BILL NUMBER: S155

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the state administrative procedure act, in relation to
public hearings on proposed rules; and providing for the repeal of such
provisions upon expiration thereof

 
PURPOSE:

This bill enhances the ability of the public to participate more mean-
ingfully in the rule-making process by permitting agencies to use inno-
vative techniques in organizing public hearings on proposed rules, and
establishes a 3-year pilot project for seven major regulatory agencies
to hold public hearings upon petition of 125 or more New York residents.

 
SUMMARY OF PROVISIONS:

Subdivision 1 of section 102 of the State Administrative Procedure Act
(SAPA), as amended by section 155 of subpart B of part C of chapter 62
              

of the laws of 2011, is amended to include the Workers Compensation
Board as an "agency" for purposes of implementing the new hearing
provisions added by the bill. A new Section 202-f is added to SAPA
authorizing agencies that hold hearings on proposed rules under SAPA to
use innovative means to enhance public participation in rule making,
such as:

-designating a segment of time for agency personnel;

-organizing hearings as roundtable weekend hearings; and the public to
address questions to discussions; scheduling evening or

-using broadcast and teleconferencing technologies.

Agencies may include in their annual reports an analysis of the innova-
tive techniques used to enhance participation. Such techniques shall not
be used in a manner that will result in the diminished ability of the
public to comment on the proposed rule at the public hearing.

Section 202-f also requires those agencies which are listed in subdivi-
sion 4 to hold public hearings on proposed rules when they receive writ-
ten petitions from 125 or more people residing in New York State,
provided a sufficient petition is received not later than the 20th day
before the last date for public comment. Agencies which receive
petitions after such date and agencies which are not listed in subdivi-
sion 4 of S202-f have the option of holding a public hearing pursuant to
such petitions. Agencies are required to give due consideration to
requests that a hearing be held in a particular region.

Agencies are not required to hold public hearings for rules for which a
hearing is required by law but has already been scheduled or held, or
for consensus rules or rules related to rate-makings. Subdivision 4 of
Section 202-f specifies that the following agencies are required on a
pilot basis to hold hearings upon receipt of petitioner the Workers'
Compensation Board and the Departments of Education, Environmental
Conservation, Health, Financial Services, Labor and Family Assistance.

 
EXISTING LAW:
Currently, SAPA does not contain any provisions concerning petitions for
public hearings on proposed rules, nor does it contain any authorization
or encouragement for the utilization by agencies of innovative hearing
techniques.

 
JUSTIFICATION:

If the rules adopted by state agencies are to have minimal burdens and
maximum effectiveness from the public's perspective, it is crucial that
every effort be made to solicit and consider the views of the public in
developing rules. Public hearings are one effective means of doing so.
This bill would enhance their effectiveness as a tool for public partic-
ipation. Both the business community and agency personnel have reported
that, in many cases, there are alternatives which are preferable to the
standard model of a public hearing, which involves limited interaction
between agencies and the public.  A Federal National Performance Review
report recommended that one way to improve regulatory systems at the
Federal level was to encourage the use of innovative hearing techniques
by Federal agencies. This bill would provide for the same improvements
in hearings required under the State Administrative Procedure Act.

The bill also creates a pilot project whereby seven of the most active
regulatory agencies would be required to hold a hearing if requested to
do so by 125 or more persons. This will provide an additional way of
enhancing public participation by ensuring that these agencies receive
additional public input when a rule is of significant concern to the
public.

The 1981 Model State Administrative Procedure Act recommends that states
provide for public hearings if requested by the public. States and
Federal agencies which are subject to petition requirements do not
report any major increase in workload or any significant difficulties
with this process. However, the effectiveness of the pilot project would
be subject to evaluation after some experience has been gained with the
operation of such a process in New York State.  This legislation passed
both houses in 2008, but was vetoed by the Governor, citing "technical
flaws." Language has been included in this bill to address these
concerns, by explicitly including the Workers' Compensation Board within
the bill's ambit and by making the scheduling of any hearing optional if
the agency does not receive a petition in a timely manner. The veto
message also stated that current opportunities for comment were suffi-
cient to the extent that the public agrees, the petition process would
be used sparingly and have little cost impact.

However, if the public feels that a hearing is necessary on a particular
rule, the potential cost savings from policy improvements would likely
outweigh any minimal hearing costs.

 
LEGISLATIVE HISTORY:

2020:Passed Senate, Died in Assembly
2019:Passed Senate, Died in Assembly
2018:Passed Senate, Died in Assembly
2017:Died in Commerce, Economic DevelopmentandSmallBusiness
2016:Died in Commerce, Economic DevelopmentandSmallBusiness
2015:Died in Commerce, Economic DevelopmentandSmallBusiness
2014:in Senate Commerce, Economic Development and Small Business Commit-
tee
2012: - Died in Senate Commerce, Economic Development and Small Business
Committee

 
FISCAL IMPLICATIONS:

No costs would be incurred unless a timely petition for a public hearing
is received. Savings could accrue to agencies that avail themselves of
innovative, cost-effective techniques.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
The bill will take effect on the first of January succeeding the date of
enactment and shall expire on the thirty-first day of December of the
second calendar year following such effective date.