104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3668 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED: 5 ILCS 100/5-40 from Ch. 127, par. 1005-405 ILCS 100/5-132 new Amends the Illinois Administrative Procedure Act. Requires an agency in a proposed rulemaking to carry out, before moving to the second notice period, a good-faith analysis of the net new costs to be imposed upon (i) entities in the private sector and (ii) units of local government and taxing bodies other than the State of Illinois. Provides that if the proposed rulemaking is found to impose net new costs upon those entities, the text of the proposed rule must contain reliefs to balance the net new costs. Prohibits the adoption or filing of any rule or modification or repeal of any rule that imposes net new costs upon any of those entities. Provides that the Joint Committee on Administrative Rules shall scrutinize compliance with these requirements and that any failure of an agency to comply shall trigger the prohibition or suspension of a proposed rule. Creates a private cause of action for a party injured by the adoption of a rule in violation of the requirements added by the amendatory Act. LRB104 07184 BDA 17221 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3668 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED: 5 ILCS 100/5-40 from Ch. 127, par. 1005-405 ILCS 100/5-132 new 5 ILCS 100/5-40 from Ch. 127, par. 1005-40 5 ILCS 100/5-132 new Amends the Illinois Administrative Procedure Act. Requires an agency in a proposed rulemaking to carry out, before moving to the second notice period, a good-faith analysis of the net new costs to be imposed upon (i) entities in the private sector and (ii) units of local government and taxing bodies other than the State of Illinois. Provides that if the proposed rulemaking is found to impose net new costs upon those entities, the text of the proposed rule must contain reliefs to balance the net new costs. Prohibits the adoption or filing of any rule or modification or repeal of any rule that imposes net new costs upon any of those entities. Provides that the Joint Committee on Administrative Rules shall scrutinize compliance with these requirements and that any failure of an agency to comply shall trigger the prohibition or suspension of a proposed rule. Creates a private cause of action for a party injured by the adoption of a rule in violation of the requirements added by the amendatory Act. LRB104 07184 BDA 17221 b LRB104 07184 BDA 17221 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3668 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED: 5 ILCS 100/5-40 from Ch. 127, par. 1005-405 ILCS 100/5-132 new 5 ILCS 100/5-40 from Ch. 127, par. 1005-40 5 ILCS 100/5-132 new 5 ILCS 100/5-40 from Ch. 127, par. 1005-40 5 ILCS 100/5-132 new Amends the Illinois Administrative Procedure Act. Requires an agency in a proposed rulemaking to carry out, before moving to the second notice period, a good-faith analysis of the net new costs to be imposed upon (i) entities in the private sector and (ii) units of local government and taxing bodies other than the State of Illinois. Provides that if the proposed rulemaking is found to impose net new costs upon those entities, the text of the proposed rule must contain reliefs to balance the net new costs. Prohibits the adoption or filing of any rule or modification or repeal of any rule that imposes net new costs upon any of those entities. Provides that the Joint Committee on Administrative Rules shall scrutinize compliance with these requirements and that any failure of an agency to comply shall trigger the prohibition or suspension of a proposed rule. Creates a private cause of action for a party injured by the adoption of a rule in violation of the requirements added by the amendatory Act. LRB104 07184 BDA 17221 b LRB104 07184 BDA 17221 b LRB104 07184 BDA 17221 b A BILL FOR HB3668LRB104 07184 BDA 17221 b HB3668 LRB104 07184 BDA 17221 b HB3668 LRB104 07184 BDA 17221 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 Section 5-40 and by adding Section 5-132 6 as follows: 7 (5 ILCS 100/5-40) (from Ch. 127, par. 1005-40) 8 Sec. 5-40. General rulemaking. 9 (a) In all rulemaking to which Sections 5-45 and 5-50 do 10 not apply, each agency shall comply with this Section. 11 (b) Each agency shall give at least 45 days' notice of its 12 intended action to the general public. This first notice 13 period shall commence on the first day the notice appears in 14 the Illinois Register. The first notice shall include all the 15 following: 16 (1) The text of the proposed rule, the old and new 17 materials of a proposed amendment, or the text of the 18 provision to be repealed. 19 (2) The specific statutory citation upon which the 20 proposed rule, the proposed amendment to a rule, or the 21 proposed repeal of a rule is based and by which it is 22 authorized. 23 (3) A complete description of the subjects and issues 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3668 Introduced , by Rep. Jed Davis SYNOPSIS AS INTRODUCED: 5 ILCS 100/5-40 from Ch. 127, par. 1005-405 ILCS 100/5-132 new 5 ILCS 100/5-40 from Ch. 127, par. 1005-40 5 ILCS 100/5-132 new 5 ILCS 100/5-40 from Ch. 127, par. 1005-40 5 ILCS 100/5-132 new Amends the Illinois Administrative Procedure Act. Requires an agency in a proposed rulemaking to carry out, before moving to the second notice period, a good-faith analysis of the net new costs to be imposed upon (i) entities in the private sector and (ii) units of local government and taxing bodies other than the State of Illinois. Provides that if the proposed rulemaking is found to impose net new costs upon those entities, the text of the proposed rule must contain reliefs to balance the net new costs. Prohibits the adoption or filing of any rule or modification or repeal of any rule that imposes net new costs upon any of those entities. Provides that the Joint Committee on Administrative Rules shall scrutinize compliance with these requirements and that any failure of an agency to comply shall trigger the prohibition or suspension of a proposed rule. Creates a private cause of action for a party injured by the adoption of a rule in violation of the requirements added by the amendatory Act. LRB104 07184 BDA 17221 b LRB104 07184 BDA 17221 b LRB104 07184 BDA 17221 b A BILL FOR 5 ILCS 100/5-40 from Ch. 127, par. 1005-40 5 ILCS 100/5-132 new LRB104 07184 BDA 17221 b HB3668 LRB104 07184 BDA 17221 b HB3668- 2 -LRB104 07184 BDA 17221 b HB3668 - 2 - LRB104 07184 BDA 17221 b HB3668 - 2 - LRB104 07184 BDA 17221 b 1 involved. 2 (3.5) A descriptive title or other description of any 3 published study or research report used in developing the 4 rule, the identity of the person who performed such study, 5 and a description of where the public may obtain a copy of 6 any such study or research report. If the study was 7 performed by an agency or by a person or entity that 8 contracted with the agency for the performance of the 9 study, the agency shall also make copies of the underlying 10 data available to members of the public upon request if 11 the data are not protected from disclosure under the 12 Freedom of Information Act. 13 (4) For all proposed rules and proposed amendments to 14 rules, an initial regulatory flexibility analysis 15 containing a description of the types of small businesses 16 subject to the rule; a brief description of the proposed 17 reporting, bookkeeping, and other procedures required for 18 compliance with the rule; and a description of the types 19 of professional skills necessary for compliance. 20 (5) The time, place, and manner in which interested 21 persons may present their views and comments concerning 22 the proposed rulemaking. 23 During the first notice period, the agency shall accept 24 data, views, arguments, or comments from any interested 25 persons. The agency shall accept submissions in writing, 26 including submissions by email or by other publicly accessible HB3668 - 2 - LRB104 07184 BDA 17221 b HB3668- 3 -LRB104 07184 BDA 17221 b HB3668 - 3 - LRB104 07184 BDA 17221 b HB3668 - 3 - LRB104 07184 BDA 17221 b 1 electronic means through its website. In the discretion of the 2 agency, submissions may be submitted orally. The notice 3 published in the Illinois Register shall indicate the manner 4 selected by the agency for the submissions, including the 5 email address or website address where submissions will be 6 accepted. The agency shall consider all submissions received. 7 The agency shall hold a public hearing on the proposed 8 rulemaking during the first notice period if (i) during the 9 first notice period, the agency finds that a public hearing 10 would facilitate the submission of views and comments that 11 might not otherwise be submitted or (ii) the agency receives a 12 request for a public hearing, within the first 14 days after 13 publication of the notice of proposed rulemaking in the 14 Illinois Register, from 25 interested persons, an association 15 representing at least 100 interested persons, the Governor, 16 the Joint Committee on Administrative Rules, or a unit of 17 local government that may be affected. At the public hearing, 18 the agency shall allow interested persons to present views and 19 comments on the proposed rulemaking. A public hearing in 20 response to a request for a hearing may not be held less than 21 20 days after the publication of the notice of proposed 22 rulemaking in the Illinois Register unless notice of the 23 public hearing is included in the notice of proposed 24 rulemaking. A public hearing on proposed rulemaking may not be 25 held less than 5 days before submission of the notice required 26 under subsection (c) of this Section to the Joint Committee on HB3668 - 3 - LRB104 07184 BDA 17221 b HB3668- 4 -LRB104 07184 BDA 17221 b HB3668 - 4 - LRB104 07184 BDA 17221 b HB3668 - 4 - LRB104 07184 BDA 17221 b 1 Administrative Rules. Each agency may prescribe reasonable 2 rules for the conduct of public hearings on proposed 3 rulemaking to prevent undue repetition at the hearings. The 4 hearings must be open to the public and recorded by 5 stenographic or mechanical means. At least one agency 6 representative shall be present during the hearing who is 7 qualified to respond to general questions from the public 8 regarding the agency's proposal and the rulemaking process. 9 (b-1) On and after the effective date of this amendatory 10 Act of the 104th General Assembly, before providing additional 11 notice of the proposed rulemaking to the Joint Committee on 12 Administrative Rules under subsection (c), the agency must 13 carry out a good-faith analysis of the net new costs to be 14 imposed by the proposed rulemaking upon (i) entities in the 15 private sector and (ii) units of local government and taxing 16 bodies other than the State of Illinois. If the proposed 17 rulemaking is found to impose net new costs upon any entity 18 under this subsection (b-1), the text of the proposed rule 19 must contain reliefs to balance the net new costs. On and after 20 the effective date of this amendatory Act of the 104th General 21 Assembly, no rule or modification or repeal of any rule may be 22 adopted, or filed with the Secretary of State, that imposes 23 net new costs upon any entity under this subsection (b-1). 24 (c) Each agency shall provide additional notice of the 25 proposed rulemaking to the Joint Committee on Administrative 26 Rules. The period commencing on the day written notice is HB3668 - 4 - LRB104 07184 BDA 17221 b HB3668- 5 -LRB104 07184 BDA 17221 b HB3668 - 5 - LRB104 07184 BDA 17221 b HB3668 - 5 - LRB104 07184 BDA 17221 b 1 received by the Joint Committee shall be known as the second 2 notice period and shall expire 45 days thereafter unless 3 before that time the agency and the Joint Committee have 4 agreed to extend the second notice period beyond 45 days for a 5 period not to exceed an additional 45 days or unless the agency 6 has received a statement of objection from the Joint Committee 7 or notification from the Joint Committee that no objection 8 will be issued. The written notice to the Joint Committee 9 shall include (i) the text and location of any changes made to 10 the proposed rulemaking during the first notice period in a 11 form prescribed by the Joint Committee; (ii) for all proposed 12 rules and proposed amendments to rules, a final regulatory 13 flexibility analysis containing a summary of issues raised by 14 small businesses during the first notice period and a 15 description of actions taken on any alternatives to the 16 proposed rule suggested by small businesses during the first 17 notice period, including reasons for rejecting any 18 alternatives not utilized; and (iii) if a written request has 19 been made by the Joint Committee within 30 days after initial 20 notice appears in the Illinois Register under subsection (b) 21 of this Section, an analysis of the economic and budgetary 22 effects of the proposed rulemaking; and (iv) evidence of the 23 requirements under subsection (b-1) of this Section. After 24 commencement of the second notice period, no substantive 25 change may be made to a proposed rulemaking unless it is made 26 in response to an objection or suggestion of the Joint HB3668 - 5 - LRB104 07184 BDA 17221 b HB3668- 6 -LRB104 07184 BDA 17221 b HB3668 - 6 - LRB104 07184 BDA 17221 b HB3668 - 6 - LRB104 07184 BDA 17221 b 1 Committee. The agency shall also send a copy of the final 2 regulatory flexibility analysis to each small business that 3 has presented views or comments on the proposed rulemaking 4 during the first notice period and to any other interested 5 person who requests a copy. The agency may charge a reasonable 6 fee for providing the copies to cover postage and handling 7 costs. 8 (d) After the expiration of the second notice period, 9 after notification from the Joint Committee that no objection 10 will be issued, or after a response by the agency to a 11 statement of objections issued by the Joint Committee, 12 whichever is applicable, the agency shall file, under Section 13 5-65, a certified copy of each rule, modification, or repeal 14 of any rule adopted by it. The copy shall be published in the 15 Illinois Register. Each rule hereafter adopted under this 16 Section is effective upon filing unless a later effective date 17 is required by statute or is specified in the rulemaking. 18 (e) No rule or modification or repeal of any rule may be 19 adopted, or filed with the Secretary of State, more than one 20 year after the date the first notice period for the rulemaking 21 under subsection (b) commenced. Any period during which the 22 rulemaking is prohibited from being filed under Section 5-115 23 shall not be considered in calculating this one-year time 24 period. 25 (Source: P.A. 103-390, eff. 7-28-23.) HB3668 - 6 - LRB104 07184 BDA 17221 b HB3668- 7 -LRB104 07184 BDA 17221 b HB3668 - 7 - LRB104 07184 BDA 17221 b HB3668 - 7 - LRB104 07184 BDA 17221 b HB3668 - 7 - LRB104 07184 BDA 17221 b