senate Bill S5553

Provides for the detailing of the benefits and costs of proposed rules in the regulatory impact statements

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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

  • 17 / May / 2013
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 04 / Jun / 2013
    • REPORTED AND COMMITTED TO RULES
  • 04 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1038
  • 10 / Jun / 2013
    • SUBSTITUTED BY A487A

Summary

Provides for the detailing of the benefits and costs of proposed rules in the regulatory impact statements to ensure proper disclosure to the public of such information.

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Bill Details

See Assembly Version of this Bill:
A487A
Versions:
S5553
Legislative Cycle:
2013-2014
Law Section:
State Administrative Procedure Act
Laws Affected:
Amd §§202 & 202-a, St Ad Proc Act
Versions Introduced in Previous Legislative Cycles:
2011-2012: A6187, A6187
2009-2010: A2941, A2941
2007-2008: A766, A766

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Sponsor Memo

BILL NUMBER:S5553

TITLE OF BILL: An act to amend the state administrative procedure
act, in relation to detailing the benefits and costs of proposed rules
in regulatory impact statements

PURPOSE OR GENERAL IDEA OF BILL: This bill will improve the
rule-making process by providing for expanded information on the costs
and benefits associated with an agency proposal.

SUMMARY OF PROVISIONS: Section 1 sets forth legislative findings that
state agency rules should be adopted through a process which provides
for open and reasoned consideration of the potential costs and
benefits of regulatory action, and that the law should ensure that
agency assessments of the costs and the benefits of proposed rules are
reasonably accurate and comprehensive.

Sections 2 and 3 amend subdivisions 1-a and 5 of §202 of the State
Administrative Procedure Act (SAPA). The amendments ensure that the
assessment of public comments prepared for a revised rule making will
take into account estimates of the cost impact of rules which differ
significantly from the agency's estimates, as is currently required
for assessments prepared for final rule adoptions. The amendments also
enhance oversight of agency assessments by providing that comments
from regulated parties and the public which assert significant
differences in cost estimates must be provided to executive and
legislative officers which oversee rule-making.

Section 4 amends § 202-a of SAPA to provide for expanded information
in the regulatory impact statement (RTS) accompanying a proposed rule
on the benefits and costs associated with the rule. Information on
costs would have to relate to both monetary costs and other costs,
such as opportunity costs (i.e., the value of foregone alternative
actions), and address both positive and adverse cost impacts. This
section is also amended to provide that the PIS section which
addresses paperwork shall specifically cite any implications of the
rule for electronic reporting of data.

Section 5 establishes an effective date;

JUSTIFICATION: The requirement of SAPA § 202-a for "regulatory impact
statements" has improved the quality of rules by requiring agencies to
make explicit their assumptions about the benefits which would result
from a particular regulatory proposal, and the costs which would be
imposed on regulated parties and others. However, in many cases
agencies do not fully address the issues of who would benefit from
adoption of a regulation and who would bear the costs.

As a result, agency analysis of the impact of rules is often
superficial. setter analysis of the full range of expected costs and
benefits of proposed agency actions can ensure that the final version
of rules can provide the maximum benefits of regulation at minimum
cost to all sectors of society.

PRIOR LEGISLATIVE HISTORY: 1997-1998: A.6084 1999-2000: A.1447
2001-2002: A.4133 2003-2004: A.247 2005-2006: A.6331 2007-2008: A.766
2009-2010: A.2941 S.2829, 2011-2012: A.61137


FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect on the first of September
next succeeding the date on which it will have become a law.

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

                                  5553

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 17, 2013
                               ___________

Introduced  by  Sen. VALESKY -- 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
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01500-04-3

S. 5553                             2

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 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:

S. 5553                             3

  (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
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.

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