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

                                  8715

                          I N  A S S E M B L Y

                            February 4, 2014
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
  Committee on Governmental Operations

AN ACT to amend the state administrative procedure act, in  relation  to
  detailing  the  benefits  and  costs  of  proposed rules in regulatory
  impact statements

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

  Section  1.  The  legislature  finds that many rules of state agencies
have a substantial impact on the lives  of  the  public,  and  therefore
should be adopted through a process which provides for open and reasoned
consideration  of the potential costs and benefits of regulatory action.
To this end, the statutes governing the  rulemaking  process  should  be
improved to ensure that agency assessments of the costs and the benefits
of proposed rules are reasonably accurate and comprehensive.
  S  2.  Paragraph  (b)  of  subdivision 4-a of section 202 of the state
administrative procedure act, as added by chapter 335  of  the  laws  of
1992, is amended to read as follows:
  (b)  Each  agency  shall  publish  and make available to the public an
assessment of public comment for a rule revised pursuant to this  subdi-
vision. Such assessment shall be based upon any written comments submit-
ted  to the agency and any comments presented at any public hearing held
on the proposed rule by the agency. The assessment shall contain: (i)  a
summary  and  an  analysis of the issues raised and significant alterna-
tives suggested by any such comments; (ii) a statement  of  the  reasons
why  any  significant  alternatives were not incorporated into the rule;
and (iii) a description of any changes made in the rule as a  result  of
such  comments. IF ANY COMMENTS INCLUDED ESTIMATES OF PROJECTED COSTS OR
BENEFITS OF THE PROPOSED RULE TO THE STATE, LOCAL GOVERNMENTS  OR  REGU-
LATED  OR OTHERWISE AFFECTED PERSONS OR ENTITIES, WHICH DIFFERED SIGNIF-
ICANTLY FROM THOSE PRESENTED BY THE  AGENCY  IN  ITS  REGULATORY  IMPACT
STATEMENT,  REGULATORY  FLEXIBILITY  ANALYSIS, OR RURAL AREA FLEXIBILITY
ANALYSIS, THE ASSESSMENT SHALL ALSO SUMMARIZE THE AGENCY'S ASSESSMENT OF
SUCH ESTIMATES. COPIES OF COMMENTS WHICH INCLUDE ESTIMATES OF  PROJECTED
COSTS OR BENEFITS WHICH DIFFER SIGNIFICANTLY FROM THE AGENCY'S ESTIMATES

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

                                                           LBD01500-04-3

A. 8715                             2

SHALL  ACCOMPANY  THE  ASSESSMENT OF PUBLIC COMMENT DISTRIBUTED WITH THE
RULE MAKING NOTICE PURSUANT TO PARAGRAPH (A)  OF  SUBDIVISION  SIX-A  OF
THIS  SECTION.  If no comments have been received, the notice of revised
rule  making  shall  state that no comments were received by the agency.
Any subsequent assessment published pursuant to this paragraph or  para-
graph (b) of subdivision five of this section need only include comments
not  addressed  in any previously published assessment of public comment
for the rule; provided, however, that the notice of revised rule  making
or  adoption  shall contain the date any previous notice of revised rule
making containing an assessment of public comment was published  in  the
state register.
  S 3. Paragraph (b) of subdivision 5 of section 202 of the state admin-
istrative  procedure act, as amended by chapter 171 of the laws of 1994,
is amended to read as follows:
  (b) Except with respect to any rule defined in  subparagraph  (ii)  of
paragraph  (a)  of  subdivision  two  of section one hundred two of this
chapter, each agency shall publish and make available to the  public  an
assessment  of public comment for a rule adopted pursuant to this subdi-
vision or paragraph (e) of subdivision six of this section. Such assess-
ment shall be based upon any written comments submitted  to  the  agency
and  any  comments  presented at any public hearing held on the proposed
rule by the agency. The assessment shall contain: (i) a summary  and  an
analysis  of the issues raised and significant alternatives suggested by
any such comments, (ii) a statement of the reasons why  any  significant
alternatives were not incorporated into the rule and (iii) a description
of  any  changes  made  in the rule as a result of such comments. If any
comments included estimates  of  projected  costs  OR  BENEFITS  of  the
proposed  rule to the state, local governments or regulated OR OTHERWISE
AFFECTED persons OR ENTITIES, which differed  significantly  from  those
presented  by  the agency in its regulatory impact statement, regulatory
flexibility analysis, or rural area flexibility analysis, the assessment
shall also summarize the agency's assessment of such estimates.   COPIES
OF COMMENTS WHICH INCLUDE ESTIMATES OF PROJECTED COSTS OR BENEFITS WHICH
DIFFER  SIGNIFICANTLY  FROM  THE  AGENCY'S ESTIMATES SHALL ACCOMPANY THE
ASSESSMENT OF PUBLIC COMMENT DISTRIBUTED WITH  THE  RULE  MAKING  NOTICE
PURSUANT  TO  PARAGRAPH  (A) OF SUBDIVISION SIX-A OF THIS SECTION. If no
comments have been received, the notice of adoption shall state that  no
comments were received by the agency. Comments submitted or presented to
the  agency  by  a legislative committee or commission or by a member or
members of the senate or assembly shall be considered public comment and
shall be summarized and analyzed in the assessment.
  S 4. Paragraphs (b), (c) and (d) of subdivision 3 of section 202-a  of
the  state  administrative  procedure  act,  paragraph (b) as amended by
chapter 229 of the laws of 2000 and paragraphs (c) and (d) as amended by
chapter 520 of the laws of 1992, are amended to read as follows:
  (b) Needs and benefits. A statement  setting  forth  the  purpose  of,
necessity  for,  and benefits derived from the rule[, a citation for and
summary, not to exceed five hundred words, of each scientific or statis-
tical study, report or analysis that served as the basis for  the  rule,
an  explanation  of  how  it was used to determine the necessity for and
benefits derived from the rule, and the name of the person that produced
each study, report or analysis] WHICH SHALL INCLUDE:
  (I) INFORMATION IDENTIFYING THE CLASSES OF PERSONS OR  ENTITIES  WHICH
WOULD BENEFIT FROM THE RULE;
  (II)  AN  ASSESSMENT,  INCLUDING  THE UNDERLYING ANALYSIS, OF BENEFITS
ANTICIPATED FROM THE RULE; INCLUDING, BUT NOT LIMITED TO, ANY DIRECT  OR

A. 8715                             3

INDIRECT  BENEFITS FOR THE ECONOMY AND PRIVATE MARKETS, HEALTH AND SAFE-
TY, THE  NATURAL  ENVIRONMENT,  AND  THE  ELIMINATION  OR  REDUCTION  OF
DISCRIMINATION  OR  BIAS,  AND  ANY  OTHER  SIGNIFICANT BENEFITS. TO THE
EXTENT  FEASIBLE, THE ASSESSMENT SHALL INCLUDE A QUANTIFICATION OF THOSE
BENEFITS AND DESCRIBE THE SOURCES OF INFORMATION AND METHODOLOGY  UNDER-
LYING  SUCH QUANTIFICATION. WHERE IT IS DIFFICULT OR IMPOSSIBLE TO QUAN-
TIFY BENEFITS, THE ASSESSMENT SHALL INCLUDE A  QUALITATIVE  ANALYSIS  OF
SUCH BENEFITS; AND
  (III) A CITATION FOR AND SUMMARY, NOT TO EXCEED FIVE HUNDRED WORDS, OF
EACH  SCIENTIFIC OR STATISTICAL STUDY, REPORT OR ANALYSIS THAT SERVED AS
THE BASIS FOR THE RULE, AN EXPLANATION OF HOW IT WAS USED  TO  DETERMINE
THE  NECESSITY  FOR  AND BENEFITS DERIVED FROM THE RULE, AND THE NAME OF
THE PERSON THAT PRODUCED EACH STUDY, REPORT OR ANALYSIS;
  (c) Costs. A statement detailing the projected [costs] COST IMPACTS of
the rule[, which shall indicate:
  (i) the costs for the implementation  of,  and  continuing  compliance
with, the rule to regulated persons;
  (ii) the costs for the implementation of, and continued administration
of,  the  rule to the agency and to the state and its local governments;
and
  (iii) the information, including the source or sources of such  infor-
mation, and methodology upon which the cost analysis is based; or
  (iv) where an agency finds that it cannot fully provide a statement of
such  costs,  a  statement  setting forth its best estimate, which shall
indicate the information and methodology upon which such  best  estimate
is  based and the reason or reasons why a complete cost statement cannot
be provided;] ON PERSONS OR ENTITIES WHO  WOULD  BE  DIRECTLY  REGULATED
UNDER THE RULE, PERSONS OR ENTITIES WHO WOULD NOT BE REGULATED BUT WOULD
OTHERWISE  BE  SIGNIFICANTLY  AFFECTED  BY  THE  RULE, AND ON THE AGENCY
PROPOSING THE RULE, OTHER STATE ENTITIES  AND  LOCAL  GOVERNMENTS.  SUCH
STATEMENT  SHALL  INCLUDE AN ASSESSMENT, INCLUDING THE UNDERLYING ANALY-
SIS, OF INITIAL AND CONTINUING COSTS  ANTICIPATED  TO  RESULT  FROM  THE
RULE,  INCLUDING,  BUT NOT LIMITED TO, THE DIRECT COSTS TO GOVERNMENT IN
ADMINISTERING THE RULE AND TO BUSINESSES AND OTHERS  IN  COMPLYING  WITH
THE  RULE,  AND  ANY ADVERSE EFFECTS ON THE EFFICIENT FUNCTIONING OF THE
ECONOMY,  PRIVATE  MARKETS  (INCLUDING  PRODUCTIVITY,  EMPLOYMENT,   AND
COMPETITIVENESS), HEALTH, SAFETY, AND THE NATURAL ENVIRONMENT, AND OTHER
SIGNIFICANT  COSTS. TO THE EXTENT FEASIBLE, THE ASSESSMENT SHALL INCLUDE
A QUANTIFICATION OF THOSE COSTS AND DESCRIBE THE SOURCES OF  INFORMATION
AND METHODOLOGY UNDERLYING SUCH QUANTIFICATION. WHERE IT IS DIFFICULT OR
IMPOSSIBLE TO QUANTIFY COSTS, THE ASSESSMENT SHALL INCLUDE A QUALITATIVE
ANALYSIS OF SUCH COSTS;
  (d)  Paperwork.  A  statement  describing  the  need for any reporting
requirements, including forms and other paperwork AND ANY  REPORTING  BY
ELECTRONIC MEDIA, which would be required as a result of the rule;
  S  5.  This  act  shall  take  effect  on  the first of September next
succeeding the date on which it shall have become a law, and shall apply
to any rule for which a notice of proposed rule making or  a  notice  of
emergency adoption is first prepared on or after such effective date.