senate Bill S6483

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
Feb 11, 2014 advanced to third reading
Feb 10, 2014 2nd report cal.
Feb 04, 2014 1st report cal.114
Jan 29, 2014 referred to commerce, economic development and small business

Votes

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Feb 4, 2014 - Commerce, Economic Development and Small Business committee Vote

S6483
7
2
committee
7
Aye
2
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Commerce, Economic Development and Small Business Committee Vote: Feb 4, 2014

aye wr (1)

Co-Sponsors

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S6483 - Bill Details

See Assembly Version of this Bill:
A8715
Current Committee:
Senate Rules
Law Section:
State Administrative Procedure Act
Laws Affected:
Amd §§202 & 202-a, St Ad Proc Act
Versions Introduced in Previous Legislative Sessions:
2013-2014: S5553, A487A
2011-2012: A6187
2009-2010: A2941

S6483 - Bill Texts

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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 NUMBER:S6483

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 4-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
fox 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;
2013: S.5553 A.487-A

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.

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

                                  6483

                            I N  S E N A T E

                            January 29, 2014
                               ___________

Introduced by Sens. VALESKY, BALL, CARLUCCI, GALLIVAN, GRISANTI, LARKIN,
  RITCHIE  --  read  twice  and  ordered printed, and when printed to be
  committed to the Committee on Commerce, Economic Development 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
STATEMENT,  REGULATORY  FLEXIBILITY  ANALYSIS, OR RURAL AREA FLEXIBILITY
ANALYSIS, THE ASSESSMENT SHALL ALSO SUMMARIZE THE AGENCY'S ASSESSMENT OF

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

S. 6483                             2

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:
  (I) INFORMATION IDENTIFYING THE CLASSES OF PERSONS OR  ENTITIES  WHICH
WOULD BENEFIT FROM THE RULE;

S. 6483                             3

  (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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