ASSEMBLY, No. 1025

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblyman DiGAETANO

 

 

An Act providing for regulatory impact notes for certain proposed legislation.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. The Legislative Budget and Finance Officer shall review each bill and resolution upon introduction in the Senate or General Assembly and certify if the bill or resolution would establish a new State program or expand an existing State program, or establish or expand a program of a county, municipality, school district or other unit of local government, or be likely to have adverse effects on competition, employment, investment, product innovation, productivity, or cost and price structures in the private sector, or have an annual impact on the State's business economy of more than $5,000,000. The Legislative Budget and Finance Officer shall file a notice of the certification with the prime sponsor of the bill or resolution, the chairman of the committee to which it is referred, and the Secretary or Clerk of the House for entry into the records of the House.

 

    2. If the bill or resolution is certified by the Legislative Budget and Finance Officer, then the prime sponsor of the bill or resolution, any member of the committee to which it is referred, or the presiding officer, Majority Leader or Minority Leader of the House in which it resides may direct, through the Legislative Budget and Finance Officer, that a regulatory impact note be prepared on the bill or resolution by the head of the department, agency, authority or other entity specifically charged with the responsibility for administering its provisions. The head of the entity is authorized to obtain essential information from other State agencies in preparing the note.

 

    3. A regulatory impact note shall address the nature of the regulations that may be imposed; their likely economic impact; the potential adverse impact on competition, employment, investment, product innovation, productivity, or cost and price structures; the means for enforcing the regulations; the parties to be affected by the regulations; the penalties for failure of affected parties to comply with the regulations; the incremental administrative costs to be incurred by the administering entity.

    The note shall specifically contain the following information or respond to the following questions:

    a. the identification and quantification of parties affected by the regulations;

    b. the likely economic impact on a regulated party;

    c. the quantification of the number of forms, impact statements, surveys and other paperwork imposed by the regulations;

    d. whether regulated parties will be required to maintain records on-site for State use;

    e. whether regulated parties will be required to obtain licenses, certifications or permits and at what fee;

    f. which agency will administer any licenses, certifications or permits;

    g. whether regulated parties will be required to appear before the administering agency to obtain a license, certification or permit;

    h. whether regulated parties will be required to disclose information on materials or processes, including trade secrets;

    i. whether regulated parties will be required to report certain accidents and, if so, with what specificity;

    j. whether regulated parties will be required to adhere to either design or performance standards;

    k. whether regulated parties will be required to retain attorneys, accountants, engineers or other experts in order to comply with the regulations;

    l. which agency will be the lead agency to promulgate regulations;

    m. whether any other agencies will be involved in promulgating or enforcing regulations;

    n. an estimate of the potential adverse impact on competition, employment, investment, product innovation and productivity;

    o. an estimate of the potential impact on wholesale and retail costs or prices;

    p. whether the administering agency will require an increase in staff or budget to administer the program within the statutory time limits;

    q. the agency, office or administrator who will enforce the regulations;

    r. whether the enforcing entity will perform on-site inspections;

    s. the penalties for the failure of regulated parties to comply with the regulations;

    t. if fines are imposed for failure to comply with regulations, where the collected funds will go;

    u. the manner in which regulated parties will be informed of their responsibility to comply with new regulations; and

    v. whether new regulations duplicate or contradict any existing regulations whether of the same or another agency.

 

    4. The head of the administering entity shall deliver the note within 45 days of receipt of the request to the Legislative Budget and Finance Officer, who shall make the note available to the members of the House and the public.

 

    5. No bill for which a certification has been made by the Legislative Budget and Finance Officer shall be advanced to third reading in its House of origin unless:

    a. a regulatory impact note shall have been made available to the members of the House and the public at least 10 days prior to advancement; or

    b. the committee to which the bill was referred shall have determined, by majority vote of its authorized membership, that the bill would not have the effect as certified by the Legislative Budget and Finance Officer and that the need for a regulatory impact note does not therefore apply.

 

    6. This act shall take effect 90 days after enactment.

 

 

STATEMENT

 

    This bill requires that a regulatory impact note be prepared for any bill that would establish a new State program, expand an existing one, or might have an adverse effect on private sector activities such as competition, employment, investment, product innovation or productivity, or cost and price structures. A bill could not be placed before a House for a vote unless the note was prepared or unless a committee had determined that the bill would not create or expand a program or have any of these adverse effects. This bill is based on a recommendation offered by the Study Commission on Regulatory Efficiency.

    This act would take effect 90 days after enactment.

 

 

 

Provides for regulatory impact notes for proposed legislation.