Bill Text: IL HB0492 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Administrative Procedure Act. Requires that the economic impact analysis for a proposed rule affecting small businesses be prepared by the agency promulgating the rule (now, the Business Assistance Office of the Department of Commerce and Economic Opportunity). Requires each agency to perform periodic reviews of its rules in order to evaluate their affect upon small businesses.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB0492 Detail]

Download: Illinois-2009-HB0492-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0492 Introduced 2/4/2009, by Rep. Mike Fortner SYNOPSIS AS INTRODUCED:
5 ILCS 100/5-30 from Ch. 127, par. 1005-30
5 ILCS 100/5-130 from Ch. 127, par. 1005-130
Amends the Illinois Administrative Procedure Act. Requires that the economic impact analysis for a proposed rule affecting small businesses be prepared by the agency promulgating the rule (now, the Business Assistance Office of the Department of Commerce and Economic Opportunity). Requires each agency to perform periodic reviews of its rules in order to evaluate their affect upon small businesses.
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FISCAL NOTE ACT MAY APPLY
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 5-130 as follows:
(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, the agency shall do each of the
following:
(a) The agency shall consider each of the following methods
for reducing the impact of the rulemaking on small businesses,
not for profit corporations, or small municipalities. 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.
(2) Establish less stringent schedules or deadlines in
the rule for compliance or reporting requirements for small

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businesses, not for profit corporations, or small
municipalities.
(3) Consolidate or simplify the rule's compliance or
reporting requirements for small businesses, not for
profit corporations, or small municipalities.
(4) Establish performance standards to replace design
or operational standards in the rule for small businesses,
not for profit corporations, or small municipalities.
(5) Exempt small businesses, not for profit
corporations, or small municipalities 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 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.
(2) The publication of a notice of rulemaking in
publications likely to be obtained by small businesses, not
for profit corporations, or small municipalities.

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(3) The direct notification of interested small
businesses, not for profit corporations, or small
municipalities.
(4) The conduct of public hearings concerning the
impact of the rule on small businesses, not for profit
corporations, or small municipalities.
(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.
(c) Prior to the adoption of any proposed rule or amendment
that may have an adverse impact on small businesses, each
agency shall prepare an economic impact analysis that includes
the following:
(1) an identification and estimate of the number of the
small businesses subject to the proposed rule or amendment;
(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 effect on impacted
small businesses; and
(4) a description of any less intrusive or less costly
alternative methods of achieving the purpose of the
proposed rule or amendment. Before the notice period

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required under subsection (b) of Section 5-40, the
Secretary of State shall provide to the Business Assistance
Office of the Department of Commerce and Economic
Opportunity a copy of any proposed rules or amendments
accepted for publication. The Business Assistance Office
shall prepare an impact analysis of the rule describing the
rule's 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 within the notice period as described in
subsection (b) of Section 5-40. Upon completion of the
analysis the agency Business Assistance Office shall
submit this analysis to the Joint Committee on
Administrative Rules, any interested person who requested
the analysis, and the Business Assistance Office of the
Department of Commerce and Economic Opportunity agency
proposing the rule. The impact analysis shall contain the
following:
(1) A summary of the projected reporting,
recordkeeping, and other compliance requirements of the
proposed rule.
(2) A description of the types and an estimate of the
number of small businesses to which the proposed rule will

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apply.
(3) An estimate of the economic impact that the
regulation will have on the various types of small
businesses affected by the rulemaking.
(4) A description or listing of alternatives to the
proposed rule that would minimize the economic impact of
the rule. The alternatives must be consistent with the
stated objectives of the applicable statutes and
regulations.
(Source: P.A. 94-793, eff. 5-19-06.)
(5 ILCS 100/5-130) (from Ch. 127, par. 1005-130)
Sec. 5-130. Periodic review of existing rules.
(a) The Joint Committee shall evaluate the rules of each
agency at least once every 5 years. The Joint Committee by rule
shall develop a schedule for this periodic evaluation. In
developing this schedule the Joint Committee shall group rules
by specified areas to assure the evaluation of similar rules at
the same time. The schedule shall include at least the
following categories:
(1) Human resources.
(2) Law enforcement.
(3) Energy.
(4) Environment.
(5) Natural resources.
(6) Transportation.

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(7) Public utilities.
(8) Consumer protection.
(9) Licensing laws.
(10) Regulation of occupations.
(11) Labor laws.
(12) Business regulation.
(13) Financial institutions.
(14) Government purchasing.
(b) When evaluating rules under this Section, the Joint
Committee's review shall include an examination of the
following:
(1) Organizational, structural, and procedural reforms
that affect rules or rulemaking.
(2) Merger, modification, establishment, or abolition
of regulations.
(3) Eliminating or phasing out outdated, overlapping,
or conflicting regulatory jurisdictions or requirements of
general applicability.
(4) Economic and budgetary effects.
(c) Within 4 years of the effective date of this amendatory
Act of the 96th General Assembly, each agency shall review all
agency rules existing at the time of enactment to determine
whether such rules should be continued without change, or
should be amended or rescinded, consistent with the stated
objectives of those statutes, to minimize economic impact of
the rules on small businesses in a manner consistent with the

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stated objective of applicable statutes. If the head of the
agency determines that completion of the review of existing
rules is not feasible by the established date, the agency shall
publish a statement certifying that determination. The agency
may extend the completion date by one year at a time for a
total of not more than 5 years.
Rules adopted after the effective date of this amendatory
Act of the 96th General Assembly should be reviewed every 5
years after the publication of such rules as the final rule to
ensure that they minimize economic impact on small businesses
in a manner consistent with the stated objectives of applicable
statutes.
In reviewing rules to minimize economic impact of the rule
on small businesses, the agency shall consider the following
factors:
(1) the continued need for the rule;
(2) the nature of complaints or comments received
concerning the rule from the public;
(3) the complexity of the rule;
(4) the extent to which the rule overlaps, duplicates,
or conflicts with other federal, State, and local
governmental rules; and
(5) the length of time since the rule has been
evaluated or the degree to which technology, economic
conditions, or other factors have changed in the area
affected by the rule.

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(Source: P.A. 87-823; 88-667, eff. 9-16-94.)