47 | | - | [ administrative rule processes - duties - procedures |
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48 | | - | - consultation - information - Unit - reports - |
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49 | | - | cooperation - evaluation of rules - report - approval |
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50 | | - | - permanent rules - noncodification - codification - |
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51 | | - | effective date ] |
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| 40 | + | COMMITTEE SUBSTITUTE |
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| 41 | + | |
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| 42 | + | An Act relating to administrative rule processes; |
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| 43 | + | creating the Regulations from the Executive in Need |
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| 44 | + | of Scrutiny (REINS) Act of 2025; providing short |
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| 45 | + | title; defining terms; imposing duties on agencies |
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| 46 | + | with respect to rules; prescribing procedures; |
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| 47 | + | requiring economic analysis; requiring consultation |
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| 48 | + | with political subdivisions; requiring solicitation |
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| 49 | + | of information from certain entities; establishing |
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| 50 | + | the Legislative Economic Analysis Unit within the |
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| 51 | + | Legislative Office of Fiscal Transparency; imposing |
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| 52 | + | duties with respect to analysis of rules; prescribing |
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| 53 | + | limit on full-time-equivalent employees; requiring |
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| 54 | + | independent analysis; requiring reports; requiring |
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| 55 | + | cooperation by state agencies; providing for |
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| 56 | + | evaluation of rules at request of certain officials; |
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| 57 | + | requiring public availability of information; |
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| 58 | + | requiring annual report; requiring quantification of |
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| 59 | + | certain results; prohibiting certain rule from taking |
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| 60 | + | effect without specific approval pursuant to |
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| 61 | + | legislative measure; amending 75 O.S. 2021, Section |
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| 62 | + | 303.1, as amended by Section 3, Chapter 38, O.S.L. |
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| 63 | + | 2023 (75 O.S. Supp. 2024, Section 303.1), which |
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| 64 | + | relates to adoption of permanent rules; updating |
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| 65 | + | statutory language; requiring delivery of physical |
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| 66 | + | copies of proposed rules to certain persons; |
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| 67 | + | providing for noncodification; providing for |
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| 68 | + | codification; and providing an effective date . |
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93 | 109 | | 1. “Agency” means any officer, department, bureau, division, |
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94 | 110 | | board, commission, authority, agency, or institution of this state, |
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95 | 111 | | except the judicial and legislative branches, authorized by law to |
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96 | 112 | | promulgate rules and regulations concerning the administration, |
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97 | 113 | | enforcement, or interpretation of any law of this state; |
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98 | 114 | | 2. “Implementation and compliance costs ” means direct costs |
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99 | 115 | | that are readily ascertainable based upon standard business |
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100 | 116 | | practices, including, but not limited to, fees, the cost to obtain a |
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101 | 117 | | license or registration, the cost of equipment required to be |
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102 | 118 | | installed or used, additional operating costs incurred, the cost of |
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103 | 119 | | monitoring and reporting, and any other costs to comply with the |
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104 | 120 | | requirements of the proposed rule or regulation; and |
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105 | 121 | | 3. “Major rule” means any administrative rule, whether |
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106 | 122 | | emergency or permanent in nature, that over the initial five -year |
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107 | 123 | | period will result in or is likely to result in One Million Dollars |
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108 | 124 | | ($1,000,000.00) or more in implementation and compliance costs that |
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109 | | - | are reasonably expected to be incurred by or passed along to |
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110 | | - | businesses, local government units, and individuals as a result of |
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111 | | - | the proposed rule or regulation following the adoption of such rule. |
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112 | | - | Any rule that does not meet this classification shall be deemed a |
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113 | | - | nonmajor rule. |
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114 | | - | SECTION 3. NEW LAW A new section of law to be codifie d |
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115 | | - | in the Oklahoma Statutes as Section 602 of Title 75, unless there is |
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116 | | - | created a duplication in numbering, reads as follows: |
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| 151 | + | are reasonably expected to be incurred by or passed along to |
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| 152 | + | businesses, local government units, and individuals as a result of |
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| 153 | + | the proposed rule or regulation following the adoption of such rule. |
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| 154 | + | Any rule that does not meet this classification shall be deemed a |
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| 155 | + | nonmajor rule. |
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| 156 | + | SECTION 3. NEW LAW A new section of law to be codified |
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| 157 | + | in the Oklahoma Statutes as Section 602 of Title 75, unless there is |
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| 158 | + | created a duplication in numbering, reads as follows: |
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144 | 159 | | A. In addition to any other rule submission re quirements under |
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145 | 160 | | the Administrative Procedures Act, e ach state agency promulgating a |
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146 | 161 | | major rule shall provid e: |
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147 | 162 | | 1. Whether the proposed rule or regulation is mandated by |
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148 | 163 | | federal law as a requirement for participating in or implementing a |
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149 | 164 | | federally subsidized o r assisted program and whether the proposed |
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150 | 165 | | rule or regulation exceeds the requirements of the applicable |
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151 | 166 | | federal law; and |
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152 | 167 | | 2. An economic impact analysis specifically addressing the |
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153 | 168 | | following factors: |
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154 | 169 | | a. the rule’s economic impact, including any costs or |
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155 | 170 | | benefits and a detailed quantification of |
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156 | 171 | | implementation and compliance costs to be incurred by |
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157 | 172 | | specific businesses, business sectors, public utility |
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158 | 173 | | ratepayers, individuals, or local government units |
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159 | | - | that will be affected by the proposed rule or |
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160 | | - | regulation and on the state economy as a whole, |
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161 | | - | b. a detailed explanation of the methodol ogy and |
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162 | | - | assumptions used to determine the economic impact, |
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163 | | - | including the dollar amounts calculated, |
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164 | | - | c. an estimate of the total annual implementati on and |
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165 | | - | compliance costs that are reasonably expected to be |
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166 | | - | incurred by or passed along to business es, local |
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167 | | - | government units, or individuals and a determination |
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| 200 | + | that will be affected by the proposed rule or |
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| 201 | + | regulation and on the state economy as a whole, |
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| 202 | + | b. a detailed explanation of the methodology and |
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| 203 | + | assumptions used to determine the economic impact, |
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| 204 | + | including the dollar amounts calculated, |
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| 205 | + | c. an estimate of the total annual implementation and |
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| 206 | + | compliance costs that are reasonably expected to be |
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| 207 | + | incurred by or passed along to business es, local |
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| 208 | + | government units, or indi viduals and a determination |
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195 | 209 | | of whether those costs will exceed One Million Dollars |
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196 | 210 | | ($1,000,000.00) over the initial five -year period |
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197 | 211 | | following the adoption of the proposed rule or |
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198 | 212 | | regulation, |
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199 | 213 | | d. a statement of the need for the rule and the legal |
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200 | 214 | | basis supporting it, |
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201 | 215 | | e. any measures taken by the agency to minimize the cost |
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202 | 216 | | and impact of the proposed rule or regulation on |
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203 | 217 | | business and economic development w ithin this state, |
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204 | 218 | | on local government, and on individuals, and |
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205 | 219 | | f. a classification of the rule as major or nonmajor, |
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206 | 220 | | with a justification for the classification. |
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207 | 221 | | B. No agency shall submit a major rule or regulation to the |
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208 | 222 | | Secretary of State for filing wit hout completing an economic impact |
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209 | 223 | | analysis for the proposed rule or regulation and providing the |
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210 | | - | analysis to the Legislative Economic Analysis Unit created pursuant |
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211 | | - | to Section 4 of this act. |
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212 | | - | C. The agency shall consult with c ounties, municipalities, and |
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213 | | - | school boards, as appropriate, when preparing the economic impact |
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214 | | - | analysis of a proposed rule or regulation that increases or |
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215 | | - | decreases revenue of counties, cities, or school districts or |
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216 | | - | imposes functions or responsibilities on counties, cities, or school |
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217 | | - | districts that may increase their expenditures or fiscal liability. |
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218 | | - | The agency shall consult and solicit information from businesses, |
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| 250 | + | analysis to the Legislative Economic Analysis Unit created pursuant |
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| 251 | + | to Section 4 of this act. |
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| 252 | + | C. The agency shall consult with counties, municipalities, and |
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| 253 | + | school boards, as appropriate, when preparing the economic impact |
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| 254 | + | analysis of a proposed rule or regulation that increases or |
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| 255 | + | decreases revenue of counties, cities, or school districts or |
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| 256 | + | imposes functions or responsibilities on counties, cities, or school |
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| 257 | + | districts that may increase their expenditures or fiscal liability. |
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| 258 | + | The agency shall consult and solicit information from businesses, |
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246 | 259 | | business associations, political subdivisions , state agencies, or |
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247 | 260 | | members of the public that may be affected by the prop osed rule or |
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248 | 261 | | regulation or that may provide relevant information. |
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249 | 262 | | SECTION 4. NEW LAW A new section of law to be codified |
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250 | 263 | | in the Oklahoma Statutes as Section 603 of Title 75, unless there is |
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251 | 264 | | created a duplication in numbering, reads as follows: |
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252 | 265 | | A. A Legislative Economic Analysis Unit (LEAU) shall be created |
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253 | 266 | | within the Legislative Office of Fiscal Transparency (LOFT) to |
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254 | 267 | | provide independent and reliable economic analysis and other |
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255 | 268 | | information relevant to the conduct of the Legislature ’s oversight |
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256 | 269 | | and legislative duties. The LEAU shall assist the Administrative |
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257 | 270 | | Rules Committee of each chamber in evaluating major rules proposed |
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258 | 271 | | by state agencies. |
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259 | 272 | | B. LOFT shall establish the LEAU within ninety (90) days of the |
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260 | 273 | | effective date of this act and may employ no more than five full - |
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261 | | - | time-equivalent employees (FTEs) to serve the LEAU and carry out the |
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262 | | - | functions of this section. |
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263 | | - | C. Within twenty-one (21) calendar days of receiving any |
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264 | | - | proposed rule or regulation, the LEAU shall conduct an independent |
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265 | | - | analysis to determine that the agency has complied with the |
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266 | | - | requirements set forth in Section 3 of this act . The LEAU will |
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267 | | - | assess whether the proposed rule or regulation will result in |
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268 | | - | implementation and compliance costs of more than One Million Dollars |
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| 300 | + | time-equivalent employees (FTEs) to serve the LEAU and carry out the |
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| 301 | + | functions of this section. |
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| 302 | + | C. Within twenty-one (21) calendar days of receiving any |
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| 303 | + | proposed rule or regulation, the LEAU shall conduct an independe nt |
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| 304 | + | analysis to determine that the agency has complied with the |
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| 305 | + | requirements set forth in Section 3 of th is act. The LEAU will |
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| 306 | + | assess whether the proposed rule or regulation will result in |
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| 307 | + | implementation and compliance costs of more than One Million Dollar s |
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296 | 308 | | ($1,000,000.00) over the initial five -year period after |
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297 | 309 | | implementation. |
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298 | 310 | | D. The LEAU shall: |
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299 | 311 | | 1. Provide a report on each major rule or regulation to the |
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300 | 312 | | committees of jurisdiction by the end of the twenty -first calendar |
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301 | 313 | | day after the submission date of such major rule or regulation; |
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302 | 314 | | 2. Inform the committee if the economic impact analysis from |
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303 | 315 | | the agency is incomplete or contains substantive inaccuracies ; and |
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304 | 316 | | 3. Report to the Administrative Rules Committee of each |
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305 | 317 | | chamber. |
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306 | 318 | | E. State agencies shall cooper ate fully with the LEAU and the |
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307 | 319 | | Legislature in providing data or documentation necessary for |
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308 | 320 | | analysis, and conducting the analyses required under this act. |
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309 | 321 | | F. The President Pro Tempore of the Senate, Speaker of the |
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310 | 322 | | House of Representatives, and committee chair of the Administrative |
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311 | 323 | | Rules Committee of each chamber may also direct the LEAU to conduct |
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347 | 358 | | Representatives and published on LOFT’s website. Within the annual |
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348 | 359 | | report, the LEAU shall quantify the impact of its work, including |
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349 | 360 | | reductions in regulations, cost savings, and other measurable |
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350 | 361 | | benefits to the economy. |
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351 | 362 | | SECTION 5. NEW LAW A new section of law to be codified |
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352 | 363 | | in the Oklahoma Statutes as Section 604 of Title 75, unless there is |
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353 | 364 | | created a duplication in numbering, reads as follows: |
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354 | 365 | | A major rule shall not take effect unless specifically approved |
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355 | 366 | | by the Legislature through a joint resolution receiving a |
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356 | 367 | | constitutional majority in each chamber. |
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357 | 368 | | SECTION 6. AMENDATORY 75 O.S. 2021, Section 303 .1, as |
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358 | 369 | | amended by Section 3, Chapter 38, O.S.L. 2023 (75 O.S. Supp. 2024, |
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359 | 370 | | Section 303.1), is amended to read as follows: |
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360 | 371 | | Section 303.1. A. Within ten (10) days after adoption of a |
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361 | 372 | | permanent rule, the agency shall file two copies of the following |
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362 | 373 | | with the Governor, the Speaker of the House of Representatives, the |
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363 | | - | President Pro Tempore of the Senate, and the chief legislative |
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364 | | - | officer chair of the Administrative Rules Committee of each chamber: |
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365 | | - | all such new rules or amendments; revis ions or revocations to an |
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366 | | - | existing rule proposed by an agency; and the agency rule report as |
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367 | | - | required by subsection E of this section. |
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368 | | - | B. If the agency determines in the rule impact statement |
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369 | | - | prepared as part of the agency rule report that the any proposed |
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370 | | - | rule will have an economic impact on any political subdivisions or |
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| 400 | + | President Pro Tempore of the Senate, and the chief legislative |
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| 401 | + | officer chair of the Administ rative Rules Committee of each chamber: |
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| 402 | + | all such new rules or amendments; revisions or revocations to a n |
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| 403 | + | existing rule proposed by an agency; and the agency rule report as |
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| 404 | + | required by subsection E of this section. |
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| 405 | + | B. If the agency determines in the rule impact statement |
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| 406 | + | prepared as part of the agency rule report that the any proposed |
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| 407 | + | rule will have an economic impact on any political subdivisions or |
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398 | 408 | | require their cooperation in implementing or enforcing a proposed |
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399 | 409 | | permanent rule, a copy of the proposed ru le and rule report shall be |
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400 | 410 | | filed within ten (10) days after adoption of the permanent rule with |
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401 | 411 | | the Oklahoma Advisory Committee on Intergovernmental Relations for |
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402 | 412 | | its review. The Committee may communicate any recommendations that |
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403 | 413 | | it may deem necessary to the Governor, the Speaker of the House of |
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404 | 414 | | Representatives, and President Pro Tempore of the Senate during the |
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405 | 415 | | period that the permanent rules are being reviewed. |
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406 | 416 | | C. When the rules have been any rule is submitted to the |
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407 | 417 | | Governor, the Speaker of the House of Representatives, the President |
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408 | 418 | | Pro Tempore of the Senate, and the chief legislative officer chair |
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409 | 419 | | of the Administrative Rules Committee of each chamber, the agency |
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410 | 420 | | shall also submit to the Office of Administrative Rules for |
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411 | 421 | | publication in “The Oklahoma Register”, a statement that the adopted |
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412 | 422 | | rules have rule has been submitted to the Governor and the |
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413 | 423 | | Legislature. |
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414 | | - | D. The text of the adopted rules rule shall be submitted to the |
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415 | | - | Governor, the Speaker of the House of Representati ves, and the |
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416 | | - | President Pro Tempore of the Senate in the same format as required |
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417 | | - | by the Secretary pursuant to Section 251 of this title. The text of |
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418 | | - | the adopted rule shall be submitted to the President Pro Tempore of |
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419 | | - | the Senate, the Speaker of the House of Representatives, and the |
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420 | | - | chair of the Administrative Rules Committee of each chamber in |
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421 | | - | physical, spiral-bound copies. |
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| 450 | + | D. The text of the adopted rules rule shall be submitted to the |
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| 451 | + | Governor, the Speaker of the House of Representatives, and the |
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| 452 | + | President Pro Tempore of the Senate in the same format as required |
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| 453 | + | by the Secretary pursuant to Section 251 of this titl e. The text of |
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| 454 | + | the adopted rule shall be submitted to the President Pro Tempore of |
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| 455 | + | the Senate, the Speaker of the House of Representatives, and the |
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| 456 | + | chair of the Administrative Rules Committee of each chamber in |
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| 457 | + | physical, spiral-bound copies. |
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449 | 458 | | E. The report required by subsection A of this section shall |
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450 | 459 | | include: |
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451 | 460 | | 1. The date the notice of the intended rulemaking action was |
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452 | 461 | | published in “The Oklahoma Register” pursuant to Section 255 of this |
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453 | 462 | | title; |
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454 | 463 | | 2. The name and address of the agency; |
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455 | 464 | | 3. The title and nu mber of the rule; |
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456 | 465 | | 4. A citation to the constitutional or statutory authority for |
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457 | 466 | | the rule; |
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458 | 467 | | 5. The citation to any federal or state law, court ruling, or |
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459 | 468 | | any other authority requiring the rule; |
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460 | 469 | | 6. A statement of the gist of the rule or a brief summary of |
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461 | 470 | | the content of the adopted rule; |
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462 | 471 | | 7. A statement explaining the need for the adopted rule; |
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463 | 472 | | 8. The date and location of the meeting, if held, at which such |
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464 | 473 | | rules were rule was adopted, or the date and location when the rules |
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465 | | - | were rule was adopted if the rulemaking agency is not required to |
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466 | | - | hold a meeting to adopt rules; |
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467 | | - | 9. A summary of the comments and explanation of changes or lack |
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468 | | - | of any change made in the an adopted rules rule as a result of |
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469 | | - | testimony received at all hearings or meetings held or sponsored by |
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470 | | - | an agency for the purpose of providing the public an opportunity to |
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471 | | - | comment on the rules any proposed rule or of any written comments |
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472 | | - | received prior to the adoption of the rule. The summary shall |
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| 500 | + | were rule was adopted if the rulemaking agency is not required to |
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| 501 | + | hold a meeting to adopt rules; |
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| 502 | + | 9. A summary of the comments and explanation of changes or lack |
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| 503 | + | of any change made i n the an adopted rules rule as a result of |
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| 504 | + | testimony received at all hearings or meetings held or sponsored by |
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| 505 | + | an agency for the purpose of providing the public an opportunity to |
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| 506 | + | comment on the rules any proposed rule or of any written comments |
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| 507 | + | received prior to the adoption of the rule. The summary shall |
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500 | 508 | | include all comments received about the cost impact of the any |
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501 | 509 | | proposed rules rule; |
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502 | 510 | | 10. A list of persons or organizations who appeared or |
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503 | 511 | | registered for or against the adopted rule at any public hearing |
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504 | 512 | | held by the agency or those who have commented in writing before or |
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505 | 513 | | after the hearing; |
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506 | 514 | | 11. A rule impact statement if required pursuant to Section 303 |
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507 | 515 | | of this title; |
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508 | 516 | | 12. An incorporation by reference statement if the rule |
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509 | 517 | | incorporates a set of rules fro m a body outside the state, such as a |
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510 | 518 | | national code; |
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511 | 519 | | 13. The members of the governing board of the agen cy adopting |
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512 | 520 | | the rules rule and the recorded vote of each member; |
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513 | 521 | | 14. The proposed effective date of the rules rule, if an |
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514 | 522 | | effective date is required pu rsuant to paragraph 1 of subsection B |
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515 | 523 | | of Section 304 of this title; and |
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