Bill Text: NH HB632 | 2015 | Regular Session | Introduced
Bill Title: Relative to fiscal impact statements submitted by agencies adopting a rule under RSA 541-A.
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2015-03-11 - Inexpedient to Legislate: Motion Adopted Voice Vote; House Journal 24, PG. 895 [HB632 Detail]
Download: New_Hampshire-2015-HB632-Introduced.html
HB 632-FN - AS INTRODUCED
2015 SESSION
15-0337
10/05
HOUSE BILL 632-FN
AN ACT relative to fiscal impact statements submitted by agencies adopting a rule under RSA 541-A.
SPONSORS: Rep. Weyler, Rock 13; Rep. C. McGuire, Merr 29; Rep. Hill, Merr 3; Rep. Ladd, Graf 4; Rep. Seidel, Hills 28; Sen. Cataldo, Dist 6; Sen. Reagan, Dist 17
COMMITTEE: Executive Departments and Administration
This bill requires an agency adopting a rule under RSA 541-A to electronically submit a fiscal impact statement form to the joint legislative committee on administrative rules and the legislative budget assistant which includes an analysis of the costs and benefits of the proposed rule.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0337
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to fiscal impact statements submitted by agencies adopting a rule under RSA 541-A.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Administrative Procedures Act; Fiscal Impact Statements. Amend RSA 541-A:5 to read as follows:
541-A:5 Fiscal Impact Statements.
I. The agency shall electronically submit the fiscal impact statement form described in RSA 541-A:5-a to the committee and to the legislative budget assistant in order to provide the committee and the legislative budget assistant with adequate details of the intended action and necessary supporting data [to]. The electronically submitted form shall enable the legislative budget assistant to prepare a fiscal impact statement for review by the committee.
II. The [legislative budget assistant shall develop a form which] fiscal impact statement form submitted shall specify the details and supporting data necessary to assess the fiscal impact of the proposed rule and shall be in substantially the format described in RSA 541-A:5-a.
III. The legislative budget assistant shall establish a schedule of deadlines for submission of the fiscal impact statement form, and the agency shall file the completed form with the committee and the legislative budget assistant in accordance with such deadlines.
IV. The fiscal impact statement [issued] prepared by the legislative budget assistant shall [not be limited to dollar amounts, but shall] include a discussion of the methodology used to reach any stated amounts, and review of the cost-benefit analysis provided in the fiscal impact statement form. [In addition,] The fiscal impact statement prepared by the legislative budget assistant shall consist of:
(a) A narrative stating the costs and benefits to the citizens of the state and to the political subdivisions of the intended action.
(b) A conclusion as to the cost or benefit to the state general fund or any state special fund of taking the intended action.
(c) An explanation of, and citation to, the federal mandate for the proposed rule, if there is such a mandate, and how that mandate affects state funds.
(d) A comparison of the cost of the proposed rule with the cost of the existing rule, if there is an existing rule.
(e) An analysis of the general impact of the proposed rule upon any independently owned businesses, including a description of the specific reporting and recordkeeping requirements upon small businesses which employ fewer than 10 employees.
(f) Any other material information contained in the fiscal impact statement form electronically submitted by the agency.
V. All agencies are directed to cooperate with the legislative budget assistant in the preparation of fiscal impact statements.
VI. Agencies shall also [obtain] electronically submit an amended fiscal impact statement [from the legislative budget assistant] form only if as a result of notice and hearing a change has been made which affects the original fiscal impact statement form submitted to the committee and the legislative budget assistant. Agencies shall file the amended fiscal impact statement form as part of the final proposal pursuant to RSA 541-A:12, II. The legislative budget assistant shall prepare a modified fiscal impact statement described in paragraph IV.
2 New Section; Agency Form for Fiscal Impact Statements. Amend RSA 541-A by inserting after section 5 the following new section:
541-A:5-a Agency Form for Fiscal Impact Statements. In accordance with procedures established in the drafting and procedures manual under RSA 541-A:8, an agency adopting a rule shall complete and submit the following information in an electronic form approved by the committee:
I. Comparison of Rule to Federal/State/Association Standards.
(a) Compare the proposed rule to parallel federal rules or standards set by a state or national licensing agency or accreditation association, if any exist. Is the rule required by state law or federal mandate? If the rule exceeds a federal standard, please identify the federal standard or citation, and describe why it is necessary that the proposed rule exceed the federal standard or law, and specify the costs and benefits arising out of the deviation.
(b) Compare the proposed rule to standards in similarly situated states, based on geographic location, topography, natural resources, commonalities, or economic similarities. If the rule exceeds standards in those states, please explain why, and specify the costs and benefits arising out of the deviation.
(c) Identify any laws, rules, and other legal requirements that may duplicate, overlap, or conflict with the proposed rule. Explain how the rule has been coordinated, to the extent practicable, with other federal, state, and local laws applicable to the same activity or subject matter. This section should include a discussion of the efforts undertaken by the agency to avoid or minimize duplication.
II. Purpose and Objectives of the Rule.
(a) Identify the behavior and frequency of behavior that the proposed rule is designed to alter. Estimate the change in the frequency of the targeted behavior expected from the proposed rule. Describe the difference between current behavior/practice and desired behavior/practice. What is the desired outcome?
(b) Identify the harm resulting from the behavior that the proposed rule is designed to alter and the likelihood that the harm will occur in the absence of the rule. What is the rationale for changing the rule and not leaving the rule as currently written?
(c) Describe how the proposed rule protects the health, safety, and welfare of New Hampshire citizens while promoting a regulatory environment in New Hampshire that is the least burdensome alternative for those required to comply.
(d) Describe any rules in the affected rule set that are obsolete, unnecessary, and can be rescinded.
III. Fiscal Impact on the Agency. Fiscal impact is an increase or decrease in expenditures from the current level of expenditures, such as hiring additional staff, an increase in the cost of a contract, programming costs, changes in reimbursement rates, over and above what is currently expended for that function. It would not include more intangible costs or benefits, such as opportunity costs or the value of time saved or lost, unless those issues result in a measurable impact on expenditures.
(a) Please provide the fiscal impact on the agency. Estimate the cost of rule imposition or potential savings on the agency promulgating the rule.
(b) Describe whether or not an agency appropriation has been made or a funding source provided for any expenditures associated with the proposed rule.
(c) Describe how the proposed rule is necessary and suitable to accomplish its purpose, in relationship to the burdens it places on individuals. Burdens may include fiscal or administrative burdens or duplicative acts. Identify how the requirements in the rule are necessary, reasonable, and outweigh any identified burdens.
IV. Impact on Other State or Local Governmental Units.
(a) Estimate any increase or decrease in revenues to other state or local governmental units as a result of the rule. Estimate the cost increases or reductions on other state or local governmental units as a result of the rule. Please include the cost of equipment, supplies, labor, and increased administrative costs, in both the initial imposition of the rule and any ongoing monitoring.
(b) Discuss any program, service, duty or responsibility imposed upon any city, county, town, village, or school district by the rule. Describe any actions that governmental units must take to be in compliance with the rule. This section should include items such as record keeping and reporting requirements or changing operational practices.
(c) Describe whether or not an appropriation to state or local governmental units has been made or a funding source provided for any additional expenditures associated with the proposed rule.
V. Rural Impact. In general, what impact will the rule have on rural areas? Describe the types of public or private interests in rural areas that will be affected by the rule.
VI. Environmental Impact. Does the proposed rule have any impact on the environment? If yes, please explain.
VII. Small Business Impact Statement.
(a) Describe whether and how the agency considered exempting small businesses having fewer than 50 full-time employees from the proposed rule.
(b) If small businesses are not exempt, describe the manner in which the agency reduced the economic impact of the proposed rule on small businesses, including a detailed recitation of the efforts of the agency to comply with the mandate to reduce the disproportionate impact of the rule upon small businesses as described in this subparagraph, or the reasons such a reduction was not lawful or feasible.
(1) Identify and estimate the number of small businesses affected by the proposed rule and the probable effect on small business.
(2) Describe how the agency established differing compliance or reporting requirements or timetables for small businesses under the rule after projecting the required reporting, record-keeping, and other administrative costs.
(3) Describe how the agency consolidated or simplified the compliance and reporting requirements and identify the skills necessary to comply with the reporting requirements.
(4) Describe how the agency established performance standards to replace design or operation standards required by the proposed rule.
(c) Identify any disproportionate impact the proposed rule may have on small businesses because of their size or geographic location.
(d) Identify the nature of any report and the estimated cost of its preparation by small business required to comply with the proposed rule.
(e) Analyze the costs of compliance for all small businesses affected by the proposed rule, including costs of equipment, supplies, labor, and increased administrative costs.
(f) Identify the nature and estimated cost of any legal, consulting, or accounting services that small businesses would incur in complying with the proposed rule.
(g) Estimate the ability of small businesses to absorb the costs without suffering economic harm and without adversely affecting competition in the marketplace.
(h) Estimate the cost, if any, to the agency of administering or enforcing a rule that exempts or sets lesser standards for compliance by small businesses.
(i) Identify the impact on the public interest of exempting or setting lesser standards of compliance for small businesses.
(j) Describe whether and how the agency has involved small businesses in the development of the proposed rule. If small business was involved in the development of the rule, please identify the businesses.
VIII. Cost-Benefit Analysis of Rule; Independent of Statutory Impact.
(a) Estimate the actual statewide compliance costs of the rule amendments on businesses or groups. Identify the businesses or groups who will be directly affected by, bear the cost of, or directly benefit from the proposed rule. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (such as new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses and groups. Be sure to quantify how each entity will be affected.
(b) Estimate the actual statewide compliance costs of the proposed rule on regulated individuals or the public. Please include the costs of education, training, application fees, examination fees, license fees, new equipment, supplies, labor, accounting, or recordkeeping. How many and what category of individuals will be affected by the rules? What qualitative and quantitative impact does the proposed change in the rule have on these individuals?
(c) Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result of the proposed rule.
(d) Estimate the primary and direct benefits and any secondary or indirect benefits of the proposed rule. Please provide both quantitative and qualitative information, as well as the agency’s assumptions.
(e) Explain how the proposed rule will impact business growth and job creation or elimination in New Hampshire.
(f) Identify any individuals or businesses who will be disproportionately affected by the rules as a result of their industrial sector, segment of the public, business size, or geographic location.
(g) Identify the sources the agency relied upon in compiling the regulatory impact statement, including the methodology utilized in determining the existence and extent of the impact of a proposed rule and a cost-benefit analysis of the proposed rule. How were estimates made, and what were your assumptions? Include internal and external sources, published reports, or other information provided by associations or organizations, which demonstrate a need for the proposed rule.
IX. Alternatives to Regulation.
(a) Identify any reasonable alternatives to the proposed rule that would achieve the same or similar goals. In enumerating your alternatives, please include any statutory amendments that may be necessary to achieve such alternatives.
(b) Discuss the feasibility of establishing a regulatory program similar to that proposed in the rule that would operate through private market-based mechanisms. Please include a discussion of private market-based systems utilized by other states.
(c) Discuss all significant alternatives the agency considered during rule development and why they were not incorporated into the rule. This section should include ideas considered both during internal discussions and discussions with stakeholders, affected parties, or advisory groups.
X. Additional Information. Describe any instructions regarding the method of complying with the rule, if applicable.
3 Filing Final Proposal; Amended Fiscal Impact. Amend RSA 541-A:12, II(c) to read as follows:
(c) If required pursuant to RSA 541-A:5, VI, an amended fiscal impact statement [from the legislative budget assistant] form stating that as a result of notice and hearing the rule did change and explaining how this change affects the original fiscal impact statement form submitted.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
15-0337
Revised 02/02/15
HB 632-FN FISCAL NOTE
AN ACT relative to fiscal impact statements submitted by agencies adopting a rule under RSA 541-A.
FISCAL IMPACT:
The Department of Administrative Services states this bill, as introduced, will have an indeterminable impact on state expenditures in FY 2015 and each year thereafter. There will be no impact on county and local expenditures, or state, county, and local revenue.
METHODOLOGY:
The Department of Administrative Services states this bill requires an agency adopting administrative rules under RSA 541-A to submit a fiscal impact form to the Joint Legislative Committee on Administrative Rules and the Office of Legislative Budget Assistant (LBAO) which includes an analysis of the costs and benefits of the proposed rule. While RSA 541-A currently requires agencies to submit a fiscal impact statement to the LBAO, it does not require agencies to conduct a cost-benefit analysis. The Department states it is unable to determine the costs for agencies to complete fiscal impact statements in the manner outlined in the bill.
