Citations Affected: IC 4-22-2-28; IC 13-14-9-4.2; IC 20-1-20.5-8.
Synopsis: Administrative rules requiring fiscal review. Makes the
following changes to the administrative rulemaking statute requiring an
agency to submit a rule with an estimated economic impact greater than
$500,000 to the legislative services agency (LSA) for a fiscal impact
statement: (1) Requires the agency to consider the rule's annual
economic impact after the rule is fully implemented. (2) Specifies that
the $500,000 threshold applies to the impact on all regulated entities.
(3) Requires the agency to submit to LSA a rule meeting the threshold
for a fiscal impact statement not later than 50 days before the public
hearing on the rule. (4) Requires the agency to consider the rule's
impact on an entity that already voluntarily complies with the rule.
Makes conforming changes to the statute requiring the education
roundtable to determine the fiscal impact of certain recommendations
it makes. (The introduced version of this bill was prepared by the
administrative rules oversight committee.)
Effective: July 1, 2005.
January 6, 2005, read first time and referred to Committee on Governmental Affairs and
Interstate Cooperation.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
estimated economic impact greater than five hundred thousand dollars
($500,000) on the all regulated entities. to the legislative services
agency after the preliminary adoption of the rule. In determining the
total estimated economic impact under this subsection, the agency
shall consider any applicable information submitted by the
regulated entities affected by the rule. To assist the legislative
services agency 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 (c), (e), before the adoption of
the rule the legislative services agency shall prepare, and not more than
forty-five (45) days after receiving a proposed rule under subsection
(c), the legislative services agency shall prepare, using the data and
assumptions provided by the agency proposing the rule, along with
any other data or information available to the legislative services
agency, a fiscal analysis impact statement concerning the effect that
compliance with the proposed rule will have on: the:
(1) the state; and
(2) all entities regulated by the proposed rule.
The fiscal analysis impact statement must contain an estimate of the
total estimated economic impact of the proposed rule and a
determination concerning the extent to which the proposed rule creates
an unfunded mandate on a state agency or political subdivision. The
fiscal analysis impact statement is a public document. The legislative
services agency shall make the fiscal analysis impact statement
available to interested parties upon request. The agency proposing the
rule shall consider the fiscal analysis impact statement as part of the
rulemaking process and shall provide the legislative services agency
with the information necessary to prepare the fiscal analysis. impact
statement. The legislative services agency may also receive and
consider applicable information from the regulated entities affected by
the rule in preparation of the fiscal analysis. impact statement.
(c) (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 legislative services agency of the proposed
date of preliminary adoption of the proposed rule not less than
sixty-six (66) days before that date; and
(2) the legislative services agency shall prepare the fiscal analysis
impact statement referred to in subsection (b) (d) not later than
twenty-one (21) days before the proposed date of preliminary
adoption of the proposed rule.
an analysis of the total estimated fiscal impact that the
recommendation will have on the state and all political subdivisions
and private schools affected by the recommendation. In preparing an
analysis under this subsection, the roundtable shall consider any
applicable information submitted by entities affected by the
recommendation. The analysis under this subsection must be
submitted with the recommendation under subsection (a). (b).
(c) (d) Whenever the roundtable provides a recommendation under
subsection (a) (b) and the total estimated fiscal impact prepared under
subsection (b) (c) indicates that the impact of the recommendation will
be at least five hundred thousand dollars ($500,000), the roundtable
shall submit a copy of the recommendation and the fiscal impact
analysis prepared under subsection (b) (c) to the legislative services
agency for review. Not more than forty-five (45) days after receiving
a copy of the recommendation and fiscal analysis, the legislative
services agency shall prepare a fiscal analysis impact statement
concerning the effect that compliance with the recommendation will
have on:
(1) the state; and
(2) all political subdivisions and private schools affected by the
proposed recommendation.
The fiscal analysis impact statement must contain an estimate of the
direct total estimated fiscal impact of the recommendation and a
determination concerning the extent to which the recommendation
creates an unfunded mandate on the state, a political subdivision, or a
private school affected by the proposed recommendation. The fiscal
analysis impact statement is a public document. The legislative
services agency shall make the fiscal analysis impact statement
available to interested parties upon request. The roundtable shall
provide the legislative services agency with the information necessary
to prepare the fiscal analysis. impact statement. The legislative
services agency may also receive and consider applicable information
from the entities affected by the recommendation in preparation of the
fiscal analysis. impact statement. The legislative services agency shall
provide copies of its fiscal analysis impact statement to each of the
persons described in subsection (a). (b).
(e) In determining whether a recommendation under this
section has a total estimated fiscal impact of at least five hundred
thousand dollars ($500,000) on the affected entities, the roundtable
shall consider the impact of the recommendation on any entity that
already complies with the standards imposed by the
recommendation on a voluntary basis, if applicable.
(f) For purposes of this section, a recommendation is fully
implemented after:
(1) the conclusion of any phase-in period during which:
(A) the recommendation is gradually made to apply to
certain affected entities; or
(B) the costs of the recommendation are gradually
implemented; and
(2) the recommendation applies to all affected entities that
will be affected by the recommendation.
In determining the total estimated fiscal impact of a
recommendation under this section, the roundtable shall consider
the annual fiscal impact on all affected entities beginning with the
first twelve (12) month period or first school year after the
recommendation is fully implemented, whichever applies. The
roundtable may use actual or forecasted data and may consider the
actual and anticipated effects of inflation and deflation. The
roundtable shall describe any assumptions made and any data used
in determining the total estimated fiscal impact of a
recommendation under this section.