Indiana 2024 Regular Session

Indiana House Bill HB1340 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1340
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 2-5-54; IC 4-22-2.
7	7	Synopsis: Administrative rules. Removes the requirement that a
8	8	proposed agency rule, proposed provisional rule, or proposed interim
9	9	rule that adds or amends language to increase or expand application of
10	10	a fee, fine, or civil penalty or a schedule of fees, fines, or civil penalties
11	11	must be submitted to the budget committee for review. Establishes the
12	12	administrative rules oversight committee to receive complaints
13	13	regarding a rule or practice of an agency and review certain agency
14	14	rules.
15	15	Effective: Upon passage.
16	16	DeLaney
17	17	January 10, 2024, read first time and referred to Committee on Government and Regulatory
18	18	Reform.
19	19	2024 IN 1340—LS 6988/DI 125 Introduced
20	20	Second Regular Session of the 123rd General Assembly (2024)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2023 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1340
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning state
32	32	offices and administration.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 2-5-54 IS ADDED TO THE INDIANA CODE AS
35	35	2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON
36	36	3 PASSAGE]:
37	37	4 Chapter 54. Administrative Rules Oversight Committee
38	38	5 Sec. 1. As used in this chapter, "agency" has the meaning set
39	39	6 forth in IC 4-22-2-3.
40	40	7 Sec. 2. As used in this chapter, "committee" refers to the
41	41	8 administrative rules oversight committee established by section 4
42	42	9 of this chapter.
43	43	10 Sec. 3. As used in this chapter, "rule" has the meaning set forth
44	44	11 in IC 4-22-2-3.
45	45	12 Sec. 4. The administrative rules oversight committee is
46	46	13 established. The committee has oversight over the rules of any
47	47	14 agency that is not listed in IC 4-21.5-2-4.
48	48	15 Sec. 5. (a) The committee consists of the following eight (8)
49	49	16 members of the general assembly:
50	50	17 (1) Four (4) members of the house of representatives
51	51	2024 IN 1340—LS 6988/DI 125 2
52	52	1 appointed by the speaker of the house of representatives. Not
53	53	2 more than two (2) members appointed under this subdivision
54	54	3 may be members of the same political party.
55	55	4 (2) Four (4) members of the senate appointed by the president
56	56	5 pro tempore of the senate. Not more than two (2) members
57	57	6 appointed under this subdivision may be members of the same
58	58	7 political party.
59	59	8 (b) The appointing authorities shall make the appointments
60	60	9 under subsection (a) in each even-numbered year, beginning in
61	61	10 2024:
62	62	11 (1) after the election of the general assembly; and
63	63	12 (2) before December 1.
64	64	13 Subject to IC 2-5-1.2-9, an appointment made under this
65	65	14 subdivision remains in effect until the election of the next general
66	66	15 assembly and a subsequent appointment under this subdivision.
67	67	16 Sec. 6. (a) The speaker of the house of representatives shall
68	68	17 appoint a member of the committee to be the chair of the
69	69	18 committee for a term beginning on July 15 in an odd-numbered
70	70	19 year and ending on July 14 in an even-numbered year.
71	71	20 (b) The president pro tempore of the senate shall appoint a
72	72	21 member of the committee to be chair of the committee for a term
73	73	22 beginning on July 15 in an even-numbered year and ending on July
74	74	23 14 in an odd-numbered year.
75	75	24 (c) A vacancy in the position of chair of the committee resulting
76	76	25 from an intervening general election or any other reason shall be
77	77	26 filled for the remainder of the unexpired term by the appointing
78	78	27 authority for that term of office.
79	79	28 (d) The committee shall meet to organize on the call of the chair.
80	80	29 The organizational meeting must be held not later than December
81	81	30 15 of each even-numbered year.
82	82	31 (e) In addition to an organizational meeting held under
83	83	32 subsection (d), the committee shall meet two (2) times per year at
84	84	33 the call of the chair.
85	85	34 Sec. 7. (a) The committee shall receive and may, at its discretion,
86	86	35 review a complaint filed by a person regarding a rule or practice
87	87	36 of an agency.
88	88	37 (b) The committee may, on its own initiative, review an agency
89	89	38 rule or proposed rule, an agency practice, or a failure of an agency
90	90	39 to adopt a rule.
91	91	40 (c) The committee may recommend that:
92	92	41 (1) a rule or proposed rule be modified, repealed, or adopted,
93	93	42 as applicable; or
94	94	2024 IN 1340—LS 6988/DI 125 3
95	95	1 (2) in the case of a proposed rule, the proposed rule be
96	96	2 approved or disapproved by the governor.
97	97	3 (d) When appropriate, the committee shall prepare and arrange
98	98	4 for the introduction of a bill to clarify the intent of the general
99	99	5 assembly when the general assembly enacted a law or to correct
100	100	6 the misapplication of a law by an agency.
101	101	7 Sec. 8. (a) Notice of the time, place, and agenda of committee
102	102	8 meetings may be given in the Indiana Register.
103	103	9 (b) The committee may require publication of a periodic
104	104	10 announcement in the Indiana Register that describes the duties of
105	105	11 the committee and the procedure for filing complaints.
106	106	12 (c) The committee may require publication in the Indiana
107	107	13 Register of an account of all or part of the proceedings of the
108	108	14 committee.
109	109	15 SECTION 2. IC 4-22-2-19.6, AS ADDED BY P.L.249-2023,
110	110	16 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
111	111	17 UPON PASSAGE]: Sec. 19.6. (a) A rule adopted under this article or
112	112	18 IC 13-14-9 that includes a fee, fine, or civil penalty must comply with
113	113	19 this section. Subsections (b), (c), and (d) do not apply to a rule that
114	114	20 must be adopted in a certain form to comply with federal law.
115	115	21 (b) For each fee, fine, or civil penalty imposed by an agency that is
116	116	22 not set as a specific amount in a state law, a rule must describe the
117	117	23 circumstances for which the agency will assess a fee, fine, or civil
118	118	24 penalty and set forth the amount of the fee, fine, or civil penalty:
119	119	25 (1) as a specific dollar amount;
120	120	26 (2) under a formula by which a specific dollar amount can be
121	121	27 reasonably calculated by persons regulated or otherwise affected
122	122	28 by the rule; or
123	123	29 (3) as a range of potential dollar amounts, stating the factors that
124	124	30 the agency will utilize to set a specific dollar amount in an
125	125	31 individual case with sufficient certainty that a review of an agency
126	126	32 action under IC 4-21.5 or comparable process can evaluate
127	127	33 whether the amount was reasonable.
128	128	34 A rule concerning fines or civil penalties does not prohibit an agency
129	129	35 to enter into a settlement agreement with a person against whom a fine
130	130	36 or civil penalty is being assessed to determine the fine or civil penalty
131	131	37 to be paid for a violation.
132	132	38 (c) The amount of a fee must be reasonably based on the amount
133	133	39 necessary to carry out the purposes for which the fee is imposed.
134	134	40 (d) An agency setting a fine or civil penalty shall consider the
135	135	41 following:
136	136	42 (1) Whether the violation has a major or minor impact on the
137	137	2024 IN 1340—LS 6988/DI 125 4
138	138	1 health, safety, or welfare of a person, the health or safety of
139	139	2 animals or natural resources, or other facts set forth in the
140	140	3 agency's rule.
141	141	4 (2) The number of previous violations committed by the offender
142	142	5 of laws, rules, or programs administered by the agency.
143	143	6 (3) The need for deterrence of future violations.
144	144	7 (4) Whether the conduct, if proved beyond a reasonable doubt,
145	145	8 would constitute a criminal offense, and the level of penalty set by
146	146	9 law for the criminal offense.
147	147	10 (e) An agency is not liable for a fee, fine, or civil penalty that is not
148	148	11 in conformity with this section if
149	149	12 (1) the fee, fine, or civil penalty was included in a rule that
150	150	13 became effective before January 1, 2023, and that otherwise
151	151	14 complies with subsection (b). July 1, 2024. However,
152	152	15 readoption without changes under IC 4-22-2.6 of the
153	153	16 nonconforming fee, fine, or civil penalty invalidates the
154	154	17 nonconforming fee, fine, or civil penalty.
155	155	18 (2) the fee, fine, or civil penalty was:
156	156	19 (A) set by an agency before January 1, 2023;
157	157	20 (B) reviewed by the budget committee:
158	158	21 (i) in the case of the department of environmental
159	159	22 management, the boards listed in IC 13-14-9-1, the office of
160	160	23 environmental adjudication, the natural resources
161	161	24 commission, the department of natural resources, the
162	162	25 Indiana gaming commission, and the Indiana horse racing
163	163	26 commission, before December 31, 2023; and
164	164	27 (ii) in the case of an agency not described in item (i), before
165	165	28 July 1, 2024; and
166	166	29 (C) included in a rule that complies with this section and
167	167	30 becomes effective before:
168	168	31 (i) in the case of the department of environmental
169	169	32 management, the boards listed in IC 13-14-9-1, the office of
170	170	33 environmental adjudication, the natural resources
171	171	34 commission, the department of natural resources, the
172	172	35 Indiana gaming commission, and the Indiana horse racing
173	173	36 commission, December 31, 2024; and
174	174	37 (ii) in the case of an agency not described in item (i), July 1,
175	175	38 2025; or
176	176	39 (3) the agency withdraws or otherwise ceases to enforce or apply
177	177	40 the fee, fine, or civil penalty before:
178	178	41 (A) in the case of the department of environmental
179	179	42 management, the boards listed in IC 13-14-9-1, the office of
180	180	2024 IN 1340—LS 6988/DI 125 5
181	181	1 environmental adjudication, the natural resources commission,
182	182	2 the department of natural resources, the Indiana gaming
183	183	3 commission, and the Indiana horse racing commission,
184	184	4 December 31, 2023; and
185	185	5 (B) in the case of an agency not described in clause (A), July
186	186	6 1, 2024.
187	187	7 Readoption without changes under IC 4-22-2.6 of a nonconforming fee,
188	188	8 fine, or civil penalty that meets the requirements of subdivision (1) or
189	189	9 (2) does not invalidate the nonconforming fee, fine, or civil penalty.
190	190	10 (f) Beginning January 1, 2024, an agency shall post on its website
191	191	11 a schedule of fines and civil penalties that apply to violations of laws,
192	192	12 rules, and requirements of federal programs administered by the
193	193	13 agency.
194	194	14 SECTION 3. IC 4-22-2-22.8, AS ADDED BY P.L.249-2023,
195	195	15 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
196	196	16 UPON PASSAGE]: Sec. 22.8. (a) After conducting a regulatory
197	197	17 analysis under section 22.7 of this chapter, if an agency elects to adopt
198	198	18 a rule subject to section 23 of this chapter or IC 13-14-9, the agency
199	199	19 shall submit a request to the budget agency and the office of
200	200	20 management and budget to authorize commencement of the public
201	201	21 comment periods under this chapter or IC 13-14-9 (as applicable). The
202	202	22 request must include the following:
203	203	23 (1) A general description of the subject matter of the proposed
204	204	24 rule.
205	205	25 (2) The full text of the proposed rule (including a copy of any
206	206	26 matter incorporated by reference under section 21 of this chapter)
207	207	27 in the form required by the publisher, including citations to any
208	208	28 related authorizing and affected Indiana statutes.
209	209	29 (3) The regulatory analysis, including supporting data, prepared
210	210	30 under section 22.7 of this chapter.
211	211	31 (4) Any other information required by the office of management
212	212	32 and budget.
213	213	33 (b) The budget agency and the office of management and budget
214	214	34 shall expedite the review of the request to adopt a rule. The budget
215	215	35 agency and the office of management and budget may do the following:
216	216	36 (1) Return the request to the agency with a statement describing
217	217	37 any additional information needed to authorize or disapprove
218	218	38 further rulemaking actions on one (1) or more of the rules in the
219	219	39 request.
220	220	40 (2) Authorize the commencement of the public comment periods
221	221	41 on one (1) or more of the rules in the request with or without
222	222	42 changes.
223	223	2024 IN 1340—LS 6988/DI 125 6
224	224	1 (3) Disapprove commencement of the public comment periods on
225	225	2 one (1) or more of the rules with a statement of reasons for the
226	226	3 disapproval.
227	227	4 (c) If an agency has requested authorization for more than one (1)
228	228	5 rule in the same request, the budget agency and the office of
229	229	6 management and budget may make separate determinations with
230	230	7 respect to some or all of the rules in the request. Approval of a request
231	231	8 shall be treated as a determination that the review conducted and
232	232	9 findings made by the agency comply with the requirements of section
233	233	10 22.7 of this chapter and this section. The budget agency and the office
234	234	11 of management and budget may not approve any part of a proposed
235	235	12 rule that adds or amends language to increase or expand application of
236	236	13 a fee, fine, or civil penalty or a schedule of fees, fines, or civil penalties
237	237	14 before submitting the proposed rule to the budget committee for
238	238	15 review.
239	239	16 (d) Notice of the determination shall be provided to the agency in an
240	240	17 electronic format required by the publisher. The budget agency and the
241	241	18 office of management and budget may return to the agency any copy of
242	242	19 a matter incorporated by reference under section 21 of this chapter that
243	243	20 was submitted with the request.
244	244	21 (e) If an agency revises a proposed rule after the budget agency and
245	245	22 the office of management and budget authorize commencement of the
246	246	23 public comment periods, the agency must obtain a new notice of
247	247	24 determination under subsection (d). The agency shall resubmit to the
248	248	25 budget agency and the office of management and budget the revised
249	249	26 proposed rule and a revised regulatory analysis with sufficient
250	250	27 information for the budget agency and the office of management and
251	251	28 budget to determine the impact the revisions have on the regulatory
252	252	29 analysis previously reviewed by the budget agency and the office of
253	253	30 management and budget. After obtaining a new notice of
254	254	31 determination, the agency shall submit to the publisher the new notice
255	255	32 of determination, the revised proposed rule, and the revised regulatory
256	256	33 analysis.
257	257	34 SECTION 4. IC 4-22-2-23, AS AMENDED BY P.L.249-2023,
258	258	35 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
259	259	36 UPON PASSAGE]: Sec. 23. (a) An agency shall provide notice in the
260	260	37 Indiana Register of the first public comment period required by this
261	261	38 section. To publish notice of the first public comment period in the
262	262	39 Indiana Register, the agency must submit the following to the
263	263	40 publisher:
264	264	41 (1) A statement of the date, time, and place at which the hearing
265	265	42 required by section 26 of this chapter will be convened, including
266	266	2024 IN 1340—LS 6988/DI 125 7
267	267	1 information for how to attend the public hearing remotely.
268	268	2 (2) The full text of the agency's proposed rule in the form required
269	269	3 by section 20 of this chapter and the documents required by
270	270	4 section 21 of this chapter.
271	271	5 (3) The latest version of the regulatory analysis submitted to the
272	272	6 budget agency and the office of management and budget under
273	273	7 section 22.8 of this chapter.
274	274	8 (4) The determination of the budget agency and the office of
275	275	9 management and budget authorizing commencement of the public
276	276	10 comment periods.
277	277	11 (5) If the proposed rule adds or amends language to increase or
278	278	12 expand application of a fee, fine, or civil penalty or a schedule of
279	279	13 fees, fines, or civil penalties, the agenda of the budget committee
280	280	14 meeting at which the rule was scheduled for review.
281	281	15 (6) (5) The notice required under subsection (b).
282	282	16 (b) The notice of the first public comment period must include the
283	283	17 following:
284	284	18 (1) A general description of the subject matter of the proposed
285	285	19 rule.
286	286	20 (2) An overview of the intent and scope of the proposed rule and
287	287	21 the statutory authority for the rule.
288	288	22 (3) The latest version of the regulatory analysis submitted to the
289	289	23 budget agency and the office of management and budget under
290	290	24 section 22.8 of this chapter, excluding any appendices containing
291	291	25 any data, studies, or analyses referenced in the regulatory
292	292	26 analysis.
293	293	27 (4) Information concerning where, when, and how a person may
294	294	28 submit written comments on the proposed rule, including contact
295	295	29 information concerning the small business regulatory coordinator
296	296	30 required by section 28.1 of this chapter.
297	297	31 (5) Information concerning where, when, and how a person may
298	298	32 inspect and copy the regulatory analysis, and any data, studies, or
299	299	33 analyses referenced under subdivision (3).
300	300	34 (6) Information concerning where, when, and how a person may
301	301	35 inspect any documents incorporated by reference into the
302	302	36 proposed rule under section 21 of this chapter.
303	303	37 (7) An indication that, if the agency does not receive any
304	304	38 substantive comments during the public comment period or
305	305	39 public hearing, the agency may adopt a rule that is the same as or
306	306	40 does not substantially differ from the text of the proposed rule
307	307	41 published under this section.
308	308	42 Inadequacy or insufficiency of the published description or regulatory
309	309	2024 IN 1340—LS 6988/DI 125 8
310	310	1 analysis in a notice published under this section does not invalidate a
311	311	2 rulemaking action.
312	312	3 (c) Although the agency may comply with the publication
313	313	4 requirements of this section on different days, the agency must comply
314	314	5 with all of the publication requirements of this section at least thirty
315	315	6 (30) days before the public hearing required by section 26 of this
316	316	7 chapter is convened.
317	317	8 (d) The publisher shall review materials submitted under this
318	318	9 section and determine the date that the publisher intends to publish the
319	319	10 text of the proposed rule and the notice in the Indiana Register. If the
320	320	11 submitted material complies with this section, the publisher shall
321	321	12 establish the intended publication date, assign a document control
322	322	13 number to the proposed rule, and provide a written or an electronic
323	323	14 mail authorization to proceed to the agency. The publisher shall publish
324	324	15 the following in the Indiana Register on the intended publication date:
325	325	16 (1) The notice of the first public comment period, including any
326	326	17 information required under IC 13-14-9-4 (if applicable).
327	327	18 (2) The full text of the agency's proposed rule (excluding the full
328	328	19 text of a matter incorporated by reference under section 21 of this
329	329	20 chapter).
330	330	21 SECTION 5. IC 4-22-2-37.1, AS AMENDED BY P.L.249-2023,
331	331	22 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
332	332	23 UPON PASSAGE]: Sec. 37.1. (a) The following do not apply to a rule
333	333	24 adopted under this section:
334	334	25 (1) Sections 23 through 27 of this chapter or IC 13-14-9 (as
335	335	26 applicable).
336	336	27 (2) Sections 28 through 36 of this chapter.
337	337	28 The amendments to this section made in the 2023 regular session of the
338	338	29 general assembly apply to provisional rules that are accepted for filing
339	339	30 by the publisher of the Indiana Register after June 30, 2023, regardless
340	340	31 of whether the adopting agency initiated official action to adopt the rule
341	341	32 by the name of emergency rule or provisional rule before July 1, 2023.
342	342	33 An action taken before July 1, 2023, in conformity with this section (as
343	343	34 effective after June 30, 2023) is validated to the same extent as if the
344	344	35 action was taken after June 30, 2023.
345	345	36 (b) An agency may adopt a rule on a subject for which the agency
346	346	37 has rulemaking authority using the procedures in this section if the
347	347	38 governor finds that the agency proposing to adopt the rule has
348	348	39 demonstrated to the satisfaction of the governor that use of provisional
349	349	40 rulemaking procedures under this section is necessary to avoid:
350	350	41 (1) an imminent and a substantial peril to public health, safety, or
351	351	42 welfare;
352	352	2024 IN 1340—LS 6988/DI 125 9
353	353	1 (2) an imminent and a material loss of federal funds for an agency
354	354	2 program;
355	355	3 (3) an imminent and a material deficit;
356	356	4 (4) an imminent and a substantial violation of a state or federal
357	357	5 law or the terms of a federal agreement or program;
358	358	6 (5) injury to the business or interests of the people or any public
359	359	7 utility of Indiana as determined under IC 8-1-2-113;
360	360	8 (6) an imminent and a substantial peril to:
361	361	9 (A) wildlife; or
362	362	10 (B) domestic animal;
363	363	11 health, safety, or welfare; or
364	364	12 (7) the spread of invasive species, pests, or diseases affecting
365	365	13 plants.
366	366	14 To obtain a determination from the governor, an agency must submit
367	367	15 to the governor the text of the proposed provisional rule, a statement
368	368	16 justifying the need for provisional rulemaking procedures, and any
369	369	17 additional information required by the governor in the form and in the
370	370	18 manner required by the governor. The governor may not approve
371	371	19 provisional rulemaking for any part of a proposed provisional rule that
372	372	20 adds or amends language to increase or expand application of a fee,
373	373	21 fine, or civil penalty or a schedule of fees, fines, or civil penalties
374	374	22 before submitting the proposal to the budget committee for review. A
375	375	23 notice of determination by the governor shall include findings that
376	376	24 explain the basis for the determination. The notice of determination
377	377	25 shall be provided to the agency in an electronic format. Approval of a
378	378	26 request shall be treated as a determination that the rule meets the
379	379	27 criteria in this subsection.
380	380	28 (c) After the governor approves provisional rulemaking procedures
381	381	29 for a rule but before the agency adopts the provisional rule, the agency
382	382	30 shall obtain a document control number from the publisher. The
383	383	31 publisher shall determine the documents and the format of the
384	384	32 documents that must be submitted to the publisher to obtain a
385	385	33 document control number. The agency must submit at least the
386	386	34 following:
387	387	35 (1) The full text of the proposed provisional rule in the form
388	388	36 required by section 20 of this chapter.
389	389	37 (2) A statement justifying the need for provisional rulemaking.
390	390	38 (3) The approval of the governor to use provisional rulemaking
391	391	39 procedures required by law.
392	392	40 (4) The documents required by section 21 of this chapter.
393	393	41 An agency may not adopt a proposed provisional rule until after the
394	394	42 publisher notifies the agency that the publisher has complied with
395	395	2024 IN 1340—LS 6988/DI 125 10
396	396	1 subsection (d). At least ten (10) regular business days must elapse after
397	397	2 the publisher has complied with subsection (d) before the department
398	398	3 of natural resources, the natural resources commission, the department
399	399	4 of environmental management, or a board that has rulemaking authority
400	400	5 under IC 13 adopts a provisional rule.
401	401	6 (d) Upon receipt of documents described in subsection (c), the
402	402	7 publisher shall distribute the full text of the proposed provisional rule
403	403	8 to legislators and legislative committees in the manner and the form
404	404	9 specified by the legislative council or the personnel subcommittee of
405	405	10 the legislative council acting for the legislative council. After
406	406	11 distribution has occurred, the publisher shall notify the agency of the
407	407	12 date that distribution under this subsection has occurred.
408	408	13 (e) After the document control number has been assigned and the
409	409	14 agency adopts the provisional rule, the agency shall submit the
410	410	15 following to the publisher for filing:
411	411	16 (1) The text of the adopted provisional rule. The agency shall
412	412	17 submit the provisional rule in the form required by section 20 of
413	413	18 this chapter.
414	414	19 (2) A signature page that indicates that the agency has adopted the
415	415	20 provisional rule in conformity with all procedures required by
416	416	21 law.
417	417	22 (3) If the provisional rule adds or amends language to increase or
418	418	23 expand application of a fee, fine, or civil penalty or a schedule of
419	419	24 fees, fines, or civil penalties, the agenda of the budget committee
420	420	25 meeting at which the rule was scheduled for review.
421	421	26 (4) (3) The documents required by section 21 of this chapter.
422	422	27 The publisher shall determine the format of the provisional rule and
423	423	28 other documents to be submitted under this subsection. The substantive
424	424	29 text of the adopted provisional rule must be substantially similar to the
425	425	30 text of the proposed provisional rule submitted to the governor. A
426	426	31 provisional rule may suspend but not repeal a rule approved by the
427	427	32 governor under section 34 of this chapter.
428	428	33 (f) Subject to subsections (c) and (e) and section 39 of this chapter,
429	429	34 the publisher shall:
430	430	35 (1) accept the provisional rule for filing;
431	431	36 (2) electronically record the date and time that the provisional
432	432	37 rule is accepted; and
433	433	38 (3) publish the text of the adopted provisional rule and the
434	434	39 governor's approval in the Indiana Register.
435	435	40 (g) A provisional rule adopted by an agency under this section takes
436	436	41 effect on the latest of the following dates:
437	437	42 (1) The effective date of the statute delegating authority to the
438	438	2024 IN 1340—LS 6988/DI 125 11
439	439	1 agency to adopt the provisional rule.
440	440	2 (2) The date and time that the provisional rule is accepted for
441	441	3 filing under subsection (f).
442	442	4 (3) The effective date stated by the adopting agency in the
443	443	5 provisional rule.
444	444	6 (4) The date of compliance with every requirement established by
445	445	7 law as a prerequisite to the adoption or effectiveness of the
446	446	8 provisional rule.
447	447	9 (5) The statutory effective date for a provisional rule set forth in
448	448	10 law.
449	449	11 (h) An agency may amend a provisional rule with another
450	450	12 provisional rule by following the procedures in this section for the
451	451	13 amended provisional rule. However, unless otherwise provided by
452	452	14 IC 4-22-2.3, a provisional rule and all amendments of a provisional rule
453	453	15 by another provisional rule expire not later than one hundred eighty
454	454	16 (180) days after the initial provisional rule is accepted for filing under
455	455	17 subsection (f). The subject of the provisional rule, including all
456	456	18 amendments to the provisional rule, may not be subsequently extended
457	457	19 under this section or section 37.2 of this chapter. If the governor
458	458	20 determines that the circumstance that is the basis for using the
459	459	21 procedures under this section ceases to exist, the governor may
460	460	22 terminate the provisional rule before the lapse of one hundred eighty
461	461	23 (180) days. The termination is effective when filed with the publisher.
462	462	24 The publisher shall publish the termination notice in the Indiana
463	463	25 Register.
464	464	26 (i) Subject to subsection (j), the attorney general or the governor
465	465	27 may file an objection to a provisional rule that is adopted under this
466	466	28 section not later than forty-five (45) days after the date that a
467	467	29 provisional rule or amendment to a provisional rule is accepted for
468	468	30 filing under subsection (f). The objection must cite the document
469	469	31 control number for the affected provisional rule and state the basis for
470	470	32 the objection. When filed with the publisher, the objection has the
471	471	33 effect of invalidating the provisional rule or amendment to a
472	472	34 provisional rule. The publisher shall publish the objection in the
473	473	35 Indiana Register.
474	474	36 (j) The attorney general may file a written objection to a provisional
475	475	37 rule under subsection (i) only if the attorney general determines that the
476	476	38 provisional rule has been adopted:
477	477	39 (1) without statutory authority; or
478	478	40 (2) without complying with this section.
479	479	41 A notice of objection to a provisional rule by the attorney general must
480	480	42 include findings that explain the basis for the determination. The notice
481	481	2024 IN 1340—LS 6988/DI 125 12
482	482	1 of objection shall be provided to the agency in an electronic format.
483	483	2 SECTION 6. IC 4-22-2-37.2, AS ADDED BY P.L.249-2023,
484	484	3 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
485	485	4 UPON PASSAGE]: Sec. 37.2. (a) The following do not apply to a rule
486	486	5 adopted under this section:
487	487	6 (1) Sections 23 through 27 of this chapter or IC 13-14-9 (as
488	488	7 applicable).
489	489	8 (2) Sections 28 through 36 of this chapter.
490	490	9 This section as added by the 2023 regular session of the general
491	491	10 assembly applies to interim rules that are accepted for filing by the
492	492	11 publisher of the Indiana Register after June 30, 2023, regardless of
493	493	12 whether the adopting agency initiated official action to adopt the
494	494	13 interim rule before July 1, 2023. An action taken before July 1, 2023,
495	495	14 in conformity with this section (as effective after June 30, 2023) is
496	496	15 validated to the same extent as if the action was taken after June 30,
497	497	16 2023.
498	498	17 (b) An agency may only adopt a rule on a subject for which the
499	499	18 agency has rulemaking authority using the procedures in this section if
500	500	19 the governor finds that the agency proposing to adopt the rule has
501	501	20 demonstrated to the satisfaction of the governor that use of interim
502	502	21 rulemaking procedures under this section is necessary to implement:
503	503	22 (1) a new state or federal law or program, rule of another state
504	504	23 agency, federal regulation, or federal grant or loan agreement, or
505	505	24 (if used by the agency to carry out the agency's responsibilities)
506	506	25 a building, an equipment, a firefighting, a safety, or a professional
507	507	26 code adopted by a nationally recognized organization;
508	508	27 (2) a change in a state or federal law or program, rule of another
509	509	28 state agency, federal regulation, federal grant or loan agreement,
510	510	29 or (if used by the agency to carry out the agency's responsibilities)
511	511	30 a building, an equipment, a firefighting, a safety, or a professional
512	512	31 code adopted by a nationally recognized organization; or
513	513	32 (3) a category of rule authorized under IC 4-22-2.3 to be adopted
514	514	33 as an interim rule;
515	515	34 before the time that a final rule approved by the governor under section
516	516	35 34 of this chapter could reasonably take effect.
517	517	36 (c) To obtain a determination from the governor, an agency must
518	518	37 submit to the governor the text of the proposed interim rule, a statement
519	519	38 justifying the need for interim rulemaking procedures, and any
520	520	39 additional information required by the governor in the form and in the
521	521	40 manner required by the governor. The governor may not approve
522	522	41 interim rulemaking for any part of a proposed interim rule that adds or
523	523	42 amends language to increase or expand application of a fee, fine, or
524	524	2024 IN 1340—LS 6988/DI 125 13
525	525	1 civil penalty or a schedule of fees, fines, or civil penalties before
526	526	2 submitting the proposal to the budget committee for review. A notice
527	527	3 of determination by the governor shall include findings that explain the
528	528	4 basis for the determination. The notice of determination shall be
529	529	5 provided to the agency in an electronic format. Approval of a request
530	530	6 shall be treated as a determination that the rule meets the criteria in this
531	531	7 subsection.
532	532	8 (d) To publish a notice of interim rulemaking in the Indiana
533	533	9 Register, the agency must submit the following to the publisher:
534	534	10 (1) The full text of the agency's proposed interim rule in the form
535	535	11 required by section 20 of this chapter.
536	536	12 (2) The approval of the governor to use interim rulemaking
537	537	13 procedures for the rule.
538	538	14 (3) If the interim rule adds or amends language to increase or
539	539	15 expand application of a fee, fine, or civil penalty or a schedule of
540	540	16 fees, fines, or civil penalties, the agenda of the budget committee
541	541	17 meeting at which the rule was scheduled for review.
542	542	18 (4) (3) The documents required by section 21 of this chapter.
543	543	19 The publisher shall review materials submitted under this section and
544	544	20 determine the date that the publisher intends to include the material in
545	545	21 the Indiana Register. After establishing the intended publication date,
546	546	22 the publisher shall provide a written or an electronic mail authorization
547	547	23 to proceed to the agency.
548	548	24 (e) The agency shall include the following in the notice of the public
549	549	25 comment period:
550	550	26 (1) A general description of the subject matter of the proposed
551	551	27 interim rule, including the document control number.
552	552	28 (2) The full text of the agency's proposed interim rule in the form
553	553	29 required by section 20 of this chapter (excluding the text of a
554	554	30 matter incorporated by reference under section 21 of this chapter).
555	555	31 (3) A statement justifying any requirement or cost that is:
556	556	32 (A) imposed on a regulated entity under the interim rule; and
557	557	33 (B) not expressly required by the statute authorizing the
558	558	34 agency to adopt rules or any other state or federal law.
559	559	35 The statement required under this subdivision must include a
560	560	36 reference to any data, studies, or analyses relied upon by the
561	561	37 agency in determining that the imposition of the requirement or
562	562	38 cost is necessary.
563	563	39 (4) Information concerning where, when, and how a person may
564	564	40 inspect and copy any data, studies, or analyses referenced under
565	565	41 subdivision (3).
566	566	42 (5) Information concerning where, when, and how a person may
567	567	2024 IN 1340—LS 6988/DI 125 14
568	568	1 inspect any documents incorporated by reference into the
569	569	2 proposed interim rule under section 21 of this chapter.
570	570	3 (6) A date that is thirty (30) days after the notice is published in
571	571	4 the Indiana Register by which written comments are due and a
572	572	5 statement explaining that any person may submit written
573	573	6 comments concerning the proposed interim rule during the public
574	574	7 comment period and instructions on when, where, and how the
575	575	8 person may submit written comments.
576	576	9 However, inadequacy or insufficiency of the subject matter description
577	577	10 under subdivision (1) or a statement of justification under subdivision
578	578	11 (3) in a notice does not invalidate a rulemaking action. An agency may
579	579	12 continue the public comment period by publishing a subsequent notice
580	580	13 in the Indiana Register extending the public comment period.
581	581	14 (f) Before adopting the interim rule, the agency shall prepare a
582	582	15 written response to comments received by the agency, including the
583	583	16 reasons for rejecting any recommendations made in the comments.
584	584	17 (g) After an agency has completed the public comment period and
585	585	18 complied with subsection (f), the agency may:
586	586	19 (1) adopt a rule that is identical to a proposed interim rule
587	587	20 published in the Indiana Register under this section; or
588	588	21 (2) adopt a revised version of a proposed interim rule published
589	589	22 under this section and include provisions that did not appear in
590	590	23 the initially published proposed version.
591	591	24 An agency may not adopt an interim rule that substantially differs from
592	592	25 the version of the proposed interim rule published in the Indiana
593	593	26 Register under this section, unless it is a logical outgrowth of any
594	594	27 proposed interim rule as supported by any written comments submitted
595	595	28 during the public comment period.
596	596	29 (h) After the agency adopts the interim rule, the agency shall submit
597	597	30 the following to the publisher for filing:
598	598	31 (1) The text of the adopted interim rule. The agency shall submit
599	599	32 the full text of the interim rule in the form required by section 20
600	600	33 of this chapter.
601	601	34 (2) A summary of the comments received by the agency during
602	602	35 the public comment period and the agency's response to the
603	603	36 comments.
604	604	37 (3) A signature page that indicates that the agency has adopted the
605	605	38 interim rule in conformity with all procedures required by law.
606	606	39 (4) The documents required by section 21 of this chapter.
607	607	40 The publisher shall determine the format of the interim rule and other
608	608	41 documents to be submitted under this subsection. An interim rule may
609	609	42 suspend but not repeal a rule approved by the governor under section
610	610	2024 IN 1340—LS 6988/DI 125 15
611	611	1 34 of this chapter.
612	612	2 (i) Subject to subsection (h) and section 39 of this chapter, the
613	613	3 publisher shall:
614	614	4 (1) accept the interim rule for filing;
615	615	5 (2) electronically record the date and time that the interim rule is
616	616	6 accepted; and
617	617	7 (3) publish the text of the adopted interim rule and the governor's
618	618	8 approval in the Indiana Register.
619	619	9 (j) An interim rule adopted by an agency under this section takes
620	620	10 effect on the latest of the following dates:
621	621	11 (1) The effective date of the statute delegating authority to the
622	622	12 agency to adopt the interim rule.
623	623	13 (2) The date and time that the interim rule is accepted for filing
624	624	14 under subsection (i).
625	625	15 (3) The effective date stated by the adopting agency in the interim
626	626	16 rule.
627	627	17 (4) The date of compliance with every requirement established by
628	628	18 law as a prerequisite to the adoption or effectiveness of the
629	629	19 interim rule.
630	630	20 (5) The statutory effective date for an interim rule set forth in law.
631	631	21 (k) An agency may amend an interim rule with another interim rule
632	632	22 by following the procedures in this section for adoption of an interim
633	633	23 rule. Except as provided in IC 4-22-2.3, an interim rule and all
634	634	24 subsequent rules on the same subject adopted under section 37.1 of this
635	635	25 chapter or this section expire not later than four hundred twenty-five
636	636	26 (425) days after the initial interim rule is accepted for filing under
637	637	27 subsection (i).
638	638	28 (l) Subject to subsection (m), the attorney general or the governor
639	639	29 may file an objection to an interim rule that is adopted under this
640	640	30 section not later than forty-five (45) days after the date that an interim
641	641	31 rule or amendment to an interim rule is accepted for filing under
642	642	32 subsection (i). The objection must cite the document control number
643	643	33 for the affected interim rule and state the basis for the objection. When
644	644	34 filed with the publisher, the objection has the effect of invalidating the
645	645	35 interim rule or amendment to an interim rule. The publisher shall
646	646	36 publish the objection in the Indiana Register.
647	647	37 (m) The attorney general may file a written objection to an interim
648	648	38 rule under subsection (l) only if the attorney general determines that the
649	649	39 interim rule has been adopted:
650	650	40 (1) without statutory authority; or
651	651	41 (2) without complying with this section.
652	652	42 A notice of objection to an interim rule by the attorney general must
653	653	2024 IN 1340—LS 6988/DI 125 16
654	654	1 include findings that explain the basis for the determination. The notice
655	655	2 of objection shall be provided to the agency in an electronic format.
656	656	3 SECTION 7. An emergency is declared for this act.
657	657	2024 IN 1340—LS 6988/DI 125