No. 30111: R15-4-10. Estimates of Anticipated Cost or Savings, and Compliance Cost

DAR File No.: 30111
Filed: 06/20/2007, 04:03
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Effective 07/01/2007, H.B. 64 (2007) amends the Utah Administrative Rulemaking Act. It changes the information an agency is required to provide related to anticipated cost or savings when it files a proposed rule, change in proposed rule, emergency rule, or expedited rule. This emergency rule makes the Division's rule related to the reporting of anticipated costs or savings consistent with the new provisions added by H.B. 64. (DAR NOTE: H.B. 64 is found at Chapter 102, Laws of Utah 2007, and was effective 07/01/2007.)

Summary of the rule or change:

This emergency rule requires an agency to provide the same level of specificity when it reports anticipated costs or savings for small businesses, and persons other than small businesses, businesses, or local government entities as it does when it reports anticipated costs or savings to state budgets and local governments. At Subsection R15-4-10(1)(d), the rule clarifies that an agency must report anticipated costs or savings accruing to small businesses or persons other than small businesses, businesses, or local government as incremental, aggregated costs or savings. Similarly, at Subsection R15-4-10(5) an agency may indicate that there is no cost to small businesses or persons other than small businesses, businesses, or local government entities, but such a statement must be followed by an explanation of how the agency estimated that there would be no impact or how the rule does not apply to small businesses, or persons other than small businesses, businesses, or local government entities.

State statutory or constitutional authorization for this rule:

Sections 63-46a-10, 63-46a-4, and 63-46a-6

Anticipated cost or savings to:

the state budget:

This rule imposes no costs to the state budget. Any costs related to this change were reflected in the fiscal note attached to H.B. 64.

local governments:

The division does not regulate local government. This rule does not impose any costs or accrue any savings to local government.

other persons:

The division does not regulate other persons. This rule does not impose any costs or accrue any savings to other persons.

Compliance costs for affected persons:

The division only regulates agencies. It does not regulate persons as defined by the rulemaking act. Therefore, there are no compliance costs for persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule is necessary to implement H.B. 64 and make the Division's rules consistent with the statute. It does not impose a fiscal impact on businesses. Kimberly K. Hood, Executive Director

Emergency rule reason and justification:

Regular rulemaking procedures would place the agency in violation of federal or state law.

H.B. 64 goes into effect on 07/01/2007. This change is necessary to make the Division's rule consistent with the amended statute.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Administrative Rules
Room 4120 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Kenneth A. Hansen at the above address, by phone at 801-538-3777, by FAX at 801-538-1773, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

This rule is effective on:

07/01/2007

Authorized by:

Kenneth A. Hansen, Director

RULE TEXT

R15. Administrative Services, Administrative Rules.

R15-4. Administrative Rulemaking Procedures.

R15-4-10. Estimates of Anticipated Cost or Savings, and Compliance Cost.

(1) Pursuant to Subsections 63-46a-4(3), 63-46a-6(1), 63-46a-7(2), and 53C-1-201(3), when an agency files a proposed rule, change in proposed rule, 120-day (emergency) rule, or expedited rule and provides anticipated cost or savings, and compliance cost information in the rule analysis, the agency shall:

(a) estimate the incremental cost or savings and incremental compliance cost associated with the changes proposed by the rule or change;

(b) estimate the incremental cost or savings and incremental compliance cost in dollars, except as otherwise provided in Subsections R15-4-10(4) and (5);

(c) indicate that the amount is either a cost or a savings; and

(d) estimate the incremental cost or savings expected to accrue to "state budgets," "local governments," [or "other persons"]"small businesses," and "persons other than small businesses, businesses, or local governmental entities" as aggregated cost or savings;

(2) In addition, an agency may:

(a) provide a narrative description of anticipated cost or savings, and compliance cost;

(b) compare anticipated cost or savings, and compliance cost figures, for the rule or change to:

(i) current budgeted costs associated with the existing rule,

(ii) figures reported on a fiscal note attached to a related legislative bill, or

(iii) both (i) and (ii).

(3) If an agency chooses to provide comparison figures, it shall clearly distinguish comparison figures from the anticipated cost or savings, and compliance cost figures.

(4) If dollar estimates are unknown or not available, or the obtaining thereof would impose a substantial unbudgeted hardship on the agency, the agency may substitute a reasoned narrative description of cost-related actions required by the rule or change, and explain the reason or reasons for the substitution.

(5) If no cost, savings, or compliance cost is associated with the rule or change, an agency may enter "none," "no impact," or similar words in the rule analysis followed by a written explanation of how the agency estimated that there would be no impact, or how the proposed rule, or changes made to an existing rule does not apply to "state budgets," "local government," ["other persons,"]"small businesses," "persons other than small businesses, businesses, or local governmental entities," or any combination of these.

(6) If an agency does not provide an estimate of cost, savings, compliance cost, or a reasoned narrative description of cost information; or a written explanation as part of the rule analysis in compliance with this section, the Division may, after making an attempt to obtain the required information, refuse to register and publish the rule or change. If the Division refuses to register and publish a rule or change, it shall:

(a) return the rule or change to the agency with a notice indicating that the Division has refused to register and publish the rule or change;

(b) identify the reason or reasons why the Division refused to register and publish the rule or change; and

(c) indicate the filing deadlines for the next issue of the Bulletin.

 

KEY: administrative law

Date of Enactment or Last Substantive Amendment: July 1, 2007

Notice of Continuation: September 29, 2005

Authorizing, and Implemented or Interpreted Law: 63-46a-10; 63-46a-4; 63-46a-6