Kansas 2023-2024 Regular Session

Kansas House Bill HB2648 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	Session of 2024
1	2		HOUSE BILL No. 2648
2		-	AN ACT concerning administrative rules and regulations; requirements for adoption of
3		-	rules and regulations; providing that agency adjudications shall not be used to
4		-	establish policies that are rules governing future private conduct that have the force
5		-	of law; relating to economic impact statements; requiring legislative ratification for
6		-	certain rules and regulations; requiring the director of the budget to review an
7		-	agency's determination of implementation and compliance costs and disapprove
8		-	proposed rules and regulations with incomplete or inaccurate economic impact
9		-	statements; removing a requirement that legislative post audit conduct an audit in
10		-	2026 pertaining to economic impact statements; amending K.S.A. 2023 Supp. 77-
11		-	415, 77-416 and 77-420 and repealing the existing sections.
	3	+	By Committee on Commerce, Labor and Economic Development
	4	+	Requested by Eric Stafford on behalf of the Kansas Chamber of Commerce
	5	+	1-31
	6	+	AN ACT concerning administrative rules and regulations; requirements for
	7	+	adoption of rules and regulations; relating to economic impact
	8	+	statements; requiring legislative ratification for certain rules and
	9	+	regulations; requiring the director of the budget to review an agency's
	10	+	determination of implementation and compliance costs and disapprove
	11	+	proposed rules and regulations with incomplete or inaccurate economic
	12	+	impact statements; amending K.S.A. 2023 Supp. 77-415, 77-416 and
	13	+	77-420 and repealing the existing sections.
12	14		Be it enacted by the Legislature of the State of Kansas:
13		-	New Section 1. (a) (1) If an economic impact statement required
14		-	by K.S.A. 77-420, and amendments thereto, or a revised economic
15		-	impact statement prepared pursuant to K.S.A. 77-416(b)(3), and
16		-	amendments thereto, indicates that $1,000,000 or more in
17		-	implementation and compliance costs are reasonably expected to be
18		-	incurred by or passed along to businesses, local governmental units and
19		-	individuals as a result of the proposed rule and regulation over the
20		-	initial five-year period following adoption of such rule and regulation,
21		-	the state agency proposing such rule and regulation shall not adopt such
22		-	rule and regulation unless such rule and regulation has been ratified by
23		-	the legislature. A proposed rule and regulation shall be deemed ratified
24		-	if a bill authorizing such rule and regulation is enacted by the
25		-	legislature. Any member of the legislature may introduce a bill
26		-	authorizing a state agency to adopt a rule and regulation that such
27		-	agency is prohibited from adopting under this subsection. The state
28		-	agency may resume adopting such proposed rule and regulation upon
	15	+	New Section 1. (a) (1) If an economic impact statement required by
	16	+	K.S.A. 77-420, and amendments thereto, or a revised economic impact
	17	+	statement prepared pursuant to K.S.A. 77-416(b)(3), and amendments
	18	+	thereto, indicates that $1,000,000 or more in implementation and
	19	+	compliance costs are reasonably expected to be incurred by or passed
	20	+	along to businesses, local governmental units and individuals as a result of
	21	+	the proposed rule and regulation over the initial five-year period following
	22	+	adoption of such rule and regulation, the state agency proposing such rule
	23	+	and regulation shall not adopt such rule and regulation unless such rule
	24	+	and regulation has been ratified by the legislature. A proposed rule and
	25	+	regulation shall be deemed ratified if a bill authorizing such rule and
	26	+	regulation is enacted by the legislature. Any member of the legislature may
	27	+	introduce a bill authorizing a state agency to adopt a rule and regulation
	28	+	that such agency is prohibited from adopting under this subsection. The
	29	+	state agency may resume adopting such proposed rule and regulation upon
29	30		enactment of a bill introduced under this subsection.
30		-	(b) If a state agency is prohibited from adopting a proposed rule
31		-	and regulation under subsection (a), such agency may modify the
32		-	proposed rule and regulation to lower the implementation and
33		-	compliance costs of the proposed rule and regulation. Any such
34		-	modification shall be germane to the subject of the proposed rule and
35		-	regulation. If a proposed rule and regulation is modified pursuant this
36		-	subsection, the state agency shall prepare a revised economic impact
37		-	statement pursuant to K.S.A. 77-416(b)(3), and amendments thereto. A
38		-	state agency may adopt such modified rule and regulation if the revised
39		-	economic impact statement indicates that $1,000,000 or more in
40		-	implementation and compliance costs are not reasonably expected to be
41		-	incurred by or passed along to businesses, local governmental units and
42		-	individuals as a result of the proposed rule and regulation over the
43		-	initial five-year period following adoption of such proposed rule and
44		-	regulation.
45		-	(c) The provisions of this section shall not apply to temporary
46		-	rules and regulations adopted pursuant to K.S.A. 77-722, and
47		-	amendments thereto, rules and regulations proposed because of a
48		-	federal mandate as described in K.S.A. 77-416(b)(1)(B), and
49		-	amendments thereto, or rules and regulations adopted pursuant to
50		-	K.S.A. 2-3710, and amendments thereto.
51		-	(d) This section shall be a part of and supplemental to the rules
52		-	and regulations filing act.
	31	+	(b) If a state agency is prohibited from adopting a proposed rule and
	32	+	regulation under subsection (a), such agency may modify the proposed
	33	+	rule and regulation to lower the implementation and compliance costs of
	34	+	the proposed rule and regulation. Any such modification shall be germane
	35	+	to the subject of the proposed rule and regulation. If a proposed rule and
	36	+	regulation is modified pursuant this subsection, the state agency shall
	37	+	prepare a revised economic impact statement pursuant to K.S.A. 77-416(b)
	38	+	(3), and amendments thereto. A state agency may adopt such modified rule
	39	+	and regulation if the revised economic impact statement indicates that
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	75	+	$1,000,000 or more in implementation and compliance costs are not
	76	+	reasonably expected to be incurred by or passed along to businesses, local
	77	+	governmental units and individuals as a result of the proposed rule and
	78	+	regulation over the initial five-year period following adoption of such
	79	+	proposed rule and regulation.
	80	+	(c) The provisions of this section shall not apply to temporary rules
	81	+	and regulations adopted pursuant to K.S.A. 77-722, and amendments
	82	+	thereto, or rules and regulations proposed because of a federal mandate as
	83	+	described in K.S.A. 77-416(b)(1)(B), and amendments thereto.
	84	+	(d) This section shall be a part of and supplemental to the rules and
	85	+	regulations filing act.
53	86		Sec. 2. K.S.A. 2023 Supp. 77-415 is hereby amended to read as
54		-	follows: 77-415. (a) K.S.A. 77-415 through 77-438 77-440 and section
55		-	1, and amendments thereto, shall be known and may be cited as the
56		-	~~rules and~~ regulations filing act.
	87	+	follows: 77-415. (a) K.S.A. 77-415 through 77-438 77-440 and section 1,
	88	+	and amendments thereto, shall be known and may be cited as the rules and
	89	+	regulations filing act.
57	90		(b) (1) Unless otherwise provided by statute or constitutional
58	91		provision, each rule and regulation issued or adopted by a state agency
59		-	shall comply with the requirements of the rules and regulations filing
60		-	act. Except as provided in this section, any standard, requirement or
61		-	other policy of general application may be given binding legal effect
62		-	only if it has complied with the requirements of the rules and
63		-	regulations filing act.
	92	+	shall comply with the requirements of the rules and regulations filing act.
	93	+	Except as provided in this section, any standard, requirement or other
	94	+	policy of general application may be given binding legal effect only if it
	95	+	has complied with the requirements of the rules and regulations filing act.
64	96		(2) Notwithstanding the provisions of this section:
65	97		(A) An agency may bind parties, establish policies, and interpret
66		-	statutes or regulations by order in an adjudication under the Kansas HOUSE BILL No. 2648—page 2
67		-	administrative procedure act or other procedures required by law,
68		-	except that such policies shall not include the establishment of rules
69		-	governing future private conduct that have the force of law and such
70		-	order shall not be used as precedent in any subsequent adjudication
71		-	against a person who was not a party to the original adjudication unless
72		-	the order is:
	98	+	statutes or regulations by order in an adjudication under the Kansas
	99	+	administrative procedure act or other procedures required by law, except
	100	+	that such order shall not be used as precedent in any subsequent
	101	+	adjudication against a person who was not a party to the original
	102	+	adjudication unless the order is:
73	103		(i) Designated by the agency as precedent;
74	104		(ii) not overruled by a court or later adjudication; and
75	105		(iii) disseminated to the public in one of the following ways:
76		-	(a) Inclusion in a publicly available index, maintained by the
77		-	agency and published on its website, of all orders designated as
78		-	precedent;
	106	+	(a) Inclusion in a publicly available index, maintained by the agency
	107	+	and published on its website, of all orders designated as precedent;
79	108		(b) publication by posting in full on an agency website in a format
80	109		capable of being searched by key terms; or
81		-	(c) being made available to the public in such other manner as
82		-	may be prescribed by the secretary of state.
83		-	(B) Any statement of agency policy may be treated as binding
84		-	within the agency if such statement of policy is directed to:(i) agency
85		-	personnel relating to the performance of their duties.(ii) or the
86		-	internal management of or organization of the agency. No such
87		-	statement of agency policy listed in clauses (i) and (ii) this
88		-	subparagraph may be relied on to bind the general public.
	110	+	(c) being made available to the public in such other manner as may be
	111	+	prescribed by the secretary of state.
	112	+	(B) Any statement of agency policy may be treated as binding within
	113	+	the agency if such statement of policy is directed to:(i) agency personnel
	114	+	relating to the performance of their duties.(ii) or the internal
	115	+	management of or organization of the agency. No such statement of
	116	+	agency policy listed in clauses (i) and (ii) this subparagraph may be relied
	117	+	on to bind the general public.
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89	161		(C) An agency may provide forms, the content or substantive
90	162		requirements of which are prescribed by rule and regulation or statute,
91	163		except that no such form may give rise to any legal right or duty or be
92	164		treated as authority for any standard, requirement or policy reflected
93	165		therein.
94	166		(D) An agency may provide guidance or information to the public,
95		-	describing any agency policy or statutory or regulatory requirement
96		-	~~except~~ that no such guidance or information may give rise to any legal
97		-	~~right or~~ duty or be treated as authority for any standard, requirement or
98		-	~~policy~~ reflected therein.
99		-	(E) None of the following shall be subject to the rules and
100		-	~~regulations~~ filing act:
	167	+	describing any agency policy or statutory or regulatory requirement except
	168	+	that no such guidance or information may give rise to any legal right or
	169	+	duty or be treated as authority for any standard, requirement or policy
	170	+	reflected therein.
	171	+	(E) None of the following shall be subject to the rules and regulations
	172	+	filing act:
101	173		(i) Any policy relating to the curriculum of a public educational
102	174		institution or to the administration, conduct, discipline, or graduation of
103	175		students from such institution.
104	176		(ii) Any parking and traffic regulations of any state educational
105		-	institution under the control and supervision of the state board of
106		-	regents.
	177	+	institution under the control and supervision of the state board of regents.
107	178		(iii) Any rule and regulation relating to the emergency or security
108		-	procedures of a correctional institution, as defined in K.S.A. 75-
109		-	5202(d), and amendments thereto.
110		-	(iv) Any order issued by the secretary of corrections or any
111		-	warden of a correctional institution under K.S.A. 75-5256, and
112		-	amendments thereto.
	179	+	procedures of a correctional institution, as defined in K.S.A. 75-5202(d),
	180	+	and amendments thereto.
	181	+	(iv) Any order issued by the secretary of corrections or any warden of
	182	+	a correctional institution under K.S.A. 75-5256, and amendments thereto.
113	183		(F) When a statute authorizing an agency to issue rules and
114		-	regulations or take other action specifies the procedures for doing so,
115		-	~~those~~ procedures shall apply instead of the procedures in the rules and
	184	+	regulations or take other action specifies the procedures for doing so, those
	185	+	procedures shall apply instead of the procedures in the rules and
116	186		regulations filing act.
117	187		(c) As used in the rules and regulations filing act, and amendments
118	188		thereto, unless the context clearly requires otherwise:
119		-	(1) "Board" means the state rules and regulations board
120		-	established under the provisions of K.S.A. 77-423, and amendments
121		-	thereto.
	189	+	(1) "Board" means the state rules and regulations board established
	190	+	under the provisions of K.S.A. 77-423, and amendments thereto.
122	191		(2) "Environmental rule and regulation" means:
123		-	(A) A rule and regulation adopted by the secretary of agriculture,
124		-	the secretary of health and environment or the state corporation
125		-	commission that has as a primary purpose the protection of the HOUSE BILL No. 2648—page 3
126		-	environment; or
	192	+	(A) A rule and regulation adopted by the secretary of agriculture, the
	193	+	secretary of health and environment or the state corporation commission
	194	+	that has as a primary purpose the protection of the environment; or
127	195		(B) a rule and regulation adopted by the secretary of wildlife and
128		-	parks concerning threatened or endangered species of wildlife as
129		-	~~defined~~ in K.S.A. 32-958, and amendments thereto.
130		-	(3) "Implementation and compliance costs" means direct costs
131		-	~~that~~ are readily ascertainable based upon standard business practices,
	196	+	parks concerning threatened or endangered species of wildlife as defined
	197	+	in K.S.A. 32-958, and amendments thereto.
	198	+	(3) "Implementation and compliance costs" means direct costs that
	199	+	are readily ascertainable based upon standard business practices,
132	200		including, but not limited to, fees, the cost to obtain a license or
133	201		registration, the cost of equipment required to be installed or used,
134		-	additional operating costs incurred, the cost of monitoring and
135		-	reporting and any other costs to comply with the requirements of the
136		-	proposed rule and regulation.
	202	+	additional operating costs incurred, the cost of monitoring and reporting
	203	+	and any other costs to comply with the requirements of the proposed rule
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	247	+	and regulation.
137	248		(4) "Person" means an individual, firm, association, organization,
138	249		partnership, business trust, corporation, company or any other legal or
139	250		commercial entity.
140	251		(4)(5) "Rule and regulation," "rule," and "regulation" means a
141	252		standard, requirement or other policy of general application that has the
142	253		force and effect of law, including amendments or revocations thereof,
143		-	issued or adopted by a state agency to implement or interpret
144		-	legislation.
	254	+	issued or adopted by a state agency to implement or interpret legislation.
145	255		(5)(6) "Rulemaking" means the same as defined in K.S.A. 77-602,
146	256		and amendments thereto.
147	257		(6)(7) "Small employer" means any person, firm, corporation,
148		-	partnership or association that employs not more than 50 employees,
149		-	~~the~~ majority of whom are employed within this state.
150		-	(7)(8) "State agency" means any officer, department, bureau,
151		-	~~division,~~ board, authority, agency, commission or institution of this
152		-	~~state, except the~~ judicial and legislative branches, which is authorized
153		-	~~by law to promulgate~~ rules and regulations concerning the
154		-	~~administration, enforcement or~~ interpretation of any law of this state.
	258	+	partnership or association that employs not more than 50 employees, the
	259	+	majority of whom are employed within this state.
	260	+	(7)(8) "State agency" means any officer, department, bureau, division,
	261	+	board, authority, agency, commission or institution of this state, except the
	262	+	judicial and legislative branches, which is authorized by law to promulgate
	263	+	rules and regulations concerning the administration, enforcement or
	264	+	interpretation of any law of this state.
155	265		Sec. 3. K.S.A. 2023 Supp. 77-416 is hereby amended to read as
156		-	follows: 77-416. (a) Every state agency shall file with the secretary of
157		-	state every rule and regulation adopted by it and every amendment and
158		-	revocation thereof in the manner prescribed by the secretary of state.
159		-	Each rule and regulation shall include a citation to the statutory section
160		-	or sections being implemented or interpreted and a citation of the
161		-	authority pursuant to which it, or any part thereof, was adopted. Every
162		-	rule and regulation filed in the office of the secretary of state shall be
163		-	accompanied by a copy of the economic impact statement required by
164		-	subsection (b) and a copy of the environmental benefit statement if
165		-	required by subsection (d). A copy of any document adopted by
166		-	reference in a rule and regulation shall be available from the state
167		-	agency that adopted the rule and regulation upon request by any person
168		-	individual interested therein. The state agency, under the direction of
169		-	the secretary of state, shall number each section with a distinguishing
170		-	number and, in making a compilation of the rules and regulations, the
171		-	sections shall be arranged in numerical order. A decimal system of
172		-	numbering shall be prohibited.
	266	+	follows: 77-416. (a) Every state agency shall file with the secretary of state
	267	+	every rule and regulation adopted by it and every amendment and
	268	+	revocation thereof in the manner prescribed by the secretary of state. Each
	269	+	rule and regulation shall include a citation to the statutory section or
	270	+	sections being implemented or interpreted and a citation of the authority
	271	+	pursuant to which it, or any part thereof, was adopted. Every rule and
	272	+	regulation filed in the office of the secretary of state shall be accompanied
	273	+	by a copy of the economic impact statement required by subsection (b) and
	274	+	a copy of the environmental benefit statement if required by subsection
	275	+	(d). A copy of any document adopted by reference in a rule and regulation
	276	+	shall be available from the state agency that adopted the rule and
	277	+	regulation upon request by any person individual interested therein. The
	278	+	state agency, under the direction of the secretary of state, shall number
	279	+	each section with a distinguishing number and, in making a compilation of
	280	+	the rules and regulations, the sections shall be arranged in numerical order.
	281	+	A decimal system of numbering shall be prohibited.
173	282		(b) (1) At the time of drafting a proposed rule and regulation or
174	283		amendment to an existing rule and regulation, the state agency shall
175	284		consider the economic impact of the proposed rule and regulation. The
176		-	state agency shall prepare an economic impact statement that shall
177		-	include:
178		-	(A) An analysis, brief description, and cost and benefit
179		-	quantification of the proposed rules and regulations and what is
180		-	intended to be accomplished by their adoption. If the approach chosen
181		-	by the Kansas agency to address the policy issue is different from that
182		-	utilized by agencies of contiguous states or of the federal government,
183		-	the economic impact statement shall include an explanation of why the
184		-	Kansas agency's rule and regulation differs; HOUSE BILL No. 2648—page 4
185		-	(B) whether the proposed rule and regulation is mandated by
186		-	federal law as a requirement for participating in or implementing a
187		-	federally subsidized or assisted program and whether the proposed
188		-	rules and regulations exceed the requirements of applicable federal law;
	285	+	state agency shall prepare an economic impact statement that shall include:
	286	+	(A) An analysis, brief description, and cost and benefit quantification
	287	+	of the proposed rules and regulations and what is intended to be
	288	+	accomplished by their adoption. If the approach chosen by the Kansas
	289	+	agency to address the policy issue is different from that utilized by
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	333	+	agencies of contiguous states or of the federal government, the economic
	334	+	impact statement shall include an explanation of why the Kansas agency's
	335	+	rule and regulation differs;
	336	+	(B) whether the proposed rule and regulation is mandated by federal
	337	+	law as a requirement for participating in or implementing a federally
	338	+	subsidized or assisted program and whether the proposed rules and
	339	+	regulations exceed the requirements of applicable federal law;
189	340		(C) an analysis specifically addressing the following factors:
190		-	(i) The extent to which the rule and regulation will enhance or
191		-	~~restrict~~ business activities and growth;
	341	+	(i) The extent to which the rule and regulation will enhance or restrict
	342	+	business activities and growth;
192	343		(ii) the economic effect, including a detailed quantification of
193		-	implementation and compliance costs, on the specific businesses,
194		-	~~business~~ sectors, public utility ratepayers, individuals and local
195		-	~~governmental units~~ that will be affected by the proposed rule and
196		-	~~regulation and on the state~~ economy as a whole;
	344	+	implementation and compliance costs, on the specific businesses, business
	345	+	sectors, public utility ratepayers, individuals and local governmental units
	346	+	that will be affected by the proposed rule and regulation and on the state
	347	+	economy as a whole;
197	348		(iii) the businesses that would be directly affected by the proposed
198	349		rule and regulation;
199		-	(iv) the benefits of the proposed rule and regulation compared to
200		-	the cost;
201		-	(v) measures taken by the agency to minimize the cost and impact
202		-	of the proposed rule and regulation on business and economic
203		-	development within the state of Kansas, local government and
204		-	individuals; and
205		-	(vi) an estimate of the total annual implementation and
206		-	compliance costs that are reasonably expected to be incurred by or
207		-	passed along to businesses, local governmental units or members of the
208		-	public individuals and a determination of whether those costs will
209		-	exceed $1,000,000 over any two-year the initial five-year period from
210		-	the effective date of this act through June 30, 2024, or exceed
211		-	$3,000,000 over any two-year period on and after July 1, 2024
212		-	following adoption of the proposed rule and regulation.
	350	+	(iv) the benefits of the proposed rule and regulation compared to the
	351	+	cost;
	352	+	(v) measures taken by the agency to minimize the cost and impact of
	353	+	the proposed rule and regulation on business and economic development
	354	+	within the state of Kansas, local government and individuals; and
	355	+	(vi) an estimate of the total annual implementation and compliance
	356	+	costs that are reasonably expected to be incurred by or passed along to
	357	+	businesses, local governmental units or members of the public individuals
	358	+	and a determination of whether those costs will exceed $1,000,000 over
	359	+	any two-year the initial five-year period from the effective date of this act
	360	+	through June 30, 2024, or exceed $3,000,000 over any two-year period on
	361	+	and after July 1, 2024 following adoption of the proposed rule and
	362	+	regulation.
213	363		(2) The state agency shall consult with the league of Kansas
214		-	municipalities, Kansas association of counties and the Kansas
215		-	association of school boards, as appropriate, when preparing the
216		-	economic impact statement of a proposed rule and regulation which
217		-	increases or decreases revenues of cities, counties or school districts or
218		-	imposes functions or responsibilities on cities, counties or school
219		-	districts that will increase their expenditures or fiscal liability. The
220		-	agency shall consult and solicit information from businesses, business
221		-	associations, local governmental units, state agencies or institutions and
222		-	members of the public that may be affected by the proposed rule and
223		-	regulation or that may provide relevant information.
224		-	(3) As required pursuant to the provisions of K.S.A. 77-420(d),
225		-	and amendments thereto, the state agency shall reevaluate and, when
226		-	necessary, update the economic impact statement when directed to do
227		-	so by the director of the budget and, if approved by the director of the
228		-	budget, shall submit the revised economic impact statement at the time
229		-	of filing a rule and regulation with the secretary of state. If a public
230		-	hearing was held prior to the adoption of the rule and regulation, a state
231		-	agency at the time of filing a rule and regulation with the secretary of
232		-	state shall include as a part of the economic impact statement a
233		-	statement specifying the time and place at which the hearing was held
234		-	and the attendance at the hearing. A copy of the current economic
235		-	impact statement shall be available from the state agency upon request
236		-	by any party interested therein.
	364	+	municipalities, Kansas association of counties and the Kansas association
	365	+	of school boards, as appropriate, when preparing the economic impact
	366	+	statement of a proposed rule and regulation which increases or decreases
	367	+	revenues of cities, counties or school districts or imposes functions or
	368	+	responsibilities on cities, counties or school districts that will increase their
	369	+	expenditures or fiscal liability. The agency shall consult and solicit
	370	+	information from businesses, business associations, local governmental
	371	+	units, state agencies or institutions and members of the public that may be
	372	+	affected by the proposed rule and regulation or that may provide relevant
	373	+	information.
	374	+	(3) As required pursuant to the provisions of K.S.A. 77-420(d), and
	375	+	amendments thereto, the state agency shall reevaluate and, when
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	419	+	necessary, update the economic impact statement when directed to do so
	420	+	by the director of the budget and, if approved by the director of the budget,
	421	+	shall submit the revised economic impact statement at the time of filing a
	422	+	rule and regulation with the secretary of state. If a public hearing was held
	423	+	prior to the adoption of the rule and regulation, a state agency at the time
	424	+	of filing a rule and regulation with the secretary of state shall include as a
	425	+	part of the economic impact statement a statement specifying the time and
	426	+	place at which the hearing was held and the attendance at the hearing. A
	427	+	copy of the current economic impact statement shall be available from the
	428	+	state agency upon request by any party interested therein.
237	429		(4) The implementation and compliance costs determined under
238	430		subsection (b)(1)(C)(vi) shall be those additional costs reasonably
239		-	expected to be incurred and shall be separately identified for the
240		-	affected businesses, local governmental units and members of the
241		-	public individuals. In determining total additional costs of such
242		-	proposed rules and regulations, the state agency shall not account for
243		-	any actual or estimated cost savings that may be realized by the HOUSE BILL No. 2648—page 5
244		-	implementing state agency, local government or by members of the
245		-	public individuals.
	431	+	expected to be incurred and shall be separately identified for the affected
	432	+	businesses, local governmental units and members of the public
	433	+	individuals. In determining total additional costs of such proposed rules
	434	+	and regulations, the state agency shall not account for any actual or
	435	+	estimated cost savings that may be realized by the implementing state
	436	+	agency, local government or by members of the public individuals.
246	437		(c) Pursuant to the provisions of K.S.A. 77-420, and amendments
247	438		thereto, the director of the budget shall review the economic impact
248		-	statement prepared by any state agency and shall prepare a
249		-	supplemental or revised statement and an independent analysis by the
250		-	director of the budget of the cost and the factors as set forth in
251		-	subsection (b)(1)(A) and (C) and subsection (e). If possible, the
252		-	supplemental or revised statement shall include a reliable estimate in
253		-	dollars of the anticipated change in revenues and expenditures of the
254		-	state. It also shall include a statement, if determinable or reasonably
255		-	foreseeable, of the immediate and long-range economic impact of the
256		-	rule and regulation upon persons individuals subject thereto, small
257		-	employers and the general public. If, after careful investigation, it is
258		-	determined that no dollar estimate is possible, the statement shall set
259		-	forth the reasons why no dollar estimate can be given. Every state
260		-	agency is directed to cooperate with the division of the budget in the
261		-	preparation of any statement pursuant to this subsection when, and to
262		-	the extent, requested by the director of the budget. The director of the
	439	+	statement prepared by any state agency and shall prepare a supplemental
	440	+	or revised statement and an independent analysis by the director of the
	441	+	budget of the cost and the factors as set forth in subsection (b)(1)(A) and
	442	+	(C) and subsection (e). If possible, the supplemental or revised statement
	443	+	shall include a reliable estimate in dollars of the anticipated change in
	444	+	revenues and expenditures of the state. It also shall include a statement, if
	445	+	determinable or reasonably foreseeable, of the immediate and long-range
	446	+	economic impact of the rule and regulation upon persons individuals
	447	+	subject thereto, small employers and the general public. If, after careful
	448	+	investigation, it is determined that no dollar estimate is possible, the
	449	+	statement shall set forth the reasons why no dollar estimate can be given.
	450	+	Every state agency is directed to cooperate with the division of the budget
	451	+	in the preparation of any statement pursuant to this subsection when, and
	452	+	to the extent, requested by the director of the budget. The director of the
263	453		budget shall follow the procedures set forth in K.S.A. 77-420, and
264		-	amendments thereto, in evaluating and accepting or rejecting the
265		-	~~proposed~~ rule and regulation. No agency shall submit a rule and
266		-	~~regulation to the~~ secretary of state for filing before receiving the
267		-	~~approval of the director of~~ the budget as provided in this subsection and
268		-	~~K.S.A. 77-420, and~~ amendments thereto.
	454	+	amendments thereto, in evaluating and accepting or rejecting the proposed
	455	+	rule and regulation. No agency shall submit a rule and regulation to the
	456	+	secretary of state for filing before receiving the approval of the director of
	457	+	the budget as provided in this subsection and K.S.A. 77-420, and
	458	+	amendments thereto.
269	459		(d) At the time of drafting a proposed environmental rule and
270		-	regulation or amendment to an existing environmental rule and
271		-	regulation, the state agency shall consider the environmental benefit of
272		-	such proposed rule and regulation or amendment. Prior to giving notice
273		-	of a hearing on a proposed rule and regulation, the state agency shall
274		-	prepare an environmental benefit statement that shall include a
275		-	description of the need for and the environmental benefits that will
276		-	likely accrue as the result of the proposed rule and regulation or
277		-	amendment. The description shall summarize, when applicable,
278		-	research indicating the level of risk to the public health or the
279		-	environment being removed or controlled by the proposed rule and
280		-	regulation or amendment. When specific contaminants are to be
281		-	controlled by the proposed rule and regulation or amendment, the
	460	+	regulation or amendment to an existing environmental rule and regulation,
	461	+	the state agency shall consider the environmental benefit of such proposed
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	505	+	rule and regulation or amendment. Prior to giving notice of a hearing on a
	506	+	proposed rule and regulation, the state agency shall prepare an
	507	+	environmental benefit statement that shall include a description of the need
	508	+	for and the environmental benefits that will likely accrue as the result of
	509	+	the proposed rule and regulation or amendment. The description shall
	510	+	summarize, when applicable, research indicating the level of risk to the
	511	+	public health or the environment being removed or controlled by the
	512	+	proposed rule and regulation or amendment. When specific contaminants
	513	+	are to be controlled by the proposed rule and regulation or amendment, the
282	514		description shall indicate the level at which the contaminants are
283	515		considered harmful according to currently available research. The state
284	516		agency may consult with other state agencies when preparing the
285	517		environmental benefit statement. The state agency shall reevaluate and,
286	518		when necessary, update the statement at the time of filing a rule and
287		-	regulation with the secretary of state. A copy of the current
288		-	~~environmental~~ benefit statement shall be available from the state
289		-	~~agency upon request by~~ any party interested therein.
	519	+	regulation with the secretary of state. A copy of the current environmental
	520	+	benefit statement shall be available from the state agency upon request by
	521	+	any party interested therein.
290	522		(e) In addition to the requirements of subsection (b), the economic
291		-	impact statement for all environmental rules and regulations shall
292		-	include:
293		-	(1) A description of the capital and annual costs of compliance
294		-	with the proposed rules and regulations, and the persons individuals or
295		-	entities who will bear those costs;
296		-	(2) a description of the initial and annual costs of implementing
297		-	and enforcing the proposed rules and regulations, including the
298		-	estimated amount of paperwork, and the state agencies, other
299		-	governmental agencies or other persons individuals or entities who will
300		-	bear the costs;
301		-	(3) a description of the costs that would likely accrue if the
302		-	proposed rules and regulations are not adopted, the persons individuals HOUSE BILL No. 2648—page 6
303		-	or entities who will bear the costs and those who will be affected by the
304		-	failure to adopt the rules and regulations; and
	523	+	impact statement for all environmental rules and regulations shall include:
	524	+	(1) A description of the capital and annual costs of compliance with
	525	+	the proposed rules and regulations, and the persons individuals or entities
	526	+	who will bear those costs;
	527	+	(2) a description of the initial and annual costs of implementing and
	528	+	enforcing the proposed rules and regulations, including the estimated
	529	+	amount of paperwork, and the state agencies, other governmental agencies
	530	+	or other persons individuals or entities who will bear the costs;
	531	+	(3) a description of the costs that would likely accrue if the proposed
	532	+	rules and regulations are not adopted, the persons individuals or entities
	533	+	who will bear the costs and those who will be affected by the failure to
	534	+	adopt the rules and regulations; and
305	535		(4) a detailed statement of the data and methodology used in
306	536		estimating the costs used in the statement.
307	537		(f) In 2026, the legislative post audit committee shall direct the
308	538		legislative division of post audit to conduct an audit to study:
309		-	(1) The accuracy of economic impact statements submitted by
310		-	~~state~~ agencies pursuant to this section for the immediately preceding
311		-	~~seven~~ years;
312		-	(2) the impact the review by the director of the budget has had on
313		-	~~the~~ accuracy of economic impact statements submitted by state
314		-	~~agencies~~ pursuant to this section; and
	539	+	(1) The accuracy of economic impact statements submitted by state
	540	+	agencies pursuant to this section for the immediately preceding seven
	541	+	years;
	542	+	(2) the impact the review by the director of the budget has had on the
	543	+	accuracy of economic impact statements submitted by state agencies
	544	+	pursuant to this section; and
315	545		(3) whether the $1,000,000 or $3,000,000 cost figure is the
316		-	appropriate amount of economic impact to trigger the hearing
317		-	procedure required by K.S.A. 77-420(a), and amendments thereto.
	546	+	appropriate amount of economic impact to trigger the hearing procedure
	547	+	required by K.S.A. 77-420(a), and amendments thereto.
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318	591		Sec. 4. K.S.A. 2023 Supp. 77-420 is hereby amended to read as
319	592		follows: 77-420. (a) (1) Except as further provided by this subsection,
320	593		Every rule and regulation proposed to be adopted by any state agency,
321	594		after being submitted to the secretary of administration and the attorney
322		-	general as required by this section, shall be submitted with the
323		-	economic impact statement for the rule and regulation required by
324		-	K.S.A. 77-416, and amendments thereto, to the director of the budget
325		-	for review of the accuracy and completeness of the agency's economic
326		-	impact statement. The director of the budget shall review the agency's
327		-	determination of the amount of implementation and compliance costs
328		-	reasonably expected to be incurred by or passed along to businesses,
329		-	local government and individuals over the initial five-year period
330		-	following adoption and shall conduct an independent analysis to
331		-	determine that the agency has complied with the requirements for the
332		-	economic impact statement set forth in K.S.A. 77-416(b)(1)(A) and (b)
333		-	(1)(C) and (e), and amendments thereto. Every rule and regulation
334		-	requiring approval by the director of the budget shall be stamped as if
335		-	approved, and the date of approval shall be indicated.
336		-	(2) If the agency director independently determines that a
337		-	proposed rule and regulation submitted or resubmitted by the agency
338		-	will not result in implementation or compliance costs of more than
339		-	$1,000,000 from the effective date of this act through June 30, 2024, or
340		-	more than $3,000,000 on and after July 1, 2024, for businesses, local
341		-	government or individuals in any two-year the initial five-year period
342		-	following adoption of such rule and regulation, the agency shall
343		-	provide a copy of the economic impact statement to the director, but the
344		-	director shall not be required to review or approve the proposed rule
345		-	and regulation the director shall:
	595	+	general as required by this section, shall be submitted with the economic
	596	+	impact statement for the rule and regulation required by K.S.A. 77-416,
	597	+	and amendments thereto, to the director of the budget for review of the
	598	+	accuracy and completeness of the agency's economic impact statement.
	599	+	The director of the budget shall review the agency's determination of the
	600	+	amount of implementation and compliance costs reasonably expected to be
	601	+	incurred by or passed along to businesses, local government and
	602	+	individuals over the initial five-year period following adoption and shall
	603	+	conduct an independent analysis to determine that the agency has
	604	+	complied with the requirements for the economic impact statement set
	605	+	forth in K.S.A. 77-416(b)(1)(A) and (b)(1)(C) and (e), and amendments
	606	+	thereto. Every rule and regulation requiring approval by the director of the
	607	+	budget shall be stamped as if approved, and the date of approval shall be
	608	+	indicated.
	609	+	(2) If the agency director independently determines that a proposed
	610	+	rule and regulation submitted or resubmitted by the agency will not result
	611	+	in implementation or compliance costs of more than $1,000,000 from the
	612	+	effective date of this act through June 30, 2024, or more than $3,000,000
	613	+	on and after July 1, 2024, for businesses, local government or individuals
	614	+	in any two-year the initial five-year period following adoption of such rule
	615	+	and regulation, the agency shall provide a copy of the economic impact
	616	+	statement to the director, but the director shall not be required to review or
	617	+	approve the proposed rule and regulation the director shall:
346	618		(A) Approve the rule and regulation if the director independently
347		-	determines that the economic impact statement, demonstrates a
348		-	~~complete~~ analysis as required by K.S.A. 77-416(b)(1)(A) and (b)(1)(C)
349		-	~~and (e), and~~ amendments thereto, and the director concurs with the
350		-	~~economic impact~~ statement; or
	619	+	determines that the economic impact statement, demonstrates a complete
	620	+	analysis as required by K.S.A. 77-416(b)(1)(A) and (b)(1)(C) and (e), and
	621	+	amendments thereto, and the director concurs with the economic impact
	622	+	statement; or
351	623		(B) disapprove the rule and regulation if the economic impact
352	624		statement is incomplete or contains substantive inaccuracies.
353		-	(3) If the agency director of the budget determines that the
354		-	~~proposed~~ rule and regulation will result in implementation and
355		-	~~compliance costs of~~ more than $1,000,000 from the effective date of
356		-	~~this act through June 30,~~ 2024, or more than $3,000,000 on and after
357		-	~~July 1, 2024, for businesses,~~ local government or individuals in any
358		-	~~two-year the initial five-year period~~ following adoption of such rule
359		-	~~and regulation, the director of the budget~~ shall:
	625	+	(3) If the agency director of the budget determines that the proposed
	626	+	rule and regulation will result in implementation and compliance costs of
	627	+	more than $1,000,000 from the effective date of this act through June 30,
	628	+	2024, or more than $3,000,000 on and after July 1, 2024, for businesses,
	629	+	local government or individuals in any two-year the initial five-year period
	630	+	following adoption of such rule and regulation, the director of the budget
	631	+	shall:
360	632		(A) Approve the proposed rule and regulation, if:
361		-	(1) The proposed rule and regulation has been ratified by the HOUSE BILL No. 2648—page 7
	633	+	(1) The proposed rule and regulation has been ratified by the
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362	677		legislature pursuant to section 1, and amendments thereto; and
363		-	(2) the agency, prior to the submission or the resubmission of a
364		-	rule and regulation to the director, holds a public hearing and finds that
365		-	the costs of the proposed rule and regulation have been accurately
366		-	determined and are necessary for achieving legislative intent and the
367		-	director, after an independent analysis, concurs with the agency's
368		-	findings and analysis and approves the economic impact statement. An
369		-	agency's public hearing may be held prior to or after ratification by the
370		-	legislature; or
	678	+	(2) the agency, prior to the submission or the resubmission of a rule
	679	+	and regulation to the director, holds a public hearing and finds that the
	680	+	costs of the proposed rule and regulation have been accurately determined
	681	+	and are necessary for achieving legislative intent and the director, after an
	682	+	independent analysis, concurs with the agency's findings and analysis and
	683	+	approves the economic impact statement. An agency's public hearing may
	684	+	be held prior to or after ratification by the legislature; or
371	685		(B) disapprove the proposed rule and regulation if the economic
372	686		impact statement is incomplete or contains substantive inaccuracies.
373	687		(4) If an agency is proposing a rule and regulation because of a
374		-	federal mandate as described in K.S.A. 77-416(b)(1)(B), and
375		-	amendments thereto, the agency shall provide a copy of the economic
376		-	impact statement to the director, but the director shall not be required to
377		-	review or approve the proposed rule and regulation, regardless of the
378		-	implementation and compliance cost of the proposed rule and
	688	+	federal mandate as described in K.S.A. 77-416(b)(1)(B), and amendments
	689	+	thereto, the agency shall provide a copy of the economic impact statement
	690	+	to the director, but the director shall not be required to review or approve
	691	+	the proposed rule and regulation, regardless of the implementation and
	692	+	compliance cost of the proposed rule and regulation.
	693	+	(5) For the purposes of this subsection, the implementation and
	694	+	compliance cost shall be calculated from the effective date of the rule and
379	695		regulation.
380		-	(5) For the purposes of this subsection, the implementation and
381		-	compliance cost shall be calculated from the effective date of the rule
382		-	and regulation.
383	696		(b) The director of the budget shall submit an annual report to the
384	697		legislature and to the joint committee on administrative rules and
385	698		regulations on the first day of the 2019 regular legislative session and
386	699		subsequent regular legislative sessions on all rules and regulations
387	700		approved or denied by the director. The report shall include the text of
388	701		each rule and regulation reviewed, the final economic impact statement
389	702		and a summary of the director's analysis supporting the decision to
390		-	approve or reject the rule and regulation. The director shall
391		-	immediately submit a separate report to the legislature, if in session,
392		-	and the joint committee on administrative rules and regulations upon
393		-	the approval or denial of a rule or regulation with costs determined to
394		-	be greater than $1,000,000 from the effective date of this act through
395		-	June 30, 2024, or greater than $3,000,000 on and after July 1, 2024, for
396		-	businesses, local government or individuals over any two-year the
397		-	initial five-year period following adoption of such rule and regulation.
398		-	The report shall include an analysis of the agency's and the director's
399		-	decisions with respect to the necessity of the cost of the rule and
400		-	regulation to achieve legislative intent.
	703	+	approve or reject the rule and regulation. The director shall immediately
	704	+	submit a separate report to the legislature, if in session, and the joint
	705	+	committee on administrative rules and regulations upon the approval or
	706	+	denial of a rule or regulation with costs determined to be greater than
	707	+	$1,000,000 from the effective date of this act through June 30, 2024, or
	708	+	greater than $3,000,000 on and after July 1, 2024, for businesses, local
	709	+	government or individuals over any two-year the initial five-year period
	710	+	following adoption of such rule and regulation. The report shall include an
	711	+	analysis of the agency's and the director's decisions with respect to the
	712	+	necessity of the cost of the rule and regulation to achieve legislative intent.
401	713		(c) Every rule and regulation proposed to be adopted by any state
402		-	agency, before being submitted to the attorney general and the director
403		-	of the budget as required under this section, shall be submitted to the
	714	+	agency, before being submitted to the attorney general and the director of
	715	+	the budget as required under this section, shall be submitted to the
404	716		secretary of administration for approval of its organization, style,
405		-	orthography and grammar subject to such requirements as to
406		-	organization, style, orthography and grammar as the secretary may
407		-	adopt. Every rule and regulation submitted to the secretary of
408		-	administration under this subsection shall be accompanied by a copy of
409		-	any document which that is adopted by reference by the rule and
410		-	regulation. Every rule and regulation approved by the secretary of
411		-	administration under this subsection shall be stamped as approved and
412		-	the date of such approval shall be indicated therein.
413		-	(d) Every rule and regulation proposed by any state agency that
414		-	has been approved by the secretary of administration as provided in
415		-	subsection (c), before being submitted to the director of the budget as
416		-	required under this section, shall be submitted to the attorney general
417		-	for an opinion as to the legality of the same, including whether the
418		-	making of such rule and regulation is within the authority conferred by
419		-	law on the state agency. The attorney general shall promptly furnish an
420		-	opinion as to the legality of the proposed rule and regulation so HOUSE BILL No. 2648—page 8
421		-	submitted. Every rule and regulation submitted to the attorney general
422		-	under this subsection shall be accompanied by a copy of any document
423		-	which is adopted by reference by the rule and regulation. Every rule
424		-	and regulation approved by the attorney general under this subsection
425		-	shall be stamped as approved and the date of such approval shall be
426		-	indicated therein.
	717	+	orthography and grammar subject to such requirements as to organization,
	718	+	style, orthography and grammar as the secretary may adopt. Every rule and
	719	+	regulation submitted to the secretary of administration under this
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	763	+	subsection shall be accompanied by a copy of any document which that is
	764	+	adopted by reference by the rule and regulation. Every rule and regulation
	765	+	approved by the secretary of administration under this subsection shall be
	766	+	stamped as approved and the date of such approval shall be indicated
	767	+	therein.
	768	+	(d) Every rule and regulation proposed by any state agency that has
	769	+	been approved by the secretary of administration as provided in subsection
	770	+	(c), before being submitted to the director of the budget as required under
	771	+	this section, shall be submitted to the attorney general for an opinion as to
	772	+	the legality of the same, including whether the making of such rule and
	773	+	regulation is within the authority conferred by law on the state agency. The
	774	+	attorney general shall promptly furnish an opinion as to the legality of the
	775	+	proposed rule and regulation so submitted. Every rule and regulation
	776	+	submitted to the attorney general under this subsection shall be
	777	+	accompanied by a copy of any document which is adopted by reference by
	778	+	the rule and regulation. Every rule and regulation approved by the attorney
	779	+	general under this subsection shall be stamped as approved and the date of
	780	+	such approval shall be indicated therein.
427	781		(e) No rule and regulation shall be filed by the secretary of state
428	782		unless:
429	783		(1) The rule and regulation has complied with the provisions of
430	784		subsection (a);
431	785		(2) The organization, style, orthography and grammar have been
432	786		approved by the secretary of administration;
433	787		(3)(2) the rule and regulation has been approved in writing by the
434	788		attorney general as to legality;
435	789		(3) the rule and regulation has complied with the provisions of
436	790		subsection (a);
437	791		(4) the rule and regulation has been formally adopted by the state
438	792		agency after it has complied with the provisions of subsection (a),
439		-	approved by the secretary of administration and the attorney general
440		-	and has complied with the provisions of subsection (a) and is
441		-	accompanied by a certified or other formal statement of adoption when
442		-	adoption is by an executive officer of a state agency, or by a certified
443		-	copy of the roll call vote required for its adoption by K.S.A. 77-421,
444		-	and amendments thereto, when adoption is by a board, commission,
445		-	authority or other similar body;
446		-	(5) the rule and regulation to be filed is accompanied by a copy of
447		-	the economic impact statement as provided by K.S.A. 77-416, and
448		-	amendments thereto, that has been reviewed and approved by the
449		-	director of the budget and complies with the provisions of subsection
450		-	(a);
	793	+	approved by the secretary of administration and the attorney general and
	794	+	has complied with the provisions of subsection (a) and is accompanied by
	795	+	a certified or other formal statement of adoption when adoption is by an
	796	+	executive officer of a state agency, or by a certified copy of the roll call
	797	+	vote required for its adoption by K.S.A. 77-421, and amendments thereto,
	798	+	when adoption is by a board, commission, authority or other similar body;
	799	+	(5) the rule and regulation to be filed is accompanied by a copy of the
	800	+	economic impact statement as provided by K.S.A. 77-416, and
	801	+	amendments thereto, that has been reviewed and approved by the director
	802	+	of the budget and complies with the provisions of subsection (a);
451	803		(6) the rule and regulation has complied with the provisions of
452	804		section 1, and amendments thereto, if applicable; and
453		-	(6)(7) the rule and regulation to be filed is accompanied by a copy
454		-	of the environmental benefit statement required by K.S.A. 77-416, and
455		-	amendments thereto, if applicable. HOUSE BILL No. 2648—page 9
	805	+	(6)(7) the rule and regulation to be filed is accompanied by a copy of
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	849	+	the environmental benefit statement required by K.S.A. 77-416, and
	850	+	amendments thereto, if applicable.
456	851		Sec. 5. K.S.A. 2023 Supp. 77-415, 77-416 and 77-420 are hereby
457	852		repealed.
458	853		Sec. 6. This act shall take effect and be in force from and after its
459	854		publication in the statute book.
460		-	I hereby certify that the above BILL originated in the
461		-	HOUSE, and passed that body
462		-	Speaker of the House.
463		-	Chief Clerk of the House.
464		-
465		-	Passed the SENATE ______________________________________________________________________________
466		-	President of the Senate.
467		-	Secretary of the Senate.
468		-	APPROVED __________________________________________________________________________________________________
469		-	Governor.
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