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Legislative Victories
Economic Impact
Analysis - Summary
On Dec. 16,
1999, Gov. Bob Taft signed HB 13, sponsored by Rep. Don Mottley (R-W.
Carrollton). The new Act became effective immediately and creates two
one-year pilot programs designed to identify the financial impact
of pending laws, resolutions and rules on Ohio businesses.
The first
pilot program focuses on proposed bills and resolutions.
- This one-year
pilot program is limited to legislation assigned to three House
and three Senate committees. The participating Senate Committees
include: Health, Human Services & Aging; Insurance, Commerce
& Labor; Ways & Means. The designated House Committees are:
Commerce & Labor; Insurance; Ways & Means.
- During
the one-year pilot period, the chair of each selected committee,
in consultation with the ranking minority member, may request
that the Legislative Budget Office (LBO) analyze a maximum of
three bills or resolutions believed to have a significant
cost impact on Ohio businesses.
- When directed
to perform such an analysis, the LBO must determine if there
is a likelihood the proposed bill or resolution could have a
significant economic impact on Ohio businesses. If LBO finds
a significant economic impact could exist, it must include information
in the fiscal analysis of the bill or resolution indicating
whether the bill or resolution could significantly:
- increase
or decrease the revenues or expenditures of Ohio businesses
in general;
- impact
Ohio small businesses in particular, including their
access to a workforce; and
- impact
particular segments of Ohio industry, including any variable
geographical impact felt by businesses located in counties
bordering neighboring states.
The second
pilot program is directed toward the rule-making process.
- During
2000, the Ohio Environmental Protection Agency (OEPA) and the
Department of Development (DOD) must analyze certain proposed
rules to determine their economic impact on Ohio businesses.
In analyzing a proposed rule, the agency must:
- Make
a good faith effort to identify Ohio businesses that may
be significantly affected by the rule and engage leading
individuals from those businesses in the review process;
- Analyze
and incorporate the comments received from such individuals
along with the agency's expertise and experience in the
economic impact of the rule; and
- To
the extent practicable, include information in the analysis
indicating whether the rule could significantly:
- increase
or decrease the cost of regulatory compliance for Ohio
businesses;
- increase
or decrease the overall regulatory burden on Ohio businesses;
- affect
the time involved in the agency's issuance of licenses,
permits, or other forms of authorization; and
- any
other information the agency considers necessary to
fully explain the economic impact of the proposed rule
on Ohio businesses
Final Reports.
At the conclusion
of the pilot program, the LBO, participating agencies and the Joint Committee
on Agency Rule Review (JCARR) must submit separate reports to the governor
and legislative leaders. Reports must be submitted by February 1, 2001.
Each report must
state whether the pilot program should be continued and recommend whether
the program: (1) should be continued as a pilot program for a specified
period of time or be made permanent; (2) should be expanded to include
other rule-making agencies; (3) requires different or additional exemptions;
and (4) requires changes to improve its operating efficiency or to make
it more likely that its objectives will be achieved.
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