Requires legislation which adversely affects businesses or local governments to be accompanied by a legislative regulatory impact statement

Summary of provisions

Section 1: Adds a new Legislative Law section 51-a to require that a bill's sponsor must prepare and file an LRIS for any bill that a) has a significant adverse economic impact on business firms, or local governments, b) adds significant additional reporting or record keeping requirements on businesses or local governments, c) imposes other mandates that could increase the cost of conducting business in this state, d) could result in the direct loss of employment or suppress future prospects of increased job growth, e) imposes other adverse impacts on the economy of the state, or f) establishes a new or additional permit, license, approval, registration, or charter requirement for conducting any business activity in this state.

The ARRC shall review all bills that are introduced or amended to determine if any of the criteria above have been satisfied and that such bill should have an LRIS prepared and filed before such bill can be considered by either house. Procedurally, ARRC must notify the bill sponsor within 30 days of introduction that an LRIS is required, otherwise such requirement is waived. Further, for bills and amendments filed after May first of each legislative session, ARRC shall notify the bill's sponsor of the need of an LRIS within 10 days of such filing. Further, after June 15th, the ARRC review period of time shall be within 24 hours of the bill's introduction or amendment.

For bills that have been amended and for which a LRIS has been submitted, the ARRC can determine if such LRIS satisfies the filing requirements for such amended version of such bill.

Upon completion of a LRIS, the bill sponsor shall file such statement with the leadership of each house, ARRC, and the Senate and Assembly Commerce Committees. The Senate and Assembly shall, by concurrent resolution, adopt rules for the process for the review of LRIS and the bills for which the LRIS relates to.

Each LRIS shall state the: a) needs and benefits of each bill, b) the costs imposed on business firms and local governments, c) additional paperwork or documentation required by such business firms to comply

with the terms of the bill, d) alternative approaches that could help to minimize regulatory impacts or mandates on such businesses or local governments, e) if the bill imposes minimum standards that exceed already existing federal standards, and f) job impact of such bill.

Should a bill pass both houses, such LRIS shall be transmitted with the bill and support memo to the Governor when the bill is sent to the Governor for consideration.

Section 2: Amends Legislative Law section 87 to expand the charge of ARRC to include minimizing the imposition of any unnecessary or over-burdensome rules which may adversely affect the State's business climate. Further, this provision shall mandate ARRC to implement the provision of Legislative Law section 51-a as it relates to the LRIS.

Justification

The State Legislature each year passes scores upon scores of bills which authorize state agencies to promulgate more rules and regulations or which establishes new programs that imposes further mandates on small businesses or local governments to comply with. These additional new standards, licenses, or mandates impose additional costs upon businesses of every kind and local governments. These additional mandates or rules and regulations often impose additional costs on businesses that must either be absorbed or passed upon to its customers.

What this bill does, is impose on the State Legislature, a requirement that it should at least consider the job killing aspects of a bill when such bill is brought to the floor for a vote or is reported from a Legislative Committee. In a manner as is required by the Legislative Law by sections 50, 51, and 52, to prepare and consider Fiscal Impact Statements as it relates to bills that may adversely affect state operations or local governments or in considering bills that provide additional retirement benefits to public employees, this bill institutes LRIS to disclose to state legislators the costs that such bills may impose on the state's business community or local governments.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

January 1st, next succeeding the date upon which it becomes law.