Read the full stored bill text
24LSO-0331
2024
STATE OF WYOMING
24LSO-0331
Numbered
2.0
HOUSE BILL NO. HB0170
Administrative procedure-regulatory costs.
Sponsored by: Representative(s) Western and Olsen and Senator(s) Driskill
A BILL
for
AN ACT relating to administrative procedure; providing for the preparation of statements of estimated regulatory costs of an agency rule; specifying the information required for a statement of estimated regulatory costs; providing for proposed regulatory alternatives to an agency rule; requiring agencies to consider alternatives to mitigate impacts on small businesses, counties, cities and towns; providing for challenges to an agency rule as specified; providing a definition; specifying applicability; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1.
W.S. 16
‑
3
‑
103.1 and 16
‑
3
‑
103.2 are created to read:
16
‑
3
‑
103.1.
Statement of estimated regulatory costs.
(a)
Pursuant to W.S. 16
‑
3
‑
103(k), a statement of estimated regulatory costs shall include an economic analysis showing whether the rule, directly or indirectly, is likely to:
(i)
Have an adverse impact on economic growth, private sector job creation, employment or private sector investment in excess of one hundred thousand dollars ($100,000.00) in the aggregate within five (5) years after the implementation of the rule;
(ii)
Have an adverse impact on business competitiveness, including the ability of persons doing business in the state to compete with persons doing similar business in other states or domestic markets, productivity, or innovation in excess of one hundred thousand dollars ($100,000.00) in the aggregate within five (5) years after the implementation of the rule; or
(iii)
Increase regulatory costs in excess of one hundred thousand dollars ($100,000.00) in the aggregate within five (5) years after the implementation of the rule.
(b)
In addition to the economic analysis required under W.S. 16
‑
3
‑
103(k) and subsection (a) of this section, the statement of estimated regulatory costs shall include:
(i)
An estimate of the number of persons and entities likely to be required to comply with the rule, together with a general description of the types of persons likely to be affected by the rule;
(ii)
An estimate of the cost to the agency and other state and local government entities to implement and enforce the proposed rule and any anticipated effect on state or local revenues;
(iii)
A good faith estimate of the transactional costs likely to be incurred by persons and entities, including local government entities, required to comply with the requirements of the rule;
(iv)
A description of any regulatory alternatives submitted under W.S. 16
‑
3
‑
103(n) and 16
‑
3
‑
103.2(a) and a statement adopting the regulatory alternatives or a statement of the reasons for rejecting the regulatory alternatives;
(v)
Additional analysis, as necessary, of the impact on small businesses, counties, cities and towns if an agency does not adopt the regulatory alternatives submitted under W.S. 16
‑
3
‑
103(n) and 16
‑
3
‑
103.2(a);
(vi)
Any additional information that the agency determines may be useful.
(c)
As used in this section, "transactional costs" means the direct costs that are readily ascertainable based on standard business practices, including filing fees, the cost of obtaining a license, the cost of equipment required to be installed or used, the cost of procedures required to be employed in complying with the rule, additional operating costs incurred, the cost of monitoring and reporting and any other costs necessary to comply with the rule.
(d)
An agency shall not be required to prepare a statement of estimated regulatory costs for any emergency rule, interpretive rule or statements of general policy.
(e)
Any rule that is likely to have an adverse impact in excess of one hundred thousand dollars ($100,000.00) in the aggregate within five (5) years after the implementation or enforcement of the rule pursuant to subsection (a) of this section, shall not be implemented or enforced until approved by the legislature in the next succeeding legislative session after the agency's final action on the rule. If the legislature, each house voting separately, approves of the rule, the rule may be implemented or enforced after compliance with all other applicable provisions of law. If the legislature fails to approve the rule, the rule is null and void and shall not be implemented or enforced.
16
‑
3
‑
103.2.
Procedure for a lower cost regulatory alternative; revised statements of regulatory costs; challenges based on noncompliance.
(a)
Within the forty
‑
five (45) days after an agency gives notice of a proposed rule as required under W.S. 16
‑
3
‑
103(a)(i), an interested person may submit to the agency a written proposal for a lower cost regulatory alternative to a proposed rule that substantially accomplishes the objectives of the rule being promulgated. The proposal may include the alternative of not adopting any rule if the proposal explains the lower costs and the objectives of the rule will be achieved by not adopting any rule. Upon the submission of the lower cost regulatory alternative, the agency shall prepare or revise a statement of estimated regulatory costs pursuant to W.S. 16
‑
3
‑
103.1. The agency shall either adopt the alternative or provide a statement of the reasons for rejecting the alternative in favor of the proposed rule in a manner as similar as possible to the procedure outlined in W.S. 16
‑
3
‑
103(o).
(b)
The agency shall prepare or revise the statement of estimated regulatory costs if any change to the rule is made pursuant to subsection (a) of this section that would increase the regulatory costs of the rule.
(c)
Not less than twenty
‑
one (21) days before filing a rule for adoption, an agency that is required to revise a statement of estimated regulatory costs shall provide the revised statement to the person who submitted the lower cost regulatory alternative and to the management council and shall provide notice on the agency's website that the revised statement is available to the public.
(d)
The failure of an agency to prepare a statement of estimated regulatory costs or to respond to a written lower cost regulatory alternative as provided in this section is grounds for noncompliance with the applicable procedural requirements of rulemaking set forth in this chapter. An agency's failure to prepare a statement of estimated regulatory costs or to respond to a written lower cost regulatory alternative may not be raised in a proceeding to contest any rule on the ground of noncompliance unless:
(i)
The challenge is commenced within two (2) years from the effective date of the rule;
(ii)
The challenge is to the agency's rejection of a lower cost regulatory alternative offered under W.S. 16
‑
3
‑
103(n) or 16
‑
3
‑
103.2(a); and
(iii)
The interests of the person challenging the rule are materially affected by the agency's failure to prepare a statement of estimated regulatory costs or by the rejection of the lower cost regulatory alternative.
Section 2.
W.S. 16
‑
3
‑
101(b) by creating a new paragraph (xiii) and by renumbering (xiii) as (xiv) and 16
‑
3
‑
103(a)(i) by creating a new subparagraph (M) and by creating new subsections (k) through (o) are amended to read:
16
‑
3
‑
101.
Short title; definitions.
(b)
As used in this act:
(xiii)
"Small business" means a business that employs two hundred (200) or fewer permanent full
‑
time employees and that, together with its affiliates as defined by W.S. 9
‑
12
‑
1302(a)(i), has a net worth of not more than five million dollars ($5,000,000.00) in business investments. If the business is a sole proprietorship, the five million dollars ($5,000,000.00) net worth requirement shall include both personal and business investments;
(xiii)
(xiv)
"This act" means W.S. 16
‑
3
‑
101 through 16
‑
3
‑
115.
16
‑
3
‑
103.
Adoption, amendment and repeal of rules; notice; hearing; emergency rules; proceedings to contest; review and approval by governor; statement of estimated regulatory costs; mitigation of regulatory costs.
(a)
Prior to an agency's adoption, amendment or repeal of all rules other than interpretative rules or statements of general policy, the agency shall:
(i)
Give at least forty
‑
five (45) days notice of its intended action. Notice shall be mailed to all persons making timely requests of the agency for advanced notice of its rulemaking proceedings and to the attorney general, the secretary of state's office as registrar of rules, and the legislative service office if a state agency. The agency shall submit a copy of the proposed rules, in a format conforming to any requirements prescribed pursuant to subsection (f) of this section, with the notice given to the legislative service office. The notice shall include:
(M)
The manner in which an interested person may submit to the agency a written proposal for a lower cost regulatory alternative to the proposed rule, pursuant to W.S. 16
‑
3
‑
103.2(a).
(k)
In addition to all other requirements for the adoption, amendment or repeal of a rule under this section, other than an emergency rule, interpretive rule or statements of general policy, an agency shall consider the regulatory costs of the proposed rule and shall prepare a statement of estimated regulatory costs of the proposed rule before the adoption, amendment or repeal of any rule, if:
(i)
The proposed rule will have an adverse impact on small business as provided in W.S. 16
‑
3
‑
103.1(a)(i);
(ii)
The proposed rule is likely to directly or indirectly increase regulatory costs for small businesses in excess of one hundred thousand dollars ($100,000.00) in the aggregate within five (5) years after the implementation of the rule;
(iii)
An interested person submits to the agency a written proposal for a lower cost regulatory alternative to the proposed rule under W.S. 16
‑
3
‑
103.2(a).
(m)
Each agency, before the adoption, amendment or repeal of any rules, shall consider the impact of the rules on small businesses and the impact of the rule on counties, cities and towns. Whenever practicable, an agency shall formulate provisions within the agency's rule to reduce disproportionate impacts on small businesses, counties, cities or towns and to avoid regulating those entities that are not significantly within the purpose of the agency's rule. The agency shall consider each of the following methods for reducing the impact of a proposed rule on small businesses, counties, cities, towns or any combination of these entities:
(i)
Establishing less stringent compliance or reporting requirements in the rule;
(ii)
Establishing less stringent schedules or deadlines in the rule for compliance or reporting requirements;
(iii)
Consolidating or simplifying the rule's compliance or reporting requirements;
(iv)
Establishing performance standards or best management practices to replace design or operational standards in the rule;
(v)
Where legally permissible, exempting small businesses, counties, cities or towns, or any combination of those entities, from any or all requirements of the rule.
(n)
If the agency determines that the proposed adoption, amendment or repeal of a rule will affect small businesses as provided in subsection (m) of this section, the agency shall send written notice of the rule to the Wyoming business council and the Wyoming office of tourism not less than forty
‑
five (45) days before the notice period required by paragraph (a)(i) of this section. The Wyoming business council and the Wyoming office of tourism shall consider and offer to the agency any regulatory alternatives determined by the council or office to be feasible and consistent with the stated objectives of the proposed rule and that would reduce the impact on small businesses. The alternatives shall be submitted within twenty
‑
eight (28) days after receipt of the notice from the agency as required by this subsection. The agency shall adopt all or any portion of the regulatory alternatives offered by the Wyoming business council and the Wyoming office of tourism that are feasible and consistent with the stated objectives of the proposed rule. If the adopted regulatory alternatives represent substantive changes to the rules, the agency may determine to withdraw the rules and resubmit the adopted alternative rules under this section. Based on a determination that all or any portion of the regulatory alternatives are impracticable or for other good cause shown, the agency may elect to not adopt the regulatory alternatives. An agency shall not be required to consider or adopt any proposed regulatory alternatives if the Wyoming business council or the Wyoming office of tourism does not provide any alternatives to the agency within the timeframe specified in this subsection.
(o)
If an agency does not adopt all or any portion of the regulatory alternatives offered by the Wyoming business council and the Wyoming office of tourism as required by subsection (n) of this section, the agency shall include a detailed written statement and a copy of all of the proposed regulatory alternatives with the copy of the proposed rule when giving notice pursuant to paragraph (a)(i) of this section to explain the reasons for electing to not adopt all or a portion of any proposed regulatory alternatives.
Section 3.
This act shall apply to all agency rules that are adopted, amended or repealed on or after the effective date of this act.
Section 4.
This act is effective July 1, 2024
.
(END)
1
HB0170