As Passed by the House 1
123rd General Assembly 4
Regular Session Am. 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-TIBERI-DAMSCHRODER-MEAD-CAREY-BUEHRER- 11
O'BRIEN-CLANCY-PADGETT-ALLEN-MAIER-SCHULER-BARRETT-MYERS- 12
AMSTUTZ-VERICH-METZGER-PERZ-SALERNO-LOGAN-CORBIN-AUSTRIA- 13
STAPLETON-OGG-HOUSEHOLDER-D. MILLER 14
_________________________________________________________________ 15
A B I L L
To suspend section 103.14 of the Revised Code to 17
create a one-year pilot program under which the 18
Legislative Budget Office of the Legislative 19
Service Commission analyzes the economic impact
of certain bills and resolutions on Ohio 20
businesses, to require the Legislative Budget 21
Officer of the Legislative Budget Office of the
Legislative Service Commission to cause certain 22
tasks to be performed that will facilitate the 23
carrying out of the office's economic impact
analyses-related functions, to create another 25
pilot program under which two state rule-making
agencies analyze the economic impact of rules on 26
Ohio businesses, and to allow the Director of the 27
Legislative Service Commission to employ a
professional staff member to gather technological 28
data and information.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 30
Section 1. The operation of the provisions of section 32
103.14 of the Revised Code is hereby suspended for a one-year 33
2
period commencing with the effective date of this act. Instead, 34
during that one-year period, the provisions of Section 1, 35
Sections 1.01 to 1.05, and Section 2 of this act shall apply to 36
the preparation by the Legislative Budget Office of the 37
Legislative Service Commission of fiscal analyses of bills or 38
resolutions introduced in the General Assembly that appear to 39
affect the revenues or expenditures of the state or a county, 40
municipal corporation, township, school district, or other 41
governmental entity of the state or that may have a significant 42
economic impact on Ohio businesses.
Section 1.01. During the one-year period commencing with 44
the effective date of this act, if a bill or resolution 45
introduced in the General Assembly appears to affect the revenues 46
or expenditures of the state or a county, municipal corporation, 47
township, school district, or other governmental entity of the 48
state, or if the provisions of Section 1.04 of this act apply to 49
a bill or resolution, the Legislative Budget Office of the 50
Legislative Service Commission shall, before the bill or 51
resolution is recommended for passage by the House of 52
Representatives committee or the Senate committee of the General 53
Assembly to which the bill or resolution was referred and again 54
before the bill or resolution is taken up for final consideration 55
by either house of the General Assembly, prepare a fiscal 56
analysis of the bill or resolution. The fiscal analysis shall 57
include an estimate, in dollars, of the amount by which the bill 58
or resolution would increase or decrease revenues or 59
expenditures, shall include the information required by Section 60
1.04 of this act when that section applies, and shall include any 61
other information that the Legislative Budget Office considers 62
necessary to explain the fiscal effect of the bill or resolution. 63
Section 1.02. The Legislative Budget Office shall 65
distribute copies of a fiscal analysis in accordance with either 66
of the following: 67
(A) For consideration by the Senate or House of 69
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Representatives rules committee, or the standing committee to 70
which a bill is referred, two copies to the chairperson together 71
with a copy to each member of the committee; 72
(B) For final consideration, a copy to each member of the 74
house that is considering the bill or resolution. 75
If the member who introduced the bill or resolution is not 77
a member of the house or rules committee considering the bill or 78
resolution, the Legislative Budget Office shall send the member a 79
copy. 80
Section 1.03. In preparing a fiscal analysis, the 82
Legislative Budget Office may request any department, division, 83
institution, board, commission, authority, bureau, or other 84
instrumentality or officer of the state, or a county, municipal 85
corporation, township, school district, or other governmental 86
entity of the state to provide any of the following information: 87
(A) An estimate, in dollars, of the amount by which the 89
bill or resolution would increase or decrease the revenues or 90
expenditures received or made by the instrumentality, officer, or 91
entity;
(B) Any other information the Legislative Budget Office 93
considers necessary for it to understand or explain the fiscal 94
effect of the bill or resolution. 95
An instrumentality, officer, or entity shall comply with a 97
request as soon as reasonably possible after it receives the 98
request. The Legislative Budget Office shall specify the manner 99
of compliance in its request and, if necessary, may specify a 100
longer period of time than five days for compliance. The 101
Legislative Budget Office may consider any information provided 102
under this section in preparing a fiscal analysis. 103
Section 1.04. (A) As used in this section: 105
(1) "Ohio business" means a sole proprietorship or 107
business organization doing business in Ohio, regardless of 108
whether it is domiciled in Ohio. 109
(2) "Small business" has the same meaning as in section 111
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121.24 of the Revised Code. 112
(B) The Speaker of the House of Representatives and the 114
President of the Senate shall designate for their respective 115
houses three standing committees for purposes of the conduct in 116
accordance with this section of a one-year pilot program 117
involving the Legislative Budget Office's inclusion of specified 118
economic impact analyses in its fiscal analyses of certain bills 119
or resolutions.
(C) If the chairperson of a standing committee that has 121
been designated by the Speaker of the House of Representatives or 122
the President of the Senate pursuant to division (B) of this 123
section and to which a bill or resolution is referred believes 124
that the bill or resolution may have a significant economic 125
impact on Ohio businesses, the chairperson, after consulting with 126
the ranking minority member of the standing committee, may submit 127
a request to the Legislative Budget Office to prepare, in the 128
form, within the time frame, and under the circumstance described 129
in divisions (D), (E), and (F) of this section, an economic 130
impact analysis of the specified bill or resolution. A 131
chairperson of a designated standing committee may submit this 132
type of request up to three times within the one-year period of 133
the pilot program. Upon receipt of this type of request, the 134
Legislative Budget Office shall comply with division (D) of this 135
section.
(D) Within one week after receiving a request for an 137
economic impact analysis under division (C) of this section, the 138
Legislative Budget Office shall conduct preliminary general 139
research in order to determine whether there is a likelihood that 140
the bill or resolution in question may have a significant 141
economic impact on Ohio businesses, shall prepare a brief written 142
document stating the nature of the research so conducted and 143
setting forth the determination whether there is or is not a 144
likelihood that the bill or resolution may have a significant 145
economic impact on Ohio businesses, and shall deliver a copy of 146
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that document to the chairperson who submitted the request for 147
the economic impact analysis. 148
(E) If the written document that the Legislative Budget 150
Office prepares under division (D) of this section sets forth a 151
determination that there is not a likelihood that the bill or 152
resolution in question may have a significant economic impact on 153
Ohio businesses, the office is not required to prepare the 154
requested economic impact analysis of the bill or resolution. 155
(F) If the written document that the Legislative Budget 157
Office prepares under division (D) of this section sets forth a 158
determination that there is a likelihood that the bill or 159
resolution in question may have a significant economic impact on 160
Ohio businesses, then, within forty-five days after complying 161
with division (D) of this section, the office shall prepare and 162
distribute in the manner described in Section 1.02 of this act an 163
economic impact analysis as part of a fiscal analysis of the bill 164
or resolution prepared in the manner described in Sections 1.01 166
to 1.03 of this act. The economic impact analysis shall include 167
all of the following:
(1) The office's determination that there is a likelihood 169
that the bill or resolution may have a significant economic 170
impact on Ohio businesses; 171
(2) To the extent it is practicable to so determine, the 173
office's determination as to whether the bill or resolution may 174
significantly increase or decrease the revenues or expenditures 175
of Ohio businesses in general; 176
(3) To the extent it is practicable to so determine, the 178
office's determination as to whether aspects of the bill or 179
resolution may significantly impact Ohio small businesses in 180
particular, including, but not limited to, those aspects of the 181
bill or resolution that may uniquely increase or decrease the 182
revenues or expenditures of Ohio small businesses or that may 183
uniquely impact their access to a workforce; 184
(4) To the extent it is practicable to so determine, the 186
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office's determination as to whether aspects of the bill or 187
resolution may significantly impact particular segments of Ohio 188
industry or other forms of business, including, but not limited 189
to, those aspects of the bill or resolution that may have 190
variable geographical impacts, such as higher or lower electric 191
utility rates for industries or other businesses located in 192
certain parts of the state or unique ramifications for Ohio 194
industries or other businesses located in the counties of this
state that border Michigan, Pennsylvania, West Virginia, 195
Kentucky, or Indiana; 196
(5) Any other information that the office considers 198
necessary to include in order to fully explain the significant 199
economic impact that the bill or resolution may have on Ohio 200
businesses.
(G) Not later than February 1, 2001, the Legislative 203
Budget Officer shall submit a report on the one-year pilot 204
program conducted pursuant to this section to the President and 205
Minority Leader of the Senate, the Speaker and Minority Leader of 206
the House of Representatives, the Governor, and the Director of
the Legislative Service Commission. In the report, the 207
Legislative Budget Officer shall recommend whether the pilot 208
program should be continued and, if so, also shall make 209
recommendations with respect to all of the following: 210
(1) Whether the program should be continued as a pilot 212
program for a specified period of time or made a permanent 213
function of the office by appropriate revisions to section 103.14 214
of the Revised Code. In connection with this recommendation, the 215
Legislative Budget Officer shall comment upon whether the 216
office's fulfillment of its responsibilities in connection with 217
the pilot program, in addition to its other statutory and 218
nonstatutory responsibilities, created staffing, workload, 219
budgetary, or other problems for the office. 220
(2) Whether the program should be expanded to include 222
other standing committees of the House of Representatives and the 223
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Senate, and whether those committees should continue to be 224
designated by the Speaker of the House of Representatives and the 225
President of the Senate; 226
(3) Whether changes in the operation of the program are 228
advisable to improve the value of the program to the members of 229
the General Assembly in determining whether to vote in favor of 230
or against particular bills or resolutions; 231
(4) Any other matters the Legislative Budget Officer 233
considers worthwhile in light of the objectives of the program. 234
In the report, the Legislative Budget Officer shall 236
explain, and provide reasons for, each of the Legislative Budget 237
Officer's recommendations.
Section 1.05. The failure of the Legislative Budget Office 239
to prepare a fiscal analysis before a bill or resolution is taken 240
up for consideration by a committee of the House of 241
Representatives or Senate, or by either or both houses for final 242
consideration, shall not be construed to impair the validity of 243
any bill or resolution passed by either or both houses of the 244
General Assembly. 245
Section 2. The Legislative Budget Officer of the 247
Legislative Budget Office of the Legislative Service Commission 248
shall do all of the following:
(A) With the approval of the Director of the Legislative 250
Service Commission, employ and fix the compensation of any 252
necessary technical, professional, or clerical staff members, or 253
contract for the professional services of any necessary 254
economists or other consultants, to carry out the Legislative 255
Budget Office's responsibilities under Section 1.04 of this act; 256
(B) For the purpose of facilitating the Legislative Budget 258
Office's carrying out of its responsibilities under Section 1.04 260
of this act, designate one or more staff members of the 262
Legislative Budget Office to conduct ongoing research and to 263
gather necessary data and other information, including, but not 264
limited to, data and other information pertaining to the 265
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following:
(1) The various types of Ohio businesses, including, in 267
particular, small businesses as defined in section 121.24 of the 269
Revised Code and businesses located in the counties of this state 271
that border Michigan, Pennsylvania, West Virginia, Kentucky, or 273
Indiana;
(2) The current status of the economy of this state and of 275
the economy of the United States; 276
(3) Current economic trends in this state and generally in 278
the United States; 279
(4) Technological advancements and technological issues 281
that have or may have a significant economic impact upon Ohio 283
businesses, including, in particular, data and other information 285
indicating the extent to which Ohio businesses are or are not 287
maintaining their operations in a technologically up-to-date
manner and thereby promoting or failing to promote their own 289
competitiveness and Ohio business competitiveness in general. 291
(C) Maintain the data and information gathered pursuant to 293
division (B) of this section, together with a directory to that 295
data and information, in any appropriate manner that will 296
facilitate the Legislative Budget Office's carrying out its 298
responsibilities under Section 1.04 of this act, including if 299
appropriate, but not limited to, maintaining all or portions of 300
the data, information, and associated directory by means of
computer technology. 301
Section 3. As used in Sections 3 and 3.01 to 3.05 of this 303
act:
(A) "Ohio business" means a sole proprietorship or 305
business organization doing business in Ohio, regardless of 306
whether it is domiciled in Ohio. 307
(B) "Participating agency" means the Environmental 309
Protection Agency and the Department of Development. 310
(C) "Rule" means a proposed new rule adopted under Chapter 312
119. of the Revised Code. "Rule" does not include the amendment 313
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or rescission of an existing rule. If and when a proposed new 314
rule is filed under divisions (B) and (H) of section 119.03 of 315
the Revised Code, "rule" means only the original and not any 316
revised version of the proposed new rule. 317
(D) "Small business" has the same meaning as in section 319
121.24 of the Revised Code. 320
Section 3.01. The participating agencies shall conduct a 322
pilot program under which, during the course of a participating 323
agency's development and proposal of a rule, the participating 324
agency analyzes in the manner specified in division (D) of 325
Section 3.02 of this act the potential economic impact the rule 326
may have on Ohio businesses. A rule, the original proposed 327
version of which a participating agency files under divisions (B) 328
and (H) of section 119.03 of the Revised Code on or after 329
November 1, 1999, and before November 1, 2000, is subject to the 330
pilot program unless exempt. 331
Section 3.02. The participating agencies, in the course of 333
developing and proposing a rule during the pilot program, shall: 334
(A) Make a good faith effort to identify Ohio businesses 336
that may be significantly affected by the rule were it to be 337
adopted;
(B) Make a good faith effort to identify leading 339
individuals who are involved in the Ohio businesses identified 340
under division (A) of this section; 341
(C) Invite the individuals identified under division (B) 343
of this section to comment on the potential economic impact the 344
rule may have on Ohio businesses in general and on their 345
businesses in particular; 346
(D) Analyze, applying any information submitted under 348
division (C) of this section and the participating agency's own 349
expertise and experience, the potential economic impact the rule 350
may have on the Ohio businesses identified under division (A) of 351
this section. This analysis shall include all of the following: 353
(1) To the extent it is practicable to so determine, the 355
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participating agency's determination as to whether the rule may 356
significantly increase or decrease the cost to Ohio businesses of 357
regulatory compliance; 358
(2) To the extent it is practicable to so determine, the 360
participating agency's determination as to whether the rule may 361
significantly increase or decrease the overall regulatory burden 362
of Ohio businesses; 363
(3) The impact, if any, that the rule may have on the 365
period of time involved in the participating agency's issuance of 366
any license, permit, or other form of authorization; 367
(4) To the extent it is practicable to so determine, the 369
participating agency's determination as to whether the rule may 370
significantly increase or decrease the revenues or expenditures 371
of Ohio businesses or may significantly affect other factors 372
related to Ohio businesses, such as the mobility of capital, the 373
availability of a suitable workforce, access to customers, and 374
the ability of businesses to locate, expand, and remain in the 375
state.
(E) Prepare an economic impact statement that, in textual 377
narrative format, reports the results of the analysis conducted 378
under division (D) of this section; 379
(F) Invite further comment and revise the analysis and 381
economic impact statement as the rule is revised during the 382
course of its development and proposal; and 383
(G) Include a current economic impact statement as part of 385
the rule summary and fiscal analysis that is prepared for the 386
rule if and when the rule is filed in original form under 387
divisions (B) and (H) of section 119.03 of the Revised Code. 388
If the rule would be subject to small business review under 390
section 121.24 of the Revised Code, the invitation to comment, 391
and the analysis and economic impact statement, is to invite 392
comment on, and give particular attention to, the potential 393
economic impact the rule may have on Ohio small businesses. A 394
participating agency shall include the economic impact statement 395
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as part of any rule summary and fiscal analysis it prepares for 396
purposes of division (B)(1) of section 121.24 of the Revised 397
Code.
A participating agency shall include the invitation to 399
comment in a public notice prepared with respect to a rule under 400
division (A) of section 119.03 of the Revised Code and shall send 401
a copy of the amplified public notice to each individual 402
identified under division (B) of this section. 403
Section 3.03. The Joint Committee on Agency Rule Review, 405
during the pilot program, shall review economic impact statements 406
for completeness and accuracy in light of the objectives of the 407
pilot program. 408
The joint committee may return an economic impact statement 410
to a participating agency for revision if the joint committee, by 411
vote of two-thirds of all its members, finds that the 412
participating agency has not made a good faith effort to prepare 413
a complete and accurate economic impact statement in light of the 414
objectives of the pilot program. The joint committee shall 415
inform the participating agency in writing of its findings and of 416
the reasons for them. 417
When the joint committee returns an economic impact 419
statement to a participating agency, the time within which the 420
Senate and House of Representatives must adopt a concurrent 421
resolution invalidating the proposed rule to which the statement 422
applies thereupon stops running. 423
Within thirty days after receiving the returned economic 425
impact statement, the participating agency shall withdraw the 426
proposed rule to which the statement applies, withdraw the 427
proposed rule to which the statement applies and notify the joint 428
committee of its intent to file a revised version of the rule in 429
the future, or revise the economic impact statement and resubmit 430
it to the joint committee. If the participating agency fails to 432
withdraw the proposed rule, to withdraw the proposed rule and 433
notify the joint committee of its intent to file a revised 434
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version of the rule in the future, or to resubmit a revised 435
economic impact statement within the thirty-day period, the 436
proposed rule is invalid the same as if the Senate and House of 437
Representatives had adopted a concurrent resolution invalidating 438
the proposed rule.
The joint committee shall review a resubmitted revised 440
economic impact statement. If the joint committee, by vote of 441
two-thirds of all its members, finds that the participating 442
agency, in revising and resubmitting the economic impact 443
statement, has not made a good faith effort to prepare a complete 444
and accurate economic impact statement in light of the objectives 445
of the pilot program, it may either: 446
(A) Return the resubmitted revised economic impact 448
statement to the participating agency for revision, resubmission, 449
and review, as in the case of the original statement; or 450
(B) Recommend that the Senate and House of Representatives 452
adopt a concurrent resolution invalidating the proposed rule to 453
which the resubmitted revised economic impact statement applies. 454
The Senate and House of Representatives may adopt a 456
concurrent resolution invalidating a proposed rule as 457
contemplated by this section not later than the thirtieth day 458
after the revised economic impact statement applying to the 459
proposed rule is resubmitted to the joint committee. 460
Section 3.04. (A) The following rules are exempt from the 462
pilot program: 463
(1) A rule that would be exempt from cyclical review under 465
section 119.032 of the Revised Code; 466
(2) A rule adopted under the emergency rule-making 468
procedure of division (F) of section 119.03 of the Revised Code, 469
except that the rule, unless otherwise exempt, is subject to the 470
pilot program when it is readopted under the nonemergency 471
rule-making procedure;
(3) A rule that must be adopted verbatim by a 473
participating agency pursuant to a federal law or rule in order 474
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to continue the operation of a federally reimbursed program in 475
this state, so long as the rule contains a statement that it is 476
proposed for the purpose of complying with a federal law or rule 477
and a citation to the federal law or rule that requires verbatim 478
compliance.
(B) A participating agency in writing may request the 480
Joint Committee on Agency Rule Review to exempt from the pilot 481
program a rule that otherwise would be subject to the program. 482
The participating agency shall provide reasons for the requested 483
exemption. 484
The joint committee, within thirty days after receiving a 486
request for exemption and by vote of a majority of all its 487
members, may grant the exemption if it finds that the objectives 488
of the pilot program will not be adversely affected if the rule 489
is not included in the pilot program. The joint committee shall 490
notify the participating agency in writing of its action on the 491
request. If the joint committee does not act on the request 492
within thirty days after receiving it, the request is deemed to 493
have been approved.
Section 3.05. Not later than February 1, 2001, the 495
participating agencies and the Joint Committee on Agency Rule 496
Review shall each separately submit a report on the pilot program 497
to the President and Minority Leader of the Senate, the Speaker 498
and Minority Leader of the House of Representatives, the 499
Governor, and the Director of the Legislative Service Commission. 500
In their reports, the participating agencies and joint committee 501
shall recommend whether the pilot program should be continued 502
and, if so, also shall recommend:
(A) Whether the program should be continued as a pilot 504
program for a specified period of time or made a permanent 505
program by appropriate revisions to the Revised Code; 506
(B) Whether the program should be expanded to include 508
other rule-making agencies; 509
(C) Whether different or additional exemptions to the 511
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program are advisable; 512
(D) Whether changes in the operation of the program are 514
advisable to improve its efficiency or to make it more likely 515
that its objectives will be achieved; and 516
(E) Any other matters the participating agency or joint 518
committee considers worthwhile in light of the objectives of the 519
program.
In their reports, a participating agency and the joint 521
committee shall explain, and provide reasons for, each of its 522
recommendations. 523
Section 4. The Director of the Legislative Service 525
Commission may employ and fix the compensation of a professional 526
staff member for the purpose of conducting ongoing research and 527
gathering necessary data and other information pertaining to 528
technological advancements and technological issues that may have 529
relevance in the preparation of legislation or research memoranda 530
for members of the General Assembly. 531