S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    396
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Governmental Operations
 
 AN ACT to amend the state administrative procedure act, in  relation  to
   detailing  the  benefits  and  costs  of  proposed rules in regulatory
   impact statements

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  legislature  finds that many rules of state agencies
 have a substantial impact on the lives  of  the  public,  and  therefore
 should be adopted through a process which provides for open and reasoned
 consideration  of the potential costs and benefits of regulatory action.
 To this end, the statutes governing the  rulemaking  process  should  be
 improved to ensure that agency assessments of the costs and the benefits
 of proposed rules are reasonably accurate and comprehensive.
   §  2.  Paragraph  (b)  of  subdivision 4-a of section 202 of the state
 administrative procedure act, as added by chapter 335  of  the  laws  of
 1992, is amended to read as follows:
   (b)  Each  agency  shall  publish  and make available to the public an
 assessment of public comment for a rule revised pursuant to this  subdi-
 vision. Such assessment shall be based upon any written comments submit-
 ted  to the agency and any comments presented at any public hearing held
 on the proposed rule by the agency. The assessment shall contain: (i)  a
 summary  and  an  analysis of the issues raised and significant alterna-
 tives suggested by any such comments; (ii) a statement  of  the  reasons
 why  any  significant  alternatives were not incorporated into the rule;
 and (iii) a description of any changes made in the rule as a  result  of
 such  comments. IF ANY COMMENTS INCLUDED ESTIMATES OF PROJECTED COSTS OR
 BENEFITS OF THE PROPOSED RULE TO THE STATE, LOCAL GOVERNMENTS  OR  REGU-
 LATED  OR OTHERWISE AFFECTED PERSONS OR ENTITIES, WHICH DIFFERED SIGNIF-
 ICANTLY FROM THOSE PRESENTED BY THE  AGENCY  IN  ITS  REGULATORY  IMPACT
 STATEMENT,  REGULATORY  FLEXIBILITY  ANALYSIS, OR RURAL AREA FLEXIBILITY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00401-01-7

 A. 396                              2
 
 ANALYSIS, THE ASSESSMENT SHALL ALSO SUMMARIZE THE AGENCY'S ASSESSMENT OF
 SUCH ESTIMATES. COPIES OF COMMENTS WHICH INCLUDE ESTIMATES OF  PROJECTED
 COSTS OR BENEFITS WHICH DIFFER SIGNIFICANTLY FROM THE AGENCY'S ESTIMATES
 SHALL  ACCOMPANY  THE  ASSESSMENT OF PUBLIC COMMENT DISTRIBUTED WITH THE
 RULE MAKING NOTICE PURSUANT TO PARAGRAPH (A)  OF  SUBDIVISION  SIX-A  OF
 THIS  SECTION.  If no comments have been received, the notice of revised
 rule making shall state that no comments were received  by  the  agency.
 Any  subsequent assessment published pursuant to this paragraph or para-
 graph (b) of subdivision five of this section need only include comments
 not addressed in any previously published assessment of  public  comment
 for  the rule; provided, however, that the notice of revised rule making
 or adoption shall contain the date any previous notice of  revised  rule
 making  containing  an assessment of public comment was published in the
 state register.
   § 3. Paragraph (b) of subdivision 5 of section 202 of the state admin-
 istrative procedure act, as amended by chapter 171 of the laws of  1994,
 is amended to read as follows:
   (b)  Except  with  respect to any rule defined in subparagraph (ii) of
 paragraph (a) of subdivision two of section  one  hundred  two  of  this
 chapter,  each  agency shall publish and make available to the public an
 assessment of public comment for a rule adopted pursuant to this  subdi-
 vision or paragraph (e) of subdivision six of this section. Such assess-
 ment  shall  be  based upon any written comments submitted to the agency
 and any comments presented at any public hearing held  on  the  proposed
 rule  by  the agency. The assessment shall contain: (i) a summary and an
 analysis of the issues raised and significant alternatives suggested  by
 any  such  comments, (ii) a statement of the reasons why any significant
 alternatives were not incorporated into the rule and (iii) a description
 of any changes made in the rule as a result of  such  comments.  If  any
 comments  included  estimates  of  projected  costs  OR  BENEFITS of the
 proposed rule to the state, local governments or regulated OR  OTHERWISE
 AFFECTED  persons  OR  ENTITIES, which differed significantly from those
 presented by the agency in its regulatory impact  statement,  regulatory
 flexibility analysis, or rural area flexibility analysis, the assessment
 shall  also summarize the agency's assessment of such estimates.  COPIES
 OF COMMENTS WHICH INCLUDE ESTIMATES OF PROJECTED COSTS OR BENEFITS WHICH
 DIFFER SIGNIFICANTLY FROM THE AGENCY'S  ESTIMATES  SHALL  ACCOMPANY  THE
 ASSESSMENT  OF  PUBLIC  COMMENT  DISTRIBUTED WITH THE RULE MAKING NOTICE
 PURSUANT TO PARAGRAPH (A) OF SUBDIVISION SIX-A OF THIS  SECTION.  If  no
 comments  have been received, the notice of adoption shall state that no
 comments were received by the agency. Comments submitted or presented to
 the agency by a legislative committee or commission or by  a  member  or
 members of the senate or assembly shall be considered public comment and
 shall be summarized and analyzed in the assessment.
   §  4. Paragraphs (b), (c) and (d) of subdivision 3 of section 202-a of
 the state administrative procedure act,  paragraph  (b)  as  amended  by
 chapter 229 of the laws of 2000 and paragraphs (c) and (d) as amended by
 chapter 520 of the laws of 1992, are amended to read as follows:
   (b)  Needs  and  benefits.  A  statement setting forth the purpose of,
 necessity for, and benefits derived from the rule[, a citation  for  and
 summary, not to exceed five hundred words, of each scientific or statis-
 tical  study,  report or analysis that served as the basis for the rule,
 an explanation of how it was used to determine  the  necessity  for  and
 benefits derived from the rule, and the name of the person that produced
 each study, report or analysis] WHICH SHALL INCLUDE:

 A. 396                              3
 
   (I)  INFORMATION  IDENTIFYING THE CLASSES OF PERSONS OR ENTITIES WHICH
 WOULD BENEFIT FROM THE RULE;
   (II)  AN  ASSESSMENT,  INCLUDING  THE UNDERLYING ANALYSIS, OF BENEFITS
 ANTICIPATED FROM THE RULE; INCLUDING, BUT NOT LIMITED TO, ANY DIRECT  OR
 INDIRECT  BENEFITS FOR THE ECONOMY AND PRIVATE MARKETS, HEALTH AND SAFE-
 TY, THE  NATURAL  ENVIRONMENT,  AND  THE  ELIMINATION  OR  REDUCTION  OF
 DISCRIMINATION  OR  BIAS,  AND  ANY  OTHER  SIGNIFICANT BENEFITS. TO THE
 EXTENT FEASIBLE, THE ASSESSMENT SHALL INCLUDE A QUANTIFICATION OF  THOSE
 BENEFITS  AND DESCRIBE THE SOURCES OF INFORMATION AND METHODOLOGY UNDER-
 LYING SUCH QUANTIFICATION. WHERE IT IS DIFFICULT OR IMPOSSIBLE TO  QUAN-
 TIFY  BENEFITS,  THE  ASSESSMENT SHALL INCLUDE A QUALITATIVE ANALYSIS OF
 SUCH BENEFITS; AND
   (III) A CITATION FOR AND SUMMARY, NOT TO EXCEED FIVE HUNDRED WORDS, OF
 EACH SCIENTIFIC OR STATISTICAL STUDY, REPORT OR ANALYSIS THAT SERVED  AS
 THE  BASIS  FOR THE RULE, AN EXPLANATION OF HOW IT WAS USED TO DETERMINE
 THE NECESSITY FOR AND BENEFITS DERIVED FROM THE RULE, AND  THE  NAME  OF
 THE PERSON THAT PRODUCED EACH STUDY, REPORT OR ANALYSIS;
   (c) Costs. A statement detailing the projected [costs] COST IMPACTS of
 the rule[, which shall indicate:
   (i)  the  costs  for  the implementation of, and continuing compliance
 with, the rule to regulated persons;
   (ii) the costs for the implementation of, and continued administration
 of, the rule to the agency and to the state and its  local  governments;
 and
   (iii)  the information, including the source or sources of such infor-
 mation, and methodology upon which the cost analysis is based; or
   (iv) where an agency finds that it cannot fully provide a statement of
 such costs, a statement setting forth its  best  estimate,  which  shall
 indicate  the  information and methodology upon which such best estimate
 is based and the reason or reasons why a complete cost statement  cannot
 be  provided;]  ON  PERSONS  OR ENTITIES WHO WOULD BE DIRECTLY REGULATED
 UNDER THE RULE, PERSONS OR ENTITIES WHO WOULD NOT BE REGULATED BUT WOULD
 OTHERWISE BE SIGNIFICANTLY AFFECTED BY  THE  RULE,  AND  ON  THE  AGENCY
 PROPOSING  THE  RULE,  OTHER  STATE ENTITIES AND LOCAL GOVERNMENTS. SUCH
 STATEMENT SHALL INCLUDE AN ASSESSMENT, INCLUDING THE  UNDERLYING  ANALY-
 SIS,  OF  INITIAL  AND  CONTINUING  COSTS ANTICIPATED TO RESULT FROM THE
 RULE, INCLUDING, BUT NOT LIMITED TO, THE DIRECT COSTS TO  GOVERNMENT  IN
 ADMINISTERING  THE  RULE  AND TO BUSINESSES AND OTHERS IN COMPLYING WITH
 THE RULE, AND ANY ADVERSE EFFECTS ON THE EFFICIENT  FUNCTIONING  OF  THE
 ECONOMY,   PRIVATE  MARKETS  (INCLUDING  PRODUCTIVITY,  EMPLOYMENT,  AND
 COMPETITIVENESS), HEALTH, SAFETY, AND THE NATURAL ENVIRONMENT, AND OTHER
 SIGNIFICANT COSTS. TO THE EXTENT FEASIBLE, THE ASSESSMENT SHALL  INCLUDE
 A  QUANTIFICATION OF THOSE COSTS AND DESCRIBE THE SOURCES OF INFORMATION
 AND METHODOLOGY UNDERLYING SUCH QUANTIFICATION. WHERE IT IS DIFFICULT OR
 IMPOSSIBLE TO QUANTIFY COSTS, THE ASSESSMENT SHALL INCLUDE A QUALITATIVE
 ANALYSIS OF SUCH COSTS;
   (d) Paperwork. A statement  describing  the  need  for  any  reporting
 requirements,  including  forms and other paperwork AND ANY REPORTING BY
 ELECTRONIC MEDIA, which would be required as a result of the rule;
   § 5. This act shall  take  effect  on  the  first  of  September  next
 succeeding the date on which it shall have become a law, and shall apply
 to  any  rule  for which a notice of proposed rule making or a notice of
 emergency adoption is first prepared on or after such effective date.