Bill Text: NY A04112 | 2019-2020 | General Assembly | Introduced


Bill Title: Creates the division of regulatory review and economic growth to review regulatory processes and permit requirements in order to facilitate economic growth.

Spectrum: Partisan Bill (Republican 17-0)

Status: (Introduced) 2020-01-08 - referred to governmental operations [A04112 Detail]

Download: New_York-2019-A04112-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4112
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 1, 2019
                                       ___________
        Introduced  by  M.  of  A.  KOLB,  MONTESANO,  PALMESANO,  RAIA, HAWLEY,
          BARCLAY, STEC, BRABENEC, GIGLIO, NORRIS -- Multi-Sponsored by -- M. of
          A. DiPIETRO, FRIEND -- read once and  referred  to  the  Committee  on
          Governmental Operations
        AN  ACT  to  amend the executive law, the state administrative procedure
          act and the legislative law, in relation to the division of regulatory
          review and economic growth
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. The executive law is amended by adding a new article 43 to
     2  read as follows:
     3                                 ARTICLE 43
     4              DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
     5  Section 930. Definitions.
     6          931. Division of regulatory review and economic growth.
     7          932. General functions, powers and duties.
     8          933. Assistance of other state agencies.
     9          934. Regulation review.
    10          935. Division annual recommendations.
    11          936. Implementation of recommendations.
    12          937. Cost of regulation study.
    13    § 930. Definitions. When used in this  article,  the  following  terms
    14  shall have the following meanings:
    15    1. "Commissioner" means the commissioner of the division of regulatory
    16  review and economic growth.
    17    2.  "Division"  means  the  division of regulatory review and economic
    18  growth created by this article.
    19    3. "Permit" shall mean the whole or part of any state  agency  permit,
    20  license,  certificate,  approval, registration, charter, or similar form
    21  of permission or authority required by  law  or  by  state  agency  rule
    22  having  the  force  and  effect of law, which is required for a business
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05713-01-9

        A. 4112                             2
     1  undertaking, project or activity; provided, however, it shall  not  mean
     2  individual  licenses  for  practicing  a  profession prescribed in title
     3  eight of the education law, filings under the uniform  commercial  code,
     4  or  routine  licenses  and  permits for individual privileges, including
     5  licenses for operating a motor vehicle and  amateur  sporting  licenses,
     6  such as for hunting and fishing.
     7    4. "Rule" means a rule as defined in subparagraph (i) of paragraph (a)
     8  of  subdivision  two of section one hundred two of the state administra-
     9  tive procedure act, including rules of the workers' compensation  board,
    10  but  does  not  include  the  rules of the state comptroller or attorney
    11  general, rules  regarding  jurisdictional  classifications  pursuant  to
    12  subdivision  one of section six of the civil service law, and the alter-
    13  ation of hunting or fishing seasons pursuant to article  eleven  of  the
    14  environmental conservation law.
    15    5.  "State  agency"  means  an agency as defined in subdivision one of
    16  section one hundred two of the state administrative procedure act.
    17    § 931. Division of regulatory review and economic growth. 1. There  is
    18  hereby  created  in  the executive department the division of regulatory
    19  review and economic growth. The  head  of  the  division  shall  be  the
    20  commissioner of the division who shall be appointed by the governor with
    21  the consent of the senate and serve a term of five years.
    22    2. The commissioner must have at least ten years of experience running
    23  a for-profit business, with at least three years experience as the chief
    24  executive  officer,  chief operating   officer, chief financial officer,
    25  president, owner, or any other title used for the highest ranking  offi-
    26  cer, administrator or manager of a for-profit business.
    27    3.  The  commissioner shall be appointed by the governor within thirty
    28  days of the effective date of this section and within thirty days of the
    29  expiration of every five year term thereafter, and upon confirmation  of
    30  the  senate  shall serve a term of five years effective from the date of
    31  confirmation. If the senate rejects an appointment, the  governor  shall
    32  have  thirty  days  from  the  date  of the rejection to appoint another
    33  commissioner.
    34    4. The commissioner may only  be  removed  from  office  by  a  felony
    35  conviction or a crime involving a violation of his or her oath of office
    36  or  by the assent of two-thirds of the members elected to each branch of
    37  the legislature voting separately.
    38    5. Such commissioner shall receive an annual salary to be fixed by the
    39  governor within the amount made available therefor by appropriation  and
    40  shall  be  allowed  his  or  her  actual  and  necessary expenses in the
    41  performance of his or her duties.
    42    6. Upon appointment and until  such  term  expires,  the  commissioner
    43  shall  not  (a)  participate in any partisan political party activities,
    44  except that such candidate may register to vote as a member of any poli-
    45  tical party and may vote in any party primary for candidates  for  nomi-
    46  nation  of  the  party  in  which  he  or she is registered to vote; (b)
    47  endorse any candidate or political party; or (c) make  contributions  to
    48  any  candidate, political party committee, political action committee or
    49  political committee pursuant to subdivision ten of section 14-114 of the
    50  election law.
    51    7. The commissioner shall direct the work of the division and shall be
    52  the chief executive officer of the division. The commissioner may  enter
    53  into contracts and expend money, and appoint such officers and employees
    54  as  he  or  she  may  deem  necessary, prescribe their duties, fix their
    55  compensation, and provide for the reimbursement of their  expenses,  all
    56  within  amounts  made  available  therefor  by appropriation. Such staff

        A. 4112                             3
     1  shall be management confidential  employees  with  an  understanding  of
     2  private sector business.
     3    § 932. General functions, powers and duties. The division of regulato-
     4  ry review and economic growth, by and through the commissioner or his or
     5  her  duly  authorized  officers  and employees, shall have the following
     6  functions, powers and duties:
     7    1. To provide an oversight, review and analysis of the rules and regu-
     8  latory processes of state agencies.
     9    2. To make binding recommendations to the governor and legislature  on
    10  burdensome  New  York  state codes, rules, regulations, regulatory proc-
    11  esses, and permit requirements to eliminate or amend them,  pursuant  to
    12  section nine hundred thirty-five of this article.
    13    3.  To  review  the  environmental  quality review process established
    14  under article eight of  the  environmental  conservation  law  and  make
    15  recommendations pursuant to subdivision two of this section to establish
    16  a  more  efficient, predictable, timely, and transparent process, and to
    17  ensure that the process does not stifle  economic  growth  in  New  York
    18  state.
    19    4.  To review permit requirements and the need by the state to require
    20  such permits. The division shall make recommendations pursuant to subdi-
    21  vision two of this section to eliminate,  consolidate,  simplify,  expe-
    22  dite,  or  otherwise  improve  permits, permit procedures, and paperwork
    23  burdens affecting local governments, school districts or businesses.
    24    5. To encourage and facilitate the participation of federal and  local
    25  government agencies in regulatory review.
    26    6.  To establish an 800 hotline and website to provide businesses with
    27  one contact number to direct questions  and  to  provide  assistance  to
    28  businesses  in  the state or businesses looking to open or expand in New
    29  York state. Such hotline may be used to report regulatory burdens, state
    30  agencies  overreaching  their  power,  excessive  fines  and  to  submit
    31  requests for regulatory review by the commissioner.
    32    7.  To adopt such rules and regulations, procedures, instructions, and
    33  forms as are necessary or desirable to carry out the functions,  powers,
    34  and duties imposed upon the division by this article.
    35    8.  To publish an annual report, after January first and before Febru-
    36  ary first, commencing two thousand twenty-one, including all recommenda-
    37  tions proposed by the division and those recommendations implemented  by
    38  the  state  during  the  prior  calendar year. Such report shall include
    39  specific details concerning estimated cost savings to the taxpayers from
    40  proposed recommendations and actual cost savings to the  taxpayers  from
    41  implemented recommendations.
    42    §  933. Assistance of other state agencies. To effectuate the purposes
    43  of this article, the commissioner may request and shall be  entitled  to
    44  receive  from  any state agency, and the same are authorized to provide,
    45  such assistance, services, facilities, and data as will enable the divi-
    46  sion to carry out its functions, powers and duties.
    47    § 934. Regulation review. 1. In developing a rule,  each  agency  head
    48  shall,  prior  to  submitting a notice of proposed or revised rulemaking
    49  for publication in the state register pursuant to  section  two  hundred
    50  two of the state administrative procedure act, submit to the commission-
    51  er,  in  such  form  and  manner  as the commissioner may prescribe, the
    52  complete text of the rule, any impact statements which would be required
    53  by article two of the state administrative procedure act to propose  the
    54  rule,  and any cost-benefit analysis, risk assessment and/or the results
    55  of a negotiated rulemaking or policy dialogue undertaken in  conjunction
    56  with the development of the rule.

        A. 4112                             4
     1    2.  The commissioner shall review the agency's submission to determine
     2  whether it is complete and in accordance with the  goals,  criteria  and
     3  requirements of this article and article two of the state administrative
     4  procedure act, including whether the rule:
     5    (a) is clearly within the authority delegated by law;
     6    (b) is consistent with and necessary to achieve a specific legislative
     7  intent  of promoting economic growth or protecting the health and safety
     8  of the public;
     9    (c) is consistent with state statutory requirements;
    10    (d) does not impose a mandate on local governments,  school  districts
    11  or  businesses that is not fully funded, except as specifically required
    12  by state statute;
    13    (e) is clearly written so that its meaning will be  easily  understood
    14  by those persons affected by it;
    15    (f)  does  not  unnecessarily  duplicate or exceed existing federal or
    16  state statutes or rules;
    17    (g) prescribes methodologies  or  requirements  that  allow  regulated
    18  parties  flexibility and encourage innovation in meeting the legislative
    19  or administrative requirements and objectives underlying the rule;
    20    (h) is based on credible assessments, using recognized  standards,  of
    21  the  degree  and nature of the risks which may be regulated, including a
    22  comparison with everyday risks familiar to the public;
    23    (i) gives preference to the least costly, least burdensome  regulatory
    24  and paperwork requirements needed to accomplish legislative and adminis-
    25  trative objectives;
    26    (j) is based upon the best scientific, technical and economic informa-
    27  tion that can reasonably and affordably be obtained; and
    28    (k)  if  possible  and practical, favors market-oriented solutions and
    29  performance standards over command-and-control regulation.
    30    3. If the commissioner determines that  the  submission  is  complete,
    31  complies  with  the  provisions of subdivision two of this section, will
    32  promote economic growth, or is vital to protect the health and safety of
    33  the public, the commissioner shall authorize the agency  to  submit  the
    34  rulemaking for publication in the state register pursuant to section two
    35  hundred two of the state administrative procedure act.
    36    4.  If  the  commissioner determines the submission is not complete or
    37  does not comply  with  the  requirements  of  subdivision  two  of  this
    38  section,  or  is detrimental to economic growth in New York state, or is
    39  not vital to protect the health and safety of the  public,  the  commis-
    40  sioner may reject the rule or return it to the agency, together with any
    41  direction  that  the  agency  amend,  prepare  or  revise  the rule, any
    42  supporting impact statements, cost benefit  analysis,  risk  assessment,
    43  and/or undertake a negotiated rulemaking or policy dialogue to develop a
    44  rule  for proposal.   The division may assist the agency in developing a
    45  proposal that meets the requirements of subdivision two of this section.
    46    5. An agency  may  consult  informally  with  the  division  regarding
    47  proposed rules, supporting impact statements, and other documents at any
    48  time  prior  to the submission of such materials pursuant to subdivision
    49  one of this section. Such informal consultation shall not be binding  on
    50  the division or the agency.
    51    6.  No  agency head shall submit a notice of proposed or revised rule-
    52  making for publication in the state register  pursuant  to  section  two
    53  hundred  two  of the state administrative procedure act, without express
    54  approval by the commissioner. The  commissioner,  in  his  or  her  sole
    55  discretion,  may  reject  any particular rule or category of rules he or
    56  she determines is detrimental to economic growth in New York  state,  or

        A. 4112                             5
     1  is  not  vital to protect the health and safety of the public. The divi-
     2  sions shall promptly notify the agency of any such rejection.
     3    §  935.  Division  annual recommendations. On or before January first,
     4  two thousand twenty and annually thereafter, the division shall transmit
     5  to the governor and the legislature a report containing its  recommenda-
     6  tions, which shall include:
     7    1.  specific  recommendations for repealing or amending New York state
     8  codes, rules, regulations, regulatory processes, and permit requirements
     9  as it deems necessary to  lower  costs  for  local  governments,  school
    10  districts and businesses or promote economic growth; and
    11    2. recommended dates by which such actions should occur.
    12    §  936.  Implementation  of  recommendations.  1.  Notwithstanding any
    13  contrary provision of law, rule or regulation related to the  repeal  or
    14  amendment  of  any  New York state codes, rules, regulations, regulatory
    15  processes, and permit requirements identified in the  division's  recom-
    16  mendations,  the  secretary of state shall take all actions necessary to
    17  implement, in a reasonable, cost-efficient manner,  the  recommendations
    18  of  the  division  pursuant  to section nine hundred thirty-five of this
    19  article, including, but not limited to coordination with state agencies,
    20  authorities, and other parties as the commissioner deems appropriate.
    21    2. The provisions of subdivision one of this section shall not  apply:
    22  (a)  unless  the  governor  has  transmitted the division's report under
    23  section nine hundred thirty-five of this article with his or her written
    24  approval of the recommendations of the division pursuant to section nine
    25  hundred thirty-five of this article to the secretary of state and trans-
    26  mitted a message to the legislature  stating  his  or  her  approval  or
    27  rejection  of  the report within five days of receiving such report; and
    28  (b) if a majority of the members of each house of the  legislature  vote
    29  to  adopt  a  concurrent resolution rejecting the recommendations of the
    30  division pursuant to section nine hundred thirty-five of this article in
    31  their entirety within sixty days, after receiving  a  message  from  the
    32  governor  under  this  subdivision.  In  no event shall the secretary of
    33  state begin to implement the recommendations of the division pursuant to
    34  section nine hundred thirty-five of this article prior to the expiration
    35  of the legislature's sixty day review period.
    36    § 937. Cost of regulation study. 1. The commissioner is hereby author-
    37  ized and directed to prepare or have prepared a comprehensive  study  to
    38  measure  and report the cost of regulations to businesses throughout the
    39  state of New York.
    40    2. Such study shall be completed within eighteen months of the  effec-
    41  tive  date  of  the  chapter  of the laws of two thousand nineteen which
    42  added this article.
    43    § 2. Paragraph (a) of subdivision 6-a of  section  202  of  the  state
    44  administrative  procedure  act, as amended by chapter 295 of the laws of
    45  2017, is amended to read as follows:
    46    (a) An agency shall transmit a copy of any rule making notice prepared
    47  pursuant to this article and approved by the commissioner of  the  divi-
    48  sion  of  regulatory  review  and  economic  growth  pursuant to article
    49  forty-three of the executive law to the governor, the  temporary  presi-
    50  dent  of the senate, the speaker of the assembly, the minority leader of
    51  the senate, the minority leader of the assembly, and the  administrative
    52  regulations  review  commission  at the time such notice is submitted to
    53  the secretary of state for publication in the state register. Such tran-
    54  smittal shall include the complete rule text, regulatory  impact  state-
    55  ment,  regulatory flexibility analysis, rural area flexibility analysis,

        A. 4112                             6
     1  or revisions thereof, and any other information submitted to the  secre-
     2  tary of state pursuant to this article.
     3    § 3. Section 86 of the legislative law, as added by chapter 689 of the
     4  laws of 1978, is amended to read as follows:
     5    § 86. Administrative  regulations  review  commission. There is hereby
     6  created an administrative regulations review commission  to  consist  of
     7  two  members of the senate to be appointed by the temporary president of
     8  the senate, two members of the assembly to be appointed by  the  speaker
     9  of  the assembly, [one member] two members of the senate to be appointed
    10  by the minority leader of the senate and [one member] two members of the
    11  assembly to be appointed by the minority leader  of  the  assembly.  The
    12  temporary  president of the senate and the speaker of the assembly shall
    13  each appoint a co-chairman from among the commission  membership.    Any
    14  vacancies  shall  be  filled in the same manner as the original appoint-
    15  ment.  Such appointees shall serve at the  pleasure  of  the  respective
    16  legislative member making such appointment.
    17    § 4. Section 87 of the legislative law, as added by chapter 689 of the
    18  laws of 1978, is amended to read as follows:
    19    § 87. Powers  and  duties. 1. The commission shall exercise continuous
    20  oversight of the process of rule making and examine rules, as defined in
    21  subdivision two of section one hundred two of the  state  administrative
    22  procedure  act,  adopted  or proposed by each agency with respect to (i)
    23  statutory authority, (ii)  compliance  with  legislative  intent,  (iii)
    24  impact  on the economy and on the government operations of the state and
    25  its local governments, and (iv) impact  on  affected  parties;  and,  in
    26  furtherance  of such duties, may examine other issues it deems appropri-
    27  ate. For purpose of this article, the term agency shall mean any depart-
    28  ment, board, bureau, commission, division, office, council, committee or
    29  officer of the state or a public benefit corporation or public authority
    30  at least one of whose members is appointed by the governor.
    31    2. The commission shall review any legislation requiring a commission-
    32  er or agency as defined by subdivision one of section one hundred two of
    33  the state administrative procedure act, to promulgate any  codes,  rules
    34  and  regulations  necessary  for the implementation and make recommenda-
    35  tions to the members of the  legislature.  Such  recommendations  should
    36  include the commission's approval if the legislation is deemed necessary
    37  to  protect  the  health  and  safety  of the public or the commission's
    38  disapproval if such legislation is deemed detrimental to economic growth
    39  in New York state, or is not vital to protect the health and  safety  of
    40  the public.
    41    3.  The commission shall review New York state laws that result in the
    42  promulgation of codes, rules or regulations by a commissioner or  agency
    43  as  defined  by  subdivision one of section one hundred two of the state
    44  administrative procedure act, or any laws the commission deems a regula-
    45  tory burden on local governments, school  districts  or  businesses  and
    46  make recommendations to the members of the legislature. Such recommenda-
    47  tions  should include the commission's request for the repeal of laws it
    48  deems increase costs for local governments, school  districts  or  busi-
    49  nesses  or  are detrimental to economic growth in New York state, or are
    50  not vital to protect the health and safety of the public.
    51    4. The commission may employ such staff and  retain  such  consultants
    52  and  expert  services as may be necessary and fix their compensation and
    53  expenses within the amounts appropriated  therefor.  Employment  by  the
    54  commission  shall  be deemed to be employment by the legislature for all
    55  purposes.

        A. 4112                             7
     1    [3] 5.  The commission shall have the power, subject to the provisions
     2  of section seventy-three of the civil  rights  law,  to  hold  hearings,
     3  subpoena  witnesses,  administer  oaths,  take  testimony and compel the
     4  production of books, papers, documents and other evidence in furtherance
     5  of  its  duties;  provided, however, that no subpoena shall issue except
     6  upon the affirmative vote of a majority of the whole membership  of  the
     7  commission.  The commission may request and shall receive from all agen-
     8  cies such assistance and data as will enable it properly  to  consummate
     9  any such examination, and review.
    10    §  5.  Section 88 of the legislative law, as amended by chapter 850 of
    11  the laws of 1990, is amended to read as follows:
    12    § 88. Reports. The commission shall, [from  time  to  time]  annually,
    13  report  its  findings and recommendations to the governor, the temporary
    14  president of the senate and the speaker of the  assembly,  the  minority
    15  leader  of  the  senate, the minority leader of the assembly, and to the
    16  members of the legislature, and may at any time make recommendations  to
    17  the  division  of  regulatory  review  and economic growth and an agency
    18  based upon its review of that agency's rule making process,  or  any  of
    19  the agency's proposed, revised or adopted rules.
    20    §  6.  The  legislative law is amended by adding a new section 88-a to
    21  read as follows:
    22    § 88-a. Regulatory Wednesdays. 1. Every Wednesday, which is  a  sched-
    23  uled  session  day  for  the  legislature in every week beginning with a
    24  scheduled session day on Monday, shall be deemed  regulatory  Wednesday.
    25  The  commission  shall be required to meet on every regulatory Wednesday
    26  to perform its powers and duties pursuant  to  section  eighty-seven  of
    27  this article.
    28    2.  On  every regulatory Wednesday, the senate and assembly shall take
    29  up any bills on any order of third reading that are before each  respec-
    30  tive  house  for final disposition, that have gained the approval of the
    31  commission prior to taking up any other bill on any order of third read-
    32  ing, unless such action is waived, without debate, upon a majority  vote
    33  of the members present.
    34    § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
    35  sion,  section  or  part  of  this act shall be adjudged by any court of
    36  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    37  impair,  or  invalidate  the remainder thereof, but shall be confined in
    38  its operation to the clause, sentence, paragraph,  subdivision,  section
    39  or part thereof directly involved in the controversy in which such judg-
    40  ment shall have been rendered. It is hereby declared to be the intent of
    41  the  legislature  that  this  act  would  have been enacted even if such
    42  invalid provisions had not been included herein.
    43    § 8. This act shall take effect on the one hundred twentieth day after
    44  it shall have become a law and shall apply to rules and revised rules to
    45  be submitted for publication in the state register  on  and  after  such
    46  date.
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