Illinois General Assembly - Full Text of HB5576
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Full Text of HB5576  102nd General Assembly




HB5576 EnrolledLRB102 23486 SPS 32662 b

1    AN ACT concerning government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Regulatory Sunset Act is amended by
5changing Sections 2, 3, 5, 6, and 7 as follows:
6    (5 ILCS 80/2)  (from Ch. 127, par. 1902)
7    Sec. 2. Findings and intent.
8    (a) The General Assembly finds that State government
9actions have produced a substantial increase in numbers of
10agencies, growth of programs and proliferation of rules and
11regulations and that the whole process developed without
12sufficient legislative oversight, regulatory accountability or
13a system of checks and balances. The General Assembly further
14finds that by establishing a system for the termination or
15continuation of such agencies and programs, it will be in a
16better position to evaluate the need for the continued
17existence of present and future regulatory bodies.
18    (b) It is the intent of the General Assembly:
19        (1) That no profession, occupation, business, industry
20    or trade shall be subject to the State's regulatory power
21    unless the exercise of such power is necessary to protect
22    the public health, safety or welfare from significant and
23    discernible harm or damage. The exercise of the State's



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1    police power shall be done only to the extent necessary
2    for that purpose.
3        (2) That the State shall not regulate a profession,
4    occupation, industry, business or trade in a manner which
5    will unreasonably and adversely affect either the
6    competitive market or equitable access to quality jobs and
7    economic opportunities.
8        (3) To provide systematic legislative review of the
9    need for, and public benefits derived from, a program or
10    function that licenses or otherwise regulates the initial
11    entry into a profession, occupation, business, industry or
12    trade by a periodic review and termination, modification,
13    or continuation of those programs and functions.
14(Source: P.A. 90-580, eff. 5-21-98.)
15    (5 ILCS 80/3)  (from Ch. 127, par. 1903)
16    Sec. 3. Definitions. As used in this Act, unless the
17context clearly requires otherwise:
18    "Regulatory agency" or "agency" means any arm, branch,
19department, board, committee or commission of State government
20that licenses, supervises, exercises control over, or issues
21rules regarding, or otherwise regulates any trade, occupation,
22business, industry or profession.
23    "Personal qualifications" means criteria related to an
24individual's personal background and characteristics.
25"Personal qualifications" may include one or more of the



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1following: completion of an approved educational program,
2satisfactory performance on an examination, work experience,
3apprenticeship, other evidence of attainment of requisite
4knowledge and skills, passing a review of the individual's
5criminal record, and completion of continuing education.
6    "Program" means a system to license or otherwise regulate
7the initial entry into a profession, occupation, business,
8industry, or trade by a periodic review and termination,
9modification, or continuation of the profession, occupation,
10business, industry, or trade.
11    "Scope of practice" means the procedures, actions,
12processes, and work that an individual may perform under an
13occupational regulation.
14(Source: P.A. 90-580, eff. 5-21-98.)
15    (5 ILCS 80/5)  (from Ch. 127, par. 1905)
16    Sec. 5. Study and report. The Governor's Office of
17Management and Budget shall study the performance of each
18regulatory agency and program scheduled for termination under
19this Act and report annually to the Governor the results of
20such study, including in the report an analysis of whether the
21agency or program restricts a profession, occupation,
22business, industry, or trade any more than is necessary to
23protect the public health, safety, or welfare from significant
24and discernible harm or damage, and recommendations with
25respect to those agencies and programs the Governor's Office



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1of Management and Budget determines should be terminated,
2modified, or continued by the State. The Governor shall review
3the report of the Governor's Office of Management and Budget
4and in each even-numbered year make recommendations to the
5General Assembly on the termination, modification, or
6continuation of regulatory agencies and programs.
7(Source: P.A. 94-793, eff. 5-19-06.)
8    (5 ILCS 80/6)  (from Ch. 127, par. 1906)
9    Sec. 6. Factors to be studied. In conducting the study
10required under Section 5, the Governor's Office of Management
11and Budget shall consider, but is not limited to consideration
12of, the following factors in determining whether an agency or
13program should be recommended for termination, modification,
14or continuation:
15        (1) the full range and variety of practices and
16    activities included in the scope of practice covered by
17    extent to which the agency or program, including modes of
18    practice or subspecialties that have developed since the
19    last review has permitted qualified applicants to serve
20    the public;
21        (2) (blank); the extent to which the trade, business,
22    profession, occupation or industry being regulated is
23    being administered in a nondiscriminatory manner both in
24    terms of employment and the rendering of services;
25        (3) the extent to which the regulatory agency or



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1    program has operated in the public interest, and the
2    extent to which its operation has been impeded or enhanced
3    by existing statutes, procedures, and practices of any
4    other department of State government, and any other
5    circumstances, including budgetary, resource, and
6    personnel matters;
7        (4) the extent to which the agency running the program
8    has recommended statutory changes to the General Assembly
9    that would benefit the public as opposed to the persons it
10    regulates;
11        (5) the extent to which the agency or program has
12    required the persons it regulates to report to it
13    concerning the impact of rules and decisions of the agency
14    or the impact of the program on the public regarding
15    improved service, economy of service, and availability of
16    service;
17        (6) the extent to which persons regulated by the
18    agency or under the program have been required to assess
19    problems in their industry that affect the public;
20        (7) the extent to which the agency or program has
21    encouraged participation by the public in making its rules
22    and decisions as opposed to participation solely by the
23    persons it regulates and the extent to which such rules
24    and decisions are consistent with statutory authority;
25        (8) the efficiency with which formal public complaints
26    filed with the regulatory agency or under the program



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1    concerning persons subject to regulation have been
2    processed to completion, by the executive director of the
3    regulatory agencies or programs, by the Attorney General
4    and by any other applicable department of State
5    government; and
6        (9) the extent to which changes are necessary in the
7    enabling laws of the agency or program to adequately
8    comply with the factors listed in this Section; .
9        (10) the extent to which there is evidence of
10    significant and discernible harm arising from the full
11    range and variety of practices and activities included in
12    the scope of practice;
13        (11) the substance, content, and relevance of the
14    personal qualifications required for entry into the trade,
15    business, profession, occupation, or industry being
16    regulated, including, but not limited to, as required
17    hours of training, required curricula during the required
18    hours, knowledge areas tested in examinations, and any
19    updates that have been made since the last review to
20    address changes in technology or modes of practice;
21        (12) the extent to which all the personal
22    qualifications that the agency or program requires for
23    individuals to enter the trade, business, profession,
24    occupation, or industry being regulated are necessary to
25    protect the public from significant and discernible harm,
26    for all activities covered by the scope of practice;



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1        (13) equity concerns arising from the personal
2    qualifications, including:
3            (A) financial impact on aspiring licensees,
4        including, but not limited to, (i) itemization of
5        average costs of achieving personal qualifications;
6        (ii) an assessment of average incomes of licensees;
7        and (iii) numbers, monetary loss, and demographics of
8        individuals who start but do not achieve personal
9        qualifications or complete the application process;
10            (B) challenges for individuals from historically
11        disadvantaged backgrounds in acquiring personal
12        qualifications;
13            (C) barriers for individuals with records of
14        interactions with the criminal justice system;
15            (D) evidence of challenges for individuals who do
16        not speak English as their primary language; and
17            (E) geographic distribution of training sites and
18        test sites; and
19        (14) the extent to which enforcement actions under the
20    agency or program have addressed significant and
21    discernible harms to the public as opposed to technical
22    noncompliance with the requirements of the agency or
23    program.
24(Source: P.A. 94-793, eff. 5-19-06.)
25    (5 ILCS 80/7)  (from Ch. 127, par. 1907)



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1    Sec. 7. Additional criteria.
2    (a) In determining whether to recommend to the General
3Assembly under Section 5 the continuation of a regulatory
4agency or program or any function thereof, the Governor shall
5also consider the following criteria:
6        (1) whether the absence or modification of regulation
7    would significantly harm or endanger the public health,
8    safety or welfare;
9        (2) whether there is a reasonable relationship between
10    the exercise of the State's police power and the
11    protection of the public health, safety or welfare;
12        (3) whether there is another less restrictive method
13    of regulation available which could adequately protect the
14    public;
15        (4) whether the regulation has the effect of directly
16    or indirectly increasing the costs of any goods or
17    services involved, and if so, to what degree;
18        (5) whether the increase in cost is more harmful to
19    the public than the harm which could result from the
20    absence of regulation; and
21        (6) whether all facets of the regulatory process are
22    designed solely for the purpose of, and have as their
23    primary effect, the protection of the public.
24    (b) In making an evaluation or recommendation with respect
25to paragraph (3) of subsection (a), the Governor shall follow
26the following guidelines to address the following:



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1        (1) Contractual disputes, including pricing disputes.
2    The Governor may recommend enacting a specific civil cause
3    of action in small-claims court or district court to
4    remedy consumer harm. This cause of action may provide for
5    reimbursement of the attorney's fees or court costs, if a
6    consumer's claim is successful.
7        (2) Fraud. The Governor may recommend strengthening
8    powers under the State's deceptive trade practices acts or
9    requiring disclosures that will reduce misleading
10    attributes of the specific good or service.
11        (3) General health and safety risks. The Governor may
12    recommend enacting a regulation on the related process or
13    requiring a facility license.
14        (4) Unclean facilities. The Governor may recommend
15    requiring periodic facility inspections.
16        (5) A provider's failure to complete a contract fully
17    or to standards. The Governor may recommend requiring the
18    provider to be bonded.
19        (6) A lack of protection for a person who is not a
20    party to a contract between providers and consumers. The
21    Governor may recommend requiring that the provider have
22    insurance.
23        (7) Transactions with transient, out-of-state, or
24    fly-by-night providers. The Governor may recommend
25    requiring the provider register its business with the
26    Secretary of State.



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1        (8) A shortfall or imbalance in the consumer's
2    knowledge about the good or service relative to the
3    provider's knowledge (asymmetrical information). The
4    Governor may recommend enacting government certification.
5        (9) An inability to qualify providers of new or highly
6    specialized medical services for reimbursement by the
7    State. The Governor may recommend enacting a specialty
8    certification solely for medical reimbursement.
9        (10) A systematic information shortfall in which a
10    reasonable consumer of the service is permanently unable
11    to distinguish between the quality of providers and there
12    is an absence of institutions that provide guidance to
13    consumers. The Governor may recommend enacting an
14    occupational license.
15        (11) The need to address multiple types of harm. The
16    Governor may recommend a combination of regulations. This
17    may include a government regulation combined with a
18    private remedy, including third-party or consumer-created
19    ratings and reviews or private certification.
20(Source: P.A. 97-813, eff. 7-13-12.)