HB 1537

1	A bill to be entitled
2	An act relating to rulemaking; amending s. 120.54, F.S.;
3	requiring each agency, before adopting, amending, or
4	repealing a rule, to determine whether the rule would
5	adversely affect small businesses or increase the
6	regulatory costs of small businesses; requiring the agency
7	to conduct an independent economic analysis under certain
8	circumstances; prohibiting a state agency from producing
9	its own economic analysis or an economic analysis for
10	another state agency; requiring that the economic analysis
11	be certified as valid by the Office of Economic and
12	Demographic Research; requiring the agency to request
13	further independent analysis if the rule would adversely
14	affect or increase the regulatory costs of small
15	businesses; requiring a rule to be ratified by the
16	Legislature if the state agency cannot prove that the rule
17	creates new jobs and lowers the unemployment rate for the
18	state; requiring that rules subject to ratification be
19	accompanied by a report from the agency explaining why the
20	rule does not create new private sector jobs and reduce
21	the unemployment rate for the state; providing that such
22	requirements do not applicable to certain rules; providing
23	an effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1.  Paragraph (b) of subsection (3) of section
28	120.54, Florida Statutes, is amended to read:
29	120.54  Rulemaking.-
30	(3)  ADOPTION PROCEDURES.-
31	(b)  Special matters to be considered in rule adoption.-
32	1.  Statement of estimated regulatory costs.-Prior to the
33	adoption, amendment, or repeal of any rule other than an
34	emergency rule, an agency is encouraged to prepare a statement
35	of estimated regulatory costs of the proposed rule, as provided
36	by s. 120.541. However, an agency shall prepare a statement of
37	estimated regulatory costs of the proposed rule, as provided by
38	s. 120.541, if the proposed rule will have an impact on small
39	business.
40	2.  Small businesses, small counties, and small cities.-
41	a.  Each agency, before the adoption, amendment, or repeal
42	of a rule, shall consider the impact of the rule on small
43	businesses as defined by s. 288.703 and the impact of the rule
44	on small counties or small cities as defined by s. 120.52.
45	Whenever practicable, an agency shall tier its rules to reduce
46	disproportionate impacts on small businesses, small counties, or
47	small cities to avoid regulating small businesses, small
48	counties, or small cities that do not contribute significantly
49	to the problem the rule is designed to address. An agency may
50	define "small business" to include businesses employing more
51	than 200 persons, may define "small county" to include those
52	with populations of more than 75,000, and may define "small
53	city" to include those with populations of more than 10,000, if
54	it finds that such a definition is necessary to adapt a rule to
55	the needs and problems of small businesses, small counties, or
56	small cities. The agency shall consider each of the following
57	methods for reducing the impact of the proposed rule on small
58	businesses, small counties, and small cities, or any combination
59	of these entities:
60	(I)  Establishing less stringent compliance or reporting
61	requirements in the rule.
62	(II)  Establishing less stringent schedules or deadlines in
63	the rule for compliance or reporting requirements.
64	(III)  Consolidating or simplifying the rule's compliance
65	or reporting requirements.
66	(IV)  Establishing performance standards or best management
67	practices to replace design or operational standards in the
68	rule.
69	(V)  Exempting small businesses, small counties, or small
70	cities from any or all requirements of the rule.
71	b.
72	(I)  If the agency determines that the proposed action will
73	affect small businesses as defined by the agency as provided in
74	sub-subparagraph a., the agency shall send written notice of the
75	rule to the Small Business Regulatory Advisory Council and the
76	Office of Tourism, Trade, and Economic Development not less than
77	28 days prior to the intended action.
78	(II)  Each agency shall adopt those regulatory alternatives
79	offered by the Small Business Regulatory Advisory Council and
80	provided to the agency no later than 21 days after the council's
81	receipt of the written notice of the rule which it finds are
82	feasible and consistent with the stated objectives of the
83	proposed rule and which would reduce the impact on small
84	businesses. When regulatory alternatives are offered by the
85	Small Business Regulatory Advisory Council, the 90-day period
86	for filing the rule in subparagraph (e)2. is extended for a
87	period of 21 days.
88	(III)  If an agency does not adopt all alternatives offered
89	pursuant to this sub-subparagraph, it shall, prior to rule
90	adoption or amendment and pursuant to subparagraph (d)1., file a
91	detailed written statement with the committee explaining the
92	reasons for failure to adopt such alternatives. Within 3 working
93	days of the filing of such notice, the agency shall send a copy
94	of such notice to the Small Business Regulatory Advisory
95	Council. The Small Business Regulatory Advisory Council may make
96	a request of the President of the Senate and the Speaker of the
97	House of Representatives that the presiding officers direct the
98	Office of Program Policy Analysis and Government Accountability
99	to determine whether the rejected alternatives reduce the impact
100	on small business while meeting the stated objectives of the
101	proposed rule. Within 60 days after the date of the directive
102	from the presiding officers, the Office of Program Policy
103	Analysis and Government Accountability shall report to the
104	Administrative Procedures Committee its findings as to whether
105	an alternative reduces the impact on small business while
106	meeting the stated objectives of the proposed rule. The Office
107	of Program Policy Analysis and Government Accountability shall
108	consider the proposed rule, the economic impact statement, the
109	written statement of the agency, the proposed alternatives, and
110	any comment submitted during the comment period on the proposed
111	rule. The Office of Program Policy Analysis and Government
112	Accountability shall submit a report of its findings and
113	recommendations to the Governor, the President of the Senate,
114	and the Speaker of the House of Representatives. The
115	Administrative Procedures Committee shall report such findings
116	to the agency, and the agency shall respond in writing to the
117	Administrative Procedures Committee if the Office of Program
118	Policy Analysis and Government Accountability found that the
119	alternative reduced the impact on small business while meeting
120	the stated objectives of the proposed rule. If the agency will
121	not adopt the alternative, it must also provide a detailed
122	written statement to the committee as to why it will not adopt
123	the alternative.
124	3.  Job creation.-
125	a.  Except as provided in sub-subparagraph g., each agency
126	shall initially determine, before adopting, amending, or
127	repealing a rule, whether the rule would:
128	(I)  Adversely affect small businesses; or
129	(II)  Increase regulatory costs to those small businesses
130	affected.
131	b.  If the agency initially determines the rule would
132	adversely affect small businesses or increase the regulatory
133	costs of small businesses, the agency shall retain an
134	independent entity to conduct an economic analysis to determine
135	the extent to which the rule as adopted, amended, or repealed,
136	would adversely affect a small business or increase its
137	regulatory costs. The agency shall also initiate an independent
138	economic analysis if it receives an electronic or written
139	request from the Small Business Regulatory Advisory Council to
140	do so.
141	c.  The independent entity used to conduct the analysis may
142	be the Legislature or a third party. However, the agency
143	proposing the rule may not conduct its own economic analysis and
144	an agency may not conduct an analysis for any other agency. The
145	completed analysis must be certified as valid by the Office of
146	Economic and Demographic Research.
147	d.  If the independent analysis shows that the rule would
148	adversely affect small businesses or increase the regulatory
149	costs of small businesses, the agency shall request the
150	independent entity to further analyze whether the rule as
151	adopted, amended, or repealed, would:
152	(I)  Result in the net creation of new private sector jobs;
153	and
154	(II)  Reduce the state's unemployment rate.
155	e.  If an agency cannot demonstrate that the rule as
156	adopted, amended, or repealed would result in the net creation
157	of new private sector jobs and reduce the state's unemployment
158	rate, the rule may not take effect until the rule is submitted
159	to and ratified by the Legislature.
160	f.  Rules subject to ratification by the Legislature must
161	be accompanied by a report from the agency which explains why
162	the rule does not result in the creation of new private sector
163	jobs and does not reduce the state's unemployment rate.
164	g.  A proposed rule is not subject to this subparagraph if
165	the proposed rule is initiated by an agency pursuant to its
166	emergency rulemaking powers.
167	Section 2.  This act shall take effect July 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.