Economic Impact Statement Act Exposed

The Economic Impact Statement Act is listed under ALEC's Energy, Environment and Agriculture Task Force and was included in the 1995 ALEC Sourcebook of American State Legislation. According to ALEC.org, the Act was approved by the Board of Directors in 1995, re-approved on January 28, 2013. (Accessed on 7/23/2015).

CMD's Bill Summary

This "model" legislation would supplant existing review standards and substitute new standards for regulations regarding pollution that might make it more cumbersome to regulate polluters.

ALEC Bill Text

Summary

ALEC's model Economic Impact Statement Act is designed to provide environmental protection while permitting the creation of wealth through requiring an economic analysis of new environmental regulations. Key components of the bill include: detailed short-term and long-term economic effects of regulation and legislative review of regulators.

Model Legislation

Section 1. {Short title.}

This act shall be known and may be cited as the Economic Impact Statement Act.

Section 2. {Definitions.}

The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

(A) "Department." The {insert environmental agency} and its authorized representatives.

Section 3. {Determination of Rule.}

(A) Prior to legislative review for all proposed new administrative regulations or proposed amendments to existing administrative regulations proposed, the department shall:

(1) Give notice of a public hearing at which the department will receive data, views, or arguments, orally and in writing, from interested persons on the proposed regulations, by publication of a notice in the State Register;

(2) Consider fully all written and oral submissions respecting the proposed regulation; and

(3) Include a copy of all written submissions and departmental responses in their economic impact statement.

Section 4. {Legislative Review.}

(A) All proposed new administrative regulations or proposed amendments to existing administrative regulations proposed by the department shall be submitted to the legislature for review in accordance with Section 5.

(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 regulation;

(2) A request for review;

(3) A brief synopsis of the regulation submitted explaining the content and any changes in existing regulations resulting from the regulations;

(4) A copy of the economic impact statement prepared by the department pursuant to Section 5.

(C) Upon receipt of the request, the President and Speaker reviewing the request shall submit it for consideration to the appropriate standing committee(s). A copy of the regulation or a synopsis of it must be provided to each member of the committee. The committee to which regulations are referred have {insert number} calendar days from the date the regulations are submitted to the legislature to consider and take action on these regulations. Following consideration by each individual house, both houses shall meet to approve a joint resolution.

(D) If a joint resolution to disapprove a regulation is not enacted within {insert number} session days after the regulation is submitted to the legislature, the regulation is effective upon publication in the State Register.

(E) A joint resolution disapproving a regulation must include:

(1) The synopsis of the regulation as required by subsection (B);

(2) The summary of the economic impact statement prepared by the department pursuant to Section 5.

Section 5. {Contents.}

(A) General rule. The economic impact statement shall use generally accepted methodology; shall detail both short-term and long-term economic effects of the regulation; shall review the alternatives including the null alternative; and shall include the following information:

(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 that the regulation is the most cost-effective method for achieving the stated purpose;

(4) A determination that the regulation represents the most efficient allocation of public and private resources to achieve the stated purpose;

(5) The source of revenue to be used for implementing and enforcing the regulation;

(6) A determination of the probable result of the regulation in terms of the number of public and private jobs which will be created, retained or eliminated;

(7) A determination of the relative impact of the regulation on firms of differing sizes;

(8) A determination of the effect of the regulation on competition within the state, with other states and with regions on the regulated community, and on potential global competition;

(9) A determination of the effect of the regulation on the state tax base;

(10) A determination of the effect of the regulation on the cost of living;

(11) A description of any increase or decrease in costs to the state and its political subdivisions, including revenues that may be lost because of the regulation and the estimated dollar measure of the costs.

(12) A conclusion as to the economic impact of the regulation upon all persons substantially affected by it, including an analysis containing a description as to which persons will bear the costs of the action and which persons will benefit directly and indirectly from the action.

(B) Omission. An economic impact statement that omits any information required by subsection (A) shall specifically note its omission, the reason for its omission, the importance of any relevant information so omitted to a complete and realistic assessment of the economic impact of the regulation, and the additional time and effort required to obtain any information needed for the assessment.

Section 6. {Availability.}

An economic impact statement requested under section 4 shall be made available to each member of the legislature at the time it is released.

Section 7. {Severability clause.}

Section 8. {Repealer clause.}

Section 9. {Effective}

ALEC's Sourcebook of American State Legislation 1995