STATE OF NEW YORK
        ________________________________________________________________________

                                          5389

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 10, 2023
                                       ___________

        Introduced  by  M.  of  A. BARCLAY, NORRIS, PALMESANO, HAWLEY, BRABENEC,
          J. M. GIGLIO, WALSH, MILLER, MANKTELOW, JENSEN,  GALLAHAN,  DeSTEFANO,
          GOODELL,  BLANKENBUSH,  TAGUE  --  Multi-Sponsored  by  --  M.  of  A.
          K. BROWN, DiPIETRO, FRIEND -- read once and referred to the  Committee
          on Governmental Operations

        AN  ACT  to  amend the executive law, the state administrative procedure
          act and the legislative law, in relation to the division of regulatory
          review and economic growth

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. The executive law is amended by adding a new article 43 to
     2  read as follows:
     3                                 ARTICLE 43
     4              DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
     5  Section 930. Definitions.
     6          931. Division of regulatory review and economic growth.
     7          932. General functions, powers and duties.
     8          933. Assistance of other state agencies.
     9          934. Regulation review.
    10          935. Division annual recommendations.
    11          936. Implementation of recommendations.
    12          937. Cost of regulation study.
    13    § 930. Definitions. When used in this  article,  the  following  terms
    14  shall have the following meanings:
    15    1. "Commissioner" means the commissioner of the division of regulatory
    16  review and economic growth.
    17    2.  "Division"  means  the  division of regulatory review and economic
    18  growth created by this article.
    19    3. "Permit" shall mean the whole or part of any state  agency  permit,
    20  license,  certificate,  approval, registration, charter, or similar form
    21  of permission or authority required by  law  or  by  state  agency  rule

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03794-01-3

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     1  having  the  force  and  effect of law, which is required for a business
     2  undertaking, project or activity; provided, however, it shall  not  mean
     3  individual  licenses  for  practicing  a  profession prescribed in title
     4  eight  of  the education law, filings under the uniform commercial code,
     5  or routine licenses and permits  for  individual  privileges,  including
     6  licenses  for  operating  a motor vehicle and amateur sporting licenses,
     7  such as for hunting and fishing.
     8    4. "Rule" means a rule as defined in subparagraph (i) of paragraph (a)
     9  of subdivision two of section one hundred two of the  state  administra-
    10  tive  procedure act, including rules of the workers' compensation board,
    11  but does not include the rules of  the  state  comptroller  or  attorney
    12  general,  rules  regarding  jurisdictional  classifications  pursuant to
    13  subdivision one of section six of the civil service law, and the  alter-
    14  ation  of  hunting  or fishing seasons pursuant to article eleven of the
    15  environmental conservation law.
    16    5. "State agency" means an agency as defined  in  subdivision  one  of
    17  section one hundred two of the state administrative procedure act.
    18    §  931. Division of regulatory review and economic growth. 1. There is
    19  hereby created in the executive department the  division  of  regulatory
    20  review  and  economic  growth.  The  head  of  the division shall be the
    21  commissioner of the division who shall be appointed by the governor with
    22  the consent of the senate and serve a term of five years.
    23    2. The commissioner must have at least ten years of experience running
    24  a for-profit business, with at least three years experience as the chief
    25  executive officer, chief operating   officer, chief  financial  officer,
    26  president,  owner, or any other title used for the highest ranking offi-
    27  cer, administrator or manager of a for-profit business.
    28    3. The commissioner shall be appointed by the governor  within  thirty
    29  days of the effective date of this section and within thirty days of the
    30  expiration  of every five year term thereafter, and upon confirmation of
    31  the senate shall serve a term of five years effective from the  date  of
    32  confirmation.  If  the senate rejects an appointment, the governor shall
    33  have thirty days from the date  of  the  rejection  to  appoint  another
    34  commissioner.
    35    4.  The  commissioner  may  only  be  removed  from office by a felony
    36  conviction or a crime involving a violation of his or her oath of office
    37  or by the assent of two-thirds of the members elected to each branch  of
    38  the legislature voting separately.
    39    5. Such commissioner shall receive an annual salary to be fixed by the
    40  governor  within the amount made available therefor by appropriation and
    41  shall be allowed his  or  her  actual  and  necessary  expenses  in  the
    42  performance of his or her duties.
    43    6.  Upon  appointment  and  until  such term expires, the commissioner
    44  shall not (a) participate in any partisan  political  party  activities,
    45  except that such candidate may register to vote as a member of any poli-
    46  tical  party  and may vote in any party primary for candidates for nomi-
    47  nation of the party in which he  or  she  is  registered  to  vote;  (b)
    48  endorse  any  candidate or political party; or (c) make contributions to
    49  any candidate, political party committee, political action committee  or
    50  political committee pursuant to subdivision ten of section 14-114 of the
    51  election law.
    52    7. The commissioner shall direct the work of the division and shall be
    53  the  chief executive officer of the division. The commissioner may enter
    54  into contracts and expend money, and appoint such officers and employees
    55  as he or she may deem  necessary,  prescribe  their  duties,  fix  their
    56  compensation,  and  provide for the reimbursement of their expenses, all

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     1  within amounts made available  therefor  by  appropriation.  Such  staff
     2  shall  be  management  confidential  employees  with an understanding of
     3  private sector business.
     4    § 932. General functions, powers and duties. The division of regulato-
     5  ry review and economic growth, by and through the commissioner or his or
     6  her  duly  authorized  officers  and employees, shall have the following
     7  functions, powers and duties:
     8    1. To provide an oversight, review and analysis of the rules and regu-
     9  latory processes of state agencies.
    10    2. To make binding recommendations to the governor and legislature  on
    11  burdensome  New  York  state codes, rules, regulations, regulatory proc-
    12  esses, and permit requirements to eliminate or amend them,  pursuant  to
    13  section nine hundred thirty-five of this article.
    14    3.  To  review  the  environmental  quality review process established
    15  under article eight of  the  environmental  conservation  law  and  make
    16  recommendations pursuant to subdivision two of this section to establish
    17  a  more  efficient, predictable, timely, and transparent process, and to
    18  ensure that the process does not stifle  economic  growth  in  New  York
    19  state.
    20    4.  To review permit requirements and the need by the state to require
    21  such permits. The division shall make recommendations pursuant to subdi-
    22  vision two of this section to eliminate,  consolidate,  simplify,  expe-
    23  dite,  or  otherwise  improve  permits, permit procedures, and paperwork
    24  burdens affecting local governments, school districts or businesses.
    25    5. To encourage and facilitate the participation of federal and  local
    26  government agencies in regulatory review.
    27    6.  To establish an 800 hotline and website to provide businesses with
    28  one contact number to direct questions  and  to  provide  assistance  to
    29  businesses  in  the state or businesses looking to open or expand in New
    30  York state. Such hotline may be used to report regulatory burdens, state
    31  agencies  overreaching  their  power,  excessive  fines  and  to  submit
    32  requests for regulatory review by the commissioner.
    33    7.  To adopt such rules and regulations, procedures, instructions, and
    34  forms as are necessary or desirable to carry out the functions,  powers,
    35  and duties imposed upon the division by this article.
    36    8.  To publish an annual report, after January first and before Febru-
    37  ary first, commencing two thousand twenty-five, including all  recommen-
    38  dations  proposed  by the division and those recommendations implemented
    39  by the state during the prior calendar year. Such report  shall  include
    40  specific details concerning estimated cost savings to the taxpayers from
    41  proposed  recommendations  and actual cost savings to the taxpayers from
    42  implemented recommendations.
    43    § 933. Assistance of other state agencies. To effectuate the  purposes
    44  of  this  article, the commissioner may request and shall be entitled to
    45  receive from any state agency, and the same are authorized  to  provide,
    46  such assistance, services, facilities, and data as will enable the divi-
    47  sion to carry out its functions, powers and duties.
    48    §  934.  Regulation  review. 1. In developing a rule, each agency head
    49  shall, prior to submitting a notice of proposed  or  revised  rulemaking
    50  for  publication  in  the state register pursuant to section two hundred
    51  two of the state administrative procedure act, submit to the commission-
    52  er, in such form and manner  as  the  commissioner  may  prescribe,  the
    53  complete text of the rule, any impact statements which would be required
    54  by  article two of the state administrative procedure act to propose the
    55  rule, and any cost-benefit analysis, risk assessment and/or the  results

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     1  of  a negotiated rulemaking or policy dialogue undertaken in conjunction
     2  with the development of the rule.
     3    2.  The commissioner shall review the agency's submission to determine
     4  whether it is complete and in accordance with the  goals,  criteria  and
     5  requirements of this article and article two of the state administrative
     6  procedure act, including whether the rule:
     7    (a) is clearly within the authority delegated by law;
     8    (b) is consistent with and necessary to achieve a specific legislative
     9  intent  of promoting economic growth or protecting the health and safety
    10  of the public;
    11    (c) is consistent with state statutory requirements;
    12    (d) does not impose a mandate on local governments,  school  districts
    13  or  businesses that is not fully funded, except as specifically required
    14  by state statute;
    15    (e) is clearly written so that its meaning will be  easily  understood
    16  by those persons affected by it;
    17    (f)  does  not  unnecessarily  duplicate or exceed existing federal or
    18  state statutes or rules;
    19    (g) prescribes methodologies  or  requirements  that  allow  regulated
    20  parties  flexibility and encourage innovation in meeting the legislative
    21  or administrative requirements and objectives underlying the rule;
    22    (h) is based on credible assessments, using recognized  standards,  of
    23  the  degree  and nature of the risks which may be regulated, including a
    24  comparison with everyday risks familiar to the public;
    25    (i) gives preference to the least costly, least burdensome  regulatory
    26  and paperwork requirements needed to accomplish legislative and adminis-
    27  trative objectives;
    28    (j) is based upon the best scientific, technical and economic informa-
    29  tion that can reasonably and affordably be obtained; and
    30    (k)  if  possible  and practical, favors market-oriented solutions and
    31  performance standards over command-and-control regulation.
    32    3. If the commissioner determines that  the  submission  is  complete,
    33  complies  with  the  provisions of subdivision two of this section, will
    34  promote economic growth, or is vital to protect the health and safety of
    35  the public, the commissioner shall authorize the agency  to  submit  the
    36  rulemaking for publication in the state register pursuant to section two
    37  hundred two of the state administrative procedure act.
    38    4.  If  the  commissioner determines the submission is not complete or
    39  does not comply  with  the  requirements  of  subdivision  two  of  this
    40  section,  or  is detrimental to economic growth in New York state, or is
    41  not vital to protect the health and safety of the  public,  the  commis-
    42  sioner may reject the rule or return it to the agency, together with any
    43  direction  that  the  agency  amend,  prepare  or  revise  the rule, any
    44  supporting impact statements, cost benefit  analysis,  risk  assessment,
    45  and/or undertake a negotiated rulemaking or policy dialogue to develop a
    46  rule  for proposal.   The division may assist the agency in developing a
    47  proposal that meets the requirements of subdivision two of this section.
    48    5. An agency  may  consult  informally  with  the  division  regarding
    49  proposed rules, supporting impact statements, and other documents at any
    50  time  prior  to the submission of such materials pursuant to subdivision
    51  one of this section. Such informal consultation shall not be binding  on
    52  the division or the agency.
    53    6.  No  agency head shall submit a notice of proposed or revised rule-
    54  making for publication in the state register  pursuant  to  section  two
    55  hundred  two  of the state administrative procedure act, without express
    56  approval by the commissioner. The  commissioner,  in  his  or  her  sole

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     1  discretion,  may  reject  any particular rule or category of rules he or
     2  she determines is detrimental to economic growth in New York  state,  or
     3  is  not  vital to protect the health and safety of the public. The divi-
     4  sions shall promptly notify the agency of any such rejection.
     5    §  935.  Division  annual recommendations. On or before January first,
     6  two thousand twenty-four and annually  thereafter,  the  division  shall
     7  transmit  to  the  governor  and the legislature a report containing its
     8  recommendations, which shall include:
     9    1. specific recommendations for repealing or amending New  York  state
    10  codes, rules, regulations, regulatory processes, and permit requirements
    11  as  it  deems  necessary  to  lower  costs for local governments, school
    12  districts and businesses or promote economic growth; and
    13    2. recommended dates by which such actions should occur.
    14    § 936.  Implementation  of  recommendations.  1.  Notwithstanding  any
    15  contrary  provision  of law, rule or regulation related to the repeal or
    16  amendment of any New York state codes,  rules,  regulations,  regulatory
    17  processes,  and  permit requirements identified in the division's recom-
    18  mendations, the secretary of state shall take all actions  necessary  to
    19  implement,  in  a reasonable, cost-efficient manner, the recommendations
    20  of the division pursuant to section nine  hundred  thirty-five  of  this
    21  article, including, but not limited to coordination with state agencies,
    22  authorities, and other parties as the commissioner deems appropriate.
    23    2.  The provisions of subdivision one of this section shall not apply:
    24  (a) unless the governor has  transmitted  the  division's  report  under
    25  section nine hundred thirty-five of this article with his or her written
    26  approval of the recommendations of the division pursuant to section nine
    27  hundred thirty-five of this article to the secretary of state and trans-
    28  mitted  a  message  to  the  legislature  stating his or her approval or
    29  rejection of the report within five days of receiving such  report;  and
    30  (b)  if  a majority of the members of each house of the legislature vote
    31  to adopt a concurrent resolution rejecting the  recommendations  of  the
    32  division pursuant to section nine hundred thirty-five of this article in
    33  their  entirety  within  sixty  days, after receiving a message from the
    34  governor under this subdivision. In no  event  shall  the  secretary  of
    35  state begin to implement the recommendations of the division pursuant to
    36  section nine hundred thirty-five of this article prior to the expiration
    37  of the legislature's sixty day review period.
    38    § 937. Cost of regulation study. 1. The commissioner is hereby author-
    39  ized  and  directed to prepare or have prepared a comprehensive study to
    40  measure and report the cost of regulations to businesses throughout  the
    41  state of New York.
    42    2.  Such study shall be completed within eighteen months of the effec-
    43  tive date of the chapter of the laws of two thousand twenty-three  which
    44  added this article.
    45    §  2.  Paragraph  (a)  of  subdivision 6-a of section 202 of the state
    46  administrative procedure act, as amended by chapter 512 of the  laws  of
    47  2019, is amended to read as follows:
    48    (a) An agency shall transmit a copy of any rule making notice prepared
    49  pursuant  to  this article and approved by the commissioner of the divi-
    50  sion of regulatory  review  and  economic  growth  pursuant  to  article
    51  forty-three  of  the executive law to the governor, the temporary presi-
    52  dent of the senate, the speaker of the assembly, the minority leader  of
    53  the  senate,  the minority leader of the assembly and the administrative
    54  regulations review commission at the time such notice  is  submitted  to
    55  the secretary of state for publication in the state register. Such tran-
    56  smittal  shall  include the complete rule text, regulatory impact state-

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     1  ment, regulatory flexibility analysis, rural area flexibility  analysis,
     2  or  revisions thereof, and any other information submitted to the secre-
     3  tary of state pursuant to this article.  Furthermore,  such  transmittal
     4  may be completed by electronic means in accordance with article three of
     5  the state technology law.
     6    § 3. Section 86 of the legislative law, as added by chapter 689 of the
     7  laws of 1978, is amended to read as follows:
     8    § 86. Administrative  regulations  review  commission. There is hereby
     9  created an administrative regulations review commission  to  consist  of
    10  two  members of the senate to be appointed by the temporary president of
    11  the senate, two members of the assembly to be appointed by  the  speaker
    12  of  the assembly, [one member] two members of the senate to be appointed
    13  by the minority leader of the senate and [one member] two members of the
    14  assembly to be appointed by the minority leader  of  the  assembly.  The
    15  temporary  president of the senate and the speaker of the assembly shall
    16  each appoint a co-chairman from among the commission  membership.    Any
    17  vacancies  shall  be  filled in the same manner as the original appoint-
    18  ment.  Such appointees shall serve at the  pleasure  of  the  respective
    19  legislative member making such appointment.
    20    § 4. Section 87 of the legislative law, as added by chapter 689 of the
    21  laws  of  1978  and subdivision 4 as added by chapter 512 of the laws of
    22  2019, is amended to read as follows:
    23    § 87. Powers and duties. 1. The commission shall  exercise  continuous
    24  oversight of the process of rule making and examine rules, as defined in
    25  subdivision  two  of section one hundred two of the state administrative
    26  procedure act, adopted or proposed by each agency with  respect  to  (i)
    27  statutory  authority,  (ii)  compliance  with  legislative intent, (iii)
    28  impact on the economy and on the government operations of the state  and
    29  its  local  governments,  and  (iv)  impact on affected parties; and, in
    30  furtherance of such duties, may examine other issues it deems  appropri-
    31  ate. For purpose of this article, the term agency shall mean any depart-
    32  ment, board, bureau, commission, division, office, council, committee or
    33  officer of the state or a public benefit corporation or public authority
    34  at least one of whose members is appointed by the governor.
    35    2. The commission shall review any legislation requiring a commission-
    36  er or agency as defined by subdivision one of section one hundred two of
    37  the  state  administrative procedure act, to promulgate any codes, rules
    38  and regulations necessary for the implementation  and  make  recommenda-
    39  tions  to  the  members  of the legislature. Such recommendations should
    40  include the commission's approval if the legislation is deemed necessary
    41  to protect the health and safety  of  the  public  or  the  commission's
    42  disapproval if such legislation is deemed detrimental to economic growth
    43  in  New  York state, or is not vital to protect the health and safety of
    44  the public.
    45    3. The commission shall review New York state laws that result in  the
    46  promulgation  of codes, rules or regulations by a commissioner or agency
    47  as defined by subdivision one of section one hundred two  of  the  state
    48  administrative procedure act, or any laws the commission deems a regula-
    49  tory  burden  on  local  governments, school districts or businesses and
    50  make recommendations to the members of the legislature. Such recommenda-
    51  tions should include the commission's request for the repeal of laws  it
    52  deems  increase  costs  for local governments, school districts or busi-
    53  nesses or are detrimental to economic growth in New York state,  or  are
    54  not vital to protect the health and safety of the public.
    55    4.  The  commission  may employ such staff and retain such consultants
    56  and expert services as may be necessary and fix their  compensation  and

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     1  expenses  within  the  amounts  appropriated therefor. Employment by the
     2  commission shall be deemed to be employment by the legislature  for  all
     3  purposes.
     4    [3] 5.  The commission shall have the power, subject to the provisions
     5  of  section  seventy-three  of  the  civil rights law, to hold hearings,
     6  subpoena witnesses, administer oaths,  take  testimony  and  compel  the
     7  production of books, papers, documents and other evidence in furtherance
     8  of  its  duties;  provided, however, that no subpoena shall issue except
     9  upon the affirmative vote of a majority of the whole membership  of  the
    10  commission.  The commission may request and shall receive from all agen-
    11  cies such assistance and data as will enable it properly  to  consummate
    12  any such examination, and review.
    13    [4.]  6.  The  commission  shall be authorized to request and receive,
    14  from a state agency, all rulemaking notices, statements and analyses  as
    15  provided  for  pursuant to the state administrative procedure act, data,
    16  rules, regulations and other information by electronic means as provided
    17  for by article three of the state technology law.
    18    § 5. Section 88 of the legislative law, as amended by chapter  850  of
    19  the laws of 1990, is amended to read as follows:
    20    § 88. Reports.  The  commission  shall,  [from time to time] annually,
    21  report its findings and recommendations to the governor,  the  temporary
    22  president  of  the  senate and the speaker of the assembly, the minority
    23  leader of the senate, the minority leader of the assembly,  and  to  the
    24  members  of the legislature, and may at any time make recommendations to
    25  the division of regulatory review and  economic  growth  and  an  agency
    26  based  upon  its  review of that agency's rule making process, or any of
    27  the agency's proposed, revised or adopted rules.
    28    § 6. The legislative law is amended by adding a new  section  88-a  to
    29  read as follows:
    30    §  88-a.  Regulatory Wednesdays. 1. Every Wednesday, which is a sched-
    31  uled session day for the legislature in  every  week  beginning  with  a
    32  scheduled  session  day on Monday, shall be deemed regulatory Wednesday.
    33  The commission shall be required to meet on every  regulatory  Wednesday
    34  to  perform  its  powers  and duties pursuant to section eighty-seven of
    35  this article.
    36    2. On every regulatory Wednesday, the senate and assembly  shall  take
    37  up  any bills on any order of third reading that are before each respec-
    38  tive house for final disposition, that have gained the approval  of  the
    39  commission prior to taking up any other bill on any order of third read-
    40  ing,  unless such action is waived, without debate, upon a majority vote
    41  of the members present.
    42    § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
    43  sion, section or part of this act shall be  adjudged  by  any  court  of
    44  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    45  impair, or invalidate the remainder thereof, but shall  be  confined  in
    46  its  operation  to the clause, sentence, paragraph, subdivision, section
    47  or part thereof directly involved in the controversy in which such judg-
    48  ment shall have been rendered. It is hereby declared to be the intent of
    49  the legislature that this act would  have  been  enacted  even  if  such
    50  invalid provisions had not been included herein.
    51    § 8. This act shall take effect on the one hundred twentieth day after
    52  it shall have become a law and shall apply to rules and revised rules to
    53  be  submitted  for  publication  in the state register on and after such
    54  date.