As Passed by the Senate 1
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-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-SENATORS WATTS-LATTA- 14
HORN-WACHTMANN-PRENTISS-SPADA-OELSLAGER 15
_________________________________________________________________ 17
A B I L L
To suspend section 103.14 of the Revised Code to 19
create a one-year pilot program under which the 20
Legislative Budget Office of the Legislative 21
Service Commission analyzes the economic impact
of certain bills and resolutions on Ohio 22
businesses, to require the Legislative Budget 23
Officer of the Legislative Budget Office of the
Legislative Service Commission to cause certain 24
tasks to be performed that will facilitate the 25
carrying out of the office's economic impact
analyses-related functions, to create another 27
pilot program under which two state rule-making
agencies analyze the economic impact of rules on 28
Ohio businesses, to allow the Director of the 29
Legislative Service Commission to employ a
professional staff member to gather technological 30
data and information, to exempt the Wright
Technology Network from the matching contribution 31
requirement for a grant under the Thomas Alva 32
Edison Grant Program for the 1999-2001 biennium,
and to declare an emergency. 33
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 35
Section 1. The operation of the provisions of section 37
103.14 of the Revised Code is hereby suspended for a one-year 38
period commencing with the effective date of this act. Instead, 39
during that one-year period, the provisions of Section 1, 40
Sections 1.01 to 1.05, and Section 2 of this act shall apply to 41
the preparation by the Legislative Budget Office of the 42
Legislative Service Commission of fiscal analyses of bills or 43
resolutions introduced in the General Assembly that appear to 44
affect the revenues or expenditures of the state or a county, 45
municipal corporation, township, school district, or other 46
governmental entity of the state or that may have a significant 47
economic impact on Ohio businesses.
Section 1.01. During the one-year period commencing with 49
the effective date of this act, if a bill or resolution 50
introduced in the General Assembly appears to affect the revenues 51
or expenditures of the state or a county, municipal corporation, 52
township, school district, or other governmental entity of the 53
state, or if the provisions of Section 1.04 of this act apply to 54
a bill or resolution, the Legislative Budget Office of the 55
Legislative Service Commission shall, before the bill or 56
resolution is recommended for passage by the House of 57
Representatives committee or the Senate committee of the General 58
Assembly to which the bill or resolution was referred and again 59
before the bill or resolution is taken up for final consideration 60
by either house of the General Assembly, prepare a fiscal 61
analysis of the bill or resolution. The fiscal analysis shall 62
include an estimate, in dollars, of the amount by which the bill 63
or resolution would increase or decrease revenues or 64
expenditures, shall include the information required by Section 65
1.04 of this act when that section applies, and shall include any 66
other information that the Legislative Budget Office considers 67
necessary to explain the fiscal effect of the bill or resolution. 68
Section 1.02. The Legislative Budget Office shall 70
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distribute copies of a fiscal analysis in accordance with either 71
of the following: 72
(A) For consideration by the Senate or House of 74
Representatives rules committee, or the standing committee to 75
which a bill is referred, two copies to the chairperson together 76
with a copy to each member of the committee; 77
(B) For final consideration, a copy to each member of the 79
house that is considering the bill or resolution. 80
If the member who introduced the bill or resolution is not 82
a member of the house or rules committee considering the bill or 83
resolution, the Legislative Budget Office shall send the member a 84
copy. 85
Section 1.03. In preparing a fiscal analysis, the 87
Legislative Budget Office may request any department, division, 88
institution, board, commission, authority, bureau, or other 89
instrumentality or officer of the state, or a county, municipal 90
corporation, township, school district, or other governmental 91
entity of the state to provide any of the following information: 92
(A) An estimate, in dollars, of the amount by which the 94
bill or resolution would increase or decrease the revenues or 95
expenditures received or made by the instrumentality, officer, or 96
entity;
(B) Any other information the Legislative Budget Office 98
considers necessary for it to understand or explain the fiscal 99
effect of the bill or resolution. 100
An instrumentality, officer, or entity shall comply with a 102
request as soon as reasonably possible after it receives the 103
request. The Legislative Budget Office shall specify the manner 104
of compliance in its request and, if necessary, may specify a 105
longer period of time than five days for compliance. The 106
Legislative Budget Office may consider any information provided 107
under this section in preparing a fiscal analysis. 108
Section 1.04. (A) As used in this section: 110
(1) "Ohio business" means a sole proprietorship or 112
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business organization doing business in Ohio, regardless of 113
whether it is domiciled in Ohio. 114
(2) "Small business" has the same meaning as in section 116
121.24 of the Revised Code. 117
(B) The Speaker of the House of Representatives and the 119
President of the Senate shall designate for their respective 120
houses three standing committees for purposes of the conduct in 121
accordance with this section of a one-year pilot program 122
involving the Legislative Budget Office's inclusion of specified 123
economic impact analyses in its fiscal analyses of certain bills 124
or resolutions.
(C) If the chairperson of a standing committee that has 126
been designated by the Speaker of the House of Representatives or 127
the President of the Senate pursuant to division (B) of this 128
section and to which a bill or resolution is referred believes 129
that the bill or resolution may have a significant economic 130
impact on Ohio businesses, the chairperson, after consulting with 131
the ranking minority member of the standing committee, may submit 132
a request to the Legislative Budget Office to prepare, in the 133
form, within the time frame, and under the circumstance described 134
in divisions (D), (E), and (F) of this section, an economic 135
impact analysis of the specified bill or resolution. A 136
chairperson of a designated standing committee may submit this 137
type of request up to three times within the one-year period of 138
the pilot program. Upon receipt of this type of request, the 139
Legislative Budget Office shall comply with division (D) of this 140
section.
(D) Within one week after receiving a request for an 142
economic impact analysis under division (C) of this section, the 143
Legislative Budget Office shall conduct preliminary general 144
research in order to determine whether there is a likelihood that 145
the bill or resolution in question may have a significant 146
economic impact on Ohio businesses, shall prepare a brief written 147
document stating the nature of the research so conducted and 148
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setting forth the determination whether there is or is not a 149
likelihood that the bill or resolution may have a significant 150
economic impact on Ohio businesses, and shall deliver a copy of 151
that document to the chairperson who submitted the request for 152
the economic impact analysis. 153
(E) If the written document that the Legislative Budget 155
Office prepares under division (D) of this section sets forth a 156
determination that there is not a likelihood that the bill or 157
resolution in question may have a significant economic impact on 158
Ohio businesses, the office is not required to prepare the 159
requested economic impact analysis of the bill or resolution. 160
(F) If the written document that the Legislative Budget 162
Office prepares under division (D) of this section sets forth a 163
determination that there is a likelihood that the bill or 164
resolution in question may have a significant economic impact on 165
Ohio businesses, then, within forty-five days after complying 166
with division (D) of this section, the office shall prepare and 167
distribute in the manner described in Section 1.02 of this act an 168
economic impact analysis as part of a fiscal analysis of the bill 169
or resolution prepared in the manner described in Sections 1.01 171
to 1.03 of this act. The economic impact analysis shall include 172
all of the following:
(1) The office's determination that there is a likelihood 174
that the bill or resolution may have a significant economic 175
impact on Ohio businesses; 176
(2) To the extent it is practicable to so determine, the 178
office's determination as to whether the bill or resolution may 179
significantly increase or decrease the revenues or expenditures 180
of Ohio businesses in general; 181
(3) To the extent it is practicable to so determine, the 183
office's determination as to whether aspects of the bill or 184
resolution may significantly impact Ohio small businesses in 185
particular, including, but not limited to, those aspects of the 186
bill or resolution that may uniquely increase or decrease the 187
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revenues or expenditures of Ohio small businesses or that may 188
uniquely impact their access to a workforce; 189
(4) To the extent it is practicable to so determine, the 191
office's determination as to whether aspects of the bill or 192
resolution may significantly impact particular segments of Ohio 193
industry or other forms of business, including, but not limited 194
to, those aspects of the bill or resolution that may have 195
variable geographical impacts, such as higher or lower electric 196
utility rates for industries or other businesses located in 197
certain parts of the state or unique ramifications for Ohio 199
industries or other businesses located in the counties of this
state that border Michigan, Pennsylvania, West Virginia, 200
Kentucky, or Indiana; 201
(5) Any other information that the office considers 203
necessary to include in order to fully explain the significant 204
economic impact that the bill or resolution may have on Ohio 205
businesses.
(G) Not later than April 1, 2001, the Legislative Budget 208
Officer shall submit a report on the one-year pilot program 209
conducted pursuant to this section to the President and Minority 210
Leader of the Senate, the Speaker and Minority Leader of the 211
House of Representatives, the Governor, and the Director of the 212
Legislative Service Commission. In the report, the Legislative
Budget Officer shall recommend whether the pilot program should 213
be continued and, if so, also shall make recommendations with 214
respect to all of the following: 215
(1) Whether the program should be continued as a pilot 217
program for a specified period of time or made a permanent 218
function of the office by appropriate revisions to section 103.14 219
of the Revised Code. In connection with this recommendation, the 220
Legislative Budget Officer shall comment upon whether the 221
office's fulfillment of its responsibilities in connection with 222
the pilot program, in addition to its other statutory and 223
nonstatutory responsibilities, created staffing, workload, 224
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budgetary, or other problems for the office. 225
(2) Whether the program should be expanded to include 227
other standing committees of the House of Representatives and the 228
Senate, and whether those committees should continue to be 229
designated by the Speaker of the House of Representatives and the 230
President of the Senate; 231
(3) Whether changes in the operation of the program are 233
advisable to improve the value of the program to the members of 234
the General Assembly in determining whether to vote in favor of 235
or against particular bills or resolutions; 236
(4) Any other matters the Legislative Budget Officer 238
considers worthwhile in light of the objectives of the program. 239
In the report, the Legislative Budget Officer shall 241
explain, and provide reasons for, each of the Legislative Budget 242
Officer's recommendations.
Section 1.05. The failure of the Legislative Budget Office 244
to prepare a fiscal analysis before a bill or resolution is taken 245
up for consideration by a committee of the House of 246
Representatives or Senate, or by either or both houses for final 247
consideration, shall not be construed to impair the validity of 248
any bill or resolution passed by either or both houses of the 249
General Assembly. 250
Section 2. The Legislative Budget Officer of the 252
Legislative Budget Office of the Legislative Service Commission 253
shall do all of the following:
(A) With the approval of the Director of the Legislative 255
Service Commission, employ and fix the compensation of any 257
necessary technical, professional, or clerical staff members, or 258
contract for the professional services of any necessary 259
economists or other consultants, to carry out the Legislative 260
Budget Office's responsibilities under Section 1.04 of this act; 261
(B) For the purpose of facilitating the Legislative Budget 263
Office's carrying out of its responsibilities under Section 1.04 265
of this act, designate one or more staff members of the 267
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Legislative Budget Office to conduct ongoing research and to 268
gather necessary data and other information, including, but not 269
limited to, data and other information pertaining to the 270
following:
(1) The various types of Ohio businesses, including, in 272
particular, small businesses as defined in section 121.24 of the 274
Revised Code and businesses located in the counties of this state 276
that border Michigan, Pennsylvania, West Virginia, Kentucky, or 278
Indiana;
(2) The current status of the economy of this state and of 280
the economy of the United States; 281
(3) Current economic trends in this state and generally in 283
the United States; 284
(4) Technological advancements and technological issues 286
that have or may have a significant economic impact upon Ohio 288
businesses, including, in particular, data and other information 290
indicating the extent to which Ohio businesses are or are not 292
maintaining their operations in a technologically up-to-date
manner and thereby promoting or failing to promote their own 294
competitiveness and Ohio business competitiveness in general. 296
(C) Maintain the data and information gathered pursuant to 298
division (B) of this section, together with a directory to that 300
data and information, in any appropriate manner that will 301
facilitate the Legislative Budget Office's carrying out its 303
responsibilities under Section 1.04 of this act, including if 304
appropriate, but not limited to, maintaining all or portions of 305
the data, information, and associated directory by means of
computer technology. 306
Section 3. As used in Sections 3 and 3.01 to 3.05 of this 308
act:
(A) "Ohio business" means a sole proprietorship or 310
business organization doing business in Ohio, regardless of 311
whether it is domiciled in Ohio. 312
(B) "Participating agency" means the Environmental 314
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Protection Agency and the Department of Development. 315
(C) "Rule" means a proposed new rule adopted under Chapter 317
119. of the Revised Code. "Rule" does not include the amendment 318
or rescission of an existing rule. If and when a proposed new 319
rule is filed under divisions (B) and (H) of section 119.03 of 320
the Revised Code, "rule" means only the original and not any 321
revised version of the proposed new rule. 322
(D) "Small business" has the same meaning as in section 324
121.24 of the Revised Code. 325
Section 3.01. The participating agencies shall conduct a 327
pilot program under which, during the course of a participating 328
agency's development and proposal of a rule, the participating 329
agency analyzes in the manner specified in division (D) of 330
Section 3.02 of this act the potential economic impact the rule 331
may have on Ohio businesses. Unless exempt, a rule is subject to 334
the pilot program only if a participating agency files an 335
original proposed version of the rule under divisions (B) and (H) 336
of section 119.03 of the Revised Code on or after January 1,
2000, and before January 1, 2001. 337
Section 3.02. The participating agencies, in the course of 339
developing and proposing a rule during the pilot program, shall: 340
(A) Make a good faith effort to identify Ohio businesses 342
that may be significantly affected economically by the rule were 343
it to be adopted;
(B) Make a good faith effort to identify leading 345
individuals who are involved in the Ohio businesses identified 346
under division (A) of this section; 347
(C) Invite the individuals identified under division (B) 349
of this section to comment on the potential economic impact the 350
rule may have on Ohio businesses in general and on their 351
businesses in particular; 352
(D) Analyze, applying any information submitted under 354
division (C) of this section and the participating agency's own 355
expertise and experience, the potential economic impact the rule 356
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may have on the Ohio businesses identified under division (A) of 357
this section. This analysis shall include all of the following: 359
(1) To the extent it is practicable to so determine, the 361
participating agency's determination as to whether the rule may 362
significantly increase or decrease the cost to Ohio businesses of 363
regulatory compliance; 364
(2) To the extent it is practicable to so determine, the 366
participating agency's determination as to whether the rule may 367
significantly increase or decrease the overall regulatory burden 368
of Ohio businesses; 369
(3) To the extent it is practicable to so determine, the 373
participating agency's determination as to the impact, if any, 375
that the rule may have on the period of time involved in the 376
participating agency's issuance of any license, permit, or other 377
form of authorization;
(4) Any other information that the participating agency 379
considers necessary to include in order to fully explain the 380
significant economic impact that the rule may have on Ohio 381
businesses.
(E) Prepare an economic impact statement that, in textual 383
narrative format, reports the results of the analysis conducted 384
under division (D) of this section; 385
(F) Invite further comment and revise the analysis and 387
economic impact statement whenever the rule is revised during the 388
course of its development and proposal in such a way that the 389
analysis is altered; and
(G) Include a current economic impact statement as part of 391
the rule summary and fiscal analysis that is prepared for the 392
rule if and when the rule is filed in original form under 393
divisions (B) and (H) of section 119.03 of the Revised Code. 394
If the rule would be subject to small business review under 396
section 121.24 of the Revised Code, the invitation to comment, 397
and the analysis and economic impact statement, are to invite 398
comment on, and give particular attention to, the potential 399
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economic impact the rule may have on Ohio small businesses. A 400
participating agency shall include the economic impact statement 401
as part of any rule summary and fiscal analysis it prepares for 402
purposes of division (B)(1) of section 121.24 of the Revised 403
Code.
A participating agency shall include the invitation to 405
comment in a public notice prepared with respect to a rule under 406
division (A) of section 119.03 of the Revised Code and shall send 407
a copy of the amplified public notice to each individual 408
identified under division (B) of this section. 409
If a participating agency sets forth in writing that it 411
identifies no Ohio businesses under division (A) of this section 412
in connection with a proposed rule, the agency is not required to 413
prepare an analysis of that rule under division (D) of this 414
section or an economic impact statement with respect to that rule 415
under division (E) of this section. 416
Section 3.03. The Joint Committee on Agency Rule Review, 418
during the pilot program, shall review economic impact statements 419
for completeness and accuracy in light of the objectives of the 420
pilot program. 421
The joint committee may return an economic impact statement 423
to a participating agency for revision if the joint committee, by 424
vote of two-thirds of all its members, finds that the 425
participating agency has not made a good faith effort to prepare 426
a complete and accurate economic impact statement in light of the 427
objectives of the pilot program. The joint committee shall 428
inform the participating agency in writing of its findings and of 429
the reasons for them. 430
When the joint committee returns an economic impact 432
statement to a participating agency, the time within which the 433
Senate and House of Representatives must adopt a concurrent 434
resolution invalidating the proposed rule to which the statement 435
applies thereupon stops running. 436
Within thirty days after receiving the returned economic 438
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impact statement, the participating agency shall withdraw the 439
proposed rule to which the statement applies, notify the joint 441
committee of its intent to file a revised version of the rule in 442
the future, or revise the economic impact statement and resubmit 443
it to the joint committee. If the participating agency fails to 445
withdraw the proposed rule, to notify the joint committee of its 446
intent to file a revised version of the rule in the future, or to 447
resubmit a revised economic impact statement within the 448
thirty-day period, the proposed rule is invalid the same as if 449
the Senate and House of Representatives had adopted a concurrent 450
resolution invalidating the proposed rule. 451
The joint committee shall review a resubmitted revised 453
economic impact statement. If the joint committee, by vote of 454
two-thirds of all its members, finds that the participating 455
agency, in revising and resubmitting the economic impact 456
statement, has not made a good faith effort to prepare a complete 457
and accurate economic impact statement in light of the objectives 458
of the pilot program, it may either: 459
(A) Return the resubmitted revised economic impact 461
statement to the participating agency for revision, resubmission, 462
and review, as in the case of the original statement; or 463
(B) Recommend that the Senate and House of Representatives 465
adopt a concurrent resolution invalidating the proposed rule to 466
which the resubmitted revised economic impact statement applies. 467
The Senate and House of Representatives may adopt a 469
concurrent resolution invalidating a proposed rule as 470
contemplated by this section not later than the thirtieth day 471
after the revised economic impact statement applying to the 472
proposed rule is resubmitted to the joint committee. 473
Section 3.04. (A) The following rules are exempt from the 475
pilot program: 476
(1) A rule that a participating agency has determined 479
should be exempt from the five-year review requirement of section 480
119.032 of the Revised Code;
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(2) A rule adopted under the emergency rule-making 482
procedure of division (F) of section 119.03 of the Revised Code, 483
except that the rule, unless otherwise exempt, is subject to the 484
pilot program when it is readopted under the nonemergency 485
rule-making procedure;
(3) A rule that is substantially and procedurally 488
identical to a federal law or rule in order to continue the 489
operation of a federally reimbursed program in this state, so 490
long as the rule contains a statement that it is proposed for the 491
purpose of complying with a federal law or rule and a citation to 492
that federal law or rule. 493
(B) A participating agency in writing may request the 495
Joint Committee on Agency Rule Review to exempt from the pilot 496
program a rule that otherwise would be subject to the program. 497
The participating agency shall provide reasons for the requested 498
exemption. 499
The joint committee, within thirty days after receiving a 501
request for exemption and by vote of a majority of all its 502
members, may grant the exemption if it finds that the objectives 503
of the pilot program will not be adversely affected if the rule 504
is not included in the pilot program. The joint committee shall 505
notify the participating agency in writing of its action on the 506
request. If the joint committee does not act on the request 507
within thirty days after receiving it, the request is deemed to 508
have been approved.
Section 3.05. Not later than April 1, 2001, the 510
participating agencies and the Joint Committee on Agency Rule 511
Review shall each separately submit a report on the pilot program 512
to the President and Minority Leader of the Senate, the Speaker 513
and Minority Leader of the House of Representatives, the 514
Governor, and the Director of the Legislative Service Commission. 515
In their reports, the participating agencies and joint committee 516
shall recommend whether the pilot program should be continued 517
and, if so, also shall recommend:
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(A) Whether the program should be continued as a pilot 519
program for a specified period of time or made a permanent 520
program by appropriate revisions to the Revised Code; 521
(B) Whether the program should be expanded to include 523
other rule-making agencies; 524
(C) Whether different or additional exemptions to the 526
program are advisable; 527
(D) Whether changes in the operation of the program are 529
advisable to improve its efficiency or to make it more likely 530
that its objectives will be achieved; and 531
(E) Any other matters the participating agency or joint 533
committee considers worthwhile in light of the objectives of the 534
program.
In their reports, a participating agency and the joint 536
committee shall explain, and provide reasons for, each of its 537
recommendations. 538
Section 4. The Director of the Legislative Service 540
Commission may employ and fix the compensation of a professional 541
staff member for the purpose of conducting ongoing research and 542
gathering necessary data and other information pertaining to 543
technological advancements and technological issues that may have 544
relevance in the preparation of legislation or research memoranda 545
for members of the General Assembly. 546
Section 5. Notwithstanding division (C)(3) of section 548
122.33 of the Revised Code, the Director of Development shall 549
waive any requirements for matching contributions for the Wright 550
Technology Network during the 1999-2001 biennium.
Section 6. This act is hereby declared to be an emergency 552
measure necessary for the immediate preservation of the public 553
peace, health, and safety. The reason for this necessity is so 554
that the General Assembly will be able to take immediate action 555
regarding the possible significant economic impact of certain 556
bills, resolutions, and rules on Ohio businesses. Therefore, 557
this act shall go into immediate effect. 558