As Reported by House Economic Development & Small Business 1
Committee
123rd General Assembly 4
Regular Session Sub. H. B. No. 13 5
1999-2000 6
REPRESENTATIVES MOTTLEY-HARRIS-BUCHY-VAN VYVEN- 8
SCHURING-KREBS-HOOD-OPFER-TERWILLEGER-OLMAN- 9
CATES-CALVERT-SULLIVAN-YOUNG-EVANS-HOOPS-HARTNETT- 10
PRINGLE-KILBANE 11
_________________________________________________________________ 12
A B I L L
To suspend section 103.14 of the Revised Code to 14
create a one-year pilot program under which the 15
Legislative Budget Office of the Legislative 16
Service Commission analyzes the economic impact
of certain bills and resolutions on Ohio 17
businesses and to create another pilot program 18
under which two state rule-making agencies
analyze the economic impact of rules on Ohio 19
businesses.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. The operation of the provisions of section 23
103.14 of the Revised Code is hereby suspended for a one-year 24
period commencing with the effective date of this act. Instead, 25
during that one-year period, the provisions of Section 1 and 26
Sections 1.01 to 1.05 of this act shall apply to the preparation 27
by the Legislative Budget Office of the Legislative Service 28
Commission of fiscal analyses of bills or resolutions introduced 29
in the General Assembly that appear to affect the revenues or 30
expenditures of the state or a county, municipal corporation, 31
township, school district, or other governmental entity of the 32
state or that may have a significant economic impact on Ohio 33
businesses.
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Section 1.01. During the one-year period commencing with 35
the effective date of this act, if a bill or resolution 36
introduced in the General Assembly appears to affect the revenues 37
or expenditures of the state or a county, municipal corporation, 38
township, school district, or other governmental entity of the 39
state, or if the provisions of Section 1.04 of this act apply to 40
a bill or resolution, the Legislative Budget Office of the 41
Legislative Service Commission shall, before the bill or 42
resolution is recommended for passage by the House of 43
Representatives committee or the Senate committee of the General 44
Assembly to which the bill or resolution was referred and again 45
before the bill or resolution is taken up for final consideration 46
by either house of the General Assembly, prepare a fiscal 47
analysis of the bill or resolution. The fiscal analysis shall 48
include an estimate, in dollars, of the amount by which the bill 49
or resolution would increase or decrease revenues or 50
expenditures, shall include the information required by Section 51
1.04 of this act when that section applies, and shall include any 52
other information that the Legislative Budget Office considers 53
necessary to explain the fiscal effect of the bill or resolution. 54
Section 1.02. The Legislative Budget Office shall 56
distribute copies of a fiscal analysis in accordance with either 57
of the following: 58
(A) For consideration by the Senate or House of 60
Representatives rules committee, or the standing committee to 61
which a bill is referred, two copies to the chairperson together 62
with a copy to each member of the committee; 63
(B) For final consideration, a copy to each member of the 65
house that is considering the bill or resolution. 66
If the member who introduced the bill or resolution is not 68
a member of the house or rules committee considering the bill or 69
resolution, the Legislative Budget Office shall send the member a 70
copy. 71
Section 1.03. In preparing a fiscal analysis, the 73
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Legislative Budget Office may request any department, division, 74
institution, board, commission, authority, bureau, or other 75
instrumentality or officer of the state, or a county, municipal 76
corporation, township, school district, or other governmental 77
entity of the state to provide any of the following information: 78
(A) An estimate, in dollars, of the amount by which the 80
bill or resolution would increase or decrease the revenues or 81
expenditures received or made by the instrumentality, officer, or 82
entity;
(B) Any other information the Legislative Budget Office 84
considers necessary for it to understand or explain the fiscal 85
effect of the bill or resolution. 86
An instrumentality, officer, or entity shall comply with a 88
request as soon as reasonably possible after it receives the 89
request. The Legislative Budget Office shall specify the manner 90
of compliance in its request and, if necessary, may specify a 91
longer period of time than five days for compliance. The 92
Legislative Budget Office may consider any information provided 93
under this section in preparing a fiscal analysis. 94
Section 1.04. (A) As used in this section: 96
(1) "Ohio business" means a sole proprietorship or 98
business organization doing business in Ohio, regardless of 99
whether it is domiciled in Ohio. 100
(2) "Small business" has the same meaning as in section 102
121.24 of the Revised Code. 103
(B) The Speaker of the House of Representatives and the 105
President of the Senate shall designate for their respective 106
houses three standing committees for purposes of the conduct in 107
accordance with this section of a one-year pilot program 108
involving the Legislative Budget Office's inclusion of specified 109
economic impact analyses in its fiscal analyses of certain bills 110
or resolutions.
(C) If the chairperson of a standing committee that has 112
been designated by the Speaker of the House of Representatives or 113
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the President of the Senate pursuant to division (B) of this 114
section and to which a bill or resolution is referred believes 115
that the bill or resolution may have a significant economic 116
impact on Ohio businesses, the chairperson, after consulting with 117
the ranking minority member of the standing committee, may submit 118
a request to the Legislative Budget Office to prepare, in the 119
form, within the time frame, and under the circumstance described 120
in divisions (D), (E), and (F) of this section, an economic 121
impact analysis of the specified bill or resolution. A 122
chairperson of a designated standing committee may submit this 123
type of request up to three times within the one-year period of 124
the pilot program. Upon receipt of this type of request, the 125
Legislative Budget Office shall comply with division (D) of this 126
section.
(D) Within one week after receiving a request for an 128
economic impact analysis under division (C) of this section, the 129
Legislative Budget Office shall conduct preliminary general 130
research in order to determine whether there is a likelihood that 131
the bill or resolution in question may have a significant 132
economic impact on Ohio businesses, shall prepare a brief written 133
document stating the nature of the research so conducted and 134
setting forth the determination whether there is or is not a 135
likelihood that the bill or resolution may have a significant 136
economic impact on Ohio businesses, and shall deliver a copy of 137
that document to the chairperson who submitted the request for 138
the economic impact analysis. 139
(E) If the written document that the Legislative Budget 141
Office prepares under division (D) of this section sets forth a 142
determination that there is not a likelihood that the bill or 143
resolution in question may have a significant economic impact on 144
Ohio businesses, the office is not required to prepare the 145
requested economic impact analysis of the bill or resolution. 146
(F) If the written document that the Legislative Budget 148
Office prepares under division (D) of this section sets forth a 149
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determination that there is a likelihood that the bill or 150
resolution in question may have a significant economic impact on 151
Ohio businesses, then, within forty-five days after complying 152
with division (D) of this section, the office shall prepare and 153
distribute in the manner described in Section 1.02 of this act an 154
economic impact analysis as part of a fiscal analysis of the bill 155
or resolution prepared in the manner described in Sections 1.01 157
to 1.03 of this act. The economic impact analysis shall include 158
all of the following:
(1) The office's determination that there is a likelihood 160
that the bill or resolution may have a significant economic 161
impact on Ohio businesses; 162
(2) To the extent it is practicable to so determine, the 164
office's determination as to whether the bill or resolution may 165
significantly increase or decrease the revenues or expenditures 166
of Ohio businesses in general; 167
(3) To the extent it is practicable to so determine, the 169
office's determination as to whether aspects of the bill or 170
resolution may significantly impact Ohio small businesses in 171
particular, including, but not limited to, those aspects of the 172
bill or resolution that may uniquely increase or decrease the 173
revenues or expenditures of Ohio small businesses or that may 174
uniquely impact their access to a workforce; 175
(4) To the extent it is practicable to so determine, the 177
office's determination as to whether aspects of the bill or 178
resolution may significantly impact particular segments of Ohio 179
industry or other forms of business, including, but not limited 180
to, those aspects of the bill or resolution that may have 181
variable geographical impacts, such as higher or lower electric 182
utility rates for industries or other businesses located in 183
certain parts of the state or unique ramifications for Ohio 185
industries or other businesses located in the counties of this
state that border Michigan, Pennsylvania, West Virginia, 186
Kentucky, or Indiana; 187
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(5) Any other information that the office considers 189
necessary to include in order to fully explain the significant 190
economic impact that the bill or resolution may have on Ohio 191
businesses.
(G) Not later than February 1, 2001, the Legislative 194
Budget Officer shall submit a report on the one-year pilot 195
program conducted pursuant to this section to the President and 196
Minority Leader of the Senate, the Speaker and Minority Leader of 197
the House of Representatives, the Governor, and the Director of
the Legislative Service Commission. In the report, the 198
Legislative Budget Officer shall recommend whether the pilot 199
program should be continued and, if so, also shall make 200
recommendations with respect to all of the following: 201
(1) Whether the program should be continued as a pilot 203
program for a specified period of time or made a permanent 204
function of the office by appropriate revisions to section 103.14 205
of the Revised Code. In connection with this recommendation, the 206
Legislative Budget Officer shall comment upon whether the 207
office's fulfillment of its responsibilities in connection with 208
the pilot program, in addition to its other statutory and 209
nonstatutory responsibilities, created staffing, workload, 210
budgetary, or other problems for the office. 211
(2) Whether the program should be expanded to include 213
other standing committees of the House of Representatives and the 214
Senate, and whether those committees should continue to be 215
designated by the Speaker of the House of Representatives and the 216
President of the Senate; 217
(3) Whether changes in the operation of the program are 219
advisable to improve the value of the program to the members of 220
the General Assembly in determining whether to vote in favor of 221
or against particular bills or resolutions; 222
(4) Any other matters the Legislative Budget Officer 224
considers worthwhile in light of the objectives of the program. 225
In the report, the Legislative Budget Officer shall 227
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explain, and provide reasons for, each of the Legislative Budget 228
Officer's recommendations.
Section 1.05. The failure of the Legislative Budget Office 230
to prepare a fiscal analysis before a bill or resolution is taken 231
up for consideration by a committee of the House of 232
Representatives or Senate, or by either or both houses for final 233
consideration, shall not be construed to impair the validity of 234
any bill or resolution passed by either or both houses of the 235
General Assembly. 236
Section 2. As used in Sections 2 and 2.01 to 2.05 of this 238
act:
(A) "Ohio business" means a sole proprietorship or 240
business organization doing business in Ohio, regardless of 241
whether it is domiciled in Ohio. 242
(B) "Participating agency" means the Environmental 244
Protection Agency and the Department of Development. 245
(C) "Rule" means a proposed new rule adopted under Chapter 247
119. of the Revised Code. "Rule" does not include the amendment 248
or rescission of an existing rule. If and when a proposed new 249
rule is filed under divisions (B) and (H) of section 119.03 of 250
the Revised Code, "rule" means only the original and not any 251
revised version of the proposed new rule. 252
(D) "Small business" has the same meaning as in section 254
121.24 of the Revised Code. 255
Section 2.01. The participating agencies shall conduct a 257
pilot program under which, during the course of a participating 258
agency's development and proposal of a rule, the participating 259
agency analyzes in the manner specified in division (D) of 260
Section 2.02 of this act the potential economic impact the rule 261
may have on Ohio businesses. A rule, the original proposed 262
version of which a participating agency files under divisions (B) 263
and (H) of section 119.03 of the Revised Code on or after 264
November 1, 1999, and before November 1, 2000, is subject to the 265
pilot program unless exempt. 266
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Section 2.02. The participating agencies, in the course of 268
developing and proposing a rule during the pilot program, shall: 269
(A) Make a good faith effort to identify Ohio businesses 271
that may be significantly affected by the rule were it to be 272
adopted;
(B) Make a good faith effort to identify leading 274
individuals who are involved in the Ohio businesses identified 275
under division (A) of this section; 276
(C) Invite the individuals identified under division (B) 278
of this section to comment on the potential economic impact the 279
rule may have on Ohio businesses in general and on their 280
businesses in particular; 281
(D) Analyze, applying any information submitted under 283
division (C) of this section and the participating agency's own 284
expertise and experience, the potential economic impact the rule 285
may have on the Ohio businesses identified under division (A) of 286
this section. This analysis shall include all of the following: 288
(1) To the extent it is practicable to so determine, the 290
participating agency's determination as to whether the rule may 291
significantly increase or decrease the cost to Ohio businesses of 292
regulatory compliance; 293
(2) To the extent it is practicable to so determine, the 295
participating agency's determination as to whether the rule may 296
significantly increase or decrease the overall regulatory burden 297
of Ohio businesses; 298
(3) The impact, if any, that the rule may have on the 300
period of time involved in the participating agency's issuance of 301
any license, permit, or other form of authorization; 302
(4) To the extent it is practicable to so determine, the 304
participating agency's determination as to whether the rule may 305
significantly increase or decrease the revenues or expenditures 306
of Ohio businesses or may significantly affect other factors 307
related to Ohio businesses, such as the mobility of capital, the 308
availability of a suitable workforce, access to customers, and 309
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the ability of businesses to locate, expand, and remain in the 310
state.
(E) Prepare an economic impact statement that, in textual 312
narrative format, reports the results of the analysis conducted 313
under division (D) of this section; 314
(F) Invite further comment and revise the analysis and 316
economic impact statement as the rule is revised during the 317
course of its development and proposal; and 318
(G) Include a current economic impact statement as part of 320
the rule summary and fiscal analysis that is prepared for the 321
rule if and when the rule is filed in original form under 322
divisions (B) and (H) of section 119.03 of the Revised Code. 323
If the rule would be subject to small business review under 325
section 121.24 of the Revised Code, the invitation to comment, 326
and the analysis and economic impact statement, is to invite 327
comment on, and give particular attention to, the potential 328
economic impact the rule may have on Ohio small businesses. A 329
participating agency shall include the economic impact statement 330
as part of any rule summary and fiscal analysis it prepares for 331
purposes of division (B)(1) of section 121.24 of the Revised 332
Code.
A participating agency shall include the invitation to 334
comment in a public notice prepared with respect to a rule under 335
division (A) of section 119.03 of the Revised Code and shall send 336
a copy of the amplified public notice to each individual 337
identified under division (B) of this section. 338
Section 2.03. The Joint Committee on Agency Rule Review, 340
during the pilot program, shall review economic impact statements 341
for completeness and accuracy in light of the objectives of the 342
pilot program. 343
The joint committee may return an economic impact statement 345
to a participating agency for revision if the joint committee, by 346
vote of two-thirds of all its members, finds that the 347
participating agency has not made a good faith effort to prepare 348
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a complete and accurate economic impact statement in light of the 349
objectives of the pilot program. The joint committee shall 350
inform the participating agency in writing of its findings and of 351
the reasons for them. 352
When the joint committee returns an economic impact 354
statement to a participating agency, the time within which the 355
Senate and House of Representatives must adopt a concurrent 356
resolution invalidating the proposed rule to which the statement 357
applies thereupon stops running. 358
Within thirty days after receiving the returned economic 360
impact statement, the participating agency shall withdraw the 361
proposed rule to which the statement applies, withdraw the 362
proposed rule to which the statement applies and notify the joint 363
committee of its intent to file a revised version of the rule in 364
the future, or revise the economic impact statement and resubmit 365
it to the joint committee. If the participating agency fails to 367
withdraw the proposed rule, to withdraw the proposed rule and 368
notify the joint committee of its intent to file a revised 369
version of the rule in the future, or to resubmit a revised 370
economic impact statement within the thirty-day period, the 371
proposed rule is invalid the same as if the Senate and House of 372
Representatives had adopted a concurrent resolution invalidating 373
the proposed rule.
The joint committee shall review a resubmitted revised 375
economic impact statement. If the joint committee, by vote of 376
two-thirds of all its members, finds that the participating 377
agency, in revising and resubmitting the economic impact 378
statement, has not made a good faith effort to prepare a complete 379
and accurate economic impact statement in light of the objectives 380
of the pilot program, it may either: 381
(A) Return the resubmitted revised economic impact 383
statement to the participating agency for revision, resubmission, 384
and review, as in the case of the original statement; or 385
(B) Recommend that the Senate and House of Representatives 387
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adopt a concurrent resolution invalidating the proposed rule to 388
which the resubmitted revised economic impact statement applies. 389
The Senate and House of Representatives may adopt a 391
concurrent resolution invalidating a proposed rule as 392
contemplated by this section not later than the thirtieth day 393
after the revised economic impact statement applying to the 394
proposed rule is resubmitted to the joint committee. 395
Section 2.04. (A) The following rules are exempt from the 397
pilot program: 398
(1) A rule that would be exempt from cyclical review under 400
section 119.032 of the Revised Code; 401
(2) A rule adopted under the emergency rule-making 403
procedure of division (F) of section 119.03 of the Revised Code, 404
except that the rule, unless otherwise exempt, is subject to the 405
pilot program when it is readopted under the nonemergency 406
rule-making procedure;
(3) A rule that must be adopted verbatim by a 408
participating agency pursuant to a federal law or rule in order 409
to continue the operation of a federally reimbursed program in 410
this state, so long as the rule contains a statement that it is 411
proposed for the purpose of complying with a federal law or rule 412
and a citation to the federal law or rule that requires verbatim 413
compliance.
(B) A participating agency in writing may request the 415
Joint Committee on Agency Rule Review to exempt from the pilot 416
program a rule that otherwise would be subject to the program. 417
The participating agency shall provide reasons for the requested 418
exemption. 419
The joint committee, within thirty days after receiving a 421
request for exemption and by vote of a majority of all its 422
members, may grant the exemption if it finds that the objectives 423
of the pilot program will not be adversely affected if the rule 424
is not included in the pilot program. The joint committee shall 425
notify the participating agency in writing of its action on the 426
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request. If the joint committee does not act on the request 427
within thirty days after receiving it, the request is deemed to 428
have been approved.
Section 2.05. Not later than February 1, 2001, the 430
participating agencies and the Joint Committee on Agency Rule 431
Review shall each separately submit a report on the pilot program 432
to the President and Minority Leader of the Senate, the Speaker 433
and Minority Leader of the House of Representatives, the 434
Governor, and the Director of the Legislative Service Commission. 435
In their reports, the participating agencies and joint committee 436
shall recommend whether the pilot program should be continued 437
and, if so, also shall recommend:
(A) Whether the program should be continued as a pilot 439
program for a specified period of time or made a permanent 440
program by appropriate revisions to the Revised Code; 441
(B) Whether the program should be expanded to include 443
other rule-making agencies; 444
(C) Whether different or additional exemptions to the 446
program are advisable; 447
(D) Whether changes in the operation of the program are 449
advisable to improve its efficiency or to make it more likely 450
that its objectives will be achieved; and 451
(E) Any other matters the participating agency or joint 453
committee considers worthwhile in light of the objectives of the 454
program.
In their reports, a participating agency and the joint 456
committee shall explain, and provide reasons for, each of its 457
recommendations. 458