02-28 07:06 1st Sub. (Buff) H.B. 75
Stephanie Gricius proposes the following substitute bill:
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Administrative Rules Process and Reauthorization
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephanie Gricius
Senate Sponsor: Daniel McCay
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LONG TITLE
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General Description:
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This bill addresses administrative rules process and reauthorizes administrative rules.
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Highlighted Provisions:
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This bill:
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▸ allows the Rules Review and General Oversight Committee to delay the effective date of
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a proposed administrative rule; and
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▸ reauthorizes administrative rules.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Uncodified Material Affected:
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ENACTS UNCODIFIED MATERIAL:
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Utah Code Sections Affected:
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AMENDS:
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63G-3-301, as last amended by Laws of Utah 2024, Chapter 178
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ENACTS:
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63G-3-304.1, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 63G-3-301 is amended to read:
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63G-3-301 . Rulemaking procedure.
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(1) An agency authorized to make rules is also authorized to amend or repeal those rules.
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(2) Except as provided in Sections 63G-3-303 and 63G-3-304, when making, amending, or
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repealing a rule agencies shall comply with:
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(a) the requirements of this section;
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(b) consistent procedures required by other statutes;
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(c) applicable federal mandates; and
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(d) rules made by the office to implement this chapter.
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(3) Subject to the requirements of this chapter, each agency shall develop and use flexible
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approaches in drafting rules that meet the needs of the agency and that involve persons
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affected by the agency's rules.
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(4)(a) Each agency shall file the agency's proposed rule and rule analysis with the office.
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(b) Rule amendments shall be marked with new language underlined and deleted
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language struck out.
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(c)(i) The office shall publish the information required under Subsection (8) on the
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rule analysis and the text of the proposed rule in the next issue of the bulletin.
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(ii) For rule amendments, only the section or subsection of the rule being amended
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need be printed.
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(iii) If the director determines that the rule is too long to publish, the office shall
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publish the rule analysis and shall publish the rule by reference to a copy on file
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with the office.
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(5) Before filing a rule with the office, the agency shall conduct a thorough analysis,
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consistent with the criteria established by the Governor's Office of Planning and Budget,
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of the fiscal impact a rule may have on businesses, which criteria may include:
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(a) the type of industries that will be impacted by the rule, and for each identified
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industry, an estimate of the total number of businesses within the industry, and an
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estimate of the number of those businesses that are small businesses;
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(b) the individual fiscal impact that would incur to a typical business for a one-year
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period;
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(c) the aggregated total fiscal impact that would incur to all businesses within the state
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for a one-year period;
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(d) the total cost that would incur to all impacted entities over a five-year period; and
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(e) the department head's comments on the analysis.
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(6) If the agency reasonably expects that a proposed rule will have a measurable negative
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fiscal impact on small businesses, the agency shall consider, as allowed by federal law,
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each of the following methods of reducing the impact of the rule on small businesses:
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(a) establishing less stringent compliance or reporting requirements for small businesses;
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(b) establishing less stringent schedules or deadlines for compliance or reporting
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requirements for small businesses;
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(c) consolidating or simplifying compliance or reporting requirements for small
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businesses;
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(d) establishing performance standards for small businesses to replace design or
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operational standards required in the proposed rule; and
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(e) exempting small businesses from all or any part of the requirements contained in the
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proposed rule.
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(7) If during the public comment period an agency receives comment that the proposed rule
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will cost small business more than one day's annual average gross receipts, and the
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agency had not previously performed the analysis in Subsection (6), the agency shall
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perform the analysis described in Subsection (6).
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(8) The rule analysis shall contain:
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(a) a summary of the rule or change;
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(b) the purpose of the rule or reason for the change;
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(c) the statutory authority or federal requirement for the rule;
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(d) the anticipated cost or savings to:
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(i) the state budget;
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(ii) local governments;
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(iii) small businesses; and
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(iv) persons other than small businesses, businesses, or local governmental entities;
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(e) the compliance cost for affected persons;
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(f) how interested persons may review the full text of the rule;
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(g) how interested persons may present their views on the rule;
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(h) the time and place of any scheduled public hearing;
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(i) the name and telephone number of an agency employee who may be contacted about
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the rule;
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(j) the name of the agency head or designee who authorized the rule;
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(k) the date on which the rule may become effective following the public comment
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period;
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(l) the agency's analysis on the fiscal impact of the rule as required under Subsection (5);
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(m) any additional comments the department head may choose to submit regarding the
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fiscal impact the rule may have on businesses; and
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(n) if applicable, a summary of the agency's efforts to comply with the requirements of
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Subsection (6).
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(9)(a) For a rule being repealed and reenacted, the rule analysis shall contain a summary
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that generally includes the following:
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(i) a summary of substantive provisions in the repealed rule which are eliminated
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from the enacted rule; and
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(ii) a summary of new substantive provisions appearing only in the enacted rule.
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(b) The summary required under this Subsection (9) is to aid in review and may not be
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used to contest any rule on the ground of noncompliance with the procedural
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requirements of this chapter.
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(10) A copy of the rule analysis shall be mailed to all persons who have made timely
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request of the agency for advance notice of the agency's rulemaking proceedings and to
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any other person who, by statutory or federal mandate or in the judgment of the agency,
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should also receive notice.
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(11)(a) Following the publication date, the agency shall allow at least 30 days for public
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comment on the rule.
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(b) The agency shall review and evaluate all public comments submitted in writing
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within the time period under Subsection (11)(a) or presented at public hearings
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conducted by the agency within the time period under Subsection (11)(a).
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(12)(a) Except as provided in Sections 63G-3-303, [and] 63G-3-304, and 63G-3-304.1, a
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proposed rule becomes effective on any date specified by the agency that is:
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(i) no fewer than seven calendar days after the day on which the public comment
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period closes under Subsection (11); and
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(ii) no more than 120 days after the day on which the rule is published.
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(b) The agency shall provide notice of the rule's effective date to the office in the form
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required by the office.
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(c) The notice of effective date may not provide for an effective date before the day on
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which the office receives the notice.
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(d) The office shall publish notice of the effective date of the rule in the next issue of the
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bulletin.
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(e) A proposed rule lapses if a notice of effective date or a change to a proposed rule is
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not filed with the office within 120 days after the day on which the rule is published.
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(13)(a) Except as provided in Subsection (13)(d), before an agency enacts a rule, the
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agency shall submit to the appropriations subcommittee and interim committee with
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jurisdiction over the agency the agency's proposed rule for review, if the proposed
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rule, over a three-year period, has a fiscal impact of more than:
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(i) $250,000 to a single person; or
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(ii) $7,500,000 to a group of persons.
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(b) An appropriations subcommittee or interim committee that reviews a rule submitted
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under Subsection (13)(a) shall:
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(i) before the review, directly inform the chairs of the Rules Review and General
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Oversight Committee of the coming review, including the date, time, and place of
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the review; and
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(ii) after the review, directly inform the chairs of the Rules Review and General
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Oversight Committee of the outcome of the review, including any
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recommendation.
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(c) An appropriations subcommittee or interim committee that reviews a rule submitted
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under Subsection (13)(a) may recommend to the Rules Review and General
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Oversight Committee that the Rules Review and General Oversight Committee not
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recommend reauthorization of the rule in the legislation described in Section
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63G-3-502.
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(d) The requirement described in Subsection (13)(a) does not apply to:
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(i) the State Tax Commission; or
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(ii) the State Board of Education.
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(14)(a) As used in this Subsection (14), "initiate rulemaking proceedings" means the
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filing, for the purposes of publication in accordance with Subsection (4), of an
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agency's proposed rule that is required by state statute.
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(b) A state agency shall initiate rulemaking proceedings no later than 180 days after the
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day on which the statutory provision that specifically requires the rulemaking takes
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effect, except under Subsection (14)(c).
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(c) When a statute is enacted that requires agency rulemaking and the affected agency
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already has rules in place that meet the statutory requirement, the agency shall submit
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the rules to the Rules Review and General Oversight Committee for review within 60
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days after the day on which the statute requiring the rulemaking takes effect.
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(d) If a state agency does not initiate rulemaking proceedings in accordance with the
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time requirements in Subsection (14)(b), the state agency shall appear before the
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legislative Rules Review and General Oversight Committee and provide the reasons
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for the delay.
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Section 2. Section 63G-3-304.1 is enacted to read:
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63G-3-304.1 . Delaying the effective date of a proposed rule.
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(1) Upon a majority vote of the members of the committee, the Rules Review and General
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Oversight Committee may delay the effective date of any proposed rule to May 15 of the
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calendar year following the day the vote is taken.
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(2) The Rules Review and General Oversight Committee may choose to delay the effective
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date of an entire proposed rule, a single section, or any complete paragraph of a rule.
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(3) The Rules Review and General Oversight Committee shall notify the agency proposing
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the rule and the office of the delay of the effective date.
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(4) An agency's proposed rule's effective date may not be delayed if:
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(a) the rule is explicitly mandated by a federal law or regulation;
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(b) a provision of Utah's constitution vests the agency with specific constitutional
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authority to regulate; or
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(c) the rule is an emergency rule filed under Section 63G-3-304.
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(5) The office shall make rules in accordance with this chapter to determine how to
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bifurcate a rule that has had a section or paragraph's effective date delayed under this
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section.
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Section 3. Rules reauthorization.
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All rules of Utah state agencies are reauthorized.
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Section 4. Effective Date.
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This bill takes effect:
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(1) except as provided in Subsection (2), May 7, 2025; or
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(2) if approved by two-thirds of all the members elected to each house, the later of:
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(a) May 1, 2025; or
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(b)(i) upon approval by the governor;
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(ii) without the governor's approval, the day following the constitutional time limit of
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Utah Constitution, Article VII, Section 8; or
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(iii) with the governor's veto and a vote of the Legislature to override the veto, the
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date of veto override.
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