Current Status Introducing Body:
HouseBill Number: 4571Ratification Number: 644Act Number: 507Primary Sponsor: WilkinsType of Legislation: GBSubject: Administrative procedures, regulation provisionsDate Bill Passed both Bodies: Jun 04, 1992Computer Document Number: DKA/3728.ALGovernor's Action: SDate of Governor's Action: Jul 01, 1992Introduced Date: Mar 18, 1992Date of Last Amendment: Jun 03, 1992Last History Body: ------Last History Date: Jul 01, 1992Last History Type: Act No. 507Scope of Legislation: StatewideAll Sponsors: Wilkins Boan T.C. Alexander Waldrop Phillips Bennett Beasley M.O. Alexander J. Bailey Barber H. Brown Clyborne Cooper Fair Farr Fulmer J. Harris P. Harris Harrison Haskins Hodges Huff Jennings L. Martin M. Martin McGinnis Sharpe Smith Tucker Wells Wofford Wright A. Young Jaskwhich Quinn Sturkie Koon Riser D. Martin J. Brown Scott Gentry Harwell Vaughn Corning Cato J. Williams Shissias LanfordType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 4571 ------ Jul 01, 1992 Act No. 507 4571 ------ Jul 01, 1992 Signed by Governor 4571 ------ Jun 04, 1992 Ratified R 644 4571 House Jun 04, 1992 Concurred in Senate amendment, enrolled for ratification 4571 Senate Jun 03, 1992 Debate adjourned 4571 Senate Jun 03, 1992 Amended, read third time, returned with amendment 4571 Senate Jun 02, 1992 Amended, read second time, ordered to third reading with notice of general amendments, carrying over all amendments to third reading 4571 Senate May 20, 1992 Made Special Order 4571 Senate May 12, 1992 Introduced, read first time, placed on Calendar without reference 4571 House May 07, 1992 Read third time, sent to Senate 4571 House May 06, 1992 Amended, read second time 4571 House Apr 29, 1992 Objection withdrawn by Representative 4571 House Apr 28, 1992 Objection withdrawn by Representative 4571 House Apr 28, 1992 Objection withdrawn by Representative 4571 House Apr 23, 1992 Objection withdrawn by Representative 4571 House Apr 22, 1992 Objection by Representative 4571 House Apr 08, 1992 Debate adjourned until Wednesday, April 22, 1992 4571 House Apr 07, 1992 Debate adjourned until Wednesday, April 8, 1992 4571 House Apr 07, 1992 Objection by Representative 4571 House Apr 02, 1992 Debate adjourned until Tuesday, April 7, 1992 4571 House Apr 01, 1992 Debate adjourned until Thursday, April 2, 1992 4571 House Mar 25, 1992 Committee Report: Favorable 25 with amendment 4571 House Mar 18, 1992 Introduced, read first time, 25 referred to CommitteeView additional legislative information at the LPITS web site.
(A507, R644, H4571)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-23-115 SO AS TO PROVIDE THAT ON REQUEST AN AGENCY MUST PREPARE AN ASSESSMENT REPORT ON REGULATIONS HAVING A SUBSTANTIAL ECONOMIC IMPACT AND TO PROVIDE CONTENTS OF REPORTS; TO AMEND SECTION 1-23-10 RELATING TO DEFINITIONS IN THE ADMINISTRATIVE PROCEDURES ACT, SO AS TO INCLUDE "DIVISION" AND "SUBSTANTIAL ECONOMIC IMPACT"; TO AMEND SECTION 1-23-110, AS AMENDED, RELATING TO PROCEDURES FOR PROMULGATING REGULATIONS SO AS TO CLARIFY THESE PROCEDURES AND INCLUDE NOTICE AND SUBMISSION OF ASSESSMENT REPORTS; TO AMEND SECTION 1-23-120, AS AMENDED, RELATING TO PROCEDURES FOR GENERAL ASSEMBLY REVIEW OF REGULATIONS SO AS TO INCLUDE ASSESSMENT REPORTS, IF PREPARED, WITH REGULATIONS SUBMITTED TO THE GENERAL ASSEMBLY; TO AMEND SECTION 1-23-130, RELATING TO EMERGENCY REGULATIONS SO AS TO REQUIRE ASSESSMENT REPORTS ON THESE REGULATIONS UNDER CERTAIN CONDITIONS; TO PROVIDE FOR THE PROSPECTIVE APPLICATION OF THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 1-23-115. (A) Upon written request by two members of the General Assembly, a regulation that has a substantial economic impact must have an assessment report prepared pursuant to this section and in accordance with the procedures contained in this article.
(B) A state agency must submit to the State Budget and Control Board, Division of Research and Statistical Services, a preliminary assessment report on regulations which have a substantial economic impact. Upon receiving this report the division may require additional information from the promulgating agency, other state agencies, or other sources. A state agency shall cooperate and provide information to the division on requests made pursuant to this section. The division shall prepare and publish a final assessment report within sixty days after the public hearing held pursuant to Section 1-23-110. The division shall forward the final assessment report and a summary of the final report to the promulgating agency.
(C) At a minimum, the preliminary assessment report required by this section must disclose the effects of the proposed regulation on the public health and environmental welfare of the community and State and the effects of the economic activities arising out of the proposed regulation. Both the preliminary and final reports required by this section may include:
(1) a description of the regulation, the purpose of the regulation, the legal authority for the regulation, and the plan for implementing the regulation;
(2) a determination of the need for the regulation and the expected benefit of the regulation;
(3) a determination of the costs and benefits associated with the regulation and an explanation of why the regulation is considered to be the most cost effective, efficient, and feasible means for allocating public and private resources and for achieving the stated purpose;
(4) the effect of the regulation on competition;
(5) the effect of the regulation on the cost of living and doing business in the geographical area in which the regulation would be implemented;
(6) the effect of the regulation on employment in the geographical area in which the regulation would be implemented;
(7) the source of revenue to be used for implementing and enforcing the regulation;
(8) a conclusion on the short-term and long-term economic impact upon all persons substantially affected by the regulation, including an analysis containing a description of which persons will bear the costs of the regulation and which persons will benefit directly and indirectly from the regulation;
(9) the uncertainties associated with the estimation of particular benefits and burdens and the difficulties involved in the comparison of qualitatively and quantitatively dissimilar benefits and burdens. A determination of the need for the regulation must consider qualitative and quantitative benefits and burdens;
(10) the effect of the regulation on the environment and public health;
(11) the detrimental effect on the environment and public health if the regulation is not implemented.
An assessment report must not consider benefits or burdens on out-of-state political bodies or businesses. The assessment of benefits and burdens which cannot be precisely quantified may be expressed in qualitative terms. This subsection must not be interpreted to require numerically precise cost-benefit analysis.
At no time is an agency required to include items (4) through (8) in a preliminary assessment report; however, these items may be included in the final assessment report prepared by the division.
(D) If information required to be included in the assessment report materially changes at any time before the regulation is approved or disapproved by the General Assembly, the agency must submit the corrected information to the division which must forward a revised assessment report to the Legislative Council for submission to the committees to which the regulation was referred during General Assembly review.
(E) An assessment report is not required on:
(1) regulations specifically exempt from General Assembly review by Section 1-23-120; however, if any portion of a regulation promulgated to maintain compliance with federal law is more stringent than federal law, then that portion is not exempt from this section;
(2) emergency regulations filed in accordance with Section 1-23-130; however, before an emergency regulation may be refiled pursuant to Section 1-23-130, an assessment report must be prepared in accordance with this section;
(3) regulations which control the hunting or taking of wildlife including fish or setting times, methods, or conditions under which wildlife may be taken, hunted, or caught by the public, or opening public lands for hunting and fishing."
SECTION 2. Section 1-23-10 of the 1976 Code is amended by adding:
"(6) `Division' means the Division of Research and Statistical Services in the State Budget and Control Board.
(7) `Substantial economic impact' means a financial impact upon:
(a) commercial enterprises;
(b) retail businesses;
(c) service businesses;
(e) consumers of a product or service; or
Regulation promulgation procedures
SECTION 3. Section 1-23-110 of the 1976 Code, as last amended by Act 91 of 1989, is further amended to read:
"Section 1-23-110. (A) Before the promulgation, amendment, or repeal of a regulation, an agency shall:
(1) give notice of a drafting period by publication of a notice in the State Register. The notice must include the address to which interested persons may submit written comments during the initial drafting period before the regulations are submitted as proposed;
(2) submit to the division, no later than the date the notice required in item (3) is published in the State Register, a preliminary assessment report prepared in accordance with Section 1-23-115 on regulations having a substantial economic impact;
(3) give notice of a public hearing at which the agency will receive data, views, or arguments, orally and in writing, from interested persons on proposed regulations by publication of a notice in the State Register if requested by twenty-five persons, by a governmental subdivision or agency, or by an association having not less than twenty-five members. The notice must include:
(a) the address to which written comments must be sent and the time period of not less than thirty days for submitting these comments;
(b) the date, time, and place of the public hearing which must not be held sooner than thirty days from the date the notice is published in the State Register;
(c) either the text or a synopsis of the proposed regulation;
(d) the statutory authority for its promulgation;
(e) a preliminary fiscal impact statement prepared by the agency reflecting estimates of costs to be incurred by the State and its political subdivisions in complying with the proposed regulation. A preliminary fiscal impact statement is not required for those regulations which are not subject to General Assembly review under Section 1-23-120;
(f) a summary of the preliminary assessment report submitted by the agency to the division and notice that copies of the preliminary report are available from the agency. The agency may charge a reasonable fee to cover the costs associated with this distribution requirement. A regulation that does not require an assessment report because it does not have a substantial economic impact, must include a statement to that effect. A regulation exempt from filing an assessment report pursuant to Section 1-23-115(E) must include an explanation of the exemption.
(B) Notices required by this section must be mailed by the promulgating agency to all persons who have made timely requests of the agency for advance notice of proposed promulgation of regulations.
(C) The agency shall consider fully all written and oral submissions respecting the proposed regulation.
(D) A proceeding to contest a regulation on the ground of noncompliance with the procedural requirements of this section must be commenced within one year from the effective date of the regulation."
Procedures for General Assembly Review of Regulations
SECTION 4. Section 1-23-120 of the 1976 Code, as last amended by Act 91 of 1989, is further amended to read:
"Section 1-23-120. (A) All regulations except those specifically exempted under this section must be submitted to the General Assembly for review in accordance with this article, but no regulation may be submitted to the General Assembly more than one year after publication of the drafting notice initiating the regulation pursuant to Section 1-23-110.
(B) To initiate the process of review, the agency shall file with the President of the Senate and the Speaker of the House of Representatives:
(1) a copy of the regulations promulgated;
(2) a request for review;
(3) a brief synopsis of the regulations submitted explaining the content and any changes in existing regulations resulting from the regulations;
(4) a copy of the final assessment report and the summary of the final report prepared by the division pursuant to Section 1-23-115. A regulation that does not require an assessment report because it does not have a substantial economic impact must include a statement to that effect. A regulation exempt from filing an assessment report pursuant to Section 1-23-115(E) must include an explanation of the exemption;
(5) a copy of the fiscal impact statement prepared by the agency as required in Section 1-23-110.
(C) Upon receipt of the request, the President and Speaker reviewing the request shall submit it for consideration to the standing committees of the Senate and House which are most concerned with the function of the promulgating agency. A copy of the regulation or a synopsis of it must be given to each member of the committee. The committees to which regulations are referred have one hundred twenty days from the date regulations are submitted to the General Assembly to consider and take action on these regulations. However, if a regulation is referred to a committee and no action occurs in that committee on the regulation within sixty calendar days of receipt of the regulation, the regulation must be placed on the agenda of the full committee beginning with the next scheduled full committee meeting.
(D) If a joint resolution to approve a regulation is not enacted within one hundred twenty days after the regulation is submitted to the General Assembly or if a joint resolution to disapprove a regulation has not been introduced by a standing committee to which the regulation was referred for review, the regulation is effective upon publication in the State Register. Upon introduction of the first joint resolution disapproving a regulation by a standing committee to which the regulation was referred for review, the one-hundred-twenty-day period for automatic approval is tolled. A regulation may not be filed under the emergency provisions of Section 1-23-130 if a joint resolution to disapprove the regulation has been introduced by a standing committee to which the regulation was referred. Upon a negative vote by either the Senate or House of Representatives on the resolution disapproving the regulation and the notification in writing of the negative vote to the Speaker of the House of Representatives and the President of the Senate by the clerk of the house in which the negative vote occurred, the remainder of the period begins to run. If the remainder of the period is less than ninety days, additional days must be added to the remainder to equal ninety days. The introduction of a joint resolution by the committee of either house does not prevent the introduction of a joint resolution by the committee of the other house to either approve or disapprove the regulations concerned. A joint resolution approving or disapproving a regulation must include:
(1) the synopsis of the regulation as required by subsection (B);
(2) the summary of the final assessment report prepared by the division pursuant to Section 1-23-115 or, as required by subsection (B), the statement or explanation that an assessment report is not required or is exempt.
(E) The one-hundred-twenty-day period of review begins on the date the regulation is filed with the President and Speaker. Sine die adjournment of the General Assembly tolls the running of the period of review, and the remainder of the period begins to run upon the next convening of the General Assembly excluding special sessions called by the Governor.
(F) Any member may introduce a joint resolution approving or disapproving a regulation thirty days following the date the regulations concerned are submitted to a standing committee for review and no committee joint resolution approving or disapproving the regulations has been introduced and the regulations concerned have not been withdrawn by the promulgating agency pursuant to Section 1-23-125, but the introduction does not toll the one-hundred-twenty-day period of automatic approval.
(G) General Assembly review is not required for regulations promulgated:
(1) to maintain compliance with federal law including, but not limited to, grant programs; however, the synopsis of the regulation required to be submitted by subsection (B) must include citations to federal law, if any, mandating the promulgation of or changes in the regulation justifying this exemption;
(2) by the state Board of Financial Institutions in order to authorize state-chartered banks, state-chartered savings and loan associations, and state-chartered credit unions to engage in activities that are authorized pursuant to Section 34-1-110;
(3) by the South Carolina Tax Commission to adopt regulations, revenue rulings, revenue procedures, and technical advice memoranda of the Internal Revenue Service so as to maintain conformity with the Internal Revenue Code of 1954;
(4) as emergency regulations under Section 1-23-130.
(H) For purposes of this section, only those calendar days occurring during a session of the General Assembly, excluding special sessions, are included in computing the days elapsed."
SECTION 5. Section 1-23-130 of the 1976 Code is amended to read:
"Section 1-23-130. (A) If an agency finds that an imminent peril to public health, safety, or welfare requires immediate promulgation of an emergency regulation before compliance with the procedures prescribed in this article or if a natural resources related agency finds that abnormal or unusual conditions, immediate need, or the state's best interest requires immediate promulgation of emergency regulations to protect or manage natural resources, the agency may file the regulation with the Legislative Council and a statement of the situation requiring immediate promulgation. The regulation becomes effective as of the time of filing.
(B) An emergency regulation filed under this section which has a substantial economic impact may not be refiled unless accompanied by the summary of the final assessment report prepared by the division pursuant to Section 1-23-115.
(C) If emergency regulations are either filed or expire while the General Assembly is in session, the emergency regulations remain in effect for ninety days only and may not be refiled; but if emergency regulations are both filed and expire during a time when the General Assembly is not in session they may be refiled for an additional ninety days.
(D) Emergency regulations and the agency statement as to the necessity of immediate promulgation must be published in the next issue of the State Register following the date of filing. The summary of the final assessment report required for refiling emergency regulations pursuant to subsection (B) must also be published in the next issue of the State Register.
(E) An emergency regulation promulgated pursuant to this section may be permanently promulgated by complying with the requirements of this article."
SECTION 6. The amendments to Article 1, Chapter 23, Title 1, as contained in this act, apply to those regulations for which a notice of drafting pursuant to Section 1-23-110 is filed subsequent to this act's effective date.
SECTION 7. This act takes effect six months after approval by the Governor.
Approved the 1st day of July, 1992.