Enacts the "regulatory fiscal accountability act of 2016"

Section two amends the state administrative procedure act by adding two new sections 201-b and 202-f. Section 201-b, regarding fiscal notes on proposed rules, establishes that each agency proposing a rule shall attach a fiscal note to a proposed rule which would affect the revenues or expenses, or both, of any political subdivision. Such fiscal notes shall fully disclose the costs and source of funding for every provision of the proposed rule which would affect the revenue or expenses of any political subdivision. Fiscal notes shall not be required for proposed rules which provide discretionary authority to political subdivisions. Section 202-f establishes provisions regarding legislative approval. This provision states that prior to the submission of a notice of proposed rulemaking to the secretary of the state for publication in the state register, an agency shall submit any proposed rule with a fiscal impact in excess of $10 million, intended to implement legislation, to the appropriate committees in the senate and assembly having jurisdiction of the subject matter for their approval. No such rule shall take effect unless it has been approved by a two-thirds majority vote of each committee with jurisdiction to which it has been referred.

Section three amends the legislative law by adding a new section 68 regarding approval of legislative committees. The provision states that state agencies intending to promulgate any rule with a fiscal impact in excess of $10 million must submit such a proposed rule to the chair of each appropriate committee in the senate and assembly for consideration and approval of the proposed rule. The appropriate senate and assembly committees shall have jurisdiction to consider and approve a proposed rule, if that committee approved the bill that provides the statutory authority for which the proposed rule is intended to implement. The committees must consider the proposed rule during the first scheduled committee meeting immediately following receipt of the proposed rule by the committee chair. A vote to approve the proposed rule by no less than two-thirds of all committee members, by every committee with jurisdiction to consider and approve the proposed rule shall be required before the state agency can proceed to propose the rule.

Section four amends the executive law by adding a new section 13 which requires the governor to attach a fiscal note to every executive order which would affect the revenues or expenses, or both, of any political. Such fiscal notes shall fully disclose the costs and source of funding for every provision of the executive order which would affect the revenue or expenses of any political subdivision. Fiscal notes shall not be required by executive orders which provide discretionary authority to political subdivisions.

Section five establishes the effective date.

Justification

For decades, state agencies have enacted rules and regulations that greatly affect businesses and local governments. Too often, regulations have been inconsistent with the legislative intent of the statutes for which the rules have been promulgated. Overregulation has hurt businesses and local governments and legislators, elected to represent the people of this state, have not been allowed to curtail such burdensome rule making.

This bill seeks to provide lawmakers with the ability to consider those rules that will have a fiscal impact of at least ten million dollars and to vote to approve, or deny such rules. This bill will place a much needed check on state agencies that wish to promulgate costly rules and regulations.

Pursuant to section 51 of the legislative law, fiscal impact notes for legislation that will substantially affect revenue and/or expenses for local governments, are required. Fiscal notes promote government transparency and assist political subdivisions in planning for the fiscal consequences of legislation. This bill seeks to further promote transparency by requiring fiscal impact notes for all executive orders and rules and regulations.

Legislative history

New bill

Fiscal implications

None noted

Effective date

This act shall take effect on January 1, 2017.