S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5582
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 18, 2025
                                ___________
 
 Introduced  by  M.  of  A.  BARCLAY, PALMESANO, HAWLEY, BRABENEC, WALSH,
   MILLER, MANKTELOW, JENSEN, GALLAHAN, DeSTEFANO, BLANKENBUSH, TAGUE  --
   Multi-Sponsored by -- M. of A. K. BROWN, DiPIETRO, FRIEND -- read once
   and referred to the Committee on Governmental Operations
 
 AN  ACT  to  amend the executive law, the state administrative procedure
   act and the legislative law, in relation to the division of regulatory
   review and economic growth and imposing a two-for-one  rule  reduction
   requirement
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The executive law is amended by adding a new article 43  to
 read as follows:
                                ARTICLE 43
             DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
 SECTION 930. DEFINITIONS.
         931. DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH.
         932. GENERAL FUNCTIONS, POWERS AND DUTIES.
         933. ASSISTANCE OF OTHER STATE AGENCIES.
         934. REGULATION REVIEW.
         935. DIVISION ANNUAL RECOMMENDATIONS.
         936. IMPLEMENTATION OF RECOMMENDATIONS.
         937. COST OF REGULATION STUDY.
   §  930.  DEFINITIONS.  WHEN  USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DIVISION OF REGULATORY
 REVIEW AND ECONOMIC GROWTH.
   2. "DIVISION" MEANS THE DIVISION OF  REGULATORY  REVIEW  AND  ECONOMIC
 GROWTH CREATED BY THIS ARTICLE.
   3.  "PERMIT"  SHALL MEAN THE WHOLE OR PART OF ANY STATE AGENCY PERMIT,
 LICENSE, CERTIFICATE, APPROVAL, REGISTRATION, CHARTER, OR  SIMILAR  FORM
 OF  PERMISSION  OR  AUTHORITY  REQUIRED  BY  LAW OR BY STATE AGENCY RULE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03956-02-5
              

 A. 5582                             2
 
 HAVING THE FORCE AND EFFECT OF LAW, WHICH IS  REQUIRED  FOR  A  BUSINESS
 UNDERTAKING,  PROJECT  OR ACTIVITY; PROVIDED, HOWEVER, IT SHALL NOT MEAN
 INDIVIDUAL LICENSES FOR PRACTICING  A  PROFESSION  PRESCRIBED  IN  TITLE
 EIGHT  OF  THE EDUCATION LAW, FILINGS UNDER THE UNIFORM COMMERCIAL CODE,
 OR ROUTINE LICENSES AND PERMITS  FOR  INDIVIDUAL  PRIVILEGES,  INCLUDING
 LICENSES  FOR  OPERATING  A MOTOR VEHICLE AND AMATEUR SPORTING LICENSES,
 SUCH AS FOR HUNTING AND FISHING.
   4. "RULE" MEANS A RULE AS DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH (A)
 OF SUBDIVISION TWO OF SECTION ONE HUNDRED TWO OF THE  STATE  ADMINISTRA-
 TIVE  PROCEDURE ACT, INCLUDING RULES OF THE WORKERS' COMPENSATION BOARD,
 BUT DOES NOT INCLUDE THE RULES OF  THE  STATE  COMPTROLLER  OR  ATTORNEY
 GENERAL,  RULES  REGARDING  JURISDICTIONAL  CLASSIFICATIONS  PURSUANT TO
 SUBDIVISION ONE OF SECTION SIX OF THE CIVIL SERVICE LAW, AND THE  ALTER-
 ATION  OF  HUNTING  OR FISHING SEASONS PURSUANT TO ARTICLE ELEVEN OF THE
 ENVIRONMENTAL CONSERVATION LAW.
   5. "STATE AGENCY" MEANS AN AGENCY AS DEFINED  IN  SUBDIVISION  ONE  OF
 SECTION ONE HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
   §  931. DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH. 1. THERE IS
 HEREBY CREATED IN THE EXECUTIVE DEPARTMENT THE  DIVISION  OF  REGULATORY
 REVIEW  AND  ECONOMIC  GROWTH.  THE  HEAD  OF  THE DIVISION SHALL BE THE
 COMMISSIONER OF THE DIVISION WHO SHALL BE APPOINTED BY THE GOVERNOR WITH
 THE CONSENT OF THE SENATE AND SERVE A TERM OF FIVE YEARS.
   2. THE COMMISSIONER MUST HAVE AT LEAST TEN YEARS OF EXPERIENCE RUNNING
 A FOR-PROFIT BUSINESS, WITH AT LEAST THREE YEARS EXPERIENCE AS THE CHIEF
 EXECUTIVE OFFICER, CHIEF OPERATING   OFFICER, CHIEF  FINANCIAL  OFFICER,
 PRESIDENT,  OWNER, OR ANY OTHER TITLE USED FOR THE HIGHEST RANKING OFFI-
 CER, ADMINISTRATOR OR MANAGER OF A FOR-PROFIT BUSINESS.
   3. THE COMMISSIONER SHALL BE APPOINTED BY THE GOVERNOR  WITHIN  THIRTY
 DAYS OF THE EFFECTIVE DATE OF THIS SECTION AND WITHIN THIRTY DAYS OF THE
 EXPIRATION  OF EVERY FIVE YEAR TERM THEREAFTER, AND UPON CONFIRMATION OF
 THE SENATE SHALL SERVE A TERM OF FIVE YEARS EFFECTIVE FROM THE  DATE  OF
 CONFIRMATION.  IF  THE SENATE REJECTS AN APPOINTMENT, THE GOVERNOR SHALL
 HAVE THIRTY DAYS FROM THE DATE  OF  THE  REJECTION  TO  APPOINT  ANOTHER
 COMMISSIONER.
   4.  THE  COMMISSIONER  MAY  ONLY  BE  REMOVED  FROM OFFICE BY A FELONY
 CONVICTION OR A CRIME INVOLVING A VIOLATION OF THEIR OATH OF  OFFICE  OR
 BY THE ASSENT OF TWO-THIRDS OF THE MEMBERS ELECTED TO EACH BRANCH OF THE
 LEGISLATURE VOTING SEPARATELY.
   5. SUCH COMMISSIONER SHALL RECEIVE AN ANNUAL SALARY TO BE FIXED BY THE
 GOVERNOR  WITHIN THE AMOUNT MADE AVAILABLE THEREFOR BY APPROPRIATION AND
 SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES IN THE  PERFORMANCE
 OF THEIR DUTIES.
   6.  UPON  APPOINTMENT  AND  UNTIL  SUCH TERM EXPIRES, THE COMMISSIONER
 SHALL NOT (A) PARTICIPATE IN ANY PARTISAN  POLITICAL  PARTY  ACTIVITIES,
 EXCEPT THAT SUCH CANDIDATE MAY REGISTER TO VOTE AS A MEMBER OF ANY POLI-
 TICAL  PARTY  AND MAY VOTE IN ANY PARTY PRIMARY FOR CANDIDATES FOR NOMI-
 NATION OF THE PARTY IN WHICH THEY ARE REGISTERED TO  VOTE;  (B)  ENDORSE
 ANY  CANDIDATE  OR  POLITICAL  PARTY;  OR  (C) MAKE CONTRIBUTIONS TO ANY
 CANDIDATE, POLITICAL PARTY  COMMITTEE,  POLITICAL  ACTION  COMMITTEE  OR
 POLITICAL COMMITTEE PURSUANT TO SUBDIVISION TEN OF SECTION 14-114 OF THE
 ELECTION LAW.
   7. THE COMMISSIONER SHALL DIRECT THE WORK OF THE DIVISION AND SHALL BE
 THE  CHIEF EXECUTIVE OFFICER OF THE DIVISION. THE COMMISSIONER MAY ENTER
 INTO CONTRACTS AND EXPEND MONEY, AND APPOINT SUCH OFFICERS AND EMPLOYEES
 AS THEY MAY DEEM NECESSARY, PRESCRIBE THEIR DUTIES,  FIX  THEIR  COMPEN-
 SATION,  AND PROVIDE FOR THE REIMBURSEMENT OF THEIR EXPENSES, ALL WITHIN
 A. 5582                             3
 
 AMOUNTS MADE AVAILABLE THEREFOR BY APPROPRIATION. SUCH  STAFF  SHALL  BE
 MANAGEMENT  CONFIDENTIAL  EMPLOYEES  WITH  AN  UNDERSTANDING  OF PRIVATE
 SECTOR BUSINESS.
   § 932. GENERAL FUNCTIONS, POWERS AND DUTIES. THE DIVISION OF REGULATO-
 RY  REVIEW AND ECONOMIC GROWTH, BY AND THROUGH THE COMMISSIONER OR THEIR
 DULY AUTHORIZED OFFICERS AND EMPLOYEES, SHALL HAVE THE  FOLLOWING  FUNC-
 TIONS, POWERS AND DUTIES:
   1. TO PROVIDE AN OVERSIGHT, REVIEW AND ANALYSIS OF THE RULES AND REGU-
 LATORY PROCESSES OF STATE AGENCIES.
   2.  TO MAKE BINDING RECOMMENDATIONS TO THE GOVERNOR AND LEGISLATURE ON
 BURDENSOME NEW YORK STATE CODES, RULES,  REGULATIONS,  REGULATORY  PROC-
 ESSES,  AND  PERMIT REQUIREMENTS TO ELIMINATE OR AMEND THEM, PURSUANT TO
 SECTION NINE HUNDRED THIRTY-FIVE OF THIS ARTICLE.
   3. TO REVIEW THE  ENVIRONMENTAL  QUALITY  REVIEW  PROCESS  ESTABLISHED
 UNDER  ARTICLE  EIGHT  OF  THE  ENVIRONMENTAL  CONSERVATION LAW AND MAKE
 RECOMMENDATIONS PURSUANT TO SUBDIVISION TWO OF THIS SECTION TO ESTABLISH
 A MORE EFFICIENT, PREDICTABLE, TIMELY, AND TRANSPARENT PROCESS,  AND  TO
 ENSURE  THAT  THE  PROCESS  DOES  NOT STIFLE ECONOMIC GROWTH IN NEW YORK
 STATE.
   4. TO REVIEW PERMIT REQUIREMENTS AND THE NEED BY THE STATE TO  REQUIRE
 SUCH PERMITS. THE DIVISION SHALL MAKE RECOMMENDATIONS PURSUANT TO SUBDI-
 VISION  TWO  OF  THIS SECTION TO ELIMINATE, CONSOLIDATE, SIMPLIFY, EXPE-
 DITE, OR OTHERWISE IMPROVE PERMITS,  PERMIT  PROCEDURES,  AND  PAPERWORK
 BURDENS AFFECTING LOCAL GOVERNMENTS, SCHOOL DISTRICTS OR BUSINESSES.
   5.  TO ENCOURAGE AND FACILITATE THE PARTICIPATION OF FEDERAL AND LOCAL
 GOVERNMENT AGENCIES IN REGULATORY REVIEW.
   6. TO ESTABLISH AN 800 HOTLINE AND WEBSITE TO PROVIDE BUSINESSES  WITH
 ONE  CONTACT  NUMBER  TO  DIRECT  QUESTIONS AND TO PROVIDE ASSISTANCE TO
 BUSINESSES IN THE STATE OR BUSINESSES LOOKING TO OPEN OR EXPAND  IN  NEW
 YORK STATE. SUCH HOTLINE MAY BE USED TO REPORT REGULATORY BURDENS, STATE
 AGENCIES  OVERREACHING  THEIR  POWER,  EXCESSIVE  FINES  AND  TO  SUBMIT
 REQUESTS FOR REGULATORY REVIEW BY THE COMMISSIONER.
   7. TO ADOPT SUCH RULES AND REGULATIONS, PROCEDURES, INSTRUCTIONS,  AND
 FORMS  AS ARE NECESSARY OR DESIRABLE TO CARRY OUT THE FUNCTIONS, POWERS,
 AND DUTIES IMPOSED UPON THE DIVISION BY THIS ARTICLE.
   8. TO PUBLISH AN ANNUAL REPORT, AFTER JANUARY FIRST AND BEFORE  FEBRU-
 ARY FIRST, COMMENCING TWO THOUSAND TWENTY-SEVEN, INCLUDING ALL RECOMMEN-
 DATIONS  PROPOSED  BY THE DIVISION AND THOSE RECOMMENDATIONS IMPLEMENTED
 BY THE STATE DURING THE PRIOR CALENDAR YEAR. SUCH REPORT  SHALL  INCLUDE
 SPECIFIC DETAILS CONCERNING ESTIMATED COST SAVINGS TO THE TAXPAYERS FROM
 PROPOSED  RECOMMENDATIONS  AND ACTUAL COST SAVINGS TO THE TAXPAYERS FROM
 IMPLEMENTED RECOMMENDATIONS.
   § 933. ASSISTANCE OF OTHER STATE AGENCIES. TO EFFECTUATE THE  PURPOSES
 OF  THIS  ARTICLE, THE COMMISSIONER MAY REQUEST AND SHALL BE ENTITLED TO
 RECEIVE FROM ANY STATE AGENCY, AND THE SAME ARE AUTHORIZED  TO  PROVIDE,
 SUCH ASSISTANCE, SERVICES, FACILITIES, AND DATA AS WILL ENABLE THE DIVI-
 SION TO CARRY OUT ITS FUNCTIONS, POWERS AND DUTIES.
   §  934.  REGULATION  REVIEW. 1. IN DEVELOPING A RULE, EACH AGENCY HEAD
 SHALL, PRIOR TO SUBMITTING A NOTICE OF PROPOSED  OR  REVISED  RULEMAKING
 FOR  PUBLICATION  IN  THE STATE REGISTER PURSUANT TO SECTION TWO HUNDRED
 TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT, SUBMIT TO THE COMMISSION-
 ER, IN SUCH FORM AND MANNER  AS  THE  COMMISSIONER  MAY  PRESCRIBE,  THE
 COMPLETE TEXT OF THE RULE, ANY IMPACT STATEMENTS WHICH WOULD BE REQUIRED
 BY  ARTICLE TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT TO PROPOSE THE
 RULE, AND ANY COST-BENEFIT ANALYSIS, RISK ASSESSMENT AND/OR THE  RESULTS
 A. 5582                             4
 
 OF  A NEGOTIATED RULEMAKING OR POLICY DIALOGUE UNDERTAKEN IN CONJUNCTION
 WITH THE DEVELOPMENT OF THE RULE.
   2.  THE COMMISSIONER SHALL REVIEW THE AGENCY'S SUBMISSION TO DETERMINE
 WHETHER IT IS COMPLETE AND IN ACCORDANCE WITH THE  GOALS,  CRITERIA  AND
 REQUIREMENTS OF THIS ARTICLE AND ARTICLE TWO OF THE STATE ADMINISTRATIVE
 PROCEDURE ACT, INCLUDING WHETHER THE RULE:
   (A) IS CLEARLY WITHIN THE AUTHORITY DELEGATED BY LAW;
   (B) IS CONSISTENT WITH AND NECESSARY TO ACHIEVE A SPECIFIC LEGISLATIVE
 INTENT  OF PROMOTING ECONOMIC GROWTH OR PROTECTING THE HEALTH AND SAFETY
 OF THE PUBLIC;
   (C) IS CONSISTENT WITH STATE STATUTORY REQUIREMENTS;
   (D) DOES NOT IMPOSE A MANDATE ON LOCAL GOVERNMENTS,  SCHOOL  DISTRICTS
 OR  BUSINESSES THAT IS NOT FULLY FUNDED, EXCEPT AS SPECIFICALLY REQUIRED
 BY STATE STATUTE;
   (E) IS CLEARLY WRITTEN SO THAT ITS MEANING WILL BE  EASILY  UNDERSTOOD
 BY THOSE PERSONS AFFECTED BY IT;
   (F)  DOES  NOT  UNNECESSARILY  DUPLICATE OR EXCEED EXISTING FEDERAL OR
 STATE STATUTES OR RULES;
   (G) PRESCRIBES METHODOLOGIES  OR  REQUIREMENTS  THAT  ALLOW  REGULATED
 PARTIES  FLEXIBILITY AND ENCOURAGE INNOVATION IN MEETING THE LEGISLATIVE
 OR ADMINISTRATIVE REQUIREMENTS AND OBJECTIVES UNDERLYING THE RULE;
   (H) IS BASED ON CREDIBLE ASSESSMENTS, USING RECOGNIZED  STANDARDS,  OF
 THE  DEGREE  AND NATURE OF THE RISKS WHICH MAY BE REGULATED, INCLUDING A
 COMPARISON WITH EVERYDAY RISKS FAMILIAR TO THE PUBLIC;
   (I) GIVES PREFERENCE TO THE LEAST COSTLY, LEAST BURDENSOME  REGULATORY
 AND PAPERWORK REQUIREMENTS NEEDED TO ACCOMPLISH LEGISLATIVE AND ADMINIS-
 TRATIVE OBJECTIVES;
   (J) IS BASED UPON THE BEST SCIENTIFIC, TECHNICAL AND ECONOMIC INFORMA-
 TION THAT CAN REASONABLY AND AFFORDABLY BE OBTAINED; AND
   (K)  IF  POSSIBLE  AND PRACTICAL, FAVORS MARKET-ORIENTED SOLUTIONS AND
 PERFORMANCE STANDARDS OVER COMMAND-AND-CONTROL REGULATION.
   3. IF THE COMMISSIONER DETERMINES THAT  THE  SUBMISSION  IS  COMPLETE,
 COMPLIES  WITH  THE  PROVISIONS OF SUBDIVISION TWO OF THIS SECTION, WILL
 PROMOTE ECONOMIC GROWTH, OR IS VITAL TO PROTECT THE HEALTH AND SAFETY OF
 THE PUBLIC, THE COMMISSIONER SHALL AUTHORIZE THE AGENCY  TO  SUBMIT  THE
 RULEMAKING FOR PUBLICATION IN THE STATE REGISTER PURSUANT TO SECTION TWO
 HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
   4.  IF  THE  COMMISSIONER DETERMINES THE SUBMISSION IS NOT COMPLETE OR
 DOES NOT COMPLY  WITH  THE  REQUIREMENTS  OF  SUBDIVISION  TWO  OF  THIS
 SECTION,  OR  IS DETRIMENTAL TO ECONOMIC GROWTH IN NEW YORK STATE, OR IS
 NOT VITAL TO PROTECT THE HEALTH AND SAFETY OF THE  PUBLIC,  THE  COMMIS-
 SIONER MAY REJECT THE RULE OR RETURN IT TO THE AGENCY, TOGETHER WITH ANY
 DIRECTION  THAT  THE  AGENCY  AMEND,  PREPARE  OR  REVISE  THE RULE, ANY
 SUPPORTING IMPACT STATEMENTS, COST BENEFIT  ANALYSIS,  RISK  ASSESSMENT,
 AND/OR UNDERTAKE A NEGOTIATED RULEMAKING OR POLICY DIALOGUE TO DEVELOP A
 RULE  FOR PROPOSAL.   THE DIVISION MAY ASSIST THE AGENCY IN DEVELOPING A
 PROPOSAL THAT MEETS THE REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION.
   5. AN AGENCY  MAY  CONSULT  INFORMALLY  WITH  THE  DIVISION  REGARDING
 PROPOSED RULES, SUPPORTING IMPACT STATEMENTS, AND OTHER DOCUMENTS AT ANY
 TIME  PRIOR  TO THE SUBMISSION OF SUCH MATERIALS PURSUANT TO SUBDIVISION
 ONE OF THIS SECTION. SUCH INFORMAL CONSULTATION SHALL NOT BE BINDING  ON
 THE DIVISION OR THE AGENCY.
   6.  NO  AGENCY HEAD SHALL SUBMIT A NOTICE OF PROPOSED OR REVISED RULE-
 MAKING FOR PUBLICATION IN THE STATE REGISTER  PURSUANT  TO  SECTION  TWO
 HUNDRED  TWO  OF THE STATE ADMINISTRATIVE PROCEDURE ACT, WITHOUT EXPRESS
 APPROVAL  BY  THE  COMMISSIONER.  THE  COMMISSIONER,   IN   THEIR   SOLE
 A. 5582                             5

 DISCRETION,  MAY  REJECT  ANY  PARTICULAR RULE OR CATEGORY OF RULES THEY
 DETERMINE IS DETRIMENTAL TO ECONOMIC GROWTH IN NEW YORK STATE, OR IS NOT
 VITAL TO PROTECT THE HEALTH AND SAFETY  OF  THE  PUBLIC.  THE  DIVISIONS
 SHALL PROMPTLY NOTIFY THE AGENCY OF ANY SUCH REJECTION.
   §  935.  DIVISION  ANNUAL RECOMMENDATIONS. ON OR BEFORE JANUARY FIRST,
 TWO THOUSAND TWENTY-SIX AND  ANNUALLY  THEREAFTER,  THE  DIVISION  SHALL
 TRANSMIT  TO  THE  GOVERNOR  AND THE LEGISLATURE A REPORT CONTAINING ITS
 RECOMMENDATIONS, WHICH SHALL INCLUDE:
   1. SPECIFIC RECOMMENDATIONS FOR REPEALING OR AMENDING NEW  YORK  STATE
 CODES, RULES, REGULATIONS, REGULATORY PROCESSES, AND PERMIT REQUIREMENTS
 AS  IT  DEEMS  NECESSARY  TO  LOWER  COSTS FOR LOCAL GOVERNMENTS, SCHOOL
 DISTRICTS AND BUSINESSES OR PROMOTE ECONOMIC GROWTH; AND
   2. RECOMMENDED DATES BY WHICH SUCH ACTIONS SHOULD OCCUR.
   § 936.  IMPLEMENTATION  OF  RECOMMENDATIONS.  1.  NOTWITHSTANDING  ANY
 CONTRARY  PROVISION  OF LAW, RULE OR REGULATION RELATED TO THE REPEAL OR
 AMENDMENT OF ANY NEW YORK STATE CODES,  RULES,  REGULATIONS,  REGULATORY
 PROCESSES,  AND  PERMIT REQUIREMENTS IDENTIFIED IN THE DIVISION'S RECOM-
 MENDATIONS, THE SECRETARY OF STATE SHALL TAKE ALL ACTIONS  NECESSARY  TO
 IMPLEMENT,  IN  A REASONABLE, COST-EFFICIENT MANNER, THE RECOMMENDATIONS
 OF THE DIVISION PURSUANT TO SECTION NINE  HUNDRED  THIRTY-FIVE  OF  THIS
 ARTICLE, INCLUDING, BUT NOT LIMITED TO COORDINATION WITH STATE AGENCIES,
 AUTHORITIES, AND OTHER PARTIES AS THE COMMISSIONER DEEMS APPROPRIATE.
   2.  THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL NOT APPLY:
 (A) UNLESS THE GOVERNOR HAS  TRANSMITTED  THE  DIVISION'S  REPORT  UNDER
 SECTION  NINE  HUNDRED  THIRTY-FIVE  OF  THIS ARTICLE WITH THEIR WRITTEN
 APPROVAL OF THE RECOMMENDATIONS OF THE DIVISION PURSUANT TO SECTION NINE
 HUNDRED THIRTY-FIVE OF THIS ARTICLE TO THE SECRETARY OF STATE AND TRANS-
 MITTED A MESSAGE TO THE LEGISLATURE STATING THEIR APPROVAL OR  REJECTION
 OF  THE  REPORT  WITHIN FIVE DAYS OF RECEIVING SUCH REPORT; AND (B) IF A
 MAJORITY OF THE MEMBERS OF EACH HOUSE OF THE LEGISLATURE VOTE TO ADOPT A
 CONCURRENT RESOLUTION REJECTING  THE  RECOMMENDATIONS  OF  THE  DIVISION
 PURSUANT  TO  SECTION  NINE HUNDRED THIRTY-FIVE OF THIS ARTICLE IN THEIR
 ENTIRETY WITHIN SIXTY DAYS, AFTER RECEIVING A MESSAGE FROM THE  GOVERNOR
 UNDER  THIS  SUBDIVISION. IN NO EVENT SHALL THE SECRETARY OF STATE BEGIN
 TO IMPLEMENT THE RECOMMENDATIONS OF THE  DIVISION  PURSUANT  TO  SECTION
 NINE  HUNDRED THIRTY-FIVE OF THIS ARTICLE PRIOR TO THE EXPIRATION OF THE
 LEGISLATURE'S SIXTY DAY REVIEW PERIOD.
   § 937. COST OF REGULATION STUDY. 1. THE COMMISSIONER IS HEREBY AUTHOR-
 IZED AND DIRECTED TO PREPARE OR HAVE PREPARED A COMPREHENSIVE  STUDY  TO
 MEASURE  AND REPORT THE COST OF REGULATIONS TO BUSINESSES THROUGHOUT THE
 STATE OF NEW YORK.
   2. SUCH STUDY SHALL BE COMPLETED WITHIN EIGHTEEN MONTHS OF THE  EFFEC-
 TIVE  DATE  OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-FIVE WHICH
 ADDED THIS ARTICLE.
   § 2. Paragraph (a) of subdivision 6-a of  section  202  of  the  state
 administrative  procedure  act, as amended by chapter 512 of the laws of
 2019, is amended to read as follows:
   (a) An agency shall transmit a copy of any rule making notice prepared
 pursuant to this article AND APPROVED BY THE COMMISSIONER OF  THE  DIVI-
 SION  OF  REGULATORY  REVIEW  AND  ECONOMIC  GROWTH  PURSUANT TO ARTICLE
 FORTY-THREE OF THE EXECUTIVE LAW to the governor, the  temporary  presi-
 dent  of the senate, the speaker of the assembly, THE MINORITY LEADER OF
 THE SENATE, THE MINORITY LEADER OF THE ASSEMBLY and  the  administrative
 regulations  review  commission  at the time such notice is submitted to
 the secretary of state for publication in the state register. Such tran-
 smittal shall include the complete rule text, regulatory  impact  state-
 A. 5582                             6
 
 ment,  regulatory flexibility analysis, rural area flexibility analysis,
 or revisions thereof, and any other information submitted to the  secre-
 tary  of  state  pursuant to this article. Furthermore, such transmittal
 may be completed by electronic means in accordance with article three of
 the state technology law.
   § 3. Section 86 of the legislative law, as added by chapter 689 of the
 laws of 1978, is amended to read as follows:
   § 86. Administrative  regulations  review  commission. There is hereby
 created an administrative regulations review commission  to  consist  of
 two  members of the senate to be appointed by the temporary president of
 the senate, two members of the assembly to be appointed by  the  speaker
 of  the assembly, [one member] TWO MEMBERS of the senate to be appointed
 by the minority leader of the senate and [one member] TWO MEMBERS of the
 assembly to be appointed by the minority leader  of  the  assembly.  The
 temporary  president of the senate and the speaker of the assembly shall
 each appoint a [co-chairman] CO-CHAIR from among the commission  member-
 ship.   Any vacancies shall be filled in the same manner as the original
 appointment.  Such appointees shall serve at the pleasure of the respec-
 tive legislative member making such appointment.
   § 4. Section 87 of the legislative law, as added by chapter 689 of the
 laws of 1978 and subdivision 4 as added by chapter 512 of  the  laws  of
 2019, is amended to read as follows:
   § 87. Powers  and  duties. 1. The commission shall exercise continuous
 oversight of the process of rule making and examine rules, as defined in
 subdivision two of section one hundred two of the  state  administrative
 procedure  act,  adopted  or proposed by each agency with respect to (i)
 statutory authority, (ii)  compliance  with  legislative  intent,  (iii)
 impact  on the economy and on the government operations of the state and
 its local governments, and (iv) impact  on  affected  parties;  and,  in
 furtherance  of such duties, may examine other issues it deems appropri-
 ate. For purpose of this article, the term agency shall mean any depart-
 ment, board, bureau, commission, division, office, council, committee or
 officer of the state or a public benefit corporation or public authority
 at least one of whose members is appointed by the governor.
   2. THE COMMISSION SHALL REVIEW ANY LEGISLATION REQUIRING A COMMISSION-
 ER OR AGENCY AS DEFINED BY SUBDIVISION ONE OF SECTION ONE HUNDRED TWO OF
 THE STATE ADMINISTRATIVE PROCEDURE ACT, TO PROMULGATE ANY  CODES,  RULES
 AND  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION AND MAKE RECOMMENDA-
 TIONS TO THE MEMBERS OF THE  LEGISLATURE.  SUCH  RECOMMENDATIONS  SHOULD
 INCLUDE THE COMMISSION'S APPROVAL IF THE LEGISLATION IS DEEMED NECESSARY
 TO  PROTECT  THE  HEALTH  AND  SAFETY  OF THE PUBLIC OR THE COMMISSION'S
 DISAPPROVAL IF SUCH LEGISLATION IS DEEMED DETRIMENTAL TO ECONOMIC GROWTH
 IN NEW YORK STATE, OR IS NOT VITAL TO PROTECT THE HEALTH AND  SAFETY  OF
 THE PUBLIC.
   3.  THE COMMISSION SHALL REVIEW NEW YORK STATE LAWS THAT RESULT IN THE
 PROMULGATION OF CODES, RULES OR REGULATIONS BY A COMMISSIONER OR  AGENCY
 AS  DEFINED  BY  SUBDIVISION ONE OF SECTION ONE HUNDRED TWO OF THE STATE
 ADMINISTRATIVE PROCEDURE ACT, OR ANY LAWS THE COMMISSION DEEMS A REGULA-
 TORY BURDEN ON LOCAL GOVERNMENTS, SCHOOL  DISTRICTS  OR  BUSINESSES  AND
 MAKE RECOMMENDATIONS TO THE MEMBERS OF THE LEGISLATURE. SUCH RECOMMENDA-
 TIONS  SHOULD INCLUDE THE COMMISSION'S REQUEST FOR THE REPEAL OF LAWS IT
 DEEMS INCREASE COSTS FOR LOCAL GOVERNMENTS, SCHOOL  DISTRICTS  OR  BUSI-
 NESSES  OR  ARE DETRIMENTAL TO ECONOMIC GROWTH IN NEW YORK STATE, OR ARE
 NOT VITAL TO PROTECT THE HEALTH AND SAFETY OF THE PUBLIC.
   4. The commission may employ such staff and  retain  such  consultants
 and  expert  services as may be necessary and fix their compensation and
 A. 5582                             7
 
 expenses within the amounts appropriated  therefor.  Employment  by  the
 commission  shall  be deemed to be employment by the legislature for all
 purposes.
   [3] 5.  The commission shall have the power, subject to the provisions
 of  section  seventy-three  of  the  civil rights law, to hold hearings,
 subpoena witnesses, administer oaths,  take  testimony  and  compel  the
 production of books, papers, documents and other evidence in furtherance
 of  its  duties;  provided, however, that no subpoena shall issue except
 upon the affirmative vote of a majority of the whole membership  of  the
 commission.  The commission may request and shall receive from all agen-
 cies such assistance and data as will enable it properly  to  consummate
 any such examination, and review.
   [4.]  6.  The  commission  shall be authorized to request and receive,
 from a state agency, all rulemaking notices, statements and analyses  as
 provided  for  pursuant to the state administrative procedure act, data,
 rules, regulations and other information by electronic means as provided
 for by article three of the state technology law.
   § 5. Section 88 of the legislative law, as amended by chapter  850  of
 the laws of 1990, is amended to read as follows:
   § 88. Reports.  The  commission  shall,  [from time to time] ANNUALLY,
 report its findings and recommendations to the governor,  the  temporary
 president  of  the  senate and the speaker of the assembly, THE MINORITY
 LEADER OF THE SENATE, THE MINORITY LEADER OF THE ASSEMBLY,  and  to  the
 members  of the legislature, and may at any time make recommendations to
 THE DIVISION OF REGULATORY REVIEW AND  ECONOMIC  GROWTH  AND  an  agency
 based  upon  its  review of that agency's rule making process, or any of
 the agency's proposed, revised or adopted rules.
   § 6. The legislative law is amended by adding a new  section  88-a  to
 read as follows:
   §  88-A.  REGULATORY WEDNESDAYS. 1. EVERY WEDNESDAY, WHICH IS A SCHED-
 ULED SESSION DAY FOR THE LEGISLATURE IN  EVERY  WEEK  BEGINNING  WITH  A
 SCHEDULED  SESSION  DAY ON MONDAY, SHALL BE DEEMED REGULATORY WEDNESDAY.
 THE COMMISSION SHALL BE REQUIRED TO MEET ON EVERY  REGULATORY  WEDNESDAY
 TO  PERFORM  ITS  POWERS  AND DUTIES PURSUANT TO SECTION EIGHTY-SEVEN OF
 THIS ARTICLE.
   2. ON EVERY REGULATORY WEDNESDAY, THE SENATE AND ASSEMBLY  SHALL  TAKE
 UP  ANY BILLS ON ANY ORDER OF THIRD READING THAT ARE BEFORE EACH RESPEC-
 TIVE HOUSE FOR FINAL DISPOSITION, THAT HAVE GAINED THE APPROVAL  OF  THE
 COMMISSION PRIOR TO TAKING UP ANY OTHER BILL ON ANY ORDER OF THIRD READ-
 ING,  UNLESS SUCH ACTION IS WAIVED, WITHOUT DEBATE, UPON A MAJORITY VOTE
 OF THE MEMBERS PRESENT.
   § 7. The state administrative procedure act is amended by adding a new
 article 2-A to read as follows:
 
                                ARTICLE 2-A
                  REGULATORY REDUCTION AND SIMPLIFICATION
 
 SECTION 220. TWO-FOR-ONE RULE REDUCTION REQUIREMENT.
   § 220. TWO-FOR-ONE RULE REDUCTION REQUIREMENT. 1. FOR THE PURPOSES  OF
 THIS SECTION, THE TERM "REGULATORY BURDEN" SHALL BE DEFINED AS:
   (A)  THE  TOTAL  COSTS IMPOSED ON BUSINESSES, COMMUNITY ORGANIZATIONS,
 AND INDIVIDUALS BY GOVERNMENT REGULATIONS  AND  ADMINISTRATIVE  REQUIRE-
 MENTS, INCLUDING BUT NOT LIMITED TO:
   (I)  FINANCIAL  COSTS, SUCH AS DIRECT COMPLIANCE EXPENSES AND ADMINIS-
 TRATIVE FEES;
 A. 5582                             8
 
   (II) TIME COSTS, INCLUDING DELAYS IN APPROVALS  OR  APPLICATIONS,  AND
 HOURS SPENT ON PAPERWORK AND REPORTING;
   (III)  OPERATIONAL  COSTS,  SUCH  AS  CHANGES TO BUSINESS PROCESSES OR
 PRACTICES;
   (IV) OPPORTUNITY COSTS, INCLUDING FOREGONE BUSINESS  OPPORTUNITIES  OR
 INNOVATIONS; AND
   (V) RESOURCE ALLOCATION COSTS, INCLUDING STAFF TIME AND EFFORT DEVOTED
 TO REGULATORY COMPLIANCE INSTEAD OF CORE BUSINESS ACTIVITIES; AND
   (B) THE CUMULATIVE IMPACT OF MULTIPLE REGULATIONS ON THE OVERALL EFFI-
 CIENCY  AND  EFFECTIVENESS  OF BUSINESS OPERATIONS AND INDIVIDUAL ACTIV-
 ITIES.
   2. FOR EACH NEW RULE OR REGULATION PROPOSED BY  A  STATE  AGENCY,  THE
 AGENCY  SHALL  IDENTIFY AT LEAST TWO EXISTING RULES OR REGULATIONS TO BE
 REPEALED.
   3. THE AGENCY SHALL PROVIDE A JUSTIFICATION FOR THE SELECTION OF RULES
 TO BE ELIMINATED, CONSIDERING FACTORS INCLUDING BUT NOT LIMITED TO:
   (A) OUTDATED OR UNNECESSARY REQUIREMENTS;
   (B) REGULATORY BURDEN ON BUSINESSES AND CITIZENS; AND
   (C) ALIGNMENT WITH CURRENT STATUTES AND BEST PRACTICES.
   4. THE PROPOSED RULE ELIMINATIONS SHALL BE INCLUDED IN THE  NOTICE  OF
 PROPOSED  RULEMAKING  AND  SUBJECT  TO  PUBLIC COMMENT AS REQUIRED UNDER
 SECTION TWO HUNDRED TWO OF THIS CHAPTER.
   5. THE AGENCY SHALL DEMONSTRATE THAT THE NET EFFECT OF  THE  NEW  RULE
 AND ELIMINATED RULES RESULTS IN A REDUCTION OF REGULATORY BURDEN.
   6.  THE  AGENCY SHALL ENSURE THAT THE FISCAL IMPACT OF THE RULES TO BE
 ELIMINATED IS EQUAL TO OR GREATER THAN THE FISCAL IMPACT OF THE PROPOSED
 NEW RULE ON TAXPAYERS. THIS FISCAL IMPACT ANALYSIS SHALL INCLUDE BUT NOT
 BE LIMITED TO:
   (A) A DETAILED ANALYSIS OF THE DIRECT AND  INDIRECT  COSTS  ASSOCIATED
 WITH COMPLIANCE FOR BOTH THE NEW RULE AND THE RULES TO BE ELIMINATED;
   (B) AN ESTIMATE OF THE TAX BURDEN REDUCTION OR COST SAVINGS TO TAXPAY-
 ERS RESULTING FROM THE ELIMINATION OF THE SELECTED RULES; AND
   (C)  A COMPARISON DEMONSTRATING THAT THE FISCAL RELIEF PROVIDED BY THE
 ELIMINATED RULES MEETS OR EXCEEDS ANY NEW COSTS IMPOSED BY THE  PROPOSED
 RULE.
   7.  THE  FISCAL IMPACT ANALYSIS REQUIRED UNDER SUBDIVISION SIX OF THIS
 SECTION SHALL BE INCLUDED IN THE NOTICE OF PROPOSED RULEMAKING AND  MADE
 AVAILABLE FOR PUBLIC REVIEW AND COMMENT.
   8.  EXCEPTIONS  TO  THE  REQUIREMENTS  OF THIS SECTION MAY BE MADE FOR
 RULES NECESSARY TO PROTECT THE HEALTH, SAFETY, AND WELFARE OF THE  RESI-
 DENTS OF THIS STATE.
   § 8. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 9. This act shall take effect on the one hundred twentieth day after
 it shall have become a law and shall apply to rules and revised rules to
 be submitted for publication in the state register  on  and  after  such
 date.