Bill Summary – FastDemocracy

                                                         24LSO-0331
                            STATE OF WYOMING
                            HOUSE BILL NO. HB0170
     Administrative procedure-regulatory costs.
     Sponsored by:    Representative(s) Western and Olsen and Senator(s) Driskill
                                      A BILL
                                        for
 AN ACT relating to administrative procedure; providing for
 the preparation of statements of estimated regulatory costs
 of an agency rule; specifying the information required for
 a statement of estimated regulatory costs; providing for
 proposed regulatory alternatives to    an agency rule;
 requiring agencies to    consider alternatives to   mitigate
 impacts on small businesses, counties, cities and towns;
 providing for challenges to an agency rule as specified;
 providing    a definition;     specifying applicability;        and
 providing for an effective date.
11
 Be It Enacted by the Legislature of the State of Wyoming:
13
        Section 1.    W.S. 16-3-103.1 and 16-3-103.2 are created
 to read:
                                         1             HB0170
                      STATE OF WYOMING                         24LSO-0331
 1
        16-3-103.1.      Statement of estimated regulatory costs.
 3
        (a)   Pursuant to   W.S.      16-3-103(k),     a statement of
 estimated regulatory costs shall include an    economic
 analysis showing whether the rule, directly or indirectly,
 is likely to:
 8
              (i)    Have an adverse impact on economic growth,
 private sector job creation, employment or private sector
 investment in    excess of    one hundred thousand dollars
 ($100,000.00) in the aggregate within five (5) years after
 the implementation of the rule;
14
              (ii)   Have an    adverse impact on     business
 competitiveness,      including the ability of    persons doing
 business in the state to compete with persons doing similar
 business in other states or domestic markets, productivity,
 or innovation in excess of one hundred thousand dollars
 ($100,000.00) in the aggregate within five (5) years after
 the implementation of the rule; or
22
                                           2             HB0170
                           STATE OF WYOMING                      24LSO-0331
               (iii)        Increase regulatory costs in excess of one
 hundred thousand dollars     ($100,000.00)     in the aggregate
 within five (5) years after the implementation of the rule.
 4
        (b)    In addition to   the economic analysis required
 under W.S. 16-3-103(k) and subsection (a) of this section,
 the statement of estimated regulatory costs shall include:
 8
               (i)     An estimate of    the number of   persons and
 entities likely to be required to comply with the rule,
 together with a general description of the types of persons
 likely to be affected by the rule;
13
               (ii)    An estimate of the cost to the agency and
 other state and local government entities to implement and
 enforce the proposed rule and any anticipated effect on
 state or local revenues;
18
               (iii)       A good faith estimate of the transactional
 costs likely to     be incurred by   persons and entities,
 including local government entities,   required to   comply
 with the requirements of the rule;
23
                                             3               HB0170
                          STATE OF WYOMING                        24LSO-0331
              (iv)    A      description of          any regulatory
 alternatives submitted under       W.S.        16-3-103(n)       and
 16-3-103.2(a)       and     a statement adopting the regulatory
 alternatives or a statement of the reasons for rejecting
 the regulatory alternatives;
 6
              (v)    Additional analysis,      as necessary,       of the
 impact on small businesses, counties, cities and towns if
 an agency does not adopt the regulatory alternatives
 submitted under W.S. 16-3-103(n) and 16-3-103.2(a);
11
              (vi)    Any additional information that the agency
 determines may be useful.
14
        (c)   As used in this section, "transactional costs"
 means the direct costs that are readily ascertainable based
 on standard business practices, including filing fees, the
 cost of obtaining a license, the cost of equipment required
 to be installed or used, the cost of procedures required to
 be employed in    complying with the rule,        additional
 operating costs incurred,       the cost of     monitoring and
 reporting and any other costs necessary to comply with the
 rule.
                                           4                  HB0170
                         STATE OF WYOMING                             24LSO-0331
 1
        (d)   An agency shall not be   required to     prepare    a
 statement of estimated regulatory costs for any emergency
 rule, interpretive rule or statements of general policy.
 5
        (e)   Any rule that is likely to have an adverse impact
 in excess of one hundred thousand dollars ($100,000.00) in
 the aggregate within five        (5)       years after the
 implementation or    enforcement of   the rule pursuant to
 subsection (a) of this section, shall not be implemented or
 enforced until approved by    the legislature in    the next
 succeeding legislative session after the agency's final
 action on the rule. If the legislature, each house voting
 separately,       approves of     the rule,      the rule may be
 implemented or   enforced after compliance with all other
 applicable provisions of law. If the legislature fails to
 approve the rule, the rule is null and void and shall not
 be implemented or enforced.
19
        16-3-103.2.      Procedure for    a lower cost regulatory
 alternative;       revised statements of     regulatory costs;
 challenges based on noncompliance.
23
                                             5                    HB0170
                         STATE OF WYOMING                               24LSO-0331
         (a)   Within the forty-five (45) days after an agency
 gives notice of        a proposed rule as required under W.S.
 16-3-103(a)(i),          an interested person may submit to     the
 agency    a written proposal for        a lower cost regulatory
 alternative to    a proposed rule that substantially
 accomplishes the objectives of the rule being promulgated.
 The proposal may include the alternative of not adopting
 any rule if the proposal explains the lower costs and the
 objectives of the rule will be achieved by not adopting any
 rule.    Upon the submission of    the lower cost regulatory
 alternative, the agency shall prepare or revise a statement
 of estimated regulatory costs pursuant to W.S. 16-3-103.1.
 The agency shall either adopt the alternative or provide a
 statement of the reasons for rejecting the alternative in
 favor of   the proposed rule in    a manner as    similar as
 possible to the procedure outlined in W.S. 16-3-103(o).
17
        (b)    The agency shall prepare or revise the statement
 of estimated regulatory costs if any change to the rule is
 made pursuant to subsection (a) of this section that would
 increase the regulatory costs of the rule.
22
                                              6                      HB0170
                       STATE OF WYOMING                              24LSO-0331
        (c)   Not less than twenty-one (21) days before filing
 a rule for adoption, an agency that is required to revise a
 statement of estimated regulatory costs shall provide the
 revised statement to the person who submitted the lower
 cost regulatory alternative and to the management council
 and shall provide notice on the agency's website that the
 revised statement is available to the public.
 8
        (d)   The failure of an agency to prepare a statement
 of estimated regulatory costs or to respond to a written
 lower cost regulatory alternative as     provided in    this
 section is grounds for noncompliance with the applicable
 procedural requirements of       rulemaking set forth in    this
 chapter.     An agency's failure to    prepare        a statement of
 estimated regulatory costs or to respond to a written lower
 cost regulatory alternative may not be       raised in    a
 proceeding to     contest any rule on     the ground of
 noncompliance unless:
19
              (i)       The challenge is commenced within two (2)
 years from the effective date of the rule;
22
                                             7                   HB0170
                          STATE OF WYOMING                          24LSO-0331
               (ii)     The challenge is to the agency's rejection
 of a lower cost regulatory alternative offered under W.S.
 16-3-103(n) or 16-3-103.2(a); and
 4
               (iii)       The interests of   the person challenging
 the rule are materially affected by the agency's failure to
 prepare a statement of estimated regulatory costs or by the
 rejection of the lower cost regulatory alternative.
 9
        Section       2.    W.S.     16-3-101(b)            by creating     a new
 paragraph (xiii) and by renumbering (xiii) as (xiv) and
 16-3-103(a)(i) by creating a new subparagraph (M) and by
 creating new subsections (k) through (o) are amended to
 read:
15
        16-3-101.       Short title; definitions.
17
        (b)    As used in this act:
19
               (xiii)      "Small business"          means     a business that
 employs two hundred        (200)       or fewer permanent full-time
 employees and that, together with its affiliates as defined
 by W.S. 9-12-1302(a)(i), has a net worth of not more than
                                               8                   HB0170
                        STATE OF WYOMING                      24LSO-0331
 five million dollars         ($5,000,000.00)        in business
 investments. If the business is a sole proprietorship, the
 five million dollars ($5,000,000.00) net worth requirement
 shall include both personal and business investments;
 5
               (xiii)(xiv)      "This act"     means     W.S.     16-3-101
 through 16-3-115.
 8
        16-3-103.      Adoption,     amendment and repeal of   rules;
 notice; hearing; emergency rules; proceedings to contest;
 review and approval by   governor;      statement of   estimated
 regulatory costs; mitigation of regulatory costs.
13
        (a)    Prior to     an agency's adoption,    amendment or
 repeal of    all rules other than interpretative rules or
 statements of general policy, the agency shall:
17
               (i)    Give at least forty-five (45) days notice of
 its intended action. Notice shall be mailed to all persons
 making timely requests of the agency for advanced notice of
 its rulemaking proceedings and to the attorney general, the
 secretary of state's office as registrar of rules, and the
 legislative service office if a state agency. The agency
                                          9               HB0170
                          STATE OF WYOMING                              24LSO-0331
 shall submit a copy of the proposed rules, in a format
 conforming to    any requirements prescribed pursuant to
 subsection (f) of this section, with the notice given to
 the legislative service office. The notice shall include:
 5
                        (M)     The manner in     which an     interested
 person may submit to the agency a written proposal for a
 lower cost regulatory alternative to    the proposed rule,
 pursuant to W.S. 16-3-103.2(a).
10
        (k)   In addition to   all other requirements for the
 adoption, amendment or repeal of a rule under this section,
 other than an        emergency rule,     interpretive rule or
 statements of general policy, an agency shall consider the
 regulatory costs of the proposed rule and shall prepare a
 statement of       estimated regulatory costs of    the proposed
 rule before the adoption, amendment or repeal of any rule,
 if:
19
              (i)       The proposed rule will have an     adverse
 impact on        small business as         provided in        W.S.
 16-3-103.1(a)(i);
23
                                               10                  HB0170
                       STATE OF WYOMING                          24LSO-0331
                (ii)    The proposed rule is likely to directly or
 indirectly increase regulatory costs for small businesses
 in excess of one hundred thousand dollars ($100,000.00) in
 the aggregate within five       (5)       years after the
 implementation of the rule;
 6
                (iii)   An interested person submits to the agency
 a written proposal for a lower cost regulatory alternative
 to the proposed rule under W.S. 16-3-103.2(a).
10
        (m)     Each agency, before the adoption,       amendment or
 repeal of any rules, shall consider the impact of the rules
 on small businesses and the impact of the rule on counties,
 cities and towns.     Whenever practicable,      an agency shall
 formulate provisions within the agency's rule to     reduce
 disproportionate impacts on    small businesses,        counties,
 cities or towns and to avoid regulating those entities that
 are not significantly within the purpose of the agency's
 rule.    The agency shall consider each of     the following
 methods for reducing the impact of a proposed rule on small
 businesses, counties, cities, towns or any combination of
 these entities:
23
                                         11                 HB0170
                        STATE OF WYOMING                         24LSO-0331
              (i)     Establishing less stringent compliance or
 reporting requirements in the rule;
 3
              (ii)     Establishing less stringent schedules or
 deadlines in      the rule for compliance or    reporting
 requirements;
 7
              (iii)     Consolidating or     simplifying the rule's
 compliance or reporting requirements;
10
              (iv)     Establishing performance standards or best
 management practices to    replace design or     operational
 standards in the rule;
14
              (v)     Where legally permissible,        exempting small
 businesses, counties, cities or towns, or any combination
 of those entities, from any or    all requirements of         the
 rule.
19
        (n)   If the agency determines that the proposed
 adoption, amendment or repeal of a rule will affect small
 businesses as provided in subsection (m) of this section,
 the agency shall send written notice of the rule to the
                                          12                 HB0170
                         STATE OF WYOMING                              24LSO-0331
 Wyoming business council and the Wyoming office of tourism
 not less than forty-five (45) days before the notice period
 required by paragraph (a)(i) of this section. The Wyoming
 business council and the Wyoming office of tourism shall
 consider and offer to        the agency any regulatory
 alternatives determined by       the council or     office to     be
 feasible and consistent with the stated objectives of the
 proposed rule and that would reduce the impact on small
 businesses.        The alternatives shall be   submitted within
 twenty-eight (28) days after receipt of the notice from the
 agency as required by this subsection. The agency shall
 adopt all or any portion of the regulatory alternatives
 offered by the Wyoming business council and the Wyoming
 office of tourism that are feasible and consistent with the
 stated objectives of   the proposed rule.      If the adopted
 regulatory alternatives represent substantive changes to
 the rules, the agency may determine to withdraw the rules
 and resubmit the adopted alternative rules under this
 section. Based on a determination that all or any portion
 of the regulatory alternatives are impracticable or    for
 other good cause shown, the agency may elect to not adopt
 the regulatory alternatives.             An agency shall not be
 required to     consider or     adopt any proposed regulatory
                                             13                     HB0170
                      STATE OF WYOMING                         24LSO-0331
 alternatives if the Wyoming business council or the Wyoming
 office of tourism does not provide any alternatives to the
 agency within the timeframe specified in this subsection.
 4
        (o)   If an agency does not adopt all or any portion of
 the regulatory alternatives offered by the Wyoming business
 council and the Wyoming office of tourism as required by
 subsection (n) of this section, the agency shall include a
 detailed written statement and     a copy of    all of   the
 proposed regulatory alternatives with the copy of