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S.B. 88






Chief Sponsor: Howard A. Stephenson

House Sponsor: Ben C. Ferry

             8      LONG TITLE
             9      Committee Note:
             10          The Administrative Rules Review Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Utah Administrative Rulemaking Act to require agencies to
             13      notify the Administrative Rules Review Committee if the agencies already have a rule
             14      in place that meets the requirements of new legislation.
             15      Highlighted Provisions:
             16          This bill:
             17          .    requires that, when a statute is enacted that requires agency rulemaking and the
             18      affected agency already has rules in place that meet the statutory requirement, the
             19      agency shall submit the rules to the Administrative Rules Review Committee within
             20      60 days after the statute takes effect.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          63G-3-301, as last amended by Laws of Utah 2008, Chapter 300 and renumbered and

             28      amended by Laws of Utah 2008, Chapter 382
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 63G-3-301 is amended to read:
             32           63G-3-301. Rulemaking procedure.
             33          (1) An agency authorized to make rules is also authorized to amend or repeal those
             34      rules.
             35          (2) Except as provided in Sections 63G-3-303 and 63G-3-304 , when making,
             36      amending, or repealing a rule agencies shall comply with:
             37          (a) the requirements of this section;
             38          (b) consistent procedures required by other statutes;
             39          (c) applicable federal mandates; and
             40          (d) rules made by the division to implement this chapter.
             41          (3) Subject to the requirements of this chapter, each agency shall develop and use
             42      flexible approaches in drafting rules that meet the needs of the agency and that involve persons
             43      affected by the agency's rules.
             44          (4) (a) Each agency shall file its proposed rule and rule analysis with the division.
             45          (b) Rule amendments shall be marked with new language underlined and deleted
             46      language struck out.
             47          (c) (i) The division shall publish the information required under Subsection (8) on the
             48      rule analysis and the text of the proposed rule in the next issue of the bulletin.
             49          (ii) For rule amendments, only the section or subsection of the rule being amended
             50      need be printed.
             51          (iii) If the director determines that the rule is too long to publish, the director shall
             52      publish the rule analysis and shall publish the rule by reference to a copy on file with the
             53      division.
             54          (5) Prior to filing a rule with the division, the department head shall consider and
             55      comment on the fiscal impact a rule may have on businesses.
             56          (6) If the agency reasonably expects that a proposed rule will have a measurable
             57      negative fiscal impact on small businesses, the agency shall consider, as allowed by federal
             58      law, each of the following methods of reducing the impact of the rule on small businesses:

             59          (a) establishing less stringent compliance or reporting requirements for small
             60      businesses;
             61          (b) establishing less stringent schedules or deadlines for compliance or reporting
             62      requirements for small businesses;
             63          (c) consolidating or simplifying compliance or reporting requirements for small
             64      businesses;
             65          (d) establishing performance standards for small businesses to replace design or
             66      operational standards required in the proposed rule; and
             67          (e) exempting small businesses from all or any part of the requirements contained in
             68      the proposed rule.
             69          (7) If during the public comment period an agency receives comment that the proposed
             70      rule will cost small business more than one day's annual average gross receipts, and the agency
             71      had not previously performed the analysis in Subsection (6), the agency shall perform the
             72      analysis described in Subsection (6).
             73          (8) The rule analysis shall contain:
             74          (a) a summary of the rule or change;
             75          (b) the purpose of the rule or reason for the change;
             76          (c) the statutory authority or federal requirement for the rule;
             77          (d) the anticipated cost or savings to:
             78          (i) the state budget;
             79          (ii) local governments;
             80          (iii) small businesses; and
             81          (iv) persons other than small businesses, businesses, or local governmental entities;
             82          (e) the compliance cost for affected persons;
             83          (f) how interested persons may review the full text of the rule;
             84          (g) how interested persons may present their views on the rule;
             85          (h) the time and place of any scheduled public hearing;
             86          (i) the name and telephone number of an agency employee who may be contacted
             87      about the rule;
             88          (j) the name of the agency head or designee who authorized the rule;
             89          (k) the date on which the rule may become effective following the public comment

             90      period; and
             91          (l) comments by the department head on the fiscal impact the rule may have on
             92      businesses.
             93          (9) (a) For a rule being repealed and reenacted, the rule analysis shall contain a
             94      summary that generally includes the following:
             95          (i) a summary of substantive provisions in the repealed rule which are eliminated from
             96      the enacted rule; and
             97          (ii) a summary of new substantive provisions appearing only in the enacted rule.
             98          (b) The summary required under this Subsection (9) is to aid in review and may not be
             99      used to contest any rule on the ground of noncompliance with the procedural requirements of
             100      this chapter.
             101          (10) A copy of the rule analysis shall be mailed to all persons who have made timely
             102      request of the agency for advance notice of its rulemaking proceedings and to any other person
             103      who, by statutory or federal mandate or in the judgment of the agency, should also receive
             104      notice.
             105          (11) (a) Following the publication date, the agency shall allow at least 30 days for
             106      public comment on the rule.
             107          (b) The agency shall review and evaluate all public comments submitted in writing
             108      within the time period under Subsection (11)(a) or presented at public hearings conducted by
             109      the agency within the time period under Subsection (11)(a).
             110          (12) (a) Except as provided in Sections 63G-3-303 and 63G-3-304 , a proposed rule
             111      becomes effective on any date specified by the agency that is no fewer than seven calendar days
             112      after the close of the public comment period under Subsection (11), nor more than 120 days
             113      after the publication date.
             114          (b) The agency shall provide notice of the rule's effective date to the division in the
             115      form required by the division.
             116          (c) The notice of effective date may not provide for an effective date prior to the date it
             117      is received by the division.
             118          (d) The division shall publish notice of the effective date of the rule in the next issue of
             119      the bulletin.
             120          (e) A proposed rule lapses if a notice of effective date or a change to a proposed rule is

             121      not filed with the division within 120 days of publication.
             122          (13) (a) As used in this Subsection (13), "initiate rulemaking proceedings" means the
             123      filing, for the purposes of publication in accordance with Subsection (4), of an agency's
             124      proposed rule that is required by state statute.
             125          (b) A state agency shall initiate rulemaking proceedings no later than 180 days after the
             126      effective date of the statutory provision that specifically requires the rulemaking, except under
             127      Subsection (13)(c).
             128          (c) When a statute is enacted that requires agency rulemaking and the affected agency
             129      already has rules in place that meet the statutory requirement, the agency shall submit the rules
             130      to the Administrative Rules Review Committee for review within 60 days after the statute
             131      requiring the rulemaking takes effect.
             132          [(c)] (d) If a state agency does not initiate rulemaking proceedings in accordance with
             133      the time requirements in Subsection (13)(b), the state agency shall appear before the legislative
             134      Administrative Rules Review Committee and provide the reasons for the delay.

Legislative Review Note
    as of 1-9-09 9:41 AM

Office of Legislative Research and General Counsel

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