency shall provide a copy of a notice of change by certified 338 mail or actual delivery to any person who requests it in writing 339 no later than 21 days after the notice required in paragraph 340 (a). The agency shall file the notice of change with the 341 committee, along with the reasons for the change, and provide 342 the notice of change to persons requesting it, at least 21 days 343 beforeprior tofiling the proposed rule for adoption. The 344 notice of change shall be published in the Florida 345 Administrative Register at least 21 days beforeprior tofiling 346 the rule for adoption. The notice of change must include either 347 a summary of any statement of estimated regulatory costs 348 prepared as a consequence of the change, a summary of any 349 revision of the statement of estimated regulatory costs required 350 by s. 120.541(1)(c), or a statement that the proposed rule as 351 changed does not require preparation of a statement of estimated 352 regulatory costs under paragraph (b) and s. 120.541(1)(b). This 353 subparagraph does not apply to emergency rules adopted pursuant 354 to subsection (4). 355 2. After the notice required by paragraph (a) and before 356prior toadoption, the agency may withdraw the proposed rule in 357 whole or in part. 358 3. After adoption and before the rule becomes effective, a 359 rule may be modified or withdrawn only in the following 360 circumstances: 361 a. When the committee objects to the rule; 362 b. When a final order, which is not subject to further 363 appeal, is entered in a rule challenge brought pursuant to s. 364 120.56 after the date of adoption but before the rule becomes 365 effective pursuant to subparagraph (e)6.; 366 c. If the rule requires ratification, when more than 90 367 days have passed since the rule was filed for adoption without 368 the Legislature ratifying the rule, in which case the rule may 369 be withdrawn but may not be modified; or 370 d. When the committee notifies the agency that an objection 371 to the rule is being considered, in which case the rule may be 372 modified to extend the effective date by not more than 60 days. 373 4. The agency shall give notice of its decision to withdraw 374 or modify a rule in the first available issue of the publication 375 in which the original notice of rulemaking was published, shall 376 notify those persons described in subparagraph (a)3. in 377 accordance with the requirements of that subparagraph, and shall 378 notify the Department of State if the rule is required to be 379 filed with the Department of State. 380 5. After a rule has become effective, it may be repealed or 381 amended only through the rulemaking procedures specified in this 382 chapter. 383 (e) Filing for final adoption; effective date.— 384 1. If the adopting agency is required to publish its rules 385 in the Florida Administrative Code, the agency, upon approval of 386 the agency head, shall file with the Department of State three 387 certified copies of the rule it proposes to adopt; one copy of 388 any material incorporated by reference in the rule, certified by 389 the agency; a summary of the rule; a summary of any hearings 390 held on the rule; and a detailed written statement of the facts 391 and circumstances justifying the rule. Agencies not required to 392 publish their rules in the Florida Administrative Code shall 393 file one certified copy of the proposed rule, and the other 394 material required by this subparagraph, in the office of the 395 agency head, and such rules shall be open to the public. 396 2. A rule may not be filed for adoption less than 28 days 397 or more than 90 days after the notice required by paragraph (a), 398 until 21 days after the notice of change required by paragraph 399 (d), until 14 days after the final public hearing, until 21 days 400 after a statement of estimated regulatory costs required under 401 s. 120.541 has been provided to all persons who submitted a 402 lower cost regulatory alternative and made available to the 403 public at a readily accessible page on the agency’s website, or 404 until the administrative law judge has rendered a decision under 405 s. 120.56(2), whichever applies. When a required notice of 406 change is published beforeprior tothe expiration of the time 407 to file the rule for adoption, the period during which a rule 408 must be filed for adoption is extended to 45 days after the date 409 of publication. If notice of a public hearing is published 410 beforeprior tothe expiration of the time to file the rule for 411 adoption, the period during which a rule must be filed for 412 adoption is extended to 45 days after adjournment of the final 413 hearing on the rule, 21 days after receipt of all material 414 authorized to be submitted at the hearing, or 21 days after 415 receipt of the transcript, if one is made, whichever is latest. 416 The term “public hearing” includes any public meeting held by 417 any agency at which the rule is considered. If a petition for an 418 administrative determination under s. 120.56(2) is filed, the 419 period during which a rule must be filed for adoption is 420 extended to 60 days after the administrative law judge files the 421 final order with the clerk or until 60 days after subsequent 422 judicial review is complete. 423 3. At the time a rule is filed, the agency shall certify 424 that the time limitations prescribed by this paragraph have been 425 complied with, that all statutory rulemaking requirements have 426 been met, and that there is no administrative determination 427 pending on the rule. 428 4. At the time a rule is filed, the committee shall certify 429 whether the agency has responded in writing to all material and 430 timely written comments or written inquiries made on behalf of 431 the committee. The Department of State shall reject any rule 432 that is not filed within the prescribed time limits; that does 433 not comply with all statutory rulemaking requirements and rules 434 of the Department of State; upon which an agency has not 435 responded in writing to all material and timely written 436 inquiries or written comments; upon which an administrative 437 determination is pending; or which does not include a statement 438 of estimated regulatory costs, if required. 439 5. If a rule has not been adopted within the time limits 440 imposed by this paragraph or has not been adopted in compliance 441 with all statutory rulemaking requirements, the agency proposing 442 the rule shall withdraw the proposed rule and give notice of its 443 action in the next available issue of the Florida Administrative 444 Register. 445 6. The proposed rule shall be adopted on being filed with 446 the Department of State and become effective 20 days after being 447 filed, on a later date specified in the notice required by 448 subparagraph (a)1., on a date required by statute, or upon 449 ratification by the Legislature pursuant to s. 120.541(3). Rules 450 not required to be filed with the Department of State shall 451 become effective when adopted by the agency head, on a later 452 date specified by rule or statute, or upon ratification by the 453 Legislature pursuant to s. 120.541(3). If the committee notifies 454 an agency that an objection to a rule is being considered, the 455 agency may postpone the adoption of the rule to accommodate 456 review of the rule by the committee. When an agency postpones 457 adoption of a rule to accommodate review by the committee, the 458 90-day period for filing the rule is tolled until the committee 459 notifies the agency that it has completed its review of the 460 rule. 461 462 For the purposes of this paragraph, the term “administrative 463 determination” does not include subsequent judicial review. 464 Section 2. Section 120.541, Florida Statutes, is amended to 465 read: 466 120.541 Statement of estimated regulatory costs.— 467 (1)(a) Within 21 days after publication of the notice of 468 proposed rule required under s. 120.54(3)(a), or of a notice of 469 change under s. 120.54(3)(d)1., a substantially affected person 470 may submit to an agency a good faith written proposal for a 471 lower cost regulatory alternative to a proposed rule which 472 substantially accomplishes the objectives of the law being 473 implemented. The proposal may include the alternative of not 474 adopting any rule if the proposal explains how the lower costs 475 and objectives of the law will be achieved by not adopting any 476 rule. If submitted after a notice of change, a proposal is 477 deemed to be made in good faith only if the person reasonably 478 believes and the proposal states the person’s reasons for 479 believing that the proposed rule as changed by the notice of 480 change increases the regulatory costs or creates an adverse 481 impact on small business that was not created by the previous 482 proposal. If such a proposal is submitted, the 90-day period for 483 filing the rule is extended 21 days. Upon the submission of the 484 lower cost regulatory alternative, the agency shall prepare a 485 statement of estimated regulatory costs as provided in 486 subsection (2), or shall revise its prior statement of estimated 487 regulatory costs, and either adopt the alternative, modify the 488 proposed rule to substantially reduce the regulatory costs, or 489 provide a statement of the reasons for rejecting the alternative 490 in favor of the proposed rule. 491 (b) If a proposed rule will have an adverse impact on small 492 business as set forth in s. 120.54(3)(b) or if the proposed rule 493 is likely to directly or indirectly increase regulatory costs in 494 excess of $200,000 in the aggregate within 1 year after the 495 implementation of the rule, the agency shall prepare a statement 496 of estimated regulatory costs as required by s. 120.54(3)(b). 497 (c) The agency shall revise a statement of estimated 498 regulatory costs if any change to the rule made under s. 499 120.54(3)(d) increases the regulatory costs of the rule or if 500 the rule is modified in response to the submission of a lower 501 cost regulatory alternative. A summary of the revised statement 502 must be included with any subsequent notice published under s. 503 120.54(3). 504 (d) At least 21 days before filing the proposed rule for 505 adoption, an agency that is required to revise a statement of 506 estimated regulatory costs shall provide the statement to the 507 person who submitted the lower cost regulatory alternative, to 508 the rules ombudsman in the Executive Office of the Governor, and 509 to the committee. The revised statement shall be published and 510 made available in the same manner as the original statement of 511 estimated regulatory costsand shall provide notice on the512agency’s website that it is available to the public. 513 (e) Notwithstanding s. 120.56(1)(c), the failure of the 514 agency to prepare and publish a statement of estimated 515 regulatory costs or to respond to a written lower cost 516 regulatory alternative as provided in this subsection is a 517 material failure to follow the applicable rulemaking procedures 518 or requirements set forth in this chapter. 519 (f) An agency’s failure to prepare and publish a statement 520 of estimated regulatory costs or to respond to a written lower 521 cost regulatory alternative may not be raised in a proceeding 522 challenging the validity of a rule pursuant to s. 120.52(8)(a) 523 unless: 524 1. Raised in a petition filed no later than 1 year after 525 the effective date of the rule; and 526 2. Raised by a person whose substantial interests are 527 affected by the rule’s regulatory costs. 528 (g) A rule that is challenged pursuant to s. 120.52(8)(f) 529 may not be declared invalid unless: 530 1. The issue is raised in an administrative proceeding 531 within 1 year after the effective date of the rule; 532 2. The challenge is to the agency’s rejection of a lower 533 cost regulatory alternative offered under paragraph (a) or s. 534 120.54(3)(b)2.c.s. 120.54(3)(b)2.b.; and 535 3. The substantial interests of the person challenging the 536 rule are materially affected by the rejection. 537 (2) A statement of estimated regulatory costs shall 538 include: 539 (a) An economic analysis showing whether the rule directly 540 or indirectly: 541 1. Is likely to have an adverse impact on economic growth, 542 private sector job creation or employment, or private sector 543 investment in excess of $1 million in the aggregate within 5 544 years after the implementation of the rule; 545 2. Is likely to have an adverse impact on business 546 competitiveness, including the ability of persons doing business 547 in the state to compete with persons doing business in other 548 states or domestic markets, productivity, or innovation in 549 excess of $1 million in the aggregate within 5 years after the 550 implementation of the rule; or 551 3. Is likely to increase regulatory costs, including all 552any transactionalcosts and impacts estimated in the statement, 553 in excess of $1 million in the aggregate within 5 years after 554 the implementation of the rule. 555 (b) A good faith estimate of the number of individuals, 556 small businesses, and other entities likely to be required to 557 comply with the rule, together with a general description of the 558 types of individuals likely to be affected by the rule. 559 (c) A good faith estimate of the cost to the agency, and to 560 any other state and local government entities, of implementing 561 and enforcing the proposed rule, and any anticipated effect on 562 state or local revenues. 563 (d) A good faith estimate of the compliancetransactional564 costs likely to be incurred by individuals and entities, 565 including local government entities, required to comply with the 566 requirements of the rule.As used in this section,567“transactional costs” are direct costs that are readily568ascertainable based upon standard business practices, and569include filing fees, the cost of obtaining a license, the cost570of equipment required to be installed or used or procedures571required to be employed in complying with the rule, additional572operating costs incurred, the cost of monitoring and reporting,573and any other costs necessary to comply with the rule.574 (e) An analysis of the impact on small businesses as 575 defined by s. 288.703, and an analysis of the impact on small 576 counties and small cities as defined in s. 120.52. The impact 577 analysis for small businesses must include the basis for the 578 agency’s decision not to implement alternatives that would 579 reduce adverse impacts on small businesses. 580 (f) Any additional information that the agency determines 581 may be useful. 582 (g)In the statement or revised statement, whichever583applies,A description of any regulatory alternatives submitted 584 under paragraph (1)(a) and a statement adopting the alternative 585 or a statement of the reasons for rejecting the alternative in 586 favor of the proposed rule. 587 (3) If the adverse impact or regulatory costs of the rule 588 exceed any of the criteria established in paragraph (2)(a), the 589 rule shall be submitted to the President of the Senate and 590 Speaker of the House of Representatives no later than 30 days 591 beforeprior tothe next regular legislative session, and the 592 rule may not take effect until it is ratified by the 593 Legislature. 594 (4) Subsection (3) does not apply to the adoption of: 595 (a) Federal standards pursuant to s. 120.54(6). 596 (b) Triennial updates of and amendments to the Florida 597 Building Code which are expressly authorized by s. 553.73. 598 (c) Triennial updates of and amendments to the Florida Fire 599 Prevention Code which are expressly authorized by s. 633.202. 600 (5)(a) For purposes of subsections (2) and (3), impacts and 601 costs incurred within 5 years after implementation of the rule 602 shall include the applicable costs and impacts estimated to be 603 incurred within the first 5 years after the effective date of 604 the rule. However, if any provisions of the rule are not fully 605 implemented and enforceable upon the effective date of the rule, 606 the impacts and costs must be adjusted to include any additional 607 costs and impacts estimated to be incurred within 5 years after 608 the implementation and enforcement of the provisions of the rule 609 that were not fully implemented upon the effective date of the 610 rule. 611 (b) In evaluating the impacts described in paragraphs 612 (2)(a) and (2)(e), an agency shall include good faith estimates 613 of market impacts likely to result from compliance with the 614 rule, including: 615 1. Increased customer charges for goods and services. 616 2. Decreased market value of goods and services produced, 617 provided, or sold. 618 3. Increased costs resulting from the purchase of 619 substitute or alternative products or services. 620 4. The reasonable value of time to be expended by owners, 621 officers, operators, and managers to understand and comply, 622 including, but not limited to, time expended to complete 623 required education, training, or testing. 624 5. Capital costs. 625 6. Any other impacts suggested by the rules ombudsman, the 626 agency head’s appointing authority, or interested persons. 627 (c) In estimating the information required in paragraphs 628 (2)(b)-(e), the agency may use reasonably applicable surveys of 629 individuals, businesses, business organizations and 630 representatives, cities, and counties to collect data helpful to 631 estimate the costs and impacts. The agency shall also solicit 632 helpful information in each notice related to the proposed rule. 633 The rules ombudsman and the committee may recommend survey 634 instruments and methods to assist agencies in administering this 635 section. Such recommendations and agency decisions regarding 636 surveys and methods do not constitute rules or agency actions 637 under this chapter. 638 (d) In estimating compliance costs under paragraph (2)(d), 639 the agency shall consider, among other matters, all direct and 640 indirect costs necessary to comply with the rule that are 641 readily ascertainable based upon standard business practices, 642 including, but not limited to, costs related to: 643 1. Filing fees. 644 2. Obtaining a license. 645 3. Necessary equipment. 646 4. Installation, utilities, and maintenance of necessary 647 equipment. 648 5. Necessary operations and procedures. 649 6. Accounting, financial, information and management 650 systems, and other administrative processes. 651 7. Other processes. 652 8. Labor based on relevant rates of wages, salaries and 653 benefits. 654 9. Materials and supplies. 655 10. Capital expenditures including financing costs. 656 11. Professional and technical services, including 657 contracted services necessary to implement and maintain 658 compliance. 659 12. Monitoring and reporting. 660 13. Qualifying and recurring education, training, and 661 testing. 662 14. Travel. 663 15. Insurance and surety requirements. 664 16. A fair and reasonable allocation of administrative 665 costs and other overhead. 666 17. Reduced sales or other revenues. 667 18. Other items suggested by the rules ombudsman, the 668 committee, or any interested person, business organization, or 669 business representative. 670 Section 3. This act shall take effect July 1, 2014.