Under HB 357, if an agency proposes a rule that is expected to have a substantial fiscal impact—defined as exceeding $250,000 for an individual or $7.5 million for a group—such a rule cannot take effect until it is ratified by a bill passed through the legislature. This requirement aims to ensure that lawmakers scrutinize rules that may impose considerable costs on the state or its constituents, thus enhancing accountability and oversight.
Summary
House Bill 357, known as the Administrative Rules Amendments, is aimed at refining the regulations concerning administrative rulemaking procedures within the state of Utah. This bill establishes specific provisions regarding how state agencies can formulate, amend, or repeal rules, with a prominent focus on fiscal impact assessment. It mandates that agencies must conduct thorough analyses of any rules anticipated to carry a significant fiscal burden, particularly impacting small businesses and the broader economy.
Contention
Notably, the key points of contention surrounding HB 357 have centered on the balance of regulatory authority between state agencies and the legislative body. Proponents argue that the bill strengthens legislative oversight and protects small businesses from potentially overbearing regulations. However, opponents express concerns that such stringent review processes might hinder prompt regulatory responses that address urgent public needs. There is a fear that the bill could create bureaucratic delays in essential rulemaking processes, affecting various sectors reliant on timely regulations.
Provisions
The bill outlines detailed criteria for conducting fiscal impact analyses and emphasizes accommodating small businesses in the regulatory landscape. Agencies must assess the specific sectors affected by proposed rule changes, estimating costs and the overall fiscal burden. Additionally, the bill allows for less stringent compliance standards for small enterprises, promoting flexibility and minimizing economic strain, which actively addresses the needs of smaller economic participants in the regulatory framework.