Senate Bill 1482

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    Florida Senate - 1998                                  SB 1482

    By Senator Williams





    4-1012-98

  1                      A bill to be entitled

  2         An act relating to rulemaking; amending s.

  3         120.54, F.S.; revising notice and time

  4         requirements in rule adoption procedures;

  5         revising the procedure for modification or

  6         withdrawal of proposed rules; amending s.

  7         120.541, F.S.; revising notice procedures for a

  8         statement of estimated regulatory costs;

  9         amending s. 120.545, F.S.; providing notice

10         requirements for committee review of rules;

11         amending s. 120.55, F.S.; providing for rule

12         publication requirements; amending s. 120.56,

13         F.S.; revising procedures for challenging

14         proposed rules; providing an effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Subsection (3) of section 120.54, Florida

19  Statutes, is amended to read:

20         120.54  Rulemaking.--

21         (3)  ADOPTION PROCEDURES.--

22         (a)  Notices.--

23         1.  Prior to the adoption, amendment, or repeal of any

24  rule other than an emergency rule, an agency, upon approval of

25  the agency head, shall give an initial notice of its intended

26  action, setting forth a short, plain explanation of the

27  purpose and effect of the proposed action; the full text of

28  the proposed rule or amendment and a summary thereof; a

29  reference to the specific rulemaking authority pursuant to

30  which the rule is adopted; and a reference to the section or

31  subsection of the Florida Statutes or the Laws of Florida

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  1  being implemented, interpreted, or made specific.  The initial

  2  notice must shall include a summary of the agency's statement

  3  of the estimated regulatory costs, if one has been prepared,

  4  based on the factors set forth in s. 120.541(2), and a

  5  statement that any person who wishes to provide the agency

  6  with information regarding the statement of estimated

  7  regulatory costs, or to provide a proposal for a lower cost

  8  regulatory alternative as provided by s. 120.541(1), must do

  9  so in writing within 21 days after publication of the initial

10  notice.  The initial notice must state the procedure for

11  requesting a public hearing on the proposed rule. Except when

12  the intended action is the repeal of a rule, the initial

13  notice must shall include a reference both to the date on

14  which and to the place where the notice of rule development

15  that is required by subsection (2) appeared.

16         2.  The initial notice must shall be published in the

17  Florida Administrative Weekly not less than 45 28 days before

18  prior to the publication of final notice intended action. The

19  proposed rule shall be available for inspection and copying by

20  the public at the time of the publication of initial notice.

21         3.  The initial notice shall be mailed to all persons

22  named in the proposed rule and to all persons who, at least 14

23  days prior to such mailing, have made requests of the agency

24  for advance notice of its proceedings. The agency shall also

25  give such notice as is prescribed by rule to those particular

26  classes of persons to whom the intended action is directed.

27         4.  The adopting agency shall file with the committee,

28  at least 45 21 days before prior to the publication of final

29  notice proposed adoption date, a copy of each rule it proposes

30  to adopt; a detailed written statement of the facts and

31  circumstances justifying the proposed rule; a copy of any

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  1  statement of estimated regulatory costs that has been prepared

  2  pursuant to s. 120.541; a statement of the extent to which the

  3  proposed rule relates to federal standards or rules on the

  4  same subject; and the initial notice required by subparagraph

  5  1.

  6         (b)  Special matters to be considered in rule

  7  adoption.--

  8         1.  Statement of estimated regulatory costs.--Prior to

  9  the adoption, amendment, or repeal of any rule other than an

10  emergency rule, an agency is encouraged to prepare a statement

11  of estimated regulatory costs of the proposed rule, as

12  provided by s. 120.541.

13         2.  Small businesses, small counties, and small

14  cities.--

15         a.  Each agency, before the adoption, amendment, or

16  repeal of a rule, shall consider the impact of the rule on

17  small businesses as defined by s. 288.703 and the impact of

18  the rule on small counties or small cities as defined by s.

19  120.52.  Whenever practicable, an agency shall tier its rules

20  to reduce disproportionate impacts on small businesses, small

21  counties, or small cities to avoid regulating small

22  businesses, small counties, or small cities that do not

23  contribute significantly to the problem the rule is designed

24  to address.  An agency may define the term "small business" to

25  include businesses employing more than 100 persons, may define

26  the term "small county" to include those with populations of

27  more than 75,000, and may define the term "small city" to

28  include those with populations of more than 10,000, if it

29  finds that such a definition is necessary to adapt a rule to

30  the needs and problems of small businesses, small counties, or

31  small cities.  The agency shall consider each of the following

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  1  methods for reducing the impact of the proposed rule on small

  2  businesses, small counties, and small cities, or any

  3  combination of these entities:

  4         (I)  Establishing less stringent compliance or

  5  reporting requirements in the rule.

  6         (II)  Establishing less stringent schedules or

  7  deadlines in the rule for compliance or reporting

  8  requirements.

  9         (III)  Consolidating or simplifying the rule's

10  compliance or reporting requirements.

11         (IV)  Establishing performance standards or

12  best-management practices to replace design or operational

13  standards in the rule.

14         (V)  Exempting small businesses, small counties, or

15  small cities from any or all requirements of the rule.

16         b.(I)  If the agency determines that the proposed

17  action will affect small businesses as defined by the agency

18  as provided in sub-subparagraph a., the agency shall send

19  written notice of the rule to the small business ombudsman of

20  the Office of Tourism, Trade, and Economic Development not

21  less than 45 28 days before prior to the publication of final

22  notice intended action.

23         (II)  Each agency shall adopt those regulatory

24  alternatives offered by the small business ombudsman and

25  provided to the agency no later than 21 days after the

26  ombudsman's receipt of the written notice of the rule which it

27  finds are feasible and consistent with the stated objectives

28  of the proposed rule and which would reduce the impact on

29  small businesses. When regulatory alternatives are offered by

30  the small business ombudsman, the 90-day period for filing the

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  1  rule in subparagraph (e)2. is extended for a period of 21

  2  days.

  3         (III)  If an agency does not adopt all alternatives

  4  offered pursuant to this sub-subparagraph, it shall, before

  5  the publication of final notice prior to rule adoption or

  6  amendment and pursuant to subparagraph (d)1., file a detailed

  7  written statement with the small business ombudsman and with

  8  the committee explaining the reasons for failure to adopt such

  9  alternatives. Within 3 working days of the filing of such

10  notice, the agency shall send a copy of such notice to the

11  small business ombudsman.

12         (c)  Hearings.--

13         1.  If the intended action concerns any rule other than

14  one relating exclusively to procedure or practice, the agency

15  shall, on the request of any affected person received within

16  21 days after the date of publication of the initial notice of

17  intended agency action, give affected persons an opportunity

18  to present evidence and argument on all issues under

19  consideration. The agency may schedule a public hearing on the

20  rule and, if requested by any affected person, shall schedule

21  a public hearing on the rule. Any material pertinent to the

22  issues under consideration submitted to the agency within 21

23  days after the date of publication of the initial notice or

24  submitted at a public hearing must shall be considered by the

25  agency and made a part of the record of the rulemaking

26  proceeding.

27         2.  Rulemaking proceedings shall be governed solely by

28  the provisions of this section unless a person timely asserts

29  that the person's substantial interests will be affected in

30  the proceeding and affirmatively demonstrates to the agency

31  that the proceeding does not provide adequate opportunity to

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  1  protect those interests. If the agency determines that the

  2  rulemaking proceeding is not adequate to protect the person's

  3  interests, it shall suspend the rulemaking proceeding and

  4  convene a separate proceeding under the provisions of ss.

  5  120.569 and 120.57. Similarly situated persons may be

  6  requested to join and participate in the separate proceeding.

  7  Upon conclusion of the separate proceeding, the rulemaking

  8  proceeding shall be resumed.

  9         (d)  Publication of final notice; modification or

10  withdrawal of proposed rules.--

11         1.  After the final public hearing on the proposed

12  rule, or after the time for requesting a hearing has expired,

13  the agency shall provide a final notice of its intent to

14  adopt, amend, or repeal a rule. A copy of the final notice

15  must be provided to the committee not less than 10 days before

16  publication of the final notice in the Florida Administrative

17  Weekly. The final notice must be published in the Florida

18  Administrative Weekly not less than 28 days before the

19  intended action. The final notice must contain:

20         a.  A summary of any changes to the proposed rule, or,

21  if the rule has not been changed, a statement to that effect;

22         b.  A reference to the issue of the Florida

23  Administrative Weekly which contains the initial text of the

24  proposed rule;

25         c.  If changes have been made, the text of all changes

26  to the initial text or the complete final text of the proposed

27  rule;

28         d.  A statement as to whether a statement of estimated

29  regulatory cost was prepared, and, if so, how to obtain a

30  copy; and

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  1         e.  A notice of the right to challenge the proposed

  2  rule, including the deadline for filing a challenge, with a

  3  reference to s. 120.56(2).

  4         2.  After the initial notice required by paragraph (a)

  5  and before providing a copy of the final notice to the

  6  committee, the agency may withdraw the rule upon publication

  7  of notice in the Florida Administrative Weekly. Any changes to

  8  the rule as initially noticed, other than technical changes

  9  that do not affect the substance of the rule, must be

10  supported by the record of public hearings held on the rule,

11  must be in response to written material received within 30

12  days after the initial notice or received on or before the

13  date of the final public hearing, whichever is later, or must

14  be in response to a proposed objection by the committee.

15         3.  After a copy of the final notice is provided to the

16  committee and prior to adoption, the agency may modify a rule

17  only in response to an objection by the committee, make

18  technical changes that do not affect the substance of the

19  rule, or withdraw the rule upon publication of notice in the

20  Florida Administrative Weekly.

21         4.  After adoption and before the effective date of the

22  rule, the agency may modify a rule only in response to an

23  objection by the committee and make technical changes that do

24  not affect the substance of the rule.

25         5.  After a rule has become effective, it may be

26  repealed or amended only through the rulemaking procedures

27  specified in this chapter.

28         6.  In addition to other notice required by this

29  paragraph, at least 21 days before filing the rule for

30  adoption, the agency shall provide a copy of the final notice

31  to those persons described in subparagraph (a)3. in accordance

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  1  with the requirements of that subparagraph, and shall provide

  2  a copy of the final notice by certified mail or actual

  3  delivery to any person who requests it in writing no later

  4  than 21 days after the initial notice.

  5         1.  After the final public hearing on the proposed

  6  rule, or after the time for requesting a hearing has expired,

  7  if the rule has not been changed from the rule as previously

  8  filed with the committee, or contains only technical changes,

  9  the adopting agency shall file a notice to that effect with

10  the committee at least 7 days prior to filing the rule for

11  adoption.  Any change, other than a technical change that does

12  not affect the substance of the rule, must be supported by the

13  record of public hearings held on the rule, must be in

14  response to written material received on or before the date of

15  the final public hearing, or must be in response to a proposed

16  objection by the committee. In addition, when any change is

17  made in a proposed rule, other than a technical change, the

18  adopting agency shall provide a copy of a notice of change by

19  certified mail or actual delivery to any person who requests

20  it in writing no later than 21 days after the notice required

21  in paragraph (a). The agency shall file the notice with the

22  committee, along with the reasons for such change, and provide

23  the notice to persons requesting it, at least 21 days prior to

24  filing the rule for adoption. The notice shall be published in

25  the Florida Administrative Weekly at least 21 days prior to

26  filing the rule for adoption.  This subparagraph does not

27  apply to emergency rules adopted pursuant to subsection (4).

28         2.  After the notice required by paragraph (a) and

29  prior to adoption, the agency may withdraw the rule in whole

30  or in part.

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  1         3.  After adoption and before the effective date, a

  2  rule may be modified or withdrawn only in response to an

  3  objection by the committee or may be modified to extend the

  4  effective date by not more than 60 days when the committee has

  5  notified the agency that an objection to the rule is being

  6  considered.

  7         4.  The agency shall give notice of its decision to

  8  withdraw or modify a rule in the first available issue of the

  9  publication in which the original notice of rulemaking was

10  published, shall notify those persons described in

11  subparagraph (a)3. in accordance with the requirements of that

12  subparagraph, and shall notify the Department of State if the

13  rule is required to be filed with the Department of State.

14         5.  After a rule has become effective, it may be

15  repealed or amended only through the rulemaking procedures

16  specified in this chapter.

17         (e)  Filing for final adoption; effective date.--

18         1.  If the adopting agency is required to publish its

19  rules in the Florida Administrative Code, it shall file with

20  the Department of State three certified copies of the rule it

21  proposes to adopt, a summary of the rule, a summary of any

22  hearings held on the rule, and a detailed written statement of

23  the facts and circumstances justifying the rule. Agencies not

24  required to publish their rules in the Florida Administrative

25  Code shall file one certified copy of the proposed rule, and

26  the other material required by this subparagraph, in the

27  office of the agency head, and such rules shall be open to the

28  public.

29         2.  Filings must shall be made no less than 28 days nor

30  more than 120 90 days after the initial notice required by

31  paragraph (a). When a required notice of change is published

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  1  prior to the expiration of the time to file the rule for

  2  adoption, the period during which a rule must be filed for

  3  adoption is extended to 45 days after the date of publication.

  4  If notice of a public hearing is published before prior to the

  5  expiration of the time to file the rule for adoption, the

  6  period during which a rule must be filed for adoption is

  7  extended to 45 days after adjournment of the final hearing on

  8  the rule, 21 days after receipt of all material authorized to

  9  be submitted at the hearing, or 21 days after receipt of the

10  transcript, if one is made, whichever is latest. The term

11  "public hearing" includes any public meeting held by any

12  agency at which the rule is considered.  The filing of a

13  petition for an administrative determination under the

14  provisions of s. 120.56(2) shall toll the time 90-day period

15  during which a rule must be filed for adoption until the

16  administrative law judge has filed the final order with the

17  clerk.

18         3.  At the time a rule is filed, the agency shall

19  certify that the time limitations prescribed by this

20  subsection paragraph have been complied with, that all

21  statutory rulemaking requirements have been met, and that

22  there is no administrative determination pending on the rule.

23         4.  At the time a rule is filed, the committee shall

24  certify whether the agency has responded in writing to all

25  material and timely written comments or written inquiries made

26  on behalf of the committee. The department shall reject any

27  rule not filed within the prescribed time limits; that does

28  not satisfy all statutory rulemaking requirements; upon which

29  an agency has not responded in writing to all material and

30  timely written inquiries or written comments; upon which an

31  administrative determination is pending; or which does not

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  1  include a statement of estimated regulatory costs, if

  2  required.

  3         5.  If a rule has not been adopted within the time

  4  limits imposed by this subsection paragraph or has not been

  5  adopted in compliance with all statutory rulemaking

  6  requirements, the agency proposing the rule shall withdraw the

  7  rule and give notice of its action in the next available issue

  8  of the Florida Administrative Weekly.

  9         6.  The proposed rule shall be adopted on being filed

10  with the Department of State and become effective 20 days

11  after being filed, on a later date specified in the rule, or

12  on a date required by statute. Rules not required to be filed

13  with the Department of State shall become effective when

14  adopted by the agency head or on a later date specified by

15  rule or statute. If the committee notifies an agency that an

16  objection to a rule is being considered, the agency may

17  postpone the adoption of the rule to accommodate review of the

18  rule by the committee.  When an agency postpones adoption of a

19  rule to accommodate review by the committee, the time 90-day

20  period for filing the rule is tolled until the committee

21  notifies the agency that it has completed its review of the

22  rule.

23         Section 2.  Paragraphs (a) and (b) of subsection (1) of

24  section 120.541, Florida Statutes, are amended to read:

25         120.541  Statement of estimated regulatory costs.--

26         (1)(a)  A substantially affected person, within 21 days

27  after publication of the initial notice provided under s.

28  120.54(3)(a), may submit to an agency a good faith written

29  proposal for a lower cost regulatory alternative to a proposed

30  rule which substantially accomplishes the objectives of the

31  law being implemented.  The proposal may include the

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  1  alternative of not adopting any rule, so long as the proposal

  2  explains how the lower costs and objectives of the law will be

  3  achieved by not adopting any rule. If such a proposal is

  4  submitted, the 90-day period for filing the rule is extended

  5  21 days.

  6         (b)  Upon the submission of the lower cost regulatory

  7  alternative, the agency shall prepare a statement of estimated

  8  regulatory costs as provided in subsection (2), or shall

  9  revise its prior statement of estimated regulatory costs, and

10  either adopt the alternative or give a statement of the

11  reasons for rejecting the alternative in favor of the proposed

12  rule.  The failure of the agency to prepare or revise the

13  statement of estimated regulatory costs as provided in this

14  paragraph is a material failure to follow the applicable

15  rulemaking procedures or requirements set forth in this

16  chapter.  An agency required to prepare or revise a statement

17  of estimated regulatory costs as provided in this paragraph

18  shall make it available to the person who submits the lower

19  cost regulatory alternative and to the public before

20  publication of final notice prior to filing the rule for

21  adoption.

22         Section 3.  Paragraph (e) of subsection (1) and

23  subsections (4), (5), and (6) of section 120.545, Florida

24  Statutes, are amended to read:

25         120.545  Committee review of agency rules.--

26         (1)  As a legislative check on legislatively created

27  authority, the committee shall examine each proposed rule,

28  except for those proposed rules exempted by s. 120.81(1)(d)

29  and (2), and its accompanying material, and each emergency

30  rule, and may examine any existing rule, for the purpose of

31  determining whether:

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  1         (e)  The notices notice given prior to its adoption

  2  were was sufficient to give adequate notice of the purpose and

  3  effect of the rule.

  4         (4)  If the agency elects to modify a proposed rule to

  5  meet the committee's objection, it shall make only such

  6  modifications as are necessary to meet the objection and shall

  7  resubmit the rule to the committee.  The agency shall give

  8  notice of its election to modify a proposed rule to meet the

  9  committee's objection by publishing a notice of change in the

10  first available issue of the Florida Administrative Weekly,

11  but shall not be required to conduct a public hearing. If the

12  agency elects to amend an existing rule to meet the

13  committee's objection, it need not publish a notice of rule

14  development, but shall notify the committee in writing and

15  shall initiate the amendment procedure by giving initial

16  notice in the next available issue of the Florida

17  Administrative Weekly. The committee shall give priority to

18  rules so modified or amended when setting its agenda.

19         (5)  If the agency elects to withdraw a proposed rule

20  as a result of a committee objection, it shall notify the

21  committee, in writing, of its election and shall give notice

22  of the withdrawal in the next available issue of the Florida

23  Administrative Weekly.  The rule shall be withdrawn without a

24  public hearing, effective upon publication of the notice in

25  the Florida Administrative Weekly.  If the agency elects to

26  repeal an existing rule as a result of a committee objection,

27  it shall notify the committee, in writing, of its election and

28  shall initiate rulemaking procedures for that purpose by

29  giving initial notice in the next available issue of the

30  Florida Administrative Weekly.

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  1         (6)  If an agency elects to amend or repeal an existing

  2  rule as a result of a committee objection, it shall complete

  3  the process within 90 days after giving initial notice in the

  4  Florida Administrative Weekly.

  5         Section 4.  Paragraph (b) of subsection (1) of section

  6  120.55, Florida Statutes, is amended to read:

  7         120.55  Publication.--

  8         (1)  The Department of State shall:

  9         (b)  Publish a weekly publication entitled the "Florida

10  Administrative Weekly," which must shall contain:

11         1.  Notice of adoption of, and an index to, all rules

12  filed during the preceding week.

13         2.  All rulemaking notices required by s. 120.54 s.

14  120.54(3)(a), showing the text of all rules proposed for

15  consideration or a reference to the location in the Florida

16  Administrative Weekly where the text of the proposed rules is

17  published.

18         3.  All notices of public meetings, hearings, and

19  workshops conducted in accordance with the provisions of s.

20  120.525, including a statement of the manner in which a copy

21  of the agenda may be obtained.

22         4.  A notice of each request for authorization to amend

23  or repeal an existing uniform rule or for the adoption of new

24  uniform rules.

25         5.  Notice of petitions for declaratory statements or

26  administrative determinations.

27         6.  A summary of each objection to any rule filed by

28  the Administrative Procedures Committee during the preceding

29  week.

30         7.  Any other material required or authorized by law or

31  deemed useful by the department.

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  1

  2  The department may contract with a publishing firm for

  3  publication of the Florida Administrative Weekly.

  4         Section 5.  Paragraphs (a) and (b) of subsection (2) of

  5  section 120.56, Florida Statutes, are amended to read:

  6         120.56  Challenges to rules.--

  7         (2)  CHALLENGING PROPOSED RULES; SPECIAL PROVISIONS.--

  8         (a)  Any substantially affected person may seek an

  9  administrative determination of the invalidity of any proposed

10  rule by filing a petition seeking such a determination with

11  the division within 21 days after the date of publication of

12  the final notice required by s. 120.54(3)(a), within 10 days

13  after the final public hearing is held on the proposed rule as

14  provided by s. 120.54(3)(c), within 20 days after the

15  preparation of a statement of estimated regulatory costs

16  required pursuant to s. 120.541, if applicable, or within 20

17  days after the date of publication of the notice required by

18  s. 120.54(3)(d). The petition must shall state with

19  particularity the objections to the proposed rule and the

20  reasons that the proposed rule is an invalid exercise of

21  delegated legislative authority.  The agency then has the

22  burden to prove that the proposed rule is not an invalid

23  exercise of delegated legislative authority as to the

24  objections raised.  Any person who is substantially affected

25  by a change in the proposed rule may seek a determination of

26  the validity of such change.  Any person not substantially

27  affected by the proposed rule as initially noticed, but who is

28  substantially affected by the rule as a result of a change,

29  may challenge any provision of the rule and is not limited to

30  challenging the change to the proposed rule.

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  1         (b)  The administrative law judge may declare the

  2  proposed rule wholly or partly invalid. The proposed rule or

  3  provision of a proposed rule declared invalid shall be

  4  withdrawn by the adopting agency and shall not be adopted. No

  5  rule shall be filed for adoption until 28 days after the final

  6  notice required by s. 120.54(3)(a), until 21 days after the

  7  notice required by s. 120.54(3)(d), until 14 days after the

  8  public hearing, until 21 days after preparation of a statement

  9  of estimated regulatory costs required pursuant to s. 120.541,

10  or until the administrative law judge has rendered a decision,

11  whichever applies. However, the agency may proceed with all

12  other steps in the rulemaking process, including the holding

13  of a factfinding hearing. In the event part of a proposed rule

14  is declared invalid, the adopting agency may, in its sole

15  discretion, withdraw the proposed rule in its entirety. The

16  agency whose proposed rule has been declared invalid in whole

17  or part shall give notice of the decision in the first

18  available issue of the Florida Administrative Weekly.

19         Section 6.  This act shall take effect October 1, 1998.

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21            *****************************************

22                          SENATE SUMMARY

23    Revises rulemaking procedures under chapter 120, F.S.
      (See bill for details.)
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