HB5253 100TH GENERAL ASSEMBLY

LRB100 17050 RJF 32201 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5253

Introduced , by Rep. Carol Sente

SYNOPSIS AS INTRODUCED:

5 ILCS 100/5-30

from Ch. 127, par. 1005-30

Amends the Illinois Administrative Procedure Act. Modifies the provisions requiring State agencies to issue an economic impact analysis when proposing new rules or amendments to rules that affect small businesses. Provides, among other requirements, that the economic impact analysis shall include: (1) a list of the industries that will have to comply with the proposed rule or amendment; (2) a statement of the impact on small businesses having less than 100 employees, and comparing specified cost factors; and (3) a description of the actions taken by the State agency to mitigate the costs to small businesses created by the proposed rule or amendment, and a description of the involvement of small business advocates in the development of the proposed rule or amendment. Provides that when any rule or amendment to an existing rule is proposed for which a small business economic impact analysis is required, the adopting State agency must provide notice to affected small businesses of the proposed rule through specified means. Makes conforming changes.

A BILL FOR

AN ACT concerning government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Administrative Procedure Act is amended by changing Section 5-30 as follows:

(5 ILCS 100/5-30) (from Ch. 127, par. 1005-30)

Sec. 5-30. Regulatory flexibility. When an agency proposes a new rule or an amendment to an existing rule that may have an impact on small businesses, not for profit corporations, or small municipalities, the agency shall do each of the following:

(a) The agency shall consider each of the following methods for reducing the impact of the rulemaking on small businesses, not for profit corporations, or small municipalities. The agency shall reduce the impact by utilizing one or more of the following methods if it finds that the methods are legal and feasible in meeting the statutory objectives that are the basis of the proposed rulemaking.

(1) Establish less stringent compliance or reporting requirements in the rule for small businesses, not for profit corporations, or small municipalities.

(2) Establish less stringent schedules or deadlines in the rule for compliance or reporting requirements for small businesses, not for profit corporations, or small municipalities.

(3) Consolidate or simplify the rule's compliance or reporting requirements for small businesses, not for profit corporations, or small municipalities.

(4) Establish performance standards to replace design or operational standards in the rule for small businesses, not for profit corporations, or small municipalities.

(5) Exempt small businesses, not for profit corporations, or small municipalities from any or all requirements of the rule.

(b) Before or during the notice period required under subsection (b) of Section 5-40, the agency shall provide an opportunity for small businesses, not for profit corporations, or small municipalities to participate in the rulemaking process. The agency shall utilize one or more of the following techniques. These techniques are in addition to other rulemaking requirements imposed by this Act or by any other Act.

(1) The inclusion in any advance notice of possible rulemaking of a statement that the rule may have an impact on small businesses, not for profit corporations, or small municipalities.

(2) The publication of a notice of rulemaking in publications likely to be obtained by small businesses, not for profit corporations, or small municipalities.

(3) The direct notification of interested small businesses, not for profit corporations, or small municipalities.

(4) The conduct of public hearings concerning the impact of the rule on small businesses, not for profit corporations, or small municipalities.

(5) The use of special hearing or comment procedures to reduce the cost or complexity of participation in the rulemaking by small businesses, not for profit corporations, or small municipalities.

(c) Prior to the filing for publication in the Illinois Register of any proposed rule or amendment affecting that may have an adverse impact on small businesses, each agency must prepare an economic impact analysis. The economic impact analysis shall include the following:

(1) an identification of the types and estimate of the number of the small businesses subject to the proposed rule or amendment, including a list of the industries that will have to comply with the proposed rule or amendment;

(2) the projected reporting, recordkeeping, and other administrative costs required for compliance with the proposed rule or amendment, including the type of professional skills necessary for preparation of the report or record;

(3) a statement of the probable positive or negative economic effect on impacted small businesses; and

(3.5) a statement of the impact on small businesses having less than 100 employees, taking into account the cost per employee, cost per hour of labor, and cost per $100 of sale, and comparing those cost factors to the costs of businesses in the top 10% in size;

(4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed rule or amendment. The alternatives must be consistent with the stated objectives of the applicable statutes and the proposed rulemaking; and .

(5) a description of the actions taken by the State agency to mitigate the costs to small businesses created by the proposed rule or amendment, and a description of the involvement of small business advocates in the development of the proposed rule or amendment.

When any rule or amendment to an existing rule is proposed for which a small business economic impact analysis is required under this subsection (c), the adopting State agency must provide notice to affected small businesses of the proposed rule through: (i) direct notification of known interested small businesses or trade organizations affected by the proposed rule or amendment; (ii) providing information of the proposed rulemaking to publications likely to be obtained by small businesses of the types affected by the proposed rule or amendment; and (iii) posting on the State agencies Internet website.

The Business Assistance Office shall prepare an impact analysis of the rule or amendment describing its effect on small businesses whenever the Office believes, in its discretion, that an analysis is warranted or whenever requested to do so by 25 interested persons, an association representing at least 100 interested persons, the Governor, a unit of local government, or the Joint Committee on Administrative Rules. The impact analysis shall be completed before or within the notice period as described in subsection (b) of Section 5-40. Upon completion of any analysis in accordance with this subsection (c), the preparing agency or the Business Assistance Office shall submit the analysis to the Joint Committee on Administrative Rules, to any interested person who requested the analysis, and, if the agency prepared the analysis, to the Business Assistance Office.

This subsection does not apply to rules and standards described in paragraphs (1) through (5) of subsection (c) of Section 1-5.

(Source: P.A. 96-1448, eff. 1-1-11.)