Bill Text: IL HB5576 | 2021-2022 | 102nd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Amends the Regulatory Sunset Act. Provides that the State shall not regulate a profession, occupation, industry, business or trade in a manner that will unreasonably and adversely affect either the competitive market or equitable access to quality jobs and economic opportunities (rather than the competitive market). Adds a requirement that the Office of Management and Budget's study on the performance of regulatory agencies shall include in its report an analysis of whether the agency or program restricts a profession, occupation, business, industry or trade any more than is necessary to protect the public health, safety or welfare from significant and discernible harm or damage. Provides that the Office of Management and Budget's study can examine the termination, modification, or continuation of a regulatory agency or program (rather than termination or continuation). Makes changes regarding the factors that the Office of Management and Budget includes in its study on the performance of regulatory agencies scheduled for termination. Defines "personal qualifications" and "scope of practice". Makes other changes.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Passed) 2022-05-27 - Public Act . . . . . . . . . 102-0984 [HB5576 Detail]

Download: Illinois-2021-HB5576-Enrolled.html

---

HB5576 Enrolled LRB102 23486 SPS 32662 b
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Regulatory Sunset Act is amended by
changing Sections 2, 3, 5, 6, and 7 as follows:
(5 ILCS 80/2) (from Ch. 127, par. 1902)
Sec. 2. Findings and intent.
(a) The General Assembly finds that State government
actions have produced a substantial increase in numbers of
agencies, growth of programs and proliferation of rules and
regulations and that the whole process developed without
sufficient legislative oversight, regulatory accountability or
a system of checks and balances. The General Assembly further
finds that by establishing a system for the termination or
continuation of such agencies and programs, it will be in a
better position to evaluate the need for the continued
existence of present and future regulatory bodies.
(b) It is the intent of the General Assembly:
(1) That no profession, occupation, business, industry
or trade shall be subject to the State's regulatory power
unless the exercise of such power is necessary to protect
the public health, safety or welfare from significant and
discernible harm or damage. The exercise of the State's

HB5576 Enrolled - 2 - LRB102 23486 SPS 32662 b
police power shall be done only to the extent necessary
for that purpose.
(2) That the State shall not regulate a profession,
occupation, industry, business or trade in a manner which
will unreasonably and adversely affect either the
competitive market or equitable access to quality jobs and
economic opportunities.
(3) To provide systematic legislative review of the
need for, and public benefits derived from, a program or
function that licenses or otherwise regulates the initial
entry into a profession, occupation, business, industry or
trade by a periodic review and termination, modification,
or continuation of those programs and functions.
(Source: P.A. 90-580, eff. 5-21-98.)
(5 ILCS 80/3) (from Ch. 127, par. 1903)
Sec. 3. Definitions. As used in this Act, unless the
context clearly requires otherwise:
"Regulatory agency" or "agency" means any arm, branch,
department, board, committee or commission of State government
that licenses, supervises, exercises control over, or issues
rules regarding, or otherwise regulates any trade, occupation,
business, industry or profession.
"Personal qualifications" means criteria related to an
individual's personal background and characteristics.
"Personal qualifications" may include one or more of the

HB5576 Enrolled - 3 - LRB102 23486 SPS 32662 b
following: completion of an approved educational program,
satisfactory performance on an examination, work experience,
apprenticeship, other evidence of attainment of requisite
knowledge and skills, passing a review of the individual's
criminal record, and completion of continuing education.
"Program" means a system to license or otherwise regulate
the initial entry into a profession, occupation, business,
industry, or trade by a periodic review and termination,
modification, or continuation of the profession, occupation,
business, industry, or trade.
"Scope of practice" means the procedures, actions,
processes, and work that an individual may perform under an
occupational regulation.
(Source: P.A. 90-580, eff. 5-21-98.)
(5 ILCS 80/5) (from Ch. 127, par. 1905)
Sec. 5. Study and report. The Governor's Office of
Management and Budget shall study the performance of each
regulatory agency and program scheduled for termination under
this Act and report annually to the Governor the results of
such study, including in the report an analysis of whether the
agency or program restricts a profession, occupation,
business, industry, or trade any more than is necessary to
protect the public health, safety, or welfare from significant
and discernible harm or damage, and recommendations with
respect to those agencies and programs the Governor's Office

HB5576 Enrolled - 4 - LRB102 23486 SPS 32662 b
of Management and Budget determines should be terminated,
modified, or continued by the State. The Governor shall review
the report of the Governor's Office of Management and Budget
and in each even-numbered year make recommendations to the
General Assembly on the termination, modification, or
continuation of regulatory agencies and programs.
(Source: P.A. 94-793, eff. 5-19-06.)
(5 ILCS 80/6) (from Ch. 127, par. 1906)
Sec. 6. Factors to be studied. In conducting the study
required under Section 5, the Governor's Office of Management
and Budget shall consider, but is not limited to consideration
of, the following factors in determining whether an agency or
program should be recommended for termination, modification,
or continuation:
(1) the full range and variety of practices and
activities included in the scope of practice covered by
extent to which the agency or program, including modes of
practice or subspecialties that have developed since the
last review has permitted qualified applicants to serve
the public;
(2) (blank); the extent to which the trade, business,
profession, occupation or industry being regulated is
being administered in a nondiscriminatory manner both in
terms of employment and the rendering of services;
(3) the extent to which the regulatory agency or

HB5576 Enrolled - 5 - LRB102 23486 SPS 32662 b
program has operated in the public interest, and the
extent to which its operation has been impeded or enhanced
by existing statutes, procedures, and practices of any
other department of State government, and any other
circumstances, including budgetary, resource, and
personnel matters;
(4) the extent to which the agency running the program
has recommended statutory changes to the General Assembly
that would benefit the public as opposed to the persons it
regulates;
(5) the extent to which the agency or program has
required the persons it regulates to report to it
concerning the impact of rules and decisions of the agency
or the impact of the program on the public regarding
improved service, economy of service, and availability of
service;
(6) the extent to which persons regulated by the
agency or under the program have been required to assess
problems in their industry that affect the public;
(7) the extent to which the agency or program has
encouraged participation by the public in making its rules
and decisions as opposed to participation solely by the
persons it regulates and the extent to which such rules
and decisions are consistent with statutory authority;
(8) the efficiency with which formal public complaints
filed with the regulatory agency or under the program

HB5576 Enrolled - 6 - LRB102 23486 SPS 32662 b
concerning persons subject to regulation have been
processed to completion, by the executive director of the
regulatory agencies or programs, by the Attorney General
and by any other applicable department of State
government; and
(9) the extent to which changes are necessary in the
enabling laws of the agency or program to adequately
comply with the factors listed in this Section; .
(10) the extent to which there is evidence of
significant and discernible harm arising from the full
range and variety of practices and activities included in
the scope of practice;
(11) the substance, content, and relevance of the
personal qualifications required for entry into the trade,
business, profession, occupation, or industry being
regulated, including, but not limited to, as required
hours of training, required curricula during the required
hours, knowledge areas tested in examinations, and any
updates that have been made since the last review to
address changes in technology or modes of practice;
(12) the extent to which all the personal
qualifications that the agency or program requires for
individuals to enter the trade, business, profession,
occupation, or industry being regulated are necessary to
protect the public from significant and discernible harm,
for all activities covered by the scope of practice;

HB5576 Enrolled - 7 - LRB102 23486 SPS 32662 b
(13) equity concerns arising from the personal
qualifications, including:
(A) financial impact on aspiring licensees,
including, but not limited to, (i) itemization of
average costs of achieving personal qualifications;
(ii) an assessment of average incomes of licensees;
and (iii) numbers, monetary loss, and demographics of
individuals who start but do not achieve personal
qualifications or complete the application process;
(B) challenges for individuals from historically
disadvantaged backgrounds in acquiring personal
qualifications;
(C) barriers for individuals with records of
interactions with the criminal justice system;
(D) evidence of challenges for individuals who do
not speak English as their primary language; and
(E) geographic distribution of training sites and
test sites; and
(14) the extent to which enforcement actions under the
agency or program have addressed significant and
discernible harms to the public as opposed to technical
noncompliance with the requirements of the agency or
program.
(Source: P.A. 94-793, eff. 5-19-06.)
(5 ILCS 80/7) (from Ch. 127, par. 1907)

HB5576 Enrolled - 8 - LRB102 23486 SPS 32662 b
Sec. 7. Additional criteria.
(a) In determining whether to recommend to the General
Assembly under Section 5 the continuation of a regulatory
agency or program or any function thereof, the Governor shall
also consider the following criteria:
(1) whether the absence or modification of regulation
would significantly harm or endanger the public health,
safety or welfare;
(2) whether there is a reasonable relationship between
the exercise of the State's police power and the
protection of the public health, safety or welfare;
(3) whether there is another less restrictive method
of regulation available which could adequately protect the
public;
(4) whether the regulation has the effect of directly
or indirectly increasing the costs of any goods or
services involved, and if so, to what degree;
(5) whether the increase in cost is more harmful to
the public than the harm which could result from the
absence of regulation; and
(6) whether all facets of the regulatory process are
designed solely for the purpose of, and have as their
primary effect, the protection of the public.
(b) In making an evaluation or recommendation with respect
to paragraph (3) of subsection (a), the Governor shall follow
the following guidelines to address the following:

HB5576 Enrolled - 9 - LRB102 23486 SPS 32662 b
(1) Contractual disputes, including pricing disputes.
The Governor may recommend enacting a specific civil cause
of action in small-claims court or district court to
remedy consumer harm. This cause of action may provide for
reimbursement of the attorney's fees or court costs, if a
consumer's claim is successful.
(2) Fraud. The Governor may recommend strengthening
powers under the State's deceptive trade practices acts or
requiring disclosures that will reduce misleading
attributes of the specific good or service.
(3) General health and safety risks. The Governor may
recommend enacting a regulation on the related process or
requiring a facility license.
(4) Unclean facilities. The Governor may recommend
requiring periodic facility inspections.
(5) A provider's failure to complete a contract fully
or to standards. The Governor may recommend requiring the
provider to be bonded.
(6) A lack of protection for a person who is not a
party to a contract between providers and consumers. The
Governor may recommend requiring that the provider have
insurance.
(7) Transactions with transient, out-of-state, or
fly-by-night providers. The Governor may recommend
requiring the provider register its business with the
Secretary of State.

HB5576 Enrolled - 10 - LRB102 23486 SPS 32662 b
(8) A shortfall or imbalance in the consumer's
knowledge about the good or service relative to the
provider's knowledge (asymmetrical information). The
Governor may recommend enacting government certification.
(9) An inability to qualify providers of new or highly
specialized medical services for reimbursement by the
State. The Governor may recommend enacting a specialty
certification solely for medical reimbursement.
(10) A systematic information shortfall in which a
reasonable consumer of the service is permanently unable
to distinguish between the quality of providers and there
is an absence of institutions that provide guidance to
consumers. The Governor may recommend enacting an
occupational license.
(11) The need to address multiple types of harm. The
Governor may recommend a combination of regulations. This
may include a government regulation combined with a
private remedy, including third-party or consumer-created
ratings and reviews or private certification.
(Source: P.A. 97-813, eff. 7-13-12.)