HB3433 103RD GENERAL ASSEMBLY

LRB103 30993 DTM 57597 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3433

Introduced 2/17/2023, by Rep. Dave Severin

SYNOPSIS AS INTRODUCED:

5 ILCS 100/1-33 new
5 ILCS 100/5-30	from Ch. 127, par. 1005-30
5 ILCS 100/5-60	from Ch. 127, par. 1005-60

Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately.

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 Sections 5-30 and 5-60 and by adding Section 1-33 as follows:

(5 ILCS 100/1-33 new)

Sec. 1-33. "Downstate Illinois" means all counties in this State other than the counties of Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will. For the purposes of a specific rule, an agency may define a region as encompassing downstate Illinois if it finds that the rule affects persons or entities both within and without downstate Illinois and such definition is necessary to adapt the rule to address the needs and concerns of downstate Illinois.

(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, or persons or entities in downstate Illinois, 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, or persons or entities in downstate Illinois. 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, or persons or entities in downstate Illinois.

(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, or persons or entities in downstate Illinois.

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

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

(5) Exempt small businesses, not for profit corporations, or small municipalities, or persons or entities in downstate Illinois 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, or persons or entities in downstate Illinois 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, or persons or entities in downstate Illinois.

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

(3) The direct notification of interested small businesses, not for profit corporations, or small municipalities, or persons or entities in downstate Illinois.

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

(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, or persons or entities in downstate Illinois, including the use of audio-visual technology to enable downstate Illinois witnesses to submit comments by electronic moving image to any hearing conducted in Chicago by a rulemaking agency under this Act.

(c) Prior to the filing for publication in the Illinois Register of any proposed rule or amendment that may have an adverse impact on small businesses, each agency must prepare an economic impact analysis which shall be filed with the proposed rule and publicized in the Illinois Register together with the proposed rule. 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. The agency shall identify the types of businesses subject to the proposed rule using the following 2-digit codes from the North American Industry Classification System (NAICS):

11 Agriculture, Forestry, Fishing and Hunting.

21 Mining.

22 Utilities.

23 Construction.

31-33 Manufacturing.

42 Wholesale Trade.

44-45 Retail Trade.

48-49 Transportation and Warehousing.

51 Information.

52 Finance and Insurance.

53 Real Estate Rental and Leasing.

54 Professional, Scientific, and Technical Services.

55 Management of Companies and Enterprises.

56 Administrative and Support and Waste Management and Remediation Services.

61 Educational Services.

62 Health Care and Social Assistance.

71 Arts, Entertainment, and Recreation.

72 Accommodation and Food Services.

81 Other Services (except Public Administration).

92 Public Administration.

The agency shall also identify the impact of the proposed rule by identifying as many of the following categories that the agency reasonably believes the proposed rule will impact:

A. Hiring and additional staffing.

B. Regulatory requirements.

C. Purchasing.

D. Insurance changes.

E. Licensing fees.

F. Equipment and material needs.

G. Training requirements.

H. Recordkeeping.

I. Compensation and benefits.

J. Other potential impacted categories.

(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.

(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.

The Department of Commerce and Economic Opportunity shall place notification of all proposed rules affecting small business on its website. The notification shall include the information provided by the agency under this subsection (c) together with the summary of the proposed rule published by the Joint Committee on Administrative Rules in the Flinn Report.

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.

For purposes of this subsection (c), "small business" means a business with fewer than 50 full-time employees or less than $4,000,000 in gross annual sales.

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. 100-688, eff. 1-1-19; 101-81, eff. 7-12-19.)

(5 ILCS 100/5-60) (from Ch. 127, par. 1005-60)

Sec. 5-60. Regulatory agenda. An agency shall submit for publication in the Illinois Register by January 1 and July 1 of each year a regulatory agenda to elicit public comments concerning any rule that the agency is considering proposing but for which no notice of proposed rulemaking activity has been submitted to the Illinois Register. A regulatory agenda shall consist of summaries of those rules. Each summary shall, in less than 2,000 words, contain the following when practicable:

(1) A description of the rule.

(2) The statutory authority the agency is exercising.

(3) A schedule of the dates for any hearings, meetings, or other opportunities for public participation in the development of the rule.

(4) The date the agency anticipates submitting a notice of proposed rulemaking activity, if known.

(5) The name, address, and telephone number of the agency representative who is knowledgeable about the rule, from whom any information may be obtained, and to whom written comments may be submitted concerning the rule.

(6) A statement whether the rule will affect small businesses, not for profit corporations, or small municipalities, or persons or entities in downstate Illinois as defined in this Act.

(7) Any other information that may serve the public interest.

Nothing in this Section shall preclude an agency from adopting a rule that has not been summarized in a regulatory agenda or from adopting a rule different than one summarized in a regulatory agenda if in the agency head's best judgment it is necessary. If an agency finds that a situation exists that requires adoption of a rule that was not summarized on either of the 2 most recent regulatory agendas, it shall state its reasons in writing together with the facts that form their basis upon filing the notice of proposed rulemaking with the Secretary of State under Section 5-40. Nothing in this Section shall require an agency to adopt a rule summarized in a regulatory agenda. The Secretary of State shall adopt rules necessary for the publication of a regulatory agenda, including but not limited to standard submission forms and deadlines.

(Source: P.A. 87-823; 88-667, eff. 9-16-94.)

Section 99. Effective date. This Act takes effect upon becoming law.