AB 277

Under current law, if a proposed administrative rule is reasonably expected to pass along $10,000,000 or more in implementation and compliance costs to businesses, local governmental units, and individuals over any two-year period, the agency proposing the rule must stop working on the proposed rule until 1) the agency modifies the proposed rule to reduce the expected costs or 2) a bill is enacted that allows the agency to promulgate the proposed rule. These requirements do not apply to emergency rules or to certain rules proposed by the Department of Natural Resources that relate to air quality and that are required under federal law.

This bill changes those requirements so that the requirements apply when a proposed rule is reasonably expected to pass along any amount of implementation and compliance costs to businesses, local governmental units, and individuals over any two-year period. Under the bill, the agency proposing such a rule must stop working on the proposed rule until 1) the agency modifies the proposed rule to eliminate the expected costs; 2) a bill is enacted that allows the agency to promulgate the proposed rule; or 3) the agency promulgates or has promulgated a different rule, in the same calendar year as proposing the rule at issue, that is reasonably expected to reduce implementation and compliance costs to businesses, local governmental units, and individuals over any two-year period, in an amount that will offset the amount of costs resulting from the proposed rule at issue.

The bill also requires an agency, in the economic impact analysis of a proposed rule that the agency is required to prepare, to include an estimate of the total implementation and compliance cost savings that are reasonably expected to be realized by businesses, local governmental units, and individuals as a result of the proposed rule, expressed as a single dollar figure.