House Bill 1503e1
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HB 1503, First Engrossed/ntc
1 A bill to be entitled
2 An act relating to administrative procedure;
3 amending s. 120.52, F.S.; revising the
4 definition of "agency" under the Administrative
5 Procedure Act; amending s. 120.541, F.S.;
6 requiring an agency to prepare a statement of
7 estimated regulatory costs, or revise a prior
8 statement, when its preliminary estimate of the
9 costs of implementing and enforcing a proposed
10 rule and of transactional costs exceeds a
11 specified limit; specifying conditions under
12 which a rule may be declared invalid based on a
13 challenge to such statement; creating s.
14 11.516, F.S.; requiring the Office of Program
15 Policy Analysis and Government Accountability
16 to review and comment on such statements;
17 creating the "Regulatory Sunrise Act";
18 specifying factors to be considered by the
19 Legislature in determining whether to implement
20 a mandate upon a state agency to regulate a
21 business or professional activity that would
22 require rule adoption; providing an effective
23 date.
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25 Be It Enacted by the Legislature of the State of Florida:
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27 Section 1. Subsection (1) of section 120.52, Florida
28 Statutes, is amended to read:
29 120.52 Definitions.--As used in this act:
30 (1) "Agency" means:
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HB 1503, First Engrossed/ntc
1 (a) The Governor in the exercise of all executive
2 powers other than those derived from the constitution.
3 (b) Each state:
4 1. State Officer and state department, and each
5 departmental unit described in s. 20.04.
6 2. Authority, including a regional water supply
7 authority.
8 3. Board.
9 4. Commission, including the Commission on Ethics and
10 the Fish and Wildlife Conservation Commission when acting
11 pursuant to statutory authority derived from the Legislature.
12 5. Regional planning agency.
13 6. Multicounty special district with a majority of its
14 governing board comprised of nonelected persons.
15 7. Educational units.
16 8. Entity described in chapters 163, 373, 380, and 582
17 and s. 186.504.
18 (c) Each other unit of government in the state,
19 including counties and municipalities, to the extent they are
20 expressly made subject to this act by general or special law
21 or existing judicial decisions.
22
23 This definition does not include any legal entity or agency
24 created in whole or in part pursuant to chapter 361, part II,
25 an expressway authority pursuant to chapter 348, any legal or
26 administrative entity created by an interlocal agreement
27 pursuant to s. 163.01(7), unless any party to such agreement
28 is otherwise an agency as defined in this subsection, or any
29 multicounty special district with a majority of its governing
30 board comprised of elected persons; however, this definition
31 shall include a regional water supply authority.
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HB 1503, First Engrossed/ntc
1 Section 2. Section 120.541, Florida Statutes, is
2 amended to read:
3 120.541 Statement of estimated regulatory costs.--
4 (1)(a) A substantially affected person, within 21 days
5 after publication of the notice provided under s.
6 120.54(3)(a), may submit to an agency a good faith written
7 proposal for a lower cost regulatory alternative to a proposed
8 rule which substantially accomplishes the objectives of the
9 law being implemented. The proposal may include the
10 alternative of not adopting any rule, so long as the proposal
11 explains how the lower costs and objectives of the law will be
12 achieved by not adopting any rule. If such a proposal is
13 submitted, the 90-day period for filing the rule is extended
14 21 days.
15 (b) Upon the submission of the lower cost regulatory
16 alternative, the agency shall prepare a statement of estimated
17 regulatory costs as provided in subsection (2), or shall
18 revise its prior statement of estimated regulatory costs, and
19 either adopt the alternative or give a statement of the
20 reasons for rejecting the alternative in favor of the proposed
21 rule. The failure of the agency to prepare or revise the
22 statement of estimated regulatory costs as provided in this
23 paragraph is a material failure to follow the applicable
24 rulemaking procedures or requirements set forth in this
25 chapter. An agency required to prepare or revise a statement
26 of estimated regulatory costs as provided in this paragraph
27 shall make it available to the person who submits the lower
28 cost regulatory alternative and to the public prior to filing
29 the rule for adoption.
30 (c) An agency shall prepare a statement of estimated
31 regulatory costs, or revise its prior statement of estimated
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HB 1503, First Engrossed/ntc
1 regulatory costs, in all instances when the preliminary agency
2 estimate of the annual costs of implementing and enforcing the
3 proposed rule and of the transactional costs as described in
4 paragraph (2)(c) exceeds in total $1,500,000.
5 (d) The agency shall notify and provide a copy of the
6 statement required under paragraph (c) to the Office of
7 Program Policy Analysis and Government Accountability. The
8 Office of Program Policy Analysis and Government
9 Accountability shall have 21 days to review and comment on the
10 statements of regulatory costs before the agencies may file
11 such rule for adoption. The failure of the Office of Program
12 Policy Analysis and Government Accountability to prepare
13 comments upon a statement shall not be a basis of challenge to
14 a proposed rule.
15 (e)(c) No rule shall be declared invalid because it
16 imposes regulatory costs on the regulated person, county, or
17 city which could be reduced by the adoption of less costly
18 alternatives that substantially accomplish the statutory
19 objectives, and no rule shall be declared invalid based upon a
20 challenge to the agency's statement of estimated regulatory
21 costs, unless:
22 1. The issue is raised in an administrative proceeding
23 within 1 year after the effective date of the rule; and
24 2. When a lower cost regulatory alternative as
25 described in paragraph (a) has been filed, the substantial
26 interests of the person challenging the agency's rejection of,
27 or failure to consider, the lower cost regulatory alternative
28 are materially affected by the rejection; and
29 3.a. The agency has failed to prepare or revise the
30 statement of estimated regulatory costs as required by this
31 subsection paragraph (b); or
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HB 1503, First Engrossed/ntc
1 b. The challenge is to the agency's rejection under
2 paragraph (b) of a lower cost regulatory alternative submitted
3 under paragraph (a).
4 (2) A statement of estimated regulatory costs shall
5 include:
6 (a) A good faith estimate of the number of individuals
7 and entities likely to be required to comply with the rule,
8 together with a general description of the types of
9 individuals likely to be affected by the rule.
10 (b) A good faith estimate of the cost to the agency,
11 and to any other state and local government entities, of
12 implementing and enforcing the proposed rule, and any
13 anticipated effect on state or local revenues.
14 (c) A good faith estimate of the transactional costs
15 likely to be incurred by individuals and entities, including
16 local government entities, required to comply with the
17 requirements of the rule. As used in this paragraph,
18 "transactional costs" are direct costs that are readily
19 ascertainable based upon standard business practices, and
20 include filing fees, the cost of obtaining a license, the cost
21 of equipment required to be installed or used or procedures
22 required to be employed in complying with the rule, additional
23 operating costs incurred, and the cost of monitoring and
24 reporting.
25 (d) An analysis of the impact on small businesses as
26 defined by s. 288.703, and an analysis of the impact on small
27 counties and small cities as defined by s. 120.52.
28 (e) Any additional information that the agency
29 determines may be useful.
30 (f) In the statement or revised statement, whichever
31 applies, a description of any good faith written proposal
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HB 1503, First Engrossed/ntc
1 submitted under paragraph (1)(a) and either a statement
2 adopting the alternative or a statement of the reasons for
3 rejecting the alternative in favor of the proposed rule.
4 Section 3. Section 11.516, Florida Statutes, is
5 created to read:
6 11.516 Review of statements of estimated regulatory
7 costs.--The Office of Program Policy Analysis and Government
8 Accountability shall review and comment on each statement of
9 estimated regulatory costs prepared in accordance with s.
10 120.541(1)(c). The office shall review the submitted
11 statements for reasonableness of methodologies and provide
12 commentary to the agency and to the Joint Administrative
13 Procedure Committee on improving the methodologies used to
14 prepare the statements.
15 Section 4. Legislative review of proposed
16 regulation.--
17 (1) This section may be cited as the "Regulatory
18 Sunrise Act."
19 (2) As used in this section, "regulation" means
20 authority granted a state agency, as defined by s. 120.52,
21 Florida Statutes, to regulate a business or professional
22 activity not being regulated at that time, which would require
23 the agency to adopt administrative rules pursuant to chapter
24 120, Florida Statutes, to implement, operate, or enforce.
25 (3) In determining whether to implement a proposed
26 regulation, the Legislature shall consider the following
27 factors:
28 (a) Whether the proposed regulation will promote the
29 public health, safety, or welfare.
30 (b) Whether the public is or can be effectively
31 protected by other means.
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HB 1503, First Engrossed/ntc
1 (c) Whether the overall cost effectiveness and
2 economic impact of the proposed regulation will be favorable.
3 When determining the overall cost effectiveness and economic
4 impact of the proposed regulation, the Legislature shall
5 obtain:
6 1. A good faith estimate of the number of individuals
7 and entities likely to be required to comply with the
8 regulation.
9 2. A good faith estimate of the cost to state and
10 local government entities of implementing, operating, and
11 enforcing the proposed regulation and any anticipated effect
12 on state or local revenues.
13 3. A good faith estimate of the transactional costs
14 likely to be incurred by individuals and entities, including
15 local government entities, required to comply with the
16 requirements of the proposed regulation. As used in this
17 subparagraph, "transactional costs" are direct costs that are
18 readily ascertainable based upon standard business practices,
19 and include filing fees, the cost of obtaining a license or
20 permit, the cost of equipment required to be installed or used
21 or procedures required to be employed in complying with the
22 regulation, additional operating costs incurred, and the cost
23 of monitoring and reporting.
24 4. An analysis of the impact on small businesses as
25 defined by s. 288.703, Florida Statutes, and an analysis of
26 the impact on small counties and small cities as defined by s.
27 120.52, Florida Statutes.
28 Section 5. This act shall take effect October 1, 2000.
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