SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2648
As Amended by House Committee on
Commerce, Labor and Economic Development
Brief*
HB 2648, as amended, would make various changes to
the process for the adoption of administrative rules and
regulations.
Legislative Ratification Requirement
The bill would generally prohibit the adoption of any rule
or regulation that the economic impact statement indicates
$1.0 million or more in implementation or compliance costs
are reasonably expected to be incurred by or passed along to
businesses, local governments, or individuals during the initial
five-year period following the adoption of the rule or
regulation, unless the rule or regulation has been ratified by
the Legislature by the enactment of a bill authorizing such
rule or regulation. Any member of the Legislature would be
authorized to introduce such legislation.
“Implementation and compliance costs” would be
defined to mean direct costs that are readily ascertainable
based upon standard business practices, including, but not
limited to, fees, the cost to obtain a license or registration, the
cost of equipment required to be installed or used, additional
operating costs incurred, the cost of monitoring and reporting,
and any other costs to comply with the requirements of the
proposed rule and regulation.
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org The bill would require the economic impact statements
filed with proposed rules and regulations to include a
determination whether the rule or regulation would result in
such costs in excess of $1.0 million in the first five years
following adoption of the rule, and would eliminate a
requirement that such statements include similar
determinations over two-year periods.
State agencies prohibited from adopting rules and
regulations pursuant to this limitation would be authorized to
modify the proposed rule or regulation and prepare a revised
economic impact statement. The adoption of the modified rule
or regulation would be authorized if the $1.0 million limitation
is not anticipated to be exceeded by the modified rule or
regulation.
This requirement would not apply to temporary rules and
regulations, rules and regulations proposed because of a
federal mandate, or rules and regulations of the Kansas
Agricultural Remediation Board.
Duties of the Director of the Budget
The bill would require the Director of the Budget
(Director), in reviewing the economic impact statements for
proposed rules and regulations, to conduct an independent
analysis to determine the agency has complied with the
requirements for economic impact statements and review the
agency’s determination of the amount of implementation and
compliance costs reasonably expected to be incurred by or
passed along to businesses, local governments, and
individuals over the initial five-year period following adoption
of the rule or regulation.
If such costs do not exceed $1.0 million, the Director
would be required to approve rules and regulations if the
Director independently determines the economic impact
statement is a complete analysis and the Director concurs
with the economic impact statement and disapprove the rule
2- 2648 if the economic statement is incomplete or contains
substantive inaccuracies.
If such costs do exceed $1.0 million, the Director would
be required to approve rules and regulations if the proposed
rule or regulation has been ratified by the Legislature and
disapprove the proposed rule and regulation if the economic
impact statement is incomplete or contains substantive
inaccuracies.
The Director’s reports to the Joint Committee on
Administrative Rules and Regulations would be required to
include information regarding rules and regulations denied
due to exceeding the $1.0 million requirement provided by the
bill.
Establishment of Rules Governing Future Private
Conduct through Adjudication Policy Establishment
The bill would provide that policies established by orders
in adjudications under the Kansas Administrative Procedures
Act or other procedures would not include the establishment
of rules governing future private conduct that have the force
of law.
Use of Term “Individual” in Rules and Regulations Filing
Act
The bill would replace the terms “person” and “member
of the public” with the term “individual” or “individual and
entity,” as appropriate, throughout the Rules and Regulations
Filing Act.
3- 2648 Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of a representative of the Kansas Chamber of Commerce.
House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by representatives of Americans for Prosperity
Kansas, Kansas Chamber of Commerce, Kansas Soybean
Association, and Opportunity Solutions Project, and a
representative of Kansas Grain and Feed Association,
Kansas Agribusiness Retailers Association, and Renew
Kansas Biofuels Association. Proponents generally stated the
bill would improve the state’s process for the adoption of rules
and regulations and provide legislative oversight of
regulations with high compliance costs.
Written-only proponent testimony was provided by
representatives of Kansas Cooperative Council and United
WE.
Neutral testimony was provided by a representative of
the Office of the Attorney General.
No other testimony was provided.
The House Committee amended the bill to eliminate a
requirement for the Legislative Post Audit Committee to direct
an audit study related to the bill, to exempt the rules and
regulations of the Kansas Agricultural Remediation Board
from the requirements of the bill, and to provide that policies
established by orders in adjudications under the Kansas
Administrative Procedures Act or other procedures would not
include the establishment of rules governing future private
conduct that have the force of law.
4- 2648 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Division of the
Budget indicates enactment of the bill would likely not incur
additional administrative expenses for the Division and could
be implemented with existing resources. The Division
indicates enactment of the bill could cause operational issues
for agencies that could not implement rules and regulations
until the enactment of legislation and subsequent approval.
Legislative Administrative Services indicates enactment
of the bill would have a negligible fiscal effect on the
Legislature’s budget and could be absorbed within existing
resources. The Secretary of State and Office of the Attorney
General indicate enactment of the bill would have no fiscal
effect on their budgets.
Any fiscal effect associated with the bill is not reflected
in The FY 2025 Governor’s Budget Report.
Rules and regulations; adoption; economic impact statements; legislative ratification
5- 2648