Citations Affected: IC 4-22-2-28.
Synopsis: Limitation on adoption of agency rules. Specifies that an
administrative agency may not adopt a rule under IC 4-22-2 that will
increase the administrative costs of the state, an instrumentality of the
state, or a political subdivision unless the rule is required to comply
with a federal law, a federal regulation, a court order, or the terms of a
federal grant or loan. Provides for a fiscal analysis of administrative
costs by the office of management and budget.
Effective: Upon passage.
January 13, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
IC 4-22-2.1-4).
After conducting a review under subdivision (1) or (2), the ombudsman
may suggest alternatives to reduce any regulatory burden that the
proposed rule imposes on small businesses or other businesses. The
agency that intends to adopt the proposed rule shall respond in writing
to the ombudsman concerning the ombudsman's comments or
suggested alternatives before adopting the proposed rule under section
29 of this chapter.
(c) Subject to subsection (f) and not later than fifty (50) days before
the public hearing required by section 26 of this chapter, an agency
shall submit a proposed rule to the office of management and budget
for a review under subsection (d) if the agency proposing the rule
determines that the rule will have:
(1) a total estimated economic impact greater than five hundred
thousand dollars ($500,000) on all regulated persons; or
(2) any estimated fiscal impact on the administrative costs of
the state, an instrumentality of the state, or a political
subdivision.
In determining the total estimated economic impact under this
subsection, the agency shall consider any applicable information
submitted by the regulated persons affected by the rule. To assist the
office of management and budget in preparing the fiscal impact
statement required by subsection (d), the agency shall submit, along
with the proposed rule, the data used and assumptions made by the
agency in determining the total estimated economic impact of the rule.
(d) Except as provided in subsection (e), before the adoption of the
rule, and not more than forty-five (45) days after receiving a proposed
rule under subsection (c), the office of management and budget shall
prepare, using the data and assumptions provided by the agency
proposing the rule, along with any other data or information available
to the office of management and budget, a fiscal impact statement
concerning the effect that compliance with the proposed rule will have
on:
(1) the state;
(2) political subdivisions; and
(2) (3) all persons regulated by the proposed rule.
The fiscal impact statement must contain the total estimated economic
impact of the proposed rule, the total estimated fiscal impact on the
administrative costs of the state, the total estimated fiscal impact
on the administrative costs of political subdivisions, and a
determination concerning the extent to which the proposed rule creates
an unfunded mandate on a state agency or political subdivision. The
fiscal impact statement is a public document. The office of
management and budget shall make the fiscal impact statement
available to interested parties upon request. The agency proposing the
rule shall consider the fiscal impact statement as part of the rulemaking
process and shall provide the office of management and budget with
the information necessary to prepare the fiscal impact statement,
including any economic impact statement prepared by the agency under
IC 4-22-2.1-5. After May 1, 2010, an agency may not adopt a rule
that will increase the administrative costs of the state agency, an
instrumentality of the state, or a political subdivision unless the
rule is required to comply with a federal law, a federal regulation,
a court order, or the terms of a federal grant or loan. The office of
management and budget may also receive and consider applicable
information from the regulated persons affected by the rule in
preparation of the fiscal impact statement.
(e) With respect to a proposed rule subject to IC 13-14-9:
(1) the department of environmental management shall give
written notice to the office of management and budget of the
proposed date of preliminary adoption of the proposed rule not
less than sixty-six (66) days before that date; and
(2) the office of management and budget shall prepare the fiscal
impact statement referred to in subsection (d) not later than
twenty-one (21) days before the proposed date of preliminary
adoption of the proposed rule.
(f) In determining whether a proposed rule has a total estimated
economic impact greater than five hundred thousand dollars
($500,000), the agency proposing the rule shall consider the impact of
the rule on any regulated person that already complies with the
standards imposed by the rule on a voluntary basis.
(g) For purposes of this section, a rule is fully implemented after:
(1) the conclusion of any phase-in period during which:
(A) the rule is gradually made to apply to certain regulated
persons; or
(B) the costs of the rule are gradually implemented; and
(2) the rule applies to all regulated persons that will be affected
by the rule.
In determining the total estimated economic impact of a proposed rule
under this section, the agency proposing the rule shall consider the
annual economic impact on all regulated persons beginning with the
first twelve (12) month period after the rule is fully implemented. The
agency may use actual or forecasted data and may consider the actual
and anticipated effects of inflation and deflation. The agency shall
describe any assumptions made and any data used in determining the
total estimated economic impact of a rule under this section.