03-05 15:33 1st Sub. (Buff) H.B. 474
Daniel McCay proposes the following substitute bill:
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Regulatory Oversight Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ryan D. Wilcox
Senate Sponsor: Daniel McCay
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LONG TITLE
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General Description:
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This bill provides additional mechanisms for the oversight of state executive agencies.
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Highlighted Provisions:
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This bill:
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▸ directs the Office of Professional Licensure Review (office) to create a mechanism to
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gather feedback regarding existing occupational regulations;
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▸ directs the office to include the feedback regarding existing occupational regulations that
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the office gathers in the office's written report to the Business and Labor Interim
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Committee;
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▸ provides a limit on the cost of implementing an agency generated rule; and
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▸ makes technical and conforming changes.
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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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None
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Utah Code Sections Affected:
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AMENDS:
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13-1b-203, as enacted by Laws of Utah 2022, Chapter 413
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13-1b-302, as enacted by Laws of Utah 2022, Chapter 413
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13-1b-304, as enacted by Laws of Utah 2022, Chapter 413
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63G-3-102, as last amended by Laws of Utah 2021, Chapter 344
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63G-3-301, as last amended by Laws of Utah 2024, Chapter 178
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72-16-203, as last amended by Laws of Utah 2021, Chapter 267
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 13-1b-203 is amended to read:
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13-1b-203 . Duties.
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The office shall:
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(1) for each application submitted in accordance with Section 13-1b-301, conduct a sunrise
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review in accordance with Section 13-1b-302 before November 1:
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(a) of the year in which the application is submitted, if the application is submitted on or
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before July 1; or
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(b) of the subsequent year, if the application is submitted after July 1;
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(2) [beginning in 2023 and in ] in accordance with Section 13-1b-303, conduct a review of
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each regulated occupation at least once every 10 years;
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(3) review and respond to any legislator inquiry regarding a proposed or existing regulated
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occupation;[ and]
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(4) publish on the office's website a submission form where an individual may provide
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feedback regarding an existing occupational regulation within the office's jurisdiction
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that the individual requests the office repeal or modify;
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(5) engage in a systematic review of the rules that relate to occupational regulations within
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the office's jurisdiction in accordance with Section 13-1b-302; and
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[(4)] (6) report to the Business and Labor Interim Committee in accordance with Section
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13-1b-304.
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Section 2. Section 13-1b-302 is amended to read:
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13-1b-302 . Review criteria.
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In conducting a sunrise review[ or ] , a periodic review, or a standalone review, unless
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otherwise directed in accordance with Subsection 13-1b-203(3), the office shall consider the
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following criteria:
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(1) whether the regulation of the occupation is necessary to address a present, recognizable,
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and significant harm to the health, safety, or financial welfare of the public;
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(2) for any harm to the health, safety, or financial welfare of the public, the harm's:
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(a) severity;
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(b) probability; and
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(c) permanence;
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(3) the extent to which the proposed or existing regulation of the occupation protects
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against or diminishes the harm described in Subsection (1);
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(4) whether the proposed or existing regulation of the occupation:
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(a) affects the supply of qualified practitioners;
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(b) creates barriers to:
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(i) service that are not in the public financial welfare or interest; or
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(ii) entry into the occupation or related occupations;
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(c) imposes new costs on existing practitioners;
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(d) affects:
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(i) license reciprocity with other jurisdictions; or
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(ii) mobility of practitioners; or
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(e) if the occupation involves a health care provider, impacts the health care provider's
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ability to obtain payment of benefits for the health care provider's treatment of an
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illness, injury, or health care condition under an insurance contract subject to Section
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31A-22-618;
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(5) if the review involves licensing, the potential alternative pathways for a person to obtain
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a license;
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(6) the costs to the state of regulating the occupation;
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(7) whether the proposed or existing administering agency has sufficient expertise and
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resources;
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(8) the regulation of the occupation in other jurisdictions;
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(9) the scope of the proposed or existing regulation, including:
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(a) whether the occupation is clearly distinguishable from an already regulated
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occupation; and
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(b) potential for regulating only certain occupational activities;
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(10) the potentially less burdensome alternatives to the proposed or existing regulation and
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the effect of implementing an alternative method of regulation on:
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(a) the health, safety, or financial welfare of the public;
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(b) the occupation; and
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(c) practitioners of the occupation; and
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(11) any other criteria the office adopts, including criteria suggested in a stakeholder survey.
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Section 3. Section 13-1b-304 is amended to read:
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13-1b-304 . Reporting.
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(1) [Beginning in 2024, ] On or before October 1, the office shall annually prepare and
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submit a written report to the Business and Labor Interim Committee that describes the
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office's work during the prior year.
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(2) In a written report described in Subsection (1), the office shall include:
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(a) a summary of each periodic review, each sunrise review, each rule review, and each
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response to a legislator inquiry; [and]
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(b) each recommendation the office made to another state executive branch agency
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regarding a regulated occupation[.] ; and
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(c) a summary of information received during the previous year by the office under
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Subsection 13-1b-203(4) including:
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(i) the total number of complaints the office receives;
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(ii) the number of rules that the office modifies or repeals in response to the
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complaints;
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(iii) each rule for which an individual filed a complaint;
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(iv) the rules that the office modified or repealed as a result of a complaint; and
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(v) a description of the modification of a rule as a result of a complaint if the office
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modified the rule.
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Section 4. Section 63G-3-102 is amended to read:
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63G-3-102 . Definitions.
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As used in this chapter:
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(1) "Administrative record" means information an agency relies upon when making a rule
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under this chapter including:
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(a) the proposed rule, change in the proposed rule, and the rule analysis form;
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(b) the public comment received and recorded by the agency during the public comment
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period;
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(c) the agency's response to the public comment;
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(d) the agency's analysis of the public comment; and
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(e) the agency's report of [its] the agency's decision-making process.
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(2)(a) "Agency" [means] includes:
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(i) each state board, authority, commission, institution, department, division, or officer[,] ;
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or
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(ii) any other state government entity [other than the Legislature, its committees, the
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political subdivisions of the state, or the courts, which] that is authorized or
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required by law to make rules, adjudicate, grant or withhold licenses, grant or
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withhold relief from legal obligations, or perform other similar actions or duties
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delegated by law.
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(b) "Agency" does not include:
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(i) the Legislature;
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(ii) the Legislature's committees;
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(iii) the political subdivisions of the state; or
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(iv) the courts.
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(3) "Bulletin" means the Utah State Bulletin.
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(4) "Catchline" means a short summary of each section, part, rule, or title of the code that
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follows the section, part, rule, or title reference placed before the text of the rule and
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serves the same function as boldface in legislation as described in Section 68-3-13.
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(5) "Code" means the body of all effective rules as compiled and organized by the office
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and entitled "Utah Administrative Code."
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(6) "Department" means the Department of Government Operations created in Section
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63A-1-104.
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(7) "Director" means the director of the office.
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(8) "Effective" means operative and enforceable.
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(9) "Executive director" means the executive director of the department.
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(10) "File" means to submit a document to the office as prescribed by the office.
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(11) "Filing date" means the day and time the document is recorded as received by the
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office.
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(12) "Interested person" means any person affected by or interested in a proposed rule,
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amendment to an existing rule, or a nonsubstantive change made under Section
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63G-3-402.
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(13) "Office" means the Office of Administrative Rules created in Section 63G-3-401.
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(14) "Order" means an agency action that determines the legal rights, duties, privileges,
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immunities, or other interests of one or more specific persons, but not a class of persons.
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(15) "Person" means any individual, partnership, corporation, association, governmental
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entity, or public or private organization of any character other than an agency.
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(16) "Publication" or "publish" means making a rule available to the public by including the
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rule or a summary of the rule in the bulletin.
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(17) "Publication date" means the inscribed date of the bulletin.
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(18) "Register" may include an electronic database.
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(19)(a) "Rule" means an agency's written statement that:
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(i) is explicitly or implicitly required by state or federal statute or other applicable
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law;
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(ii) implements or interprets a state or federal legal mandate; and
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(iii) applies to a class of persons or another agency.
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(b) "Rule" includes the amendment or repeal of an existing rule.
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(c) "Rule" does not mean:
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(i) orders;
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(ii) an agency's written statement that applies only to internal management and that
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does not restrict the legal rights of a public class of persons or another agency;
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(iii) the governor's executive orders or proclamations;
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(iv) opinions issued by the attorney general's office;
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(v) declaratory rulings issued by the agency according to Section 63G-4-503 except
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as required by Section 63G-3-201;
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(vi) rulings by an agency in adjudicative proceedings, except as required by
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Subsection 63G-3-201(6); or
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(vii) an agency written statement that is in violation of any state or federal law.
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(20) "Rule analysis" means the format prescribed by the office to summarize and analyze
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rules.
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(21) "Small business" means a business employing fewer than 50 persons.
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(22) "Substantial fiscal impact" means an anticipated fiscal impact of a proposed rule of at
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least $1,000,000 over a five-year period.
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[(22)] (23) "Substantive change" means a change in a rule that affects the application or
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results of agency actions.
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Section 5. 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] single business for a
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one-year 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 ] An agency shall mail a copy of the rule analysis [shall be mailed to all persons
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who have made timely request] to a person that makes a timely request of the agency for
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advance notice of the agency's rulemaking proceedings and to any other person [who] that,
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by statutory or federal mandate or in the judgment of the agency, should also receive
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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, a proposed rule
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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)(i) [Except as provided in Subsection (13)(d), before ] Before an agency enacts
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a rule, the agency shall submit to the appropriations subcommittee and interim
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committee with jurisdiction over the agency the agency's proposed rule for review,
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if the proposed rule, over a [three-year] five-year period, has a fiscal impact of
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more than[:] $1,000,000 statewide.
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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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(ii) A proposed rule that is subject to Subsection (13)(e) is exempt from Subsection
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(13)(a)(i).
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(b) An appropriations subcommittee or interim committee that reviews a rule [submitted]
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an agency submits 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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an agency submits under Subsection (13)(a) may recommend to the Rules Review
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and General Oversight Committee that the Rules Review and General Oversight
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Committee not recommend reauthorization of the rule in the legislation described in
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Section 63G-3-502.
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(d) The agency shall calculate the substantial fiscal impact in accordance with
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Subsection (5).
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(e) Unless an agency cannot implement a statute or execute a federally delegated
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authority without making a rule that is estimated to have substantial fiscal impact, the
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agency may not make the rule.
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[(d)] (f) The requirements described in [Subsection (13)(a) does] Subsections (13)(a) and
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(13)(b) do 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 6. Section 72-16-203 is amended to read:
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72-16-203 . Rulemaking.
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(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and the
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provisions of this chapter the committee may make rules:
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(a) establishing:
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(i) the form of an application and a renewal application for:
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(A) a qualified safety inspector certification;
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(B) an annual amusement ride permit; and
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(C) a multi-ride annual amusement ride permit;
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(ii) the procedure to apply for and renew:
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(A) a qualified safety inspector certification;
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(B) an annual amusement ride permit; and
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(C) a multi-ride annual amusement ride permit;
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(iii) standards for a daily inspection under Section 72-16-302;
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(iv) the form of a report of a reportable serious injury to the director;
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(v) the procedure for reporting a reportable serious injury to the director;
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(vi) the procedure to suspend and revoke:
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(A) a qualified safety inspector certification;
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(B) an annual amusement ride permit; and
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(C) a multi-ride annual amusement ride permit;
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(vii) a retention schedule that applies to each qualified safety inspector for records
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related to a qualified safety inspector's duties under this chapter;
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(viii) a retention schedule that applies to each owner-operator for records related to
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an owner-operator's duties under this chapter;
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(ix) fees;
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(x) minimum insurance requirements for certified inspectors; and
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(xi) fines or administrative penalties for lack of compliance with this chapter[.] ;
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(b) regarding the experience required to obtain a qualified safety inspector certification
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under Subsection 72-16-303(3)(a); and
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(c) adopting nationally recognized:
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(i) amusement ride inspection standards; and
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(ii) qualified safety inspector qualification standards.
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(2) Notwithstanding Subsection [63G-3-301(13), no later than December 1, 2020, ]
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63G-3-301(14), the committee shall initiate rulemaking proceedings, as defined in
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Section 63G-3-301, to make rules under this section.
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Section 7. Effective Date.
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This bill takes effect on May 7, 2025.
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