HB 1280-1_ Filed 02/22/2012, 09:00

COMMITTEE REPORT




MADAM PRESIDENT:

    The Senate Committee on Tax and Fiscal Policy, to which was referred House Bill No. 1280, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 1, line 1; (12)AM128004.1. -->     Page 1, delete lines 1 through 17.
    Delete pages 2 through 3.
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SOURCE: IC 4-3-22-6; (12)AM128004.2. -->     "SECTION 2. IC 4-3-22-6, AS ADDED BY P.L.246-2005, SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. (a) The division of government efficiency and financial planning is established within the OMB. The director shall appoint, subject to the approval of the governor, a director of the division, who serves at the pleasure of the director of OMB.
    (b) The division shall do the following:
        (1)
Conduct operational and procedural audits of state government.
         (2) Perform financial planning and design and implement efficiency projects. and
         (3) Advise and assist:
            (A) each instrumentality, agency, authority, board, commission, and officer in the executive department of state government; and
            (B) each body corporate and politic established as an

instrumentality of the state;
        to identify and implement continuous process improvement in state government.
        (4)
Carry out such other responsibilities as may be designated by the director.

SOURCE: IC 4-3-22-13; (12)AM128004.3. -->     SECTION 3. IC 4-3-22-13, AS ADDED BY P.L.246-2005, SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 13. (a) The OMB shall perform a cost benefit analysis upon each proposed rule and provide to:
        (1) the governor; and
        (2) the administrative rules oversight committee established under IC 2-5-18;
an assessment of the rule's effect on Indiana business.
    (b) After June 30, 2005, the cost benefit analysis performed by the OMB under this section with respect to any proposed rule that has an impact of at least five hundred thousand dollars ($500,000) shall replace and be used for all purposes under IC 4-22-2 in lieu of the fiscal analysis previously performed by the legislative services agency under IC 4-22-2.
     (c) In preparing a cost benefit analysis under this section, the OMB shall consider in its analysis any verified data provided voluntarily by interested parties, regulated persons, and nonprofit corporations whose members may be affected by the proposed rule. A cost benefit analysis prepared under this section is a public document, subject to the following:
        (1) This subsection does not empower the OMB or an agency to require an interested party or a regulated person to provide any materials, documents, or other information in connection with a cost benefit analysis under this section. If an interested party or a regulated person voluntarily provides materials, documents, or other information to the OMB or an agency in connection with a cost benefit analysis under this section, the OMB or the agency, as applicable, shall ensure the adequate protection of any:
            (A) information that is confidential under IC 5-14-3-4; or
            (B) confidential and proprietary business plans and other confidential information.
        The OMB and any agency involved in proposing the rule, or in administering the rule upon the rule's adoption, shall exercise all necessary caution to avoid disclosure of any confidential information supplied to the OMB or the agency by an interested party or a regulated person.
        (2) The OMB shall make the cost benefit analysis and other related public documents available to interested parties, regulated persons, and nonprofit corporations whose members may be affected by the proposed rule at least thirty (30) days before presenting the cost benefit analysis to the governor and the administrative rules oversight committee under subsection (a).

SOURCE: IC 4-3-22-13.1; (12)AM128004.4. -->     SECTION 4. IC 4-3-22-13.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 13.1. (a) This section applies to a rule that:
        (1) has been adopted under IC 4-22-2 or IC 13-14-9; and
        (2) has taken effect;

after December 31, 2011.
    (b) As used in this section, "committee" refers to the administrative rules oversight committee established by IC 2-5-18-4.
    (c) For each rule to which this section applies, the OMB shall perform a cost benefit analysis of the rule with respect to the period encompassing the first three (3) years following the rule's effective date. Except as otherwise required by the governor or the committee under subsection (f), the OMB shall submit a cost benefit analysis prepared under this section to:
        (1) the governor; and
        (2) the committee;
not later than six (6) months after the third anniversary of the rule's effective date.
    (d) A cost benefit analysis prepared under this section must include the following with respect to the three (3) year period covered by the analysis:
        (1) The cost benefit analysis for the rule prepared under section 13 of this chapter before the rule's adoption, including the information required by Financial Management Circular #2010-4.
        (2) A statement of the number of regulated persons, classified by industry sector, subject to the rule.

         (3) A comparison of:
            (A) the cost benefit analysis for the rule prepared under section 13 of this chapter before the rule's implementation; and
            (B) the actual costs and benefits of the rule during the first three (3) years of the rule's implementation.

         (4) For each element of the rule that is also the subject of

restrictions or requirements imposed under federal law, a comparison of:
            (A) the restrictions or requirements imposed under the rule; and
            (B) the restrictions or requirements imposed under federal law.

         (5) Any other information that the governor or the committee may require with respect to a cost benefit analysis under this section.
    (e) In preparing a cost benefit analysis under this section, the OMB shall consider in its analysis any verified data provided voluntarily by interested parties, regulated persons, and nonprofit corporations whose members may be affected by the rule. A cost benefit analysis prepared under this section is a public document, subject to the following:
        (1) This subsection does not empower the OMB or an agency to require an interested party or a regulated person to provide any materials, documents, or other information. If an interested party or a regulated person voluntarily provides materials, documents, or other information to the OMB or an agency in connection with a cost benefit analysis under this section, the OMB or the agency, as applicable, shall ensure the adequate protection of any:
            (A) information that is confidential under IC 5-14-3-4; or
            (B) confidential and proprietary business plans and other confidential information.
        The OMB and any agency involved in administering the rule shall exercise all necessary caution to avoid disclosure of any confidential information supplied to the OMB or the agency by an interested party or a regulated person.
        (2) The OMB shall make the cost benefit analysis and other related public documents available to interested parties, regulated persons, and nonprofit corporations whose members may be affected by the rule at least thirty (30) days before presenting the cost benefit analysis to the governor and the committee under subsection (c).
    (f) The governor or the committee, or both, may prescribe:
        (1) the form of a cost benefit analysis; and
        (2) the process, deadlines, and other requirements for submitting a cost benefit analysis;
required under this section.

SOURCE: IC 4-21.5-2.7; (12)AM128004.5. -->     SECTION 5. IC 4-21.5-2.7 IS ADDED TO THE INDIANA CODE

AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]:
     Chapter 2.7. Qualifications and Training of Administrative Law Judges and Other Hearing Officers
    Sec. 1. The state personnel department shall:
        (1) adopt classifications and qualifications for administrative law judges and other hearing officers in the executive department of state government; and
        (2) develop appropriate training programs for administrative law judges and other hearing officers in the executive department of state government.
    Sec. 2. The qualifications adopted under section 1 of this chapter are in addition to any other requirements specified by statute.
    Sec. 3. The qualifications adopted under section 1 of this chapter do not apply to the ultimate authority for an agency or a member of the ultimate authority for an agency when the ultimate authority is a panel of individuals.

SOURCE: IC 4-22-2-19.7; (12)AM128004.6. -->     SECTION 6. IC 4-22-2-19.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 19.7. An agency, to the extent feasible and permitted by law, shall afford the public a meaningful opportunity to comment through the Internet on proposed rules. An agency shall consider providing a comment period that exceeds the minimum required by law.".
    Delete pages 5 through 14.
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SOURCE: ; (12)AM128004.18. -->     "SECTION 18. [EFFECTIVE UPON PASSAGE] (a) The state personnel department shall before November 1, 2012, report in an electronic format under IC 5-14-6 to the administrative rules

oversight commission concerning the:
        (1) classifications and qualifications for administrative law judges; and

         (2) training programs for administrative law judges and other hearing officers;
adopted and developed under IC 4-21.5-2.7, as added by this act.
    (b) This SECTION expires January 1, 2013.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1280 as reprinted January 28, 2012.)

and when so amended that said bill do pass .

Committee Vote: Yeas 9, Nays 3.

____________________________________

Senator Hershman, Chairperson


AM 128004/DI 58    2012