Bill Text: NY A03959 | 2017-2018 | General Assembly | Amended

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Bill Title: Expands requirements for regulatory impact statements to include discussion of potential benefits and cost savings; creates New York state regulatory review council to review every promulgation, repeal or amendment of every rule or regulation; provides that no new rule, unless critical to health, safety, or welfare, may become effective without the approval of the council; provides for the procedures of the council; provides for an annual report by the council on its actions.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2018-04-16 - held for consideration in governmental operations [A03959 Detail]

Download: New_York-2017-A03959-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         3959--A
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 30, 2017
                                       ___________
        Introduced  by  M. of A. BUTLER, MONTESANO, ERRIGO, WALSH -- Multi-Spon-
          sored by -- M. of A. BARCLAY, PALMESANO -- read once and  referred  to
          the Committee on Governmental Operations -- recommitted to the Commit-
          tee  on  Governmental  Operations  in accordance with Assembly Rule 3,
          sec. 2 -- committee discharged, bill  amended,  ordered  reprinted  as
          amended and recommitted to said committee
        AN  ACT  to amend the state administrative procedure act, in relation to
          creating the New York state regulatory review  council  and  expanding
          regulatory impact statements
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 3 of section 202-a of the state  administrative
     2  procedure  act, as amended by chapter 520 of the laws of 1992, paragraph
     3  (b) as amended by chapter 229 of the laws of 2000 and paragraph  (f)  as
     4  amended  by  chapter  628  of  the  laws  of 1995, is amended to read as
     5  follows:
     6    3. Each regulatory impact statement shall contain:
     7    (a) Statutory authority. A statement analyzing the statutory authority
     8  for the rule, including but not limited to the  agency's  interpretation
     9  of the legislative objectives of such authority;
    10    (b)  Needs  and  benefits.  A [statement setting forth the purpose of,
    11  necessity for, and benefits derived from the rule,] description  of  the
    12  potential  benefits  of  the rule, including any beneficial effects that
    13  cannot be quantified in monetary terms, the necessity of the  rule,  the
    14  identification  of those likely to receive the benefits thereof, a cita-
    15  tion for and summary, not to exceed five hundred words, of  each  scien-
    16  tific  or statistical study, report or analysis that served as the basis
    17  for the rule, an explanation of how it was used to determine the  neces-
    18  sity  for and benefits derived from the rule, and the name of the person
    19  that produced each study, report or analysis;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01374-03-8
        A. 3959--A                          2
     1    (c) Costs. A [statement detailing the projected  costs  of  the  rule,
     2  which shall indicate:
     3    (i)  the  costs  for  the implementation of, and continuing compliance
     4  with, the rule to regulated persons;
     5    (ii) the costs for the implementation of, and continued administration
     6  of, the rule to the agency and to the state and its  local  governments;
     7  and
     8    (iii)  the information, including the source or sources of such infor-
     9  mation, and methodology upon which the cost analysis is based; or
    10    (iv) where an agency finds that it cannot fully provide a statement of
    11  such costs, a statement setting forth its  best  estimate,  which  shall
    12  indicate  the  information and methodology upon which such best estimate
    13  is based and the reason or reasons why a complete cost statement  cannot
    14  be  provided]  description of the potential costs of the rule, including
    15  any adverse effects that cannot be quantified in monetary terms, and the
    16  identification of all those entities likely to bear the costs;
    17    (d) Paperwork. A statement  describing  the  need  for  any  reporting
    18  requirements,  including  forms  and  other  paperwork,  which  would be
    19  required as a result of the rule and any fees the agency  would  require
    20  to be paid with the filing and processing of this paperwork;
    21    (e)  Local  government  mandates.  A statement describing any program,
    22  service, duty or responsibility imposed by the  rule  upon  any  county,
    23  city,  town,  village,  school  district, fire district or other special
    24  district;
    25    (f) Duplication. A detailed statement identifying relevant  rules  and
    26  other legal requirements of the state and federal governments, including
    27  those  which  may  duplicate, overlap or conflict with the rule.  If the
    28  statement indicates that the rule would duplicate, overlap  or  conflict
    29  with  any other relevant rule or legal requirement, the statement should
    30  also identify all efforts which the agency  has  or  will  undertake  to
    31  resolve,  or  minimize  the  impact  of,  such  duplication,  overlap or
    32  conflict on regulated persons, including, but not  limited  to,  seeking
    33  waivers  of  or  exemptions from such other rules or legal requirements,
    34  seeking amendment of such other rules or legal requirements, or entering
    35  into a memorandum of understanding or other  agreement  concerning  such
    36  other rules or legal requirements;
    37    (g)  Alternative approaches. A detailed statement indicating [whether]
    38  any [significant] alternatives to the rule [were considered by the agen-
    39  cy], including a  detailed  discussion  of  such  alternatives  and  the
    40  reasons  why  they  were not incorporated into the rule.  In addition, a
    41  description of alternative approaches that could achieve the same  regu-
    42  latory  goal  at lower cost, together with an analysis of such potential
    43  benefit and costs, and a brief description of the legal reasons why such
    44  alternatives, if proposed, could not be adopted;
    45    (h) Federal  standards.  A  statement  identifying  whether  the  rule
    46  exceeds  any minimum standards of the federal government for the same or
    47  similar subject areas and, if so, an explanation of why the rule exceeds
    48  such standards; and
    49    (i) Compliance schedule. A statement indicating the  estimated  period
    50  of time necessary to enable regulated persons to achieve compliance with
    51  the rule.
    52    § 2. The state administrative procedure act is amended by adding a new
    53  section 208 to read as follows:
    54    §  208.  New  York state regulatory review council. 1. There is hereby
    55  created the "New York state regulatory review council".   On  and  after
    56  January  first,  two  thousand nineteen, no new rule, unless critical to
        A. 3959--A                          3
     1  the health, safety and general welfare of the people of the state, shall
     2  become effective unless such rule has been approved by majority vote  of
     3  the  council.  Any  action taken by the council shall be final and shall
     4  only  occur after the agency requesting the rule has held a public hear-
     5  ing as required pursuant to section two hundred  two  of  this  article.
     6  Under  no circumstances, shall any rule be placed before the council for
     7  final determination of approval unless, (i) the  potential  benefits  of
     8  the rule to society clearly outweigh the potential costs to society, and
     9  that  situation has been clearly identified by the council, and (ii) the
    10  rule maximizes the net benefits to  society  and  is  the  least  costly
    11  alternative, and the maximum benefits and minimum costs have been clear-
    12  ly identified by the council.
    13    2.  The council shall consist of the following six voting members: the
    14  governor, the comptroller, the speaker of  the  assembly,  the  minority
    15  leader  of  the  assembly, the temporary president of the senate and the
    16  minority leader of the senate, or their designated  representative.  The
    17  members  of the council or their designated representative shall receive
    18  no compensation for their services. Four members of  the  council  shall
    19  constitute  a  quorum  and  the  affirmative vote of the majority of the
    20  whole council shall be necessary for the transaction of any business  or
    21  the  exercise  of  any  power  of the council. The council shall meet at
    22  least once every month but shall meet first within  seven  days  of  the
    23  beginning of every month to conduct its business.
    24    3.  Each  state  agency proposing a rule shall submit the following to
    25  the council in order for the council to  take  action  on  the  agency's
    26  proposal:
    27    (a)  a  statement citing the statutory authority, including particular
    28  sections and subdivisions of law, under which the action will be taken;
    29    (b) the express terms of such proposed action in two thousand words or
    30  less;
    31    (c) a regulatory  impact  statement  as  required  under  section  two
    32  hundred two-a of this article;
    33    (d)  the  anticipated  effective  date of the new, amended or repealed
    34  rule;
    35    (e) the name, public office address and telephone number of the agency
    36  representative from whom the express terms of the action and any regula-
    37  tory impact statement may be obtained;
    38    (f) a transcript of the public hearings  held  on  the  proposed  rule
    39  change required under section two hundred two of this article as well as
    40  the  names, addresses and phone numbers of all individuals who testified
    41  at such hearings;
    42    (g) a statement outlining the determination made by the agency propos-
    43  ing the rule that the proposed rule  is  clearly  within  the  authority
    44  delegated by law and consistent with the legislative intent; and
    45    (h) a statement outlining the determination made by the agency propos-
    46  ing  the  rule that the factual conclusions upon which the rule is based
    47  have substantial support in the agency record, viewed as a  whole,  with
    48  full attention to public comments in general and the comments of persons
    49  directly affected by the rule in particular.
    50    4. In addition to the powers set forth in the other provisions of this
    51  section, the council shall have the following powers to:
    52    (a) require any state officer, or the head of any department, division
    53  or  bureau  thereof,  to furnish such data, information or statements as
    54  may be necessary for the council to conduct its business;
        A. 3959--A                          4
     1    (b) take and hear proofs and testimony from individuals in the  public
     2  and  private sector, subpoena and compel the attendance of witnesses and
     3  compel the production of books, papers, records and documents;
     4    (c) establish a complaint procedure for determining enforcement activ-
     5  ities  that  may  cause  economic,  financial  or other harm to entities
     6  affected by existing or proposed rules. In  addition,  the  council  may
     7  provide recommendations to agencies for changing such enforcement proce-
     8  dures;
     9    (d)  prepare  and  promulgate uniform standards for the development of
    10  regulatory impact statements required pursuant to this article;
    11    (e) identify duplicative, overlapping and conflicting rules,  existing
    12  or  proposed,  and existing or proposed rules that are inconsistent with
    13  the policies underlying statutes governing agencies other than the issu-
    14  ing agency and, in such cases, require appropriate interagency consulta-
    15  tion to minimize or eliminate such duplication, overlap or conflict;
    16    (f) develop procedures for estimating the annual benefits and costs of
    17  agency regulations, on both an  aggregate  and  economic  or  industrial
    18  sector basis, for purposes of compiling a regulatory budget; and
    19    (g) monitor agency compliance with the requirements of this section.
    20    5.  Annually,  after  January fifteenth and before February fifteenth,
    21  commencing two thousand twenty, the  council  shall  publish  an  annual
    22  report  regarding  the  actions  taken  by  the council during the prior
    23  calendar year. Such report shall include specific details concerning new
    24  or amended rules and  regulations  proposed  to  the  council  and  what
    25  actions  were taken by the council on such new or amended rules or regu-
    26  lations.
    27    § 3. This act shall take effect immediately, and shall apply to  rules
    28  and  regulations  proposed  to be added, amended or repealed on or after
    29  such effective date.