House Bill 4279e1

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                                      HB 4279, First Engrossed/ntc



  1                      A bill to be entitled

  2         An act relating to state government; requiring

  3         the Joint Administrative Procedures Committee

  4         to publish certain statistics relating to rules

  5         in its annual report; directing the Office of

  6         Program Policy Analysis and Government

  7         Accountability to conduct a study and prepare a

  8         report on the cost of state regulation and

  9         providing requirements with respect thereto;

10         providing an appropriation; providing an

11         effective date.

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

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15         Section 1.  The Joint Administrative Procedures

16  Committee shall publish the following statistics on state

17  rules in their annual report:

18         (a)  The number of rules in the Florida Administrative

19  Code.

20         (b)  The number of rules noticed in the Florida

21  Administrative Weekly during the preceding year for which a

22  statement of estimated regulatory cost was prepared.

23         (c)  The number of rules noticed in the Florida

24  Administrative Weekly during the preceding year for which a

25  statement of estimated regulatory cost was not prepared.

26         (d)  The sum of costs contained in statements of

27  estimated regulatory cost prepared for rules noticed in the

28  preceding year.

29         (e)  The number of rules noticed for repeal during the

30  preceding year and the estimated cost savings from those

31  repeals.


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                                      HB 4279, First Engrossed/ntc



  1         (6)  The number of full-time equivalent employees

  2  engaged in regulatory activity.

  3         (7)  The number of pages in the Florida Administrative

  4  Code.

  5         Section 2.  The Office of Program Policy Analysis and

  6  Government Accountability (OPPAGA) is directed to study,

  7  through its staff or by contract with a vendor, the costs

  8  associated with state regulation.  OPPAGA shall submit to the

  9  Speaker of the House of Representatives and the President of

10  the Senate, no later than January 31, 1999, a report that

11  provides:

12         (1)  A comprehensive literature search on regulatory

13  cost studies available at the federal, state, and local level.

14  OPPAGA shall include a bibliography of its findings in the

15  report.

16         (2)  Estimates of the total costs of state regulation

17  for fiscal year 1996-1997. Regulatory cost estimates shall be

18  divided into two main categories and reported as follows:

19         (a)  Administrative costs, which are the costs incurred

20  by the state to administer regulatory programs. Administrative

21  costs shall be categorized by agency and shall be identified

22  using the General Appropriations Act, agency budgets, and

23  other appropriate data sources.

24         (b)  Compliance costs, which are the costs incurred by

25  the private sector and local governments to comply with state

26  regulation. Compliance costs shall be quantified using

27  existing agency data, the General Appropriations Act, existing

28  economic impact statements or statements of estimated

29  regulatory costs, and other appropriate agency data sources,

30  including, but not limited to, federal reports, engineering

31  studies, industry surveys, local government surveys, and other


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                                      HB 4279, First Engrossed/ntc



  1  market data. Compliance cost estimates shall be divided into

  2  three main categories:

  3         1.  Economic regulation:  Industry-specific regulations

  4  and other regulated activities in industries using economic

  5  controls such as price ceilings and service parameters.

  6  Economic regulatory costs shall be divided into capital costs

  7  and operational costs.

  8         2.  Social regulation:  Regulations designed to achieve

  9  goals such as cleaner air, equal employment opportunity, safer

10  work environments, and consumer safety.  Social regulatory

11  costs shall be divided into capital costs and operational

12  costs.

13         3.  Paperwork costs:  Requirements associated with

14  paperwork burdens not directly linked to a social or economic

15  regulatory objective.  Paperwork costs shall consist of the

16  operational costs incurred by the private sector or local

17  governments to comply with state paperwork requirements.

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19  Once quantified, a range of regulatory costs associated with

20  the categories specified in subparagraphs (b)1., 2., and 3.,

21  shall be given and then accumulated to arrive at a total cost

22  estimate. The total cost estimate shall be described on an

23  aggregate and a per capita basis. State regulatory costs

24  identified under paragraphs (a) and (b) that are attributable

25  to federally mandated or federally delegated programs should

26  be so noted in the report.

27         (3)  Proposed methodologies for estimating state

28  regulatory costs as described in subsection (2) and

29  recommendations to improve the state's rulemaking process to

30  more accurately consider the costs and benefits of proposed

31  rules.


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                                      HB 4279, First Engrossed/ntc



  1         Section 3.  The sum of $10,000 is appropriated from the

  2  General Revenue Fund to the Office of Program Policy Analysis

  3  and Government Accountability for the purpose of conducting

  4  the study on the cost of state regulation required by this

  5  act.

  6         Section 4.  This act shall take effect upon becoming a

  7  law.

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