Cost-benefit Analysis For Rules Additional Requirements

Under current law, any person may ask the executive director of the department of regulatory agencies or the executive director's designee (executive director) to require a rule-making agency to conduct a cost-benefit analysis of a draft rule or draft amendment to a rule (proposed rule) for which the agency has filed a notice of proposed rule-making (notice). The bill extends the time period for which such request may be made from up to 5 days after the notice has been filed to up to 15 days before the scheduled rule-making hearing or, if the rule-making hearing is scheduled only 20 days after the notice was filed, up to 10 days after the notice was filed. The agency is required to complete the cost-benefit analysis at least 5 days before the scheduled rule-making hearing.

The bill also specifies the following regarding a cost-benefit analysis:

• If the executive director determines that the proposed rule would likely have materially disparate effects on different regions of the state, the agency must include in the cost-benefit analysis a determination of the anticipated benefits, costs, and adverse effects of the proposed rule on different regions of the state;
• If the executive director determines that the proposed rule would have a negative economic or noneconomic impact, the executive director shall inform the public by either making a public presentation about the negative impact and any counterbalancing positive impact at the rule-making hearing or publishing a written report summarizing the impacts;
• The executive director, upon request of any party to the rule-making or member of the general assembly or upon the executive director's own motion, may require an agency to update a cost-benefit analysis to reflect material changes made to the proposed or adopted rule either before, during, or after the rule-making hearing;
• A member of the general assembly, no earlier than one year after a rule has been adopted, may request that the adopting agency conduct a cost-benefit analysis regarding the rule's implementation; and
• The public utilities commission, the department of natural resources, or the department of public health and environment, with regard to any cost-benefit analysis conducted by that agency, shall present the cost-benefit analysis at the rule-making hearing and allow public testimony at the hearing regarding the cost-benefit analysis.
  (Note: This summary applies to this bill as introduced.)