103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3433 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately. LRB103 30993 DTM 57597 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3433 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately. LRB103 30993 DTM 57597 b LRB103 30993 DTM 57597 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3433 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately. LRB103 30993 DTM 57597 b LRB103 30993 DTM 57597 b LRB103 30993 DTM 57597 b A BILL FOR HB3433LRB103 30993 DTM 57597 b HB3433 LRB103 30993 DTM 57597 b HB3433 LRB103 30993 DTM 57597 b 1 AN ACT concerning government. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Administrative Procedure Act is 5 amended by changing Sections 5-30 and 5-60 and by adding 6 Section 1-33 as follows: 7 (5 ILCS 100/1-33 new) 8 Sec. 1-33. "Downstate Illinois" means all counties in this 9 State other than the counties of Cook, DuPage, Kane, Kendall, 10 Lake, McHenry, and Will. For the purposes of a specific rule, 11 an agency may define a region as encompassing downstate 12 Illinois if it finds that the rule affects persons or entities 13 both within and without downstate Illinois and such definition 14 is necessary to adapt the rule to address the needs and 15 concerns of downstate Illinois. 16 (5 ILCS 100/5-30) (from Ch. 127, par. 1005-30) 17 Sec. 5-30. Regulatory flexibility. When an agency proposes 18 a new rule or an amendment to an existing rule that may have an 19 impact on small businesses, not for profit corporations, or 20 small municipalities, or persons or entities in downstate 21 Illinois, the agency shall do each of the following: 22 (a) The agency shall consider each of the following 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3433 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED: 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 Amends the Illinois Administrative Procedure Act. Requires an agency that proposes a new rule or an amendment to an existing rule that may have an impact on persons or entities in downstate Illinois to consider specified methods for reducing the impact of that rulemaking and provide an opportunity to participate in the rulemaking process before or during the notice period utilizing specified techniques. Requires each agency to include in its regulatory agenda summary a statement of whether a rule will affect persons or entities in downstate Illinois. Defines "downstate Illinois". Effective immediately. LRB103 30993 DTM 57597 b LRB103 30993 DTM 57597 b LRB103 30993 DTM 57597 b A BILL FOR 5 ILCS 100/1-33 new 5 ILCS 100/5-30 from Ch. 127, par. 1005-30 5 ILCS 100/5-60 from Ch. 127, par. 1005-60 LRB103 30993 DTM 57597 b HB3433 LRB103 30993 DTM 57597 b HB3433- 2 -LRB103 30993 DTM 57597 b HB3433 - 2 - LRB103 30993 DTM 57597 b HB3433 - 2 - LRB103 30993 DTM 57597 b 1 methods for reducing the impact of the rulemaking on small 2 businesses, not for profit corporations, or small 3 municipalities, or persons or entities in downstate 4 Illinois. The agency shall reduce the impact by utilizing 5 one or more of the following methods if it finds that the 6 methods are legal and feasible in meeting the statutory 7 objectives that are the basis of the proposed rulemaking. 8 (1) Establish less stringent compliance or 9 reporting requirements in the rule for small 10 businesses, not for profit corporations, or small 11 municipalities, or persons or entities in downstate 12 Illinois. 13 (2) Establish less stringent schedules or 14 deadlines in the rule for compliance or reporting 15 requirements for small businesses, not for profit 16 corporations, or small municipalities, or persons or 17 entities in downstate Illinois. 18 (3) Consolidate or simplify the rule's compliance 19 or reporting requirements for small businesses, not 20 for profit corporations, or small municipalities, or 21 persons or entities in downstate Illinois. 22 (4) Establish performance standards to replace 23 design or operational standards in the rule for small 24 businesses, not for profit corporations, or small 25 municipalities, or persons or entities in downstate 26 Illinois. HB3433 - 2 - LRB103 30993 DTM 57597 b HB3433- 3 -LRB103 30993 DTM 57597 b HB3433 - 3 - LRB103 30993 DTM 57597 b HB3433 - 3 - LRB103 30993 DTM 57597 b 1 (5) Exempt small businesses, not for profit 2 corporations, or small municipalities, or persons or 3 entities in downstate Illinois from any or all 4 requirements of the rule. 5 (b) Before or during the notice period required under 6 subsection (b) of Section 5-40, the agency shall provide 7 an opportunity for small businesses, not for profit 8 corporations, or small municipalities, or persons or 9 entities in downstate Illinois to participate in the 10 rulemaking process. The agency shall utilize one or more 11 of the following techniques. These techniques are in 12 addition to other rulemaking requirements imposed by this 13 Act or by any other Act. 14 (1) The inclusion in any advance notice of 15 possible rulemaking of a statement that the rule may 16 have an impact on small businesses, not for profit 17 corporations, or small municipalities, or persons or 18 entities in downstate Illinois. 19 (2) The publication of a notice of rulemaking in 20 publications likely to be obtained by small 21 businesses, not for profit corporations, or small 22 municipalities, or persons or entities in downstate 23 Illinois. 24 (3) The direct notification of interested small 25 businesses, not for profit corporations, or small 26 municipalities, or persons or entities in downstate HB3433 - 3 - LRB103 30993 DTM 57597 b HB3433- 4 -LRB103 30993 DTM 57597 b HB3433 - 4 - LRB103 30993 DTM 57597 b HB3433 - 4 - LRB103 30993 DTM 57597 b 1 Illinois. 2 (4) The conduct of public hearings concerning the 3 impact of the rule on small businesses, not for profit 4 corporations, or small municipalities, or persons or 5 entities in downstate Illinois. 6 (5) The use of special hearing or comment 7 procedures to reduce the cost or complexity of 8 participation in the rulemaking by small businesses, 9 not for profit corporations, or small municipalities, 10 or persons or entities in downstate Illinois, 11 including the use of audio-visual technology to enable 12 downstate Illinois witnesses to submit comments by 13 electronic moving image to any hearing conducted in 14 Chicago by a rulemaking agency under this Act. 15 (c) Prior to the filing for publication in the 16 Illinois Register of any proposed rule or amendment that 17 may have an adverse impact on small businesses, each 18 agency must prepare an economic impact analysis which 19 shall be filed with the proposed rule and publicized in 20 the Illinois Register together with the proposed rule. The 21 economic impact analysis shall include the following: 22 (1) An identification of the types and estimate of 23 the number of the small businesses subject to the 24 proposed rule or amendment. The agency shall identify 25 the types of businesses subject to the proposed rule 26 using the following 2-digit codes from the North HB3433 - 4 - LRB103 30993 DTM 57597 b HB3433- 5 -LRB103 30993 DTM 57597 b HB3433 - 5 - LRB103 30993 DTM 57597 b HB3433 - 5 - LRB103 30993 DTM 57597 b 1 American Industry Classification System (NAICS): 2 11 Agriculture, Forestry, Fishing and Hunting. 3 21 Mining. 4 22 Utilities. 5 23 Construction. 6 31-33 Manufacturing. 7 42 Wholesale Trade. 8 44-45 Retail Trade. 9 48-49 Transportation and Warehousing. 10 51 Information. 11 52 Finance and Insurance. 12 53 Real Estate Rental and Leasing. 13 54 Professional, Scientific, and Technical 14 Services. 15 55 Management of Companies and Enterprises. 16 56 Administrative and Support and Waste 17 Management and Remediation Services. 18 61 Educational Services. 19 62 Health Care and Social Assistance. 20 71 Arts, Entertainment, and Recreation. 21 72 Accommodation and Food Services. 22 81 Other Services (except Public 23 Administration). 24 92 Public Administration. 25 The agency shall also identify the impact of the 26 proposed rule by identifying as many of the following HB3433 - 5 - LRB103 30993 DTM 57597 b HB3433- 6 -LRB103 30993 DTM 57597 b HB3433 - 6 - LRB103 30993 DTM 57597 b HB3433 - 6 - LRB103 30993 DTM 57597 b 1 categories that the agency reasonably believes the 2 proposed rule will impact: 3 A. Hiring and additional staffing. 4 B. Regulatory requirements. 5 C. Purchasing. 6 D. Insurance changes. 7 E. Licensing fees. 8 F. Equipment and material needs. 9 G. Training requirements. 10 H. Recordkeeping. 11 I. Compensation and benefits. 12 J. Other potential impacted categories. 13 (2) The projected reporting, recordkeeping, and 14 other administrative costs required for compliance 15 with the proposed rule or amendment, including the 16 type of professional skills necessary for preparation 17 of the report or record. 18 (3) A statement of the probable positive or 19 negative economic effect on impacted small businesses. 20 (4) A description of any less intrusive or less 21 costly alternative methods of achieving the purpose of 22 the proposed rule or amendment. The alternatives must 23 be consistent with the stated objectives of the 24 applicable statutes and the proposed rulemaking. 25 The Department of Commerce and Economic Opportunity 26 shall place notification of all proposed rules affecting HB3433 - 6 - LRB103 30993 DTM 57597 b HB3433- 7 -LRB103 30993 DTM 57597 b HB3433 - 7 - LRB103 30993 DTM 57597 b HB3433 - 7 - LRB103 30993 DTM 57597 b 1 small business on its website. The notification shall 2 include the information provided by the agency under this 3 subsection (c) together with the summary of the proposed 4 rule published by the Joint Committee on Administrative 5 Rules in the Flinn Report. 6 The Business Assistance Office shall prepare an impact 7 analysis of the rule or amendment describing its effect on 8 small businesses whenever the Office believes, in its 9 discretion, that an analysis is warranted or whenever 10 requested to do so by 25 interested persons, an 11 association representing at least 100 interested persons, 12 the Governor, a unit of local government, or the Joint 13 Committee on Administrative Rules. The impact analysis 14 shall be completed before or within the notice period as 15 described in subsection (b) of Section 5-40. Upon 16 completion of any analysis in accordance with this 17 subsection (c), the preparing agency or the Business 18 Assistance Office shall submit the analysis to the Joint 19 Committee on Administrative Rules, to any interested 20 person who requested the analysis, and, if the agency 21 prepared the analysis, to the Business Assistance Office. 22 For purposes of this subsection (c), "small business" 23 means a business with fewer than 50 full-time employees or 24 less than $4,000,000 in gross annual sales. 25 This subsection does not apply to rules and standards 26 described in paragraphs (1) through (5) of subsection (c) HB3433 - 7 - LRB103 30993 DTM 57597 b HB3433- 8 -LRB103 30993 DTM 57597 b HB3433 - 8 - LRB103 30993 DTM 57597 b HB3433 - 8 - LRB103 30993 DTM 57597 b 1 of Section 1-5. 2 (Source: P.A. 100-688, eff. 1-1-19; 101-81, eff. 7-12-19.) 3 (5 ILCS 100/5-60) (from Ch. 127, par. 1005-60) 4 Sec. 5-60. Regulatory agenda. An agency shall submit for 5 publication in the Illinois Register by January 1 and July 1 of 6 each year a regulatory agenda to elicit public comments 7 concerning any rule that the agency is considering proposing 8 but for which no notice of proposed rulemaking activity has 9 been submitted to the Illinois Register. A regulatory agenda 10 shall consist of summaries of those rules. Each summary shall, 11 in less than 2,000 words, contain the following when 12 practicable: 13 (1) A description of the rule. 14 (2) The statutory authority the agency is exercising. 15 (3) A schedule of the dates for any hearings, 16 meetings, or other opportunities for public participation 17 in the development of the rule. 18 (4) The date the agency anticipates submitting a 19 notice of proposed rulemaking activity, if known. 20 (5) The name, address, and telephone number of the 21 agency representative who is knowledgeable about the rule, 22 from whom any information may be obtained, and to whom 23 written comments may be submitted concerning the rule. 24 (6) A statement whether the rule will affect small 25 businesses, not for profit corporations, or small HB3433 - 8 - LRB103 30993 DTM 57597 b HB3433- 9 -LRB103 30993 DTM 57597 b HB3433 - 9 - LRB103 30993 DTM 57597 b HB3433 - 9 - LRB103 30993 DTM 57597 b 1 municipalities, or persons or entities in downstate 2 Illinois as defined in this Act. 3 (7) Any other information that may serve the public 4 interest. 5 Nothing in this Section shall preclude an agency from 6 adopting a rule that has not been summarized in a regulatory 7 agenda or from adopting a rule different than one summarized 8 in a regulatory agenda if in the agency head's best judgment it 9 is necessary. If an agency finds that a situation exists that 10 requires adoption of a rule that was not summarized on either 11 of the 2 most recent regulatory agendas, it shall state its 12 reasons in writing together with the facts that form their 13 basis upon filing the notice of proposed rulemaking with the 14 Secretary of State under Section 5-40. Nothing in this Section 15 shall require an agency to adopt a rule summarized in a 16 regulatory agenda. The Secretary of State shall adopt rules 17 necessary for the publication of a regulatory agenda, 18 including but not limited to standard submission forms and 19 deadlines. 20 (Source: P.A. 87-823; 88-667, eff. 9-16-94.) 21 Section 99. Effective date. This Act takes effect upon 22 becoming law. HB3433 - 9 - LRB103 30993 DTM 57597 b