Bill Text: IN HB1024 | 2013 | Regular Session | Amended
Bill Title: Private sector impacts of administrative rules.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Engrossed - Dead) 2013-02-25 - First reading: referred to Committee on Tax and Fiscal Policy [HB1024 Detail]
Download: Indiana-2013-HB1024-Amended.html
Citations Affected: IC 4-3.
Synopsis: Private sector impacts of administrative rules. Provides that
for the required cost benefit analysis prepared by the office of
management and budget (OMB) for a proposed administrative rule, an
analysis prepared after June 30, 2013, must include a private sector
employment impact statement that sets forth the OMB's estimate of the
economic impact of the proposed rule on private sector employment in
Indiana. Specifies the particular impacts that the OMB must identify in
the statement. Provides that if the OMB determines that the preparation
of a private sector employment impact statement is unnecessary or
impractical with respect to a particular proposed rule, the OMB may
decline to prepare a statement with respect to the rule. Provides that for
the required cost benefit analysis prepared by the OMB for the three
year period following an adopted rule's effective date, an analysis
prepared after June 30, 2013, must include: (1) the private sector
employment impact statement, if any, prepared by the OMB before the
rule's adoption; and (2) the actual economic impact of the adopted rule
on private sector employment during the three year period covered by
the analysis.
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Government and Regulatory
Reform.
January 15, 2013, reported _ Do Pass.
January 17, 2013, read second time, amended, ordered engrossed.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
(1) the governor; and
(2) the
an assessment of the rule's effect on Indiana business. The OMB shall submit the cost benefit analysis to the committee in an electronic format under IC 5-14-6.
persons shall replace and be used for all purposes under IC 4-22-2 in
lieu of the fiscal analysis previously performed by the legislative
services agency under IC 4-22-2. IC 4-22-2-28.
(d) This subsection applies to a cost benefit analysis prepared by
the OMB under this section after June 30, 2013. As used in this
subsection, "fully implemented", with respect to a proposed rule,
has the meaning set forth in IC 4-22-2-28(g). A cost benefit analysis
to which this subsection applies must include a private sector
employment impact statement that includes an estimate by the
OMB of the economic impact of the proposed rule on private sector
employment in Indiana, including self-employment and areas for
potential employment growth. In the private sector employment
impact statement required under this subsection, the OMB shall
describe and quantify, to the extent possible, the nature of the
impact the proposed rule will have on private sector jobs and
employment opportunities in Indiana, and shall identify the
following with respect to the proposed rule:
(1) The categories or industry sectors, including the
manufacturing and agricultural sectors, if applicable, of jobs
and employment opportunities affected by the proposed rule.
(2) Within each category or industry sector identified under
subdivision (1), the number of jobs or potential job
opportunities affected by the proposed rule.
(3) The regions of Indiana affected by the proposed rule.
(4) The impact of the rule on the expansion or retention of
existing businesses or facilities.
(5) The total estimated economic impact (as defined in
IC 4-22-2-28(a)) of the proposed rule with respect to private
sector employment in Indiana, beginning with the first twelve
(12) month period after the rule is fully implemented.
In preparing the estimates required under subdivisions (1) through
(5), the OMB may use actual or forecasted data and may consider
the actual and anticipated effects of inflation and deflation. The
OMB shall describe any assumptions made and any data used in
preparing a private sector employment impact statement under
this subsection. However, if the OMB determines that the
preparation of a private sector employment impact statement
under this subsection is unnecessary or impractical with respect to
a particular proposed rule, the OMB may decline to prepare a
private sector employment impact statement with respect to that
rule. If the OMB declines to prepare a private sector employment
impact statement for a proposed rule, the OMB must include, in
the cost benefit analysis prepared under this section, a statement
explaining the OMB's determination that the preparation of a
private sector employment impact statement under this subsection
is unnecessary or impractical with respect to the rule.
(c) (e) In preparing a cost benefit analysis under this section, the
OMB shall consider in its analysis any verified data provided
voluntarily by interested parties, regulated persons, and nonprofit
corporations whose members may be affected by the proposed rule. A
cost benefit analysis prepared under this section is a public document,
subject to the following:
(1) This subsection does not empower the OMB or an agency to
require an interested party or a regulated person to provide any
materials, documents, or other information in connection with a
cost benefit analysis under this section. If an interested party or a
regulated person voluntarily provides materials, documents, or
other information to the OMB or an agency in connection with a
cost benefit analysis under this section, the OMB or the agency,
as applicable, shall ensure the adequate protection of any:
(A) information that is confidential under IC 5-14-3-4; or
(B) confidential and proprietary business plans and other
confidential information.
If an agency has adopted rules to implement IC 5-14-3-4,
interested parties and regulated persons must submit the
information in accordance with the confidentiality rules adopted
by the agency to ensure proper processing of confidentiality
claims. The OMB and any agency involved in proposing the rule,
or in administering the rule upon the rule's adoption, shall
exercise all necessary caution to avoid disclosure of any
confidential information supplied to the OMB or the agency by an
interested party or a regulated person.
(2) The OMB shall make the cost benefit analysis and other
related public documents available to interested parties, regulated
persons, and nonprofit corporations whose members may be
affected by the proposed rule at least thirty (30) days before
presenting the cost benefit analysis to the governor and the
administrative rules oversight committee under subsection (a).
(b).
(d) (f) If the OMB or an agency is unable to obtain verified data for
the cost benefit analysis described in subsection (c), this section, the
OMB shall state in the cost benefit analysis which data were
unavailable for purposes of the cost benefit analysis.
(e) (g) If the OMB finds that a proposed rule is:
(1) an adoption or incorporation by reference of a federal law, regulation, or rule that has no substantive effect on the scope or intended application of the federal law or rule; or
(2) a technical amendment with no substantive effect on an existing Indiana rule;
the OMB may not prepare a cost benefit analysis of the rule under this section. The agency shall submit the proposed rule to the OMB with a statement explaining how the proposed rule meets the requirements of this subsection. If the OMB finds that the rule meets the requirements of this subsection, the OMB shall provide its findings to the governor and to the committee in an electronic format under IC 5-14-6. If the agency amends or modifies the proposed rule after the OMB finds that a cost benefit analysis may not be prepared for the rule, the agency shall resubmit the proposed rule to the OMB either for a new determination that the rule meets the requirements of this subsection, or for the OMB to prepare a cost benefit analysis of the rule under this section.
(1) has been adopted under IC 4-22-2 or IC 13-14-9; and
(2) has taken effect;
after December 31, 2011.
(b) This section does not apply to a rule for which the OMB has not performed a cost benefit analysis under section
(c) As used in this section, "committee" refers to the administrative rules oversight committee established by IC 2-5-18-4.
(d) For each rule to which this section applies, the OMB shall perform a cost benefit analysis of the rule with respect to the period encompassing the first three (3) years following the rule's effective date. Except as otherwise required by the governor or the committee under subsection (h), the OMB shall submit a cost benefit analysis prepared under this section to:
(1) the governor; and
(2) the committee;
not later than six (6) months after the third anniversary of the rule's effective date. The OMB shall submit the cost benefit analysis to the committee in an electronic format under IC 5-14-6.
(e) A cost benefit analysis prepared under this section must include the following with respect to the three (3) year period covered by the analysis:
(1) The cost benefit analysis for the rule prepared under section
13 of this chapter before the rule's adoption, including the
following:
(A) The information required by Financial Management
Circular #2010-4.
(B) The estimate of the primary and direct benefits of the rule,
including the impact on:
(i) consumer protection;
(ii) worker safety;
(iii) the environment; and
(iv) business competitiveness;
as determined before the rule's adoption.
(C) The estimate of the secondary or indirect benefits of the
rule and the explanation of how the conduct regulated by the
rule is linked to the primary and secondary benefits, as
determined before the rule's adoption.
(D) The estimate of any cost savings to regulated persons
(including individuals and businesses) as a result of the rule,
including any savings from:
(i) a change in an existing requirement; or
(ii) the imposition of a new requirement;
as determined before the rule's adoption.
(E) For a cost benefit analysis prepared by the OMB under
section 13 of this chapter after June 30, 2013, the private
sector employment impact statement, if any, prepared by
the OMB under section 13(d) of this chapter before the
rule's adoption.
(2) A statement of the number of regulated persons, classified by
industry sector, subject to the rule.
(3) A comparison of:
(A) the cost benefit analysis for the rule prepared under
section 13 of this chapter before the rule's implementation,
including the information specified in subdivision (1); and
(B) the actual costs and benefits of the rule during the first
three (3) years of the rule's implementation, including the
following:
(i) Any actual primary and direct benefits of the rule,
including the rule's impact on consumer protection, worker
safety, the environment, and business competitiveness.
(ii) Any actual secondary or indirect benefits of the rule and
an explanation of how the conduct regulated by the rule is
linked to the primary and secondary benefits.
(iii) Any actual cost savings to regulated persons (including
individuals and businesses) as a result of the rule, including
any savings from a change in an existing requirement or
from the imposition of a new requirement.
(iv) For a rule for which the cost benefit analysis
required under section 13 of this chapter is prepared by
the OMB after June 30, 2013, the actual economic
impact of the rule on private sector employment in
Indiana during the three (3) year period described in this
section, including the information specified in section
13(d)(1) through 13(d)(5) of this chapter. However, if,
when preparing the cost benefit analysis under section 13
of this chapter, the OMB declined to prepare a private
sector employment impact statement for the rule because
the OMB determined under section 13(d) of this chapter
that the preparation of a private sector employment
impact statement was unnecessary or impractical with
respect to the rule, a comparison of the information
described in subdivision (1)(E) with the information
described in this item that would otherwise be required
under this subdivision is not required, but the OMB must
include in the cost benefit analysis required under this
section the information described in this item with
respect to the three (3) year period described in this
section.
(4) For each element of the rule that is also the subject of
restrictions or requirements imposed under federal law, a
comparison of:
(A) the restrictions or requirements imposed under the rule;
and
(B) the restrictions or requirements imposed under federal law.
(5) Any other information that the governor or the committee:
(A) requires with respect to a cost benefit analysis under this
section; and
(B) requests in writing.
(f) In preparing a cost benefit analysis under this section, the OMB
shall consider in its analysis any verified data provided voluntarily by
interested parties, regulated persons, and nonprofit corporations whose
members may be affected by the rule. A cost benefit analysis prepared
under this section is a public document, subject to the following:
(1) This subsection does not empower the OMB or an agency to
require an interested party or a regulated person to provide any
materials, documents, or other information. If an interested party
or a regulated person voluntarily provides materials, documents,
or other information to the OMB or an agency in connection with
a cost benefit analysis under this section, the OMB or the agency,
as applicable, shall ensure the adequate protection of any:
(A) information that is confidential under IC 5-14-3-4; or
(B) confidential and proprietary business plans and other
confidential information.
If an agency has adopted rules to implement IC 5-14-3-4,
interested parties and regulated persons must submit the
information in accordance with the confidentiality rules adopted
by the agency to ensure proper processing of confidentiality
claims. The OMB and any agency involved in administering the
rule shall exercise all necessary caution to avoid disclosure of any
confidential information supplied to the OMB or the agency by an
interested party or a regulated person.
(2) The OMB shall make the cost benefit analysis and other
related public documents available to interested parties, regulated
persons, and nonprofit corporations whose members may be
affected by the rule at least thirty (30) days before presenting the
cost benefit analysis to the governor and the committee under
subsection (d).
(g) If the OMB or an agency is unable to obtain verified data for the
cost benefit analysis described in subsection (e), the OMB shall state
in the cost benefit analysis which data were unavailable for purposes
of the cost benefit analysis.
(h) The governor or the committee, or both, may prescribe:
(1) the form of a cost benefit analysis; and
(2) the process, deadlines, and other requirements for submitting
a cost benefit analysis;
required under this section.
