FIRST REGULAR SESSION SENATE BILL NO. 687 103RD GENERAL ASSEMBLY INTRODUCED BY SENATOR HUDSON. 2763S.01I KRISTINA MARTIN, Secretary AN ACT To amend chapter 536, RSMo, by adding thereto one new section relating to administrative rules. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Chapter 536, RSMo, is amended by adding thereto 1 one new section, to be known as section 536.350, to read as 2 follows:3 536.350. 1. The provisions of this section are 1 intended to: 2 (1) Require agencies to regularly review their rules 3 to determine whether such rules should be continued without 4 being changed, modified, consolidated, or allowed to expire; 5 (2) Require agencies to consider the comments of the 6 public, the regulated community, and the general assembly 7 regarding the actual costs and burdens of rules being 8 reviewed under this section, and whether the rules are 9 useful, obsolete, unnecessary, duplicative, conflicting, or 10 otherwise inconsistent; 11 (3) Require that any rules continued in effect meet 12 all the legal requirements that would apply to the issuance 13 of a new rule, including any applicable cost or benefit and 14 economic requirements; and 15 (4) Provide for the automatic expiration of rules that 16 are not readopted as a result of their sunset review. 17 2. (1) Except as provided in subsection 5 of this 18 section, a rule shall expire and be null and void on the 19 SB 687 2 date adopted by the commission in subsection 3 of this 20 section. In order for an agency with authority over the 21 rule to prevent the expiration of a rule, the agency shall 22 promulgate the rule in accordance with the provisions of 23 section 536.021 following the same process for promulgation 24 of an initial rule. The process for promulgation of the 25 rule shall begin according to the schedule adopted by the 26 commission in subsection 3 of this section. 27 (2) For any rule in effect on August 28, 2025, the 28 commission shall set the initial expiration dates in 29 accordance with subsection 3 of this section. 30 (3) For any rule promulgated after August 28, 2025, 31 such rule shall expire on January first, ten years after the 32 effective date of the rulemaking that creates the new rule. 33 (4) Every rule that is promulgated under this section 34 shall subsequently expire on January first every ten 35 calendar years after its initial expiration date unless 36 promulgated again under the provisions of section 536.021. 37 3. (1) There is hereby established, within the office 38 of the secretary of state, the "Commission for the Review of 39 Administrative Rules" to consist of five members appointed 40 by the governor, with the advice and consent of the senate. 41 One of the members shall be from a list of three persons 42 submitted to the governor by the president pro tempore of 43 the senate. One of the members shall be from a list of 44 three persons submitted to the governor by the speak er of 45 the house of representatives. 46 (2) The commission shall set the initial expiration 47 dates for rules that exist on August 28, 2025, taking into 48 consideration the time and resources agencies will expend to 49 repromulgate the rule. The initial expiration years for 50 each chapter shall be set between the second and twelfth 51 SB 687 3 calendar years after August 28, 2025. The rule shall expire 52 on January first of the calendar year selected by the 53 commission. 54 (3) Each member of the commission shall ser ve without 55 compensation but may be reimbursed for his or her actual and 56 necessary expenses incurred in the performance of his or her 57 duties as a member of the commission. 58 (4) The commission shall conclude its duties by August 59 28, 2026, and shall be dissolved on that date. 60 4. An amendment to a rule through a subsequent 61 rulemaking does not affect the rule's expiration date, 62 unless the amendment completely eliminates and promulgates 63 the entire rule again through the process in section 64 536.021. If such promulgation of the rule occurs, then the 65 rule's new expiration date shall be January first, ten years 66 subsequent to the effective date of the rule being 67 promulgated again under section 536.021. 68 5. (1) The provisions of this section shall not apply 69 to the following rules: 70 (a) Rules required to comply with federal law or 71 receive federal funding; 72 (b) Rules created with grants of rulemaking authority 73 under the constitution of this state; and 74 (c) Rules created by an a gency that are directly 75 managed by a statewide elected official. 76 (2) Rules that are exempt from expiration under the 77 provisions of this subsection shall still be subject to 78 review under section 536.175. 79 (3) If a rule is otherwise exempt unde r the provisions 80 of this subsection is amended in a manner that eliminates 81 the exemption under this subsection, the rule shall be 82 SB 687 4 subject to the provisions of this section and shall expire 83 on January first, ten years after the amendment of the rule. 84 6. (1) The governor may grant an extension totaling 85 no more than three hundred sixty -five days to postpone the 86 expiration date of a rule under this section upon a written 87 request by the agency. In the agency's written request, the 88 agency shall explain why the agency cannot promulgate the 89 rule again under the time allotted by this section and why 90 the expiration of the rule would harm the public health, 91 safety, or welfare. The governor shall affirm these 92 findings in writing addressed to the sec retary of state 93 before granting an extension. 94 (2) An extension under this subsection does not affect 95 subsequent expiration dates. 96 7. (1) For each rule reviewed and proposed to be 97 retained under this section, the agency's analysis and 98 renewal shall include the following steps: 99 (a) Notify the public of the review, including making 100 the text of the notice, text of the rule, and text of all 101 other analyses associated with the review available on the 102 agency's website; 103 (b) Hold a public comment period for at least thirty 104 days; 105 (c) Provide a reasoned response to unique public 106 comments; and 107 (d) Publish a report available on the agency's website 108 that includes the analyses and the agency's response to 109 public comments. 110 (2) When an agency conducts any analyses required 111 under section 536.021 during the repromulgation or review of 112 a rule which examines the economic impact, compliance, 113 implementation, or other costs of the rule, the analyses 114 SB 687 5 shall be conducted using ac tual impacts and costs as the 115 basis for any calculation rather than estimated impacts and 116 costs. 117