SENATE FLOOR VERSION - SB318 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION March 5, 2025 COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 318 By: Bergstrom, Jett, and Deevers of the Senate and Kendrix and Woolley of the House [ administrative rule processes - duties - procedures - consultation - information - Unit - reports - cooperation - evaluation of rules - report - approval - permanent rules - noncodification - codification - effective date ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law not to be codified in the Oklahoma Statutes reads as follows: This act shall be known and may be cited as the “Regulations from the Executive in Need of Scrutiny (REINS) Act of 2025 ”. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 601 of Title 75, unless there is created a duplication in numbering, reads as follows: As used in this act: SENATE FLOOR VERSION - SB318 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. “Agency” means any officer, department, bureau, division, board, commission, authority , agency, or institution of this state, except the judicial and legislative branches, authorized by law to promulgate rules and regulations concerning the administration, enforcement, or interpretation of any law of this state; 2. “Implementation and comp liance costs” means direct costs that are readily ascertainable based upon standard business practices, including, but not limited to, fees, the co st to obtain a license or registration, the cost of equipment required to be installed or used, additional op erating costs incurred, the cost of monitoring and reporting, and any other costs to comply with the requirements of the proposed rule or regulation; and 3. “Major rule” means any administrative rule, whether emergency or permanent in nature, that over the initial five-year period will result in or is likely to result in One Million Dollars ($1,000,000.00) or more in implementation and compliance co sts that are reasonably expected to be incurred by or passed along to businesses, local government units, and individuals as a result of the proposed rule or regulation following the adoption of such rule. Any rule that does not meet this classification shall be deemed a nonmajor rule. SECTION 3. NEW LAW A new section of law to be codifie d in the Oklahoma Statutes as Section 602 of Title 75, unless there is created a duplication in numbering, reads as follows: SENATE FLOOR VERSION - SB318 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. In addition to any other rule submission requirements under the Administrative Procedures Act, e ach state agency promulgating a major rule shall provide: 1. Whether the proposed rule or regulation is mandated by federal law as a requirement for participating in or implementing a federally subsidized or assisted program and whether the proposed rule or regulation exceeds the requi rements of the applicable federal law; and 2. An economic impact analysis specifically addressing the following factors: a. the rule’s economic impact, including any costs or benefits and a detailed quantification of implementation and compliance costs to be incurred by specific businesses, business sectors, public utility ratepayers, individuals, or local government units that will be affected by the proposed rule or regulation and on the state economy as a whole, b. a detailed explanation of the methodol ogy and assumptions used to determine the economic impact, including the dollar amounts calculated, c. an estimate of the total annual implementati on and compliance costs that are reasonably expected to be incurred by or passed along to business es, local government units, or individuals and a determination SENATE FLOOR VERSION - SB318 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of whether those costs will exceed One Million Dollars ($1,000,000.00) over the initial five -year period following the adoption of the proposed rule or regulation, d. a statement of the need for the rule and the legal basis supporting it, e. any measures taken by the agency to minimize the cost and impact of the proposed rule or regulation on business and economic development within this state, on local government, and on individuals, and f. a classification of the rule as major or nonmajor, with a justification for the classification. B. No agency shall submit a major rule or regulation to the Secretary of State for filing without completing an economic impact analysis for the proposed rule or regulation and providing the analysis to the Legislative Economic Analysis Unit created pursuant to Section 4 of this act. C. The agency shall consult with c ounties, municipalities, and school boards, as appropriate, when preparing the economic impact analysis of a proposed rule or regulation that increases or decreases revenue of counties, cities, or school districts or imposes functions or responsibilities on counties, cities, or school districts that may increase their expenditures or fiscal liability. The agency shall consult and solicit information from businesses, SENATE FLOOR VERSION - SB318 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 business associations, political subdivisions , state agencies, or members of the public tha t may be affected by the proposed rule or regulation or that may provide relevant information. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 603 of Title 75, unless there is created a duplication in numbering, reads as follows: A. A Legislative Economic Analysis Unit (LEAU) shall be created within the Legislative Office of Fiscal Transparency (LOFT) to provide independent and reliable economic analysis and other information relevant to th e conduct of the Legislature ’s oversight and legislative duties. The LEAU shall assist the Administrative Rules Committee of each chamber in evaluating major rules proposed by state agencies. B. LOFT shall establish the LEAU within ninety (90) days of the effective date of this act and may employ no more than five full - time-equivalent employees (FTEs) to serve the LEAU and carry out the functions of this section. C. Within twenty-one (21) calendar days of receiving any proposed rule or regulation, the LEAU shall conduct an independent analysis to determine that the agency has complied with the requirements set forth in Section 3 of this act . The LEAU will assess whether the proposed rule or regulation will result in implementation and compliance costs of more than One Million Dollars SENATE FLOOR VERSION - SB318 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ($1,000,000.00) over the initial five -year period after implementation. D. The LEAU shall: 1. Provide a report on each major rule or regulation to the committees of jurisdiction by the end of the twenty -first calendar day after the submission date of such major rule or regulation ; 2. Inform the committee if the economic impact analysis from the agency is incomplete or contains substantive inaccuracies ; and 3. Report to the Administrative Rules Committee of each chamber. E. State agencies shall cooperate fully with the LEAU and the Legislature in providing data or documentation necessary for analysis, and conducting the analyses required under this act. F. The President Pro Tempore of the Senate, Speaker of the House of Representatives, and committee chair of the Administrative Rules Committee of each chamber may also direct the LEAU to conduct evaluations of existing provisions of the Oklahoma Administrative Code. G. The LEAU shall: 1. Make all analyses and determinations publicly available on its website upon completion ; and 2. Submit an annual report summarizing the year ’s evaluations and findings shall be electronically submitted to the President Pro Tempore of the Senate and the Speaker of the House of SENATE FLOOR VERSION - SB318 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Representatives and published on LOFT’s website. Within the annual report, the LEAU shall quantify the impact of its work, including reductions in regulations, cost savings, and other measurable benefits to the economy. SECTION 5. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 604 of Title 75, unless there is created a duplication in numbering, reads as follows: A major rule shall not take effect unless specifically approved by the Legislature through a joint resolution receiving a constitutional majority in each chamber. SECTION 6. AMENDATORY 7 5 O.S. 2021, Section 303.1, as amended by Section 3, Chapter 38, O.S.L. 2023 (75 O.S. Supp. 2024, Section 303.1), is amended to read as follows: Section 303.1. A. Within ten (10) days after adoption of a permanent rule, the agency shall file two copies o f the following with the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the chief legislative officer chair of the Administrative Rules Committee of each chamber: all such new rules or amendments; revis ions or revocations to an existing rule proposed by an agency; and the agency rule report as required by subsection E of this section. B. If the agency determines in the rule impact statement prepared as part of the agency rule report that the any proposed rule will have an economic impact on any political subdivisions or SENATE FLOOR VERSION - SB318 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 require their cooperation in implementing or enforcing a proposed permanent rule, a copy of the proposed rule and rule report shall be filed within ten (10) days after adoption of the per manent rule with the Oklahoma Advisory Committee on Intergovernmental Relations for its review. The Committee may communicate any recommendations that it may deem necessary to the Governor, the Speaker of the House of Representatives, and President Pro Te mpore of the Senate during the period that the permanent rules are being reviewed. C. When the rules have been any rule is submitted to the Governor, the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the chief legislative officer chair of the Administrative Rules Committee of each chamber, the agency shall also submit to the Office of Administrative Rules for publication in “The Oklahoma Register ”, a statement that the adopted rules have rule has been submitted to th e Governor and the Legislature. D. The text of the adopted rules rule shall be submitted to the Governor, the Speaker of the House of Representati ves, and the President Pro Tempore of the Senate in the same format as required by the Secretary pursuant to Section 251 of this title. The text of the adopted rule shall be submitted to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the chair of the Administrative Rules Committee of each chamber in physical, spiral-bound copies. SENATE FLOOR VERSION - SB318 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. The report required by subsection A of this section shall include: 1. The date the notice of the intended rulemaking action was published in “The Oklahoma Register ” pursuant to Section 255 of this title; 2. The name and address of the agen cy; 3. The title and number of the rule; 4. A citation to the constitutional or statutory authority for the rule; 5. The citation to any federal or state law, court ruling, or any other authority requiring the rule; 6. A statement of the gist of the ru le or a brief summary of the content of the adopted rule; 7. A statement explaining the need for the adopted rule; 8. The date and location of th e meeting, if held, at which such rules were rule was adopted, or the date and location when the rules were rule was adopted if the rulemaking agency is not required to hold a meeting to adopt rules; 9. A summary of the comments and explanation of changes or lack of any change made in the an adopted rules rule as a result of testimony received at all hearings or meetings held or sponsored by an agency for the purpose of providing the public an opportunity to comment on the rules any proposed rule or of any written comments received prior to the adoption of the rule. The summary shall SENATE FLOOR VERSION - SB318 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 include all comments receive d about the cost impact of the any proposed rules rule; 10. A list of persons or organizations who appeared or registered for or against the adopted rule at any public hearing held by the agency or those who have commented in writing before or after the hearing; 11. A rule impact statement if required pursuant to Section 303 of this title; 12. An incorporation by reference statement if the rule incorporates a set of rules from a body outside the state, such as a national code; 13. The members of the gov erning board of the agency adopting the rules rule and the recorded vote of each member; 14. The proposed effective date of the rules rule, if an effective date is required pursuant to paragraph 1 of subsection B of Section 304 of this title; and 15. Any other information requested by the Governor, the Speaker of the House of Representatives, or the President Pro Tempore of the Senate. SECTION 7. This act shall become effective November 1, 2025. COMMITTEE REPORT BY: COMMITTEE ON APPROPRIA TIONS March 5, 2025 - DO PASS AS AMENDED