House Bill 0107er

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  2         An act relating to the Administrative Procedure

  3         Act; providing legislative intent; amending s.

  4         120.52, F.S.; removing entities described in

  5         ch. 298, F.S., relating to water control

  6         districts, from the definition of "agency";

  7         redefining the term "agency"; providing

  8         additional restrictions with respect to an

  9         agency's rulemaking authority; amending s.

10         120.536, F.S.; providing additional

11         restrictions with respect to an agency's

12         rulemaking authority; requiring agencies to

13         provide the Administrative Procedures Committee

14         with a list of existing rules which exceed such

15         rulemaking authority and providing for

16         legislative consideration of such rules;

17         requiring agencies to initiate proceedings to

18         repeal such rules for which authorizing

19         legislation is not adopted; requiring a report

20         to the Legislature; providing that the

21         committee or a substantially affected person

22         may petition for repeal of such rules after a

23         specified date; restricting challenge of such

24         rules before that date; amending s. 120.54,

25         F.S.; specifying when rules may take effect;

26         restricting adoption of retroactive rules;

27         amending s. 120.56, F.S.; revising an agency's

28         responsibilities in response to a challenge to

29         a proposed rule and specifying the petitioner's

30         responsibility of going forward; amending s.

31         120.57, F.S., relating to hearings involving


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  1         disputed issues of material fact; revising an

  2         agency's authority with respect to rejection or

  3         modification of conclusions of law in its final

  4         order; providing for agency statement as to the

  5         reasonableness of its substituted finding of

  6         law or interpretation of administrative rule;

  7         amending s. 120.81, F.S.; providing that

  8         district school boards may adopt rules

  9         notwithstanding the rulemaking standards found

10         in chapter 120, F.S.; providing an effective

11         date.

12

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

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15         Section 1.  It is the intent of the Legislature that

16  modifications contained in sections 2 and 3 of this act which

17  apply to rulemaking are to clarify the limited authority of

18  agencies to adopt rules in accordance with chapter 96-159,

19  Laws of Florida, and are intended to reject the class of

20  powers and duties analysis. However, it is not the intent of

21  the Legislature to reverse the result of any specific judicial

22  decision.

23         Section 2.  Subsections (1) and (8) of section 120.52,

24  Florida Statutes, 1998 Supplement, are amended to read:

25         120.52  Definitions.--As used in this act:

26         (1)  "Agency" means:

27         (a)  The Governor in the exercise of all executive

28  powers other than those derived from the constitution.

29         (b)  Each:

30         1.  State officer and state department, and each

31  departmental unit described in s. 20.04.,


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  1         2.  Authority, including a regional water supply

  2  authority.

  3         3.  Board.

  4         4.  Commission, including the Commission on Ethics and

  5  the Game and Fresh Water Fish Commission when acting pursuant

  6  to statutory authority derived from the Legislature.

  7         5.  Regional planning agency., board,

  8         6.  Multicounty special district with a majority of its

  9  governing board comprised of nonelected persons., and

10  authority, including, but not limited to, the Commission on

11  Ethics and the Game and Fresh Water Fish Commission when

12  acting pursuant to statutory authority derived from the

13  Legislature,

14         7.  Educational units., and those entities

15         8.  Entity described in chapters 163, 298, 373, 380,

16  and 582 and s. 186.504, except any legal entity or agency

17  created in whole or in part pursuant to chapter 361, part II,

18  an expressway authority pursuant to chapter 348, or any legal

19  or administrative entity created by an interlocal agreement

20  pursuant to s. 163.01(7), unless any party to such agreement

21  is otherwise an agency as defined in this subsection.

22         (c)  Each other unit of government in the state,

23  including counties and municipalities, to the extent they are

24  expressly made subject to this act by general or special law

25  or existing judicial decisions.

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27  This definition does not include any legal entity or agency

28  created in whole or in part pursuant to chapter 361, part II,

29  an expressway authority pursuant to chapter 348, any legal or

30  administrative entity created by an interlocal agreement

31  pursuant to s. 163.01(7), unless any party to such agreement


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  1  is otherwise an agency as defined in this subsection, or any

  2  multicounty special district with a majority of its governing

  3  board comprised of elected persons; however, this definition

  4  shall include a regional water supply authority.

  5         (8)  "Invalid exercise of delegated legislative

  6  authority" means action which goes beyond the powers,

  7  functions, and duties delegated by the Legislature. A proposed

  8  or existing rule is an invalid exercise of delegated

  9  legislative authority if any one of the following applies:

10         (a)  The agency has materially failed to follow the

11  applicable rulemaking procedures or requirements set forth in

12  this chapter;

13         (b)  The agency has exceeded its grant of rulemaking

14  authority, citation to which is required by s. 120.54(3)(a)1.;

15         (c)  The rule enlarges, modifies, or contravenes the

16  specific provisions of law implemented, citation to which is

17  required by s. 120.54(3)(a)1.;

18         (d)  The rule is vague, fails to establish adequate

19  standards for agency decisions, or vests unbridled discretion

20  in the agency;

21         (e)  The rule is arbitrary or capricious;

22         (f)  The rule is not supported by competent substantial

23  evidence; or

24         (g)  The rule imposes regulatory costs on the regulated

25  person, county, or city which could be reduced by the adoption

26  of less costly alternatives that substantially accomplish the

27  statutory objectives.

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29  A grant of rulemaking authority is necessary but not

30  sufficient to allow an agency to adopt a rule; a specific law

31  to be implemented is also required. An agency may adopt only


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  1  rules that implement or, interpret the, or make specific the

  2  particular powers and duties granted by the enabling statute.

  3  No agency shall have authority to adopt a rule only because it

  4  is reasonably related to the purpose of the enabling

  5  legislation and is not arbitrary and capricious or is within

  6  the agency's class of powers and duties, nor shall an agency

  7  have the authority to implement statutory provisions setting

  8  forth general legislative intent or policy. Statutory language

  9  granting rulemaking authority or generally describing the

10  powers and functions of an agency shall be construed to extend

11  no further than implementing or interpreting the specific the

12  particular powers and duties conferred by the same statute.

13         Section 3.  Section 120.536, Florida Statutes, is

14  amended to read:

15         120.536  Rulemaking authority; listing of rules

16  exceeding authority; repeal; challenge.--

17         (1)  A grant of rulemaking authority is necessary but

18  not sufficient to allow an agency to adopt a rule; a specific

19  law to be implemented is also required. An agency may adopt

20  only rules that implement or, interpret the, or make specific

21  the particular powers and duties granted by the enabling

22  statute. No agency shall have authority to adopt a rule only

23  because it is reasonably related to the purpose of the

24  enabling legislation and is not arbitrary and capricious or is

25  within the agency's class of powers and duties, nor shall an

26  agency have the authority to implement statutory provisions

27  setting forth general legislative intent or policy. Statutory

28  language granting rulemaking authority or generally describing

29  the powers and functions of an agency shall be construed to

30  extend no further than implementing or interpreting the

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  1  specific the particular powers and duties conferred by the

  2  same statute.

  3         (2)(a)  By October 1, 1997, each agency shall provide

  4  to the Administrative Procedures Committee a listing of each

  5  rule, or portion thereof, adopted by that agency before

  6  October 1, 1996, which exceeds the rulemaking authority

  7  permitted by this section.  For those rules of which only a

  8  portion exceeds the rulemaking authority permitted by this

  9  section, the agency shall also identify the language of the

10  rule which exceeds this authority.  The Administrative

11  Procedures Committee shall combine the lists and provide the

12  cumulative listing to the President of the Senate and the

13  Speaker of the House of Representatives.  The Legislature

14  shall, at the 1998 Regular Session, consider whether specific

15  legislation authorizing the identified rules, or portions

16  thereof, should be enacted.  By January 1, 1999, each agency

17  shall initiate proceedings pursuant to s. 120.54 to repeal

18  each rule, or portion thereof, identified as exceeding the

19  rulemaking authority permitted by this section for which

20  authorizing legislation does not exist. By February 1, 1999,

21  the Administrative Procedures Committee shall submit to the

22  President of the Senate and the Speaker of the House of

23  Representatives a report identifying those rules that an

24  agency had previously identified as exceeding the rulemaking

25  authority permitted by this section for which proceedings to

26  repeal the rule have not been initiated.  As of July 1, 1999,

27  the Administrative Procedures Committee or any substantially

28  affected person may petition an agency to repeal any rule, or

29  portion thereof, because it exceeds the rulemaking authority

30  permitted by this section.  Not later than 30 days after the

31  date of filing the petition if the agency is headed by an


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  1  individual, or not later than 45 days if the agency is headed

  2  by a collegial body, the agency shall initiate rulemaking

  3  proceedings to repeal the rule, or portion thereof, or deny

  4  the petition, giving a written statement of its reasons for

  5  the denial.

  6         (b)  By October 1, 1999, each agency shall provide to

  7  the Administrative Procedures Committee a listing of each

  8  rule, or portion thereof, adopted by that agency before the

  9  effective date of the bill, which exceeds the rulemaking

10  authority permitted by this section.  For those rules of which

11  only a portion exceeds the rulemaking authority permitted by

12  this section, the agency shall also identify the language of

13  the rule which exceeds this authority.  The Administrative

14  Procedures Committee shall combine the lists and provide the

15  cumulative listing to the President of the Senate and the

16  Speaker of the House of Representatives.  The Legislature

17  shall, at the 2000 Regular Session, consider whether specific

18  legislation authorizing the identified rules, or portions

19  thereof, should be enacted.  By January 1, 2001, each agency

20  shall initiate proceedings pursuant to s. 120.54 to repeal

21  each rule, or portion thereof, identified as exceeding the

22  rulemaking authority permitted by this section for which

23  authorizing legislation does not exist. By February 1, 2001,

24  the Administrative Procedures Committee shall submit to the

25  President of the Senate and the Speaker of the House of

26  Representatives a report identifying those rules that an

27  agency had previously identified as exceeding the rulemaking

28  authority permitted by this section for which proceedings to

29  repeal the rule have not been initiated.  As of July 1, 2001,

30  the Administrative Procedures Committee or any substantially

31  affected person may petition an agency to repeal any rule, or


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  1  portion thereof, because it exceeds the rulemaking authority

  2  permitted by this section.  Not later than 30 days after the

  3  date of filing the petition if the agency is headed by an

  4  individual, or not later than 45 days if the agency is headed

  5  by a collegial body, the agency shall initiate rulemaking

  6  proceedings to repeal the rule, or portion thereof, or deny

  7  the petition, giving a written statement of its reasons for

  8  the denial.

  9         (3)  All proposed rules or amendments to existing rules

10  filed with the Department of State on or after October 1,

11  1996, shall be based on rulemaking authority no broader than

12  that permitted by this section. A rule adopted before October

13  1, 1996, and not included on a list submitted by an agency in

14  accordance with subsection (2) may not be challenged before

15  November 1, 1997, on the grounds that it exceeds the

16  rulemaking authority or law implemented as described by this

17  section. A rule adopted before October 1, 1996, and included

18  on a list submitted by an agency in accordance with subsection

19  (2) may not be challenged before July 1, 1999, on the grounds

20  that it exceeds the rulemaking authority or law implemented as

21  described by this section. A rule adopted before the effective

22  date of the bill, and included on a list submitted by an

23  agency in accordance with subsection (2)(b) may not be

24  challenged before July 1, 2001, on the grounds that it exceeds

25  the rulemaking authority or law implemented as described by

26  this section.

27         (4)  Nothing in this section shall be construed to

28  change the legal status of a rule that has otherwise been

29  judicially or administratively determined to be invalid.

30         Section 4.  Paragraph (f) of subsection (1) of section

31  120.54, Florida Statutes, 1998 Supplement, is amended to read:


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  1         120.54  Rulemaking.--

  2         (1)  GENERAL PROVISIONS APPLICABLE TO ALL RULES OTHER

  3  THAN EMERGENCY RULES.--

  4         (f)  An agency may adopt rules authorized by law and

  5  necessary to the proper implementation of a statute prior to

  6  the effective date of the statute, but the rules may not be

  7  effective enforced until the statute upon which they are based

  8  is effective. An agency may not adopt retroactive rules,

  9  including retroactive rules intended to clarify existing law,

10  unless that power is expressly authorized by statute.

11         Section 5.  Paragraph (a) of subsection (2) of section

12  120.56, Florida Statutes, is amended to read:

13         120.56  Challenges to rules.--

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

15         (a)  Any substantially affected person may seek an

16  administrative determination of the invalidity of any proposed

17  rule by filing a petition seeking such a determination with

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

19  the notice required by s. 120.54(3)(a), within 10 days after

20  the final public hearing is held on the proposed rule as

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

22  preparation of a statement of estimated regulatory costs

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

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

25  s. 120.54(3)(d). The petition shall state with particularity

26  the objections to the proposed rule and the reasons that the

27  proposed rule is an invalid exercise of delegated legislative

28  authority. The petitioner has the burden of going forward. The

29  agency then has the burden to prove by a preponderance of the

30  evidence that the proposed rule is not an invalid exercise of

31  delegated legislative authority as to the objections raised.


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  1  Any person who is substantially affected by a change in the

  2  proposed rule may seek a determination of the validity of such

  3  change.  Any person not substantially affected by the proposed

  4  rule as initially noticed, but who is substantially affected

  5  by the rule as a result of a change, may challenge any

  6  provision of the rule and is not limited to challenging the

  7  change to the proposed rule.

  8         Section 6.  Paragraph (l) of subsection (1) of section

  9  120.57, Florida Statutes, 1998 Supplement, is amended to read:

10         120.57  Additional procedures for particular cases.--

11         (1)  ADDITIONAL PROCEDURES APPLICABLE TO HEARINGS

12  INVOLVING DISPUTED ISSUES OF MATERIAL FACT.--

13         (l)  The agency may adopt the recommended order as the

14  final order of the agency. The agency in its final order may

15  reject or modify the conclusions of law over which it has

16  substantive jurisdiction and interpretation of administrative

17  rules over which it has substantive jurisdiction. When

18  rejecting or modifying such conclusion of law or

19  interpretation of administrative rule, the agency must state

20  with particularity its reasons for rejecting or modifying such

21  conclusion of law or interpretation of administrative rule and

22  must make a finding that its substituted conclusion of law or

23  interpretation of administrative rule is as or more reasonable

24  than that which was rejected or modified.  Rejection or

25  modification of conclusions of law may not form the basis for

26  rejection or modification of findings of fact.  The agency may

27  not reject or modify the findings of fact unless the agency

28  first determines from a review of the entire record, and

29  states with particularity in the order, that the findings of

30  fact were not based upon competent substantial evidence or

31  that the proceedings on which the findings were based did not


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  1  comply with essential requirements of law. The agency may

  2  accept the recommended penalty in a recommended order, but may

  3  not reduce or increase it without a review of the complete

  4  record and without stating with particularity its reasons

  5  therefor in the order, by citing to the record in justifying

  6  the action.

  7         Section 7.  Present paragraphs (a) through (j) of

  8  subsection (1) of section 120.81, Florida Statutes, are

  9  redesignated as paragraphs (b) through (k), respectively, and

10  a new paragraph (a) is added to that subsection, to read:

11         120.81  Exceptions and special requirements; general

12  areas.--

13         (1)  EDUCATIONAL UNITS.--

14         (a)  Notwithstanding s. 120.536(1) and the flush left

15  provisions of s. 120.52(8), district school boards may adopt

16  rules to implement their general powers under s. 230.22.

17         Section 8.  This act shall take effect upon becoming a

18  law.

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