Provides for public comment during the initial development, preparation and promulgation of rules; establishes an affirmative duty upon agencies to reach out to regulated persons who may be adversely affected by a proposed rule, and to obtain such persons' comments and cost estimates.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2354
SPONSOR: Brindisi (MS) TITLE OF BILL:
An act to amend the state administrative procedure act, in relation to
providing for public comment during the initial development, preparation
and promulgation of rules
PURPOSE:
The purpose of this bill is to incorporate into the state Administrative
Procedure Act (SAPA) the affirmative duty upon state agencies when
promulgating a proposed rule to institute outreach efforts to regulated
persons who may be adversely affected by any proposed rule before it is
filed with the Secretary of State to be published in the state Register.
In these outreach efforts, state agencies shall solicit the opinions of
regulated persons with regard to the administrative burdens such
proposal may impose, cost estimates for complying with such proposed
rule, and other adverse effects due to implementing the rule.
SUMMARY OF PROVISIONS:
Section 1: Amends SAPA section 202(4-a) (b) to include in the rulemaking
procedure when preparing a Notice of Revised Rule Making that the
assessment of public comment shall include any comments submitted to the
agency during the initial development, preparation and promulgation of a
proposed rule.
Section 2: Amends SAPA section 202(5) (b) to include in the rulemaking
procedure when preparing a Notice of Adoption that the assessment of
public comment shall include any comments submitted to the agency during
the initial development, preparation and promulgation of such rule when
any Notice of Adoption is filed with the Secretary of State.
Section 3: Amends SAPA section 202-a(1) to provide for an affirmative
duty upon a state agency that is proposing a rule or preparing a Regula-
tory Impact Statement (RIS) to be filed with a proposed rule to utilize
approaches that are designed to avoid undue deleterious economic effects
or overly burdensome impacts of a proposed rule during the initial
development, preparation and promulgation of a rule.
Section 4: Amends SAPA section 202-a (3) to expand the types of cost
estimates that must be contained in the RIS. This provision mandates
that state agencies, when preparing cost estimates for a RIB must make a
good faith effort to identify the potential costs of a proposed rule
upon regulated persons. Further, that such RIB must outline state agency
outreach efforts to solicit comments from regulated persons and the
comments received due to such outreach efforts. In addition, the state
agency shall disclose significant alternative approaches suggested by
regulated persons prior to filing a proposed rulemaking.
Section 5: Amends SAPA section 202-a(6) to require a state agency to
issue a Revised RIS if the information, costs, paper work, or alterna-
tive approaches in the initial RIS is misleading as is determined either
by the state agency or which was brought to the attention of the state
agency by a regulated person.
Sections 6, 7 and 8: Amends SAPA section 202-b to expand the types of
cost estimates that must be contained in a Regulatory Flexibility Analy-
sis (RFA). The same type at outreach efforts, obtaining good faith cost
estimates, and disclosing outreach efforts to obtain comments on such
proposed rulemaking as were incorporated into the RIS Ln bill. sections
3, 4, 5 would be incorporated into the RFA.
JUSTIFICATION:
Currently, New York is viewed as not having a friendly business environ-
ment that encourages businesses of all sorts to stay or expand in this
state or which encourages out-of-state businesses to relocate or expand
here. Part of the reason for the business community's lack of confidence
in expanding in this Stare and perception that it is not a business
friendly is due to the many unnecessary, over burdensome, or overly
strict regulations that private businesses must comply with to operate
in this State. These New York State imposed costs are due to this
State's adverse regulatory environment which leads to additional costs
to operate a business in this State and consequently less profit can be
derived from New York operations as opposed to businesses that operate
in other states.
This bill places upon state agencies that are promulgating new rules to
actively solicit comments for regulated persons who may be adversely
affected by a proposed rule before such rule is filed with the Secretary
of State. Further, in soliciting comments, such state agency should
obtain bona fide cost estimates for the costs to be imposed by such
proposed rule and other comments related to alternative approaches to
regulating the subject matter in question that minimizes adverse affects
on such regulated persons.
LEGISLATIVE HISTORY:
S6419 of 2012
S2160 of 2013
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
January 1st of the year next succeeding the date on which is shall have
become law.
