RichmondSunlight

HB329

2023 House

HB329

Failed

Administrative Process Act; public notice and economic impact, prohibition on certain regulations.

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Summary

Administrative Process Act; regulations; public notice and economic impact; prohibition on certain regulations. Requires that an agency prepare a detailed notice of intended regulatory action for any regulation that it plans to promulgate. The bill requires that prior to publication by the Registrar of Regulations, the notice of intended regulatory action be submitted to the Attorney General for a determination as to whether the agency has the explicit authority to promulgate the regulation as proposed in the notice of intended regulatory action. The bill requires the Attorney General to report the notice of intended regulatory action and its determination to the Governor for approval. Within 10 days after publication by the Registrar of a notice of intended regulatory action for a proposed regulation, either the chairman or vice-chairman of the Joint Commission on Administrative Rules may submit a written directive to the agency that prepared the notice for the agency to hold a preliminary public hearing and comment period on the notice of intended regulatory action. The bill prescribes requirements for the conduct of such public hearings on regulatory matters. The bill requires the Department of Planning and Budget to prepare an economic impact analysis of the proposed regulation that includes a qualitative analysis of the regulation and a detailed quantitative analysis of the impact of the regulation, which must include analysis of the implementation and compliance costs that are reasonably expected to be incurred by or passed along to the businesses, localities, and individuals that may be affected by the proposed regulation. The bill requires the Department of Planning and Budget to determine whether $10 million or more in implementation and compliance costs are reasonably expected to be incurred by or passed along to businesses, localities, and individuals over any two-year period as a result of the proposed regulation. After the Department of Planning and Budget submits an economic impact analysis for a proposed regulation to the legislature but before the agency submits the proposed regulation for final approval by the Governor, the chairman or vice-chairman of the Joint Commission on Administrative Rules may request an independent economic impact analysis to be prepared by the Joint Legislative Audit and Review Commission for the proposed regulation. The Department of Planning and Budget is required to provide a detailed explanation of any variance between estimates in the two economic impact analyses. If either economic impact analysis indicates $10 million or more in implementation and compliance costs, the bill requires the agency proposing the regulation to stop work on the proposed regulation until the regulation is modified to reduce its costs to below the $10 million threshold or a bill is enacted explicitly allowing the regulation to proceed.

Full Text

HOUSE BILL NO. 329
Offered January 12, 2022
Prefiled January 11, 2022
A BILL to amend and reenact §§ 2.2-4007.01, 2.2-4007.04, 2.2-4007.05, 2.2-4012, and 2.2-4027 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 2.2-4007.01:1, 2.2-4007.01:2, and 2.2-4007.04:1, relating to the Administrative Process Act; regulations; public notice and economic impact; prohibition on certain regulations.
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Patrons-- Freitas, LaRock, Scott, P.A. and Tata
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Referred to Committee on General Laws
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Be it enacted by the General Assembly of Virginia:

1. That §§ 2.2-4007.01, 2.2-4007.04, 2.2-4007.05, 2.2-4012, and 2.2-4027 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding sections numbered 2.2-4007.01:1, 2.2-4007.01:2, and 2.2-4007.04:1 as follows:

§ 2.2-4007.01. Notice of intended regulatory action; public hearing.

A. In the case of all regulations, except those regulations exempted by § 2.2-4002, 2.2-4006, 2.2-4011, or 2.2-4012.1, an agency shall

.

allow at least 30 days for public comment, to include an on-line public comment forum on the Virginia Regulatory Town Hall, after publication of the Notice of Intended Regulatory Action

Whenever a Virginia statutory change necessitates a change to, or repeal of, all or a portion of a regulation or the adoption of a new regulation, the agency shall file a Notice of Intended Regulatory Action with the within 120 days of such law's effective date.

An agency shall not file proposed regulations with the Registrar until the public comment period on the Notice of Intended Regulatory Action has closed.

If the agency states an intent to hold a public hearing on the proposed regulation in the Notice of Intended Regulatory Action, then it shall hold the public hearing. If the agency states in its Notice of Intended Regulatory Action that it does not plan to hold a hearing on the proposed regulation, then no public hearing is required unless, prior to completion of the comment period specified in the Notice of Intended Regulatory Action, (i) the Governor directs the agency to hold a public hearing or the agency receives requests for a public hearing from at least 25 persons.

§ 2.2-4007.04. Economic impact analysis.

A. Before delivering any proposed regulation under consideration to the Registrar as required in § 2.2-4007.05, the agency shall submit on the Virginia Regulatory Town Hall a copy of that regulation to the Department of Planning and Budget. Department of Planning and Budget in coordination with the agency shall, within 45 days, prepare an economic impact analysis of the proposed regulation

If the regulation may have an adverse effect on small businesses, (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. As used in this subdivision, "small business" has the same meaning as provided in subsection A of § 2.2-4007.1.

B. In the event the Department cannot complete an economic impact statement within the 45-day period, it shall advise the agency and the Joint Commission on Administrative Rules as to the reasons for the delay. In no event shall the delay exceed 30 days beyond the original 45-day period.

C. The Department shall deliver a copy of the analysis to the agency drafting the regulation, which shall comment thereon as provided in § 2.2-4007.05, a copy to the Registrar for publication with the proposed regulation, and an electronic copy to each member of the General Assembly. No regulation shall be promulgated for consideration pursuant to § 2.2-4007.05 until the impact analysis has been received by the Registrar.

Bill Details

Status
failed committee
Outcome
failed
Introduced
2022-12-12
Patron
Del. Nick Freitas (R-Culpeper)
Party
R
District
62
Committee
General Laws
Copatrons
3
Words
5,596
Citation
https://www.richmondsunlight.com/bill/2023/hb329/

Status History

status: Left in General Laws
translation: failed committee
date: 11/22/2022
date_raw: 2022-11-22
lis_vote_id: H11V0002
vote_count:
status: Continued to 2023 in General Laws
translation:
date: 02/08/2022
date_raw: 2022-02-08
lis_vote_id: H11C0075
vote_count:
status: Subcommittee recommends continuing to 2023
translation:
date: 02/03/2022
date_raw: 2022-02-03
lis_vote_id: H1101C0025
vote_count:
status: Impact statement from DPB (HB329)
translation:
date: 01/25/2022
date_raw: 2022-01-25
lis_vote_id:
vote_count:
status: Assigned GL sub: Subcommittee #1
translation: in subcommittee
date: 01/18/2022
date_raw: 2022-01-18
lis_vote_id:
vote_count:
status: Referred to Committee on General Laws
translation: in committee
date: 01/11/2022
date_raw: 2022-01-11
lis_vote_id:
vote_count:
status: Prefiled and ordered printed; offered 01/12/22 22103227D
translation: introduced
date: 01/11/2022
date_raw: 2022-01-11
lis_vote_id:
vote_count:

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