Bill Text: IN SB0311 | 2012 | Regular Session | Enrolled
Bill Title: Cost benefit analysis for administrative rules.
Spectrum: Moderate Partisan Bill (Republican 7-1)
Status: (Enrolled - Dead) 2012-03-19 - Signed by the Governor [SB0311 Detail]
Download: Indiana-2012-SB0311-Enrolled.html
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AN ACT to amend the Indiana Code concerning state offices and administration.
(1) the governor; and
(2) the administrative rules oversight committee established under IC 2-5-18;
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.
(b) After June 30, 2005, the cost benefit analysis performed by the OMB under this section with respect to any proposed rule that has an impact of at least five hundred thousand dollars ($500,000) 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.
(c) 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).
(d) If the OMB or an agency is unable to obtain verified data for
the cost benefit analysis described in subsection (c), the OMB shall
state in the cost benefit analysis which data were unavailable for
purposes of the cost benefit analysis.
(e) 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 13(e) of this chapter.
(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.
(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.
(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.
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