senate Bill S4819

Streamlines regulatory analysis documents

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 27 / Apr / 2011
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 04 / Jan / 2012
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 05 / Jun / 2012
    • 1ST REPORT CAL.1025
  • 06 / Jun / 2012
    • 2ND REPORT CAL.
  • 11 / Jun / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Streamlines regulatory analysis documents.

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Bill Details

See Assembly Version of this Bill:
A7443
Versions:
S4819
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
State Administrative Procedure Act
Laws Affected:
Amd §§201-a, 202-a, 202-b & 202-bb, St Ad Proc Act

Sponsor Memo

BILL NUMBER:S4819

TITLE OF BILL:
An act
to amend the state administrative procedure act, in relation to
streamlining regulatory analysis documents

PURPOSE:
This bill allows the combination of certain portions of regulatory
analysis documents to avoid repetition and reduce paperwork, while
still requiring an agency to fully identify the adverse impacts of a
rule and consider approaches to minimize costs and burdens.

SUMMARY OF PROVISIONS:
The bill makes changes to the provisions of the State Administrative
Procedure Act (SAPA) concerning various statements documenting the
impact of proposed regulations:

* §202-a requires, for most proposed rules, the preparation of a
'regulatory impact statement" (RIS) detailing the agency's authority
and the need for the rule, and disclosing the fiscal and economic
impact of the rule, and any new paperwork requirements or mandates.

* §202-b requires, for any rule that would impose any compliance or
paperwork requirements or would otherwise have an adverse impact on
small businesses or local governments, the preparation of a
'regulatory flexibility analysis" (RFA) detailing the outreach
efforts undertaken by the agency to foster input by small businesses
and/or local governments, the cost and paperwork impacts of the rule,
and the measures the agency considered to make the rule more flexible
in recognition of the differing compliance capabilities of small
businesses and/or local governments (such as use of performance
standards, exemptions from the rule, or less frequent reporting
schedules).

* §202-bb requires, for any rule that would impose any compliance or
paperwork requirements or would otherwise have an adverse impact on
public or private
entities in rural areas, the preparation of a 'rural area flexibility
analysis" (RAFA) detailing in a manner similar to the RFA the
agency's efforts to provide flexibility in the rule in recognition of
the different nature of rural areas of the State.

* §201-a requires, for any rule that would have an adverse impact on
jobs or employment opportunities, the preparation of a 'job impact
statement" (RIS) detailing the alternatives considered by the agency
to minimize the rule's impact on jobs.

Bill §§ 1, 3 & 5 amend the JIS, RFA and RAFA sections to clarify that a
separate form is not needed when an agency determines that the rule
would not have any adverse impact that would trigger the preparation
of an analysis or statement. Instead, the agency may include
information within the RIS explaining how the agency determined that
there would be no such adverse impact or compliance requirements.


Bill §2 clarifies the RIS section to provide that in addition to being
exempt from the requirement to prepare an RIS, a genuine technical
amendment with no substantive impact is exempt from the requirements
to prepare an RFA, RAFA and JIS provided the rulemaking notice
includes a disclaimer that no such document is applicable.

Bill §§4 & 6 amend the RFA and RAFA sections to provide that, when
proposing a rule involving compliance or paperwork requirements but
no adverse impact on small businesses, local governments, and/or
rural entities, information on such requirements may be summarized in
the RFA or RAFA instead of duplicated from the RIS.

EXISTING LAW:
Currently SAPA requires the preparation of an RFA or RAFA for any
rulemaking that entails compliance of paperwork requirements on small
businesses, local governments or rural entities, even if there would
be no adverse impact. Also, it is not clear that an agency may
include a statement that a rule would have no impact in the RIS, or
may dispense with certain required statements when proposing a
non-substantive technical amendment.

JUSTIFICATION:
SAPA requires agencies to analyze the impact of their proposed rules
on the public as a whole, and also to perform more targeted analyses
to ensure that the proposals do not unthinkingly impose
disproportionate costs and burdens on specific types of entities. For
example, in recognition of the burden of regulatory provisions may
fall quite differently on a small business than on a multinational
corporation, SAPA requires agencies to consider "flexing" proposed
rules to facilitate small business implementation. Similar analyses
are required to recognize the different ways that rules can impact
local governments and entities in rural areas, and to minimize the
impact of proposals on jobs and employment opportunities.

Some agencies complain that SAPA requires the preparation of
duplicative documents. In many cases, such duplication reflects mere
pro forma compliance with SAPA in lieu of performing indepth
analysis of regulatory options. However, two aspects of the SAPA
process can be
improved to minimize duplication while preserving needed analytical
elements. First, when a proposal clearly does not impose any adverse
impacts, there is no need to prepare a separate statement to that
effect. Instead, the inclusion of succinct information in the RIS
should be sufficient. The bill clarifies SAPA in this regard.

Second, the law provides that, even if there are no adverse impacts, an
RFA and/or RAFA is still required if the rule would impose
paperwork or compliance requirements on small businesses, local
governments and/or rural entities. For example, a proposed rule may
require small businesses to meet performance standards instead of
requiring specific process controls, or require submission of two new
reports in place of five old ones. In such cases, although costs and
burdens would be eased, the agency still must analyze the new
requirements (appropriately so, since the changes may fail to
minimize burdens, or may unintentionally create new ones).
This bill would provide agencies the option of summarizing information


on the new requirements in the RFA and/or RAFA and referring to the
RIS or other document that addresses the requirements more fully.

The bill also clarifies that a non-substantive technical amendment
which is exempt from the requirement to prepare an RIS is also exempt
from the requirement to prepare the other regulatory analyses.

LEGISLATIVE HISTORY:
New bill - similar legislation was introduced as an Article VI bill in
2010 (A.9714/S.6614) but was not enacted.

FISCAL IMPLICATIONS:
State agencies that use the provisions of this bill will experience
some savings in time and workloads by summarizing otherwise
repetitive information in regulatory documents and by eliminating
unnecessary notices for proposed rules that only represent technical
amendments.

LOCAL FISCAL IMPLICATIONS:
State agencies that use the provisions of this bill will experience
some savings in time and workloads by summarizing otherwise
repetitive information in regulatory documents and by eliminating
unnecessary notices for proposed rules that only represent technical
amendments.

EFFECTIVE DATE:
First day of October after having become a law - applicable to all
rule making notices initially prepared on or after such date

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4819

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 27, 2011
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT  to amend the state administrative procedure act, in relation to
  streamlining regulatory analysis documents

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  (a)  of  subdivision 2 of section 201-a of the
state administrative procedure act, as added by chapter 189 of the  laws
of 1996, is amended to read as follows:
  (a)  When  it is apparent from the nature and purpose of the rule that
it will not have a substantial adverse impact  on  jobs  and  employment
opportunities,  the agency shall include in the [notice of proposed rule
making or the notice of emergency adoption a] REGULATORY  IMPACT  STATE-
MENT  PREPARED  PURSUANT TO SECTION TWO HUNDRED TWO-A OF THIS ARTICLE, A
BRIEF statement that the agency has determined that the  rule  will  not
have  a substantial adverse impact on jobs and employment opportunities;
provided, however, that, where appropriate, such statement  shall  indi-
cate that the agency has determined the rule will have a positive impact
on jobs and employment opportunities, or will have no impact on jobs and
employment  opportunities.   Except where it is evident from the subject
matter of the rule that the rule could only have a positive impact or no
impact on jobs and employment opportunities, the agency shall include in
the statement prepared pursuant to  this  paragraph  a  summary  of  the
information and methodology underlying its determination.
  S  2.  Paragraph  (a)  of  subdivision 5 of section 202-a of the state
administrative procedure act, as amended by chapter 698 of the  laws  of
1984, is amended to read as follows:
  (a)  An  agency  may  claim an exemption from the requirements of this
section AND SECTIONS TWO  HUNDRED  ONE-A,  TWO  HUNDRED  TWO-B  AND  TWO
HUNDRED TWO-BB OF THIS ARTICLE for a rule that involves only a technical
amendment,  provided,  however,  the  agency  shall state in the notice,
prepared pursuant to section two hundred two of this [chapter]  ARTICLE,
the reason or reasons for claiming such exemption.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10885-01-1

S. 4819                             2

  S  3.  Paragraph  (a)  of  subdivision 3 of section 202-b of the state
administrative procedure act, as amended by chapter 611 of the  laws  of
1996, is amended to read as follows:
  (a)  This  section shall not apply to any rule defined in subparagraph
(ii) of paragraph (a) of subdivision two of section one hundred  two  of
this  chapter,  nor  shall it apply to any rule which does not impose an
adverse economic impact on small businesses  or  local  governments  and
which  the  agency  finds  would  not impose reporting, recordkeeping or
other compliance requirements on small businesses or local  governments.
The  agency's  finding  and the reasons upon which the finding was made,
including what measures the agency took to ascertain that the rule would
not impose such compliance requirements, or adverse economic  impact  on
small  businesses  or  local governments, shall be included in the [rule
making notice] REGULATORY IMPACT STATEMENT as required  by  section  two
hundred [two] TWO-A of this [chapter] ARTICLE.
  S 4. Subdivision 5 of section 202-b of the state administrative proce-
dure  act,  as  amended by chapter 17 of the laws of 1984, is amended to
read as follows:
  5. In complying  with  the  provisions  of  subdivision  two  of  this
section,  an  agency may: (A) provide either a quantifiable or numerical
description of the effects of a rule or more general descriptive  state-
ments  if  quantification  is  not  practicable  or reliable; AND (B) IF
INFORMATION THAT SATISFIES THE REQUIREMENTS OF PARAGRAPH (B), (C) OR (D)
OF SUBDIVISION TWO OF THIS SECTION IS CONTAINED IN THE REGULATORY IMPACT
STATEMENT OR ANOTHER DOCUMENT ISSUED FOR THE RULE PURSUANT TO THIS ARTI-
CLE, SUMMARIZE SUCH INFORMATION AND REFER TO SUCH DOCUMENT  IN  LIEU  OF
DUPLICATING THE INFORMATION IN THE REGULATORY FLEXIBILITY ANALYSIS.
  S  5.  Paragraph  (a)  of subdivision 4 of section 202-bb of the state
administrative procedure act, as added by chapter 171  of  the  laws  of
1994, is amended to read as follows:
  (a)  This  section shall not apply to any rule defined in subparagraph
(ii) of paragraph (a) of subdivision two of section one hundred  two  of
this  chapter,  nor  shall it apply to any rule which does not impose an
adverse impact on rural areas and  which  the  agency  finds  would  not
impose  reporting,  recordkeeping  or  other  compliance requirements on
public or private entities in rural areas. The agency's finding and  the
reasons  upon  which  the  finding was made, including what measures the
agency took to ascertain that the rule would not impose such  compliance
requirements  or  adverse  impact, shall be included in the [rule making
notice] REGULATORY IMPACT STATEMENT as required by section  two  hundred
[two] TWO-A of this [chapter] ARTICLE.
  S  6.  Subdivision  6  of  section  202-bb of the state administrative
procedure act, as added by chapter 171 of the laws of 1994,  is  amended
to read as follows:
  6.  In  complying  with  the  provisions  of subdivision three of this
section, an agency may: (A) provide either a quantifiable  or  numerical
description  of the effects of a rule or more general descriptive state-
ments if quantification is not  practicable  or  reliable;  AND  (B)  IF
INFORMATION  THAT  SATISFIES THE REQUIREMENTS OF PARAGRAPH (B) OR (C) OF
SUBDIVISION THREE OF THIS SECTION IS CONTAINED IN THE REGULATORY  IMPACT
STATEMENT OR ANOTHER DOCUMENT ISSUED FOR THE RULE PURSUANT TO THIS ARTI-
CLE,  SUMMARIZE  SUCH  INFORMATION AND REFER TO SUCH DOCUMENT IN LIEU OF
DUPLICATING THE INFORMATION IN THE RURAL AREA FLEXIBILITY ANALYSIS.
  S 7. This act shall take effect on the first of October next  succeed-
ing the date on which it shall have become a law, and shall apply to all
rule making notices initially prepared on or after such date.

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