HB 1416

AN ACT relative to the extent of the authority of agencies to adopt administrative rules.

SPONSORS: Rep. Clegg, Hills 23; Rep. Mirski, Graf 12; Rep. Herman, Hills 13; Rep. Heon, Straf 14; Sen. O'Neil, Dist 18; Sen. D'Allesandro, Dist 20; Sen. Francoeur, Dist 14; Sen. Boyce, Dist 4

This bill prohibits administrative agencies from adopting rules that incorporate by reference any code, rule, or regulation from another state or entity outside New Hampshire, except for the federal government. The bill also prohibits administrative rules that require manufacturers to produce products in a manner other than the method chosen by the manufacturer. The bill also shortens the time period in which an emergency administrative rule that violates the preceeding requirements may be in effect.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Administrative Procedure Act; Definitions; Legislative Approval. Amend RSA 541-A:1 by inserting after paragraph VII the following new paragraph:

VII-a. "Legislative approval" means a vote of the house of representatives and senate.

2 New Paragraph; Administrative Procedure Act; Specificity of Rules; Identification of State or Federal Law; Administrative Rule Requiring Certification or Permission from Another State or Entity Prohibited. Amend RSA 541-A:3-a by inserting after paragraph III the following new paragraphs:

IV. No agency may propose or adopt any rule which incorporates by reference any code, rule, or regulation from another state or entity outside the state of New Hampshire, other than the federal government, without specific legislative approval.

V. No agency may propose or adopt any rule that requires manufacturers to produce products in a manner other than the method chosen by the manufacturer without specific legislative approval for such a rule.

3 Administrative Procedure Act; Emergency Rules; Additional Limitation on Rules Requiring Permission or Certification from Another State or Entity. Amend RSA 541-A:18, II to read as follows:

II. Notwithstanding RSA 541-A:16, III, emergency rules adopted under this section shall not remain in effect for more than 180 days from the date and time of filing with the director of legislative services; except that an emergency rule adopted in violation of RSA 541-A:3-a, IV or V shall not remain in effect for more than 45 days unless additional time is allowed by majority vote of the legislature, and in no case shall such rule be valid for more than 90 days. An agency may propose a permanent rule on the same subject at the same time that it adopts an emergency rule, but it shall not adopt the same or substantially the same emergency rule when the emergency rule expires.

The Office of Legislative Services states this bill may increase state expenditures by an indeterminable amount in FY 2003 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or county and local expenditures.

The Office states this bill will increase state expenditures for additional paper and personnel time, both in the Division of Administrative Rules and state agencies, necessary to address the potential number of pages of rules which would no longer be able to be incorporated by reference, unless statues are amended. Instead, the requirements in the rules would have to be written out in conformance with the New Hampshire Drafting and Procedure Manual for Administrative Rules, filed, reviewed for the Joint Legislative Committee on Administrative Rules (JLCAR), and processed in the database of the Division and published by the agencies as required by RSA 541-A:15. The fiscal impact for those agencies and those rules where technical or engineering standards are routinely incorporated by reference, and not mentioned in the RSA's, could be potentially large. Moreover, the impact would fall disproportionately on smaller agencies, such as professional licensing boards, which incorporate by reference and consequently have fewer pages to process currently than larger agencies.

The Department of Administrative Services states this bill will have no fiscal impact on their department.