Source: https://www.nysenate.gov/legislation/bills/2017/s4590/amendment/a
Timestamp: 2019-12-09 03:01:42
Document Index: 67239286

Matched Legal Cases: ['Art 2', '§250', '§ 2', '§ 3', '§ 250', '§ 251', '§  252', '§ 253', '§  254', '§ 255', '§ 256', '§ 257', '§ 258', '§ 4', '§  253']

NY State Senate Bill S4590A
senate Bill S4590A
Get Status Alerts for S4590A
May 01, 2018 ordered to third reading cal.925
Mar 09, 2018 print number 4590a
Mar 09, 2018 amend and recommit to commerce, economic development and small business
Jun 05, 2017 ordered to third reading cal.1475
Feb 21, 2017 referred to commerce, economic development and small business
Add Art 2-A §§250 - 258, St Ad Proc Act
2015-2016: S4328, A6993
2019-2020: A1048
Establishes procedures for negotiated rule making.
BILL NUMBER:  S4590
act, in relation to negotiated rule making
This bill will promote greater use of negotiated rulemaking. The bill
provides for additional opportunities for direct small business and
public participation in the development of proposed agency regulations
by adding a formal negotiated rulemaking Article 2-A to the State
Administrative Procedure Act. Negotiated rule making allows small
business owners and representatives of all significant interests who
would be affected by a regulation to meet and develop as broad a
consensus as possible on terms of a rule making proposal.
Negotiated rule making has been used successfully by the federal and
state governments to eliminate or narrow the disagreements between
affected interests, shorten the rule making process, make litigation
less likely and improve the terms of a regulation.
Section one establishes the title of the act as "the small business
negotiated rule making act of 2017."
Section two establishes the legislative intent.
Section three establishes a new Article 2-A to the State
Administrative Procedure Act (SAPA) which will encourage state
agencies to use a process for selecting rule proposals as candidates
for negotiated rule making, and for the identification and nomination
of representatives of interests necessary to negotiated rule making
Section 250 sets forth the article's purpose: to establish a statutory
framework for the opportunity to select appropriate subjects for
negotiated rule making and the conduct of negotiated rule making.
Section 251 sets forth definitions for terms used in this article.
"Consensus" is defined ((as in Federal Negotiated Rule Making Act of
1990 (P.L. 101-648)) as unanimous concurrence of all represented
interests, unless they all agree to another definition.
Section 252 sets forth the process and standards for agency
determinations of the need for negotiated rule making for a specific
rule. To be a candidate for negotiated rule making, a rule must
significantly affect a limited number of small business and
identifiable interests, and it must be possible to put together a
balanced committee of representatives of these interests, who are
willing to negotiate in good faith to reach a consensus on a proposed
Section 253 sets forth the process for notice and comment on the
proposed formation of a negotiated rule making committee, once a rule
has been approved for negotiated rule making. Small businesses or
persons who believe their interests will not be adequately
represented, or the committee as proposed is not fair and balanced,
may nominate alternate or additional persons to serve on the
committee. Special efforts must be made to include small businesses,
residents of rural areas, inner-city urban areas, minority and
disadvantaged groups and other interests who may otherwise be
underrepresented in the negotiated rule making process. Decisions of
the agency regarding committee membership may be appealed to the
agency, which shall decide appeals within 30 days.
Section 254 sets forth the process for formal establishment of the
Section 255 codifies standards for conducting committee activities,
including the selection of an impartial facilitator to assist in the
committee to reach consensus on aspects of the proposed rule. The
committee shall issue a report indicating those matters on which it
has reached consensus to the agency. All reports are made open and
accessible to the public for inspection and copying.
Section 256 provides that the committee shall terminate upon
promulgation of the final rule under consideration, unless an earlier
date is contained in the committee's charter, or unless the agency
Section 257 provides for support services for the committee's
Section 258 follows the federal law in providing that actions relating
to establishing, assisting or terminating a negotiated rule making
committee shall not be subject to judicial review.
Section four states that the provisions of the act shall preempt and
supersede any inconsistent executive order relating to negotiated rule
Section five establishes the effective date.
Currently, small businesses and the regulated public have no means to
negotiate with state agencies concerning the outcome of regulatory
proposals with the exception of normal notice and comment rule making
process. In many instances, public comments are not adequately taken
in to account and acted on by the agency, resulting in no
consideration of small businesses or the public's concerns.
Negotiated rule making, if planned and conducted properly and in a
spirit of openness and fairness, can counteract systemic tendencies
toward confrontation and onerous rule making.
the "small business negotiated rule making act of 2017".
§ 2. Legislative intent. The legislature hereby finds  that  providing
additional  opportunities  for  direct small business and public partic-
ipation in  the  development  of  potentially  controversial  rules  can
enhance  the  ability  of the agency to develop the most appropriate and
effective regulatory language, and can reduce the time and expense occa-
sioned by litigation over the rule. Negotiated rule  making  provides  a
means  of  improving  the  substance and increasing the acceptability of
rules, by affording to the agency, regulated small  businesses  and  the
public  the opportunity for face-to-face negotiations over a rule making
proposal which is under development by the agency. The  opportunity  for
representatives  of  the various persons and small businesses interested
in a rule to meet and communicate with each other provides  a  framework
for  the  sharing  of  information,  knowledge and expertise in order to
develop a consensus on the most effective and  appropriate  rule  making
proposal.    Fair representation of all interested parties and a skilled
facilitator are essential  elements  of  a  successful  negotiated  rule
Therefore, the legislature declares it to be in the public interest to
set  forth  a  statutory process for negotiated rule making in the state
administrative procedure act  as  an  alternative  means  of  developing
appropriate and effective proposed rules.
LBD02219-01-7
§ 3. The state administrative procedure act is amended by adding a new
article 2-A to read as follows:
SECTION 250. PURPOSE OF ARTICLE.
252. DETERMINATION OF THE NEED FOR NEGOTIATED RULE MAKING.
253. NOTICE OF PROPOSED COMMITTEE FORMATION.
254. COMMITTEE ESTABLISHMENT.
255. CONDUCT OF COMMITTEE ACTIVITIES.
256. COMMITTEE TERMINATION.
257. SERVICES,  FACILITIES  AND PAYMENT OF EXPENSES OF COMMITTEE
258. JUDICIAL REVIEW.
§ 250. PURPOSE OF ARTICLE. THE PURPOSE OF THIS ARTICLE IS TO ESTABLISH
A STATUTORY FRAMEWORK FOR THE  SELECTION  OF  APPROPRIATE  SUBJECTS  FOR
NEGOTIATED  RULE  MAKING, AND FOR THE CONDUCT OF NEGOTIATED RULE MAKING.
NOTHING IN THIS ARTICLE IS  INTENDED  TO  LIMIT  OTHER  INNOVATIVE  RULE
MAKING PROCEDURES OTHERWISE AUTHORIZED BY STATUTE.
§ 251. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "CONSENSUS" MEANS UNANIMOUS CONCURRENCE AMONG THE INTERESTS REPRES-
ENTED ON A NEGOTIATED RULE MAKING COMMITTEE ESTABLISHED PURSUANT TO THIS
ARTICLE,  UNLESS  SUCH  COMMITTEE BY UNANIMOUS CONCURRENCE (A) AGREES TO
DEFINE SUCH TERM TO MEAN A GENERAL BUT NOT UNANIMOUS CONCURRENCE; OR (B)
AGREES UPON ANOTHER SPECIFIED DEFINITION.
2.  "FACILITATOR"  MEANS  A  PERSON  WHO  IMPARTIALLY  AIDS   IN   THE
DISCUSSIONS  AND  NEGOTIATIONS  AMONG  THE  MEMBERS OF A NEGOTIATED RULE
MAKING COMMITTEE IN DEVELOPING A PROPOSED RULE.
3. "INTEREST" MEANS, WITH RESPECT TO  AN  ISSUE  OR  MATTER,  MULTIPLE
PARTIES  WHICH  HAVE  A  SIMILAR POINT OF VIEW OR WHICH ARE LIKELY TO BE
4. "NEGOTIATED RULE MAKING" MEANS RULE MAKING THROUGH  THE  USE  OF  A
NEGOTIATED RULE MAKING COMMITTEE.
5. "NEGOTIATED RULE MAKING COMMITTEE" OR "COMMITTEE" MEANS AN ADVISORY
COMMITTEE  ESTABLISHED BY AN AGENCY IN ACCORDANCE WITH THE PROVISIONS OF
THIS ARTICLE TO CONSIDER AND DISCUSS ISSUES FOR THE PURPOSE OF  REACHING
A CONSENSUS IN THE DEVELOPMENT OF A PROPOSED RULE.
§  252.  DETERMINATION  OF  THE NEED FOR NEGOTIATED RULE MAKING. 1. AN
AGENCY MAY PROPOSE TO ESTABLISH A NEGOTIATED RULE  MAKING  COMMITTEE  TO
NEGOTIATE  AND DEVELOP A PROPOSED RULE, IF THE HEAD OF THE AGENCY DETER-
MINES THAT THE USE OF NEGOTIATED RULE MAKING IS APPROPRIATE AND  IN  THE
PUBLIC  INTEREST.  IN  MAKING  THIS DETERMINATION THE HEAD OF THE AGENCY
SHALL CONSIDER WHETHER:
(B) THERE ARE A LIMITED NUMBER  OF  IDENTIFIABLE  INTERESTS  OR  SMALL
BUSINESSES THAT WILL BE SIGNIFICANTLY AFFECTED BY THE RULE;
(C)  THERE  IS  A  REASONABLE  LIKELIHOOD THAT SUCH A COMMITTEE CAN BE
CONVENED WITH BALANCED REPRESENTATION  OF  PERSONS  WHO  CAN  ADEQUATELY
REPRESENT  THE  INTEREST IDENTIFIED UNDER PARAGRAPH (B) OF THIS SUBDIVI-
SION AND WHO ARE WILLING TO NEGOTIATE IN GOOD FAITH TO REACH A CONSENSUS
ON A PROPOSED RULE;
(D) THERE IS REASONABLE LIKELIHOOD THAT SUCH A COMMITTEE WILL REACH  A
CONSENSUS ON THE PROPOSED RULE WITHIN A FIXED PERIOD OF TIME;
S. 4590                             3
(E)  USE  OF  NEGOTIATED  RULE  MAKING WILL NOT UNREASONABLY DELAY THE
NOTICE OF PROPOSED RULE MAKING AND THE ISSUANCE OF A FINAL RULE;
(F)  THE  AGENCY  HAS ADEQUATE RESOURCES AND IS WILLING TO COMMIT SUCH
RESOURCES AS MAY BE NEEDED, INCLUDING TECHNICAL ASSISTANCE, TO A NEGOTI-
ATED RULE MAKING COMMITTEE;
(G) THE NEGOTIATED RULE MAKING  WILL  NOT  IMPOSE  A  DISADVANTAGE  ON
PERSONS  WHOSE  PARTICIPATION IS ESSENTIAL BUT WHO LACK THE RESOURCES TO
PARTICIPATE, OR, IF PARTICIPATION WOULD IMPOSE SUCH DISADVANTAGE, IT  IS
LIKELY THAT THE AGENCY MAY OBTAIN AND MAKE AVAILABLE SUCH RESOURCES IN A
MANNER  CONSISTENT WITH SECTION TWO HUNDRED FIFTY-SEVEN OF THIS ARTICLE;
(H) THE AGENCY WILL USE THE CONSENSUS OF THE COMMITTEE WITH RESPECT TO
THE PROPOSED RULE AS THE BASIS FOR A RULE PROPOSED  BY  THE  AGENCY  FOR
2.  AN  AGENCY WHICH DETERMINES THAT THE PROPOSAL OF A NEGOTIATED RULE
MAKING PROCEEDING IS  APPROPRIATE  AND  IN  THE  PUBLIC  INTEREST  SHALL
PROPOSE  SUCH  ACTION TO THE COMMITTEE. SUCH PROPOSAL SHALL INDICATE THE
BASIS FOR THE AGENCY'S DETERMINATION, AND SHALL LIST THE INTERESTS WHICH
THE AGENCY BELIEVES TO BE NECESSARY FOR REPRESENTATION IN THE NEGOTIATED
RULE MAKING PROCEEDING AND THE BASIS FOR DETERMINING THAT  THE  PROPOSED
LIST  OF  INTERESTS IS FAIR AND BALANCED. THE AGENCY'S PROPOSAL SHALL BE
MADE AVAILABLE TO THE PUBLIC ON REQUEST.
§ 253. NOTICE  OF  PROPOSED  COMMITTEE  FORMATION.  1.  IF  AN  AGENCY
APPROVES  THE  PROPOSAL TO CONDUCT A NEGOTIATED RULE MAKING  PROCEEDING,
THEN THE AGENCY SHALL PUBLISH IN THE STATE REGISTER AND SUCH  TRADE  AND
OTHER SPECIALIZED PUBLICATIONS, AND BY SUCH ELECTRONIC MEANS AS IT DEEMS
APPROPRIATE A NOTICE WHICH SHALL INCLUDE:
(A)  AN ANNOUNCEMENT THAT THE AGENCY INTENDS TO ESTABLISH A NEGOTIATED
RULE MAKING COMMITTEE TO NEGOTIATE AND DEVELOP A PROPOSED RULE;
(B) A DESCRIPTION OF THE SUBJECT AND SCOPE OF THE RULE  TO  BE  DEVEL-
OPED, AND THE ISSUES TO BE CONSIDERED;
(C)  A  LIST  OF  SMALL BUSINESSES AND OTHER INTERESTS WHICH HAVE BEEN
DETERMINED TO BE LIKELY TO BE SIGNIFICANTLY AFFECTED BY THE RULE;
(D) A LIST OF THE PERSONS PROPOSED TO REPRESENT SUCH INTERESTS AND THE
PERSON OR PERSONS PROPOSED TO REPRESENT THE AGENCY;
(E) A PROPOSED AGENDA AND SCHEDULE FOR  COMPLETING  THE  WORK  OF  THE
COMMITTEE,  INCLUDING  A  TARGET DATE FOR PUBLICATION BY THE AGENCY OF A
PROPOSED RULE FOR NOTICE AND COMMENT;
(F) A DESCRIPTION OF ADMINISTRATIVE SUPPORT  TO  BE  PROVIDED  TO  THE
COMMITTEE BY THE AGENCY;
(G)  A SOLICITATION OF COMMENTS ON THE PROPOSAL TO ESTABLISH A COMMIT-
TEE, AND THE PROPOSED MEMBERSHIP OF THE COMMITTEE; AND
(H) AN EXPLANATION OF HOW A  PERSON  MAY  APPLY  TO  NOMINATE  ANOTHER
PERSON FOR MEMBERSHIP ON THE COMMITTEE, AS PROVIDED IN SUBDIVISION THREE
2.  SPECIAL  EFFORTS  SHALL  BE  MADE BY THE AGENCY TO SOLICIT PARTIC-
IPATION BY SMALL BUSINESSES, RESIDENTS OF RURAL AREAS, INNER-CITY  URBAN
AREAS,  MINORITY  AND  DISADVANTAGED GROUPS, AND OTHER INTERESTS WHO MAY
OTHERWISE NOT BE REPRESENTED OR MAY BE UNDERREPRESENTED IN  THE  NEGOTI-
ATED RULE MAKING PROCEEDING.
3.  PERSONS WHO WOULD BE SIGNIFICANTLY AFFECTED BY A PROPOSED RULE AND
WHO BELIEVE THAT THEIR INTERESTS WOULD NOT BE ADEQUATELY REPRESENTED  BY
ANY  PERSON  PROPOSED BY THE AGENCY TO REPRESENT THEIR INTERESTS, OR WHO
BELIEVE THAT THE PROPOSED REPRESENTATION OF INTERESTS ON  THE  COMMITTEE
WILL  NOT BE FAIR AND BALANCED, MAY APPLY FOR OR NOMINATE ANOTHER PERSON
S. 4590                             4
FOR MEMBERSHIP ON THE  COMMITTEE  TO  REPRESENT  SUCH  INTERESTS  OR  TO
ACHIEVE SUCH BALANCE. EACH APPLICATION OR NOMINATION SHALL INCLUDE:
(A)  THE  NAME  OF  THE  APPLICANT OR NOMINEE AND A DESCRIPTION OF THE
INTERESTS SUCH PERSON SHALL REPRESENT;
(B) INFORMATION THAT THE APPLICANT OR NOMINEE IS QUALIFIED  TO  REPRE-
SENT SUCH INTERESTS;
(C)  A WRITTEN COMMITMENT THAT THE APPLICANT OR NOMINEE SHALL ACTIVELY
PARTICIPATE IN GOOD FAITH IN THE DEVELOPMENT OF THE RULE UNDER CONSIDER-
ATION; AND
(D) THE REASONS FOR BELIEVING THAT ANY PERSON OR PERSONS  PROPOSED  TO
REPRESENT  INTERESTS IN THE NOTICE PUBLISHED PURSUANT TO SUBDIVISION ONE
OF THIS SECTION WOULD NOT ADEQUATELY  REPRESENT  THE  INTERESTS  OF  THE
PERSON SUBMITTING THE APPLICATION OR NOMINATION.
4.  THE  AGENCY SHALL PROVIDE FOR A PERIOD OF AT LEAST THIRTY CALENDAR
DAYS FOR THE SUBMISSION OF COMMENTS AND APPLICATIONS UNDER THIS SECTION.
5. ANY SMALL BUSINESS OR PERSON WHO IS  DISSATISFIED  WITH  AN  AGENCY
(A)  IT IS NOT NECESSARY TO PROVIDE FOR REPRESENTATION OF THE INTEREST
WHICH SUCH BUSINESS OR PERSON PROPOSES TO REPRESENT; OR
(B) AN INDIVIDUAL IS NOT THE BEST QUALIFIED  PERSON  TO  REPRESENT  AN
INTEREST,  MAY  APPEAL  SUCH  DECISION  TO  THE AGENCY. SUCH BUSINESS OR
PERSON SHALL ADVISE THE AGENCY OF SUCH  APPEAL  AND  SHALL  PROVIDE  THE
COMMITTEE  AND  AGENCY WITH A STATEMENT OF THE BASIS FOR SUCH APPEAL. IN
MAKING A DECISION ON REPRESENTATION OF AN  INTEREST,  EVIDENCE  THAT  AN
ORGANIZATION HAS AUTHORIZED A PERSON TO REPRESENT IT SHALL BE SUFFICIENT
TO  DEMONSTRATE THAT SUCH INDIVIDUAL IS BEST QUALIFIED TO REPRESENT THAT
ORGANIZATION.  THE AGENCY SHALL NOTIFY THE PROPOSED COMMITTEE MEMBERS OF
THE APPEAL. THE DECISION BY THE AGENCY SHALL  BE  ISSUED  WITHIN  THIRTY
DAYS AND SHALL BE FINAL.
§  254.  COMMITTEE  ESTABLISHMENT.  1.  AFTER CONSIDERING COMMENTS AND
APPLICATIONS SUBMITTED PURSUANT TO SECTION TWO  HUNDRED  FIFTY-THREE  OF
THIS  ARTICLE,  THE  AGENCY  SHALL  DETERMINE  WHETHER A NEGOTIATED RULE
MAKING COMMITTEE CAN  ADEQUATELY  REPRESENT,  IN  A  FAIR  AND  BALANCED
MANNER,  ALL  INTERESTS  THAT  WILL  BE  SIGNIFICANTLY  AFFECTED  BY THE
PROPOSED RULE, AND WHETHER IT  WOULD  BE  FEASIBLE  AND  APPROPRIATE  TO
ESTABLISH  A COMMITTEE FOR A PARTICULAR RULE MAKING. IN ESTABLISHING AND
ADMINISTERING A COMMITTEE, THE AGENCY SHALL COMPLY WITH  THE  INTENT  OF
2.  THE  AGENCY SHALL PROMPTLY PUBLISH NOTICE OF ITS DETERMINATION AND
THE REASONS THEREFOR IN THE STATE  REGISTER,  IN  SUCH  TRADE  OR  OTHER
SPECIALIZED  PUBLICATIONS,  OR BY ELECTRONIC MEANS AS IT DEEMS APPROPRI-
ATE. IN ADDITION, A COPY OF SUCH NOTICE SHALL BE SENT TO ANY PERSON  WHO
APPLIED  FOR  OR NOMINATED ANOTHER PERSON FOR MEMBERSHIP ON SUCH COMMIT-
3. THE AGENCY SHALL PROVIDE APPROPRIATE ADMINISTRATIVE SUPPORT TO  THE
COMMITTEE, INCLUDING TECHNICAL ASSISTANCE.
§ 255. CONDUCT OF COMMITTEE ACTIVITIES. 1. EACH NEGOTIATED RULE MAKING
COMMITTEE  ESTABLISHED  PURSUANT  TO  THIS  ARTICLE  SHALL  CONSIDER THE
MATTERS PROPOSED FOR CONSIDERATION BY THE AGENCY AND  SHALL  ATTEMPT  TO
REACH CONSENSUS ON A PROPOSED RULE WITH RESPECT TO SUCH MATTERS.
2.  THE PERSON OR PERSONS REPRESENTING THE AGENCY ON A COMMITTEE SHALL
PARTICIPATE IN THE DELIBERATIONS AND ACTIVITIES OF  THE  COMMITTEE  WITH
THE SAME RIGHTS AND RESPONSIBILITIES AS THE OTHER MEMBERS OF THE COMMIT-
TEE,  AND  SHALL  BE  AUTHORIZED  TO  FULLY  REPRESENT THE AGENCY IN THE
DISCUSSIONS AND NEGOTIATIONS OF THE COMMITTEE.
S. 4590                             5
3. THE AGENCY SHALL NOMINATE A PERSON TO SERVE AS  A  FACILITATOR  FOR
THE  NEGOTIATIONS  OF  THE  COMMITTEE,  SUBJECT  TO  THE APPROVAL OF THE
COMMITTEE BY CONSENSUS. IF THE COMMITTEE DOES NOT APPROVE THE NOMINEE OF
THE AGENCY AS FACILITATOR, THE COMMITTEE SHALL  SELECT  BY  CONSENSUS  A
PERSON TO SERVE AS THE FACILITATOR. A PERSON DESIGNATED TO REPRESENT THE
AGENCY IN NEGOTIATION OF SUBSTANTIVE ISSUES SHALL NOT SERVE AS FACILITA-
TOR OR CHAIR OF THE COMMITTEE.
4. A FACILITATOR APPROVED OR SELECTED BY A COMMITTEE SHALL:
(A) CHAIR THE MEETINGS OF THE COMMITTEE IN AN IMPARTIAL MANNER;
(B)  IMPARTIALLY  ASSIST  THE  MEMBERS  OF THE COMMITTEE IN CONDUCTING
DISCUSSIONS AND NEGOTIATIONS;
(C) MANAGE THE KEEPING OF COMMITTEE MINUTES, EXCEPT THAT ANY  PERSONAL
NOTES AND MATERIALS OF THE FACILITATOR OR MEMBERS OF THE COMMITTEE SHALL
NOT BE SUBJECT TO THIS SECTION; AND
(D)  AT  THE CONCLUSION OF THE PROCEEDING, PROVIDE THE AGENCY WITH HIS
OR HER OBSERVATIONS AND COMMENTS ON THE USEFULNESS AND EFFECTIVENESS  OF
THE  NEGOTIATED RULE MAKING PROCEEDING, AND SUCH OTHER COMMENTS AS HE OR
SHE DEEMS PERTINENT.
5. A COMMITTEE ESTABLISHED PURSUANT TO THIS ARTICLE MAY  ADOPT  PROCE-
DURES GOVERNING ITS OPERATION NOT INCONSISTENT WITH THE LAW.
6.  (A)  IF A COMMITTEE REACHES A CONSENSUS ON A PROPOSED RULE, AT THE
CONCLUSION OF NEGOTIATIONS THE COMMITTEE SHALL TRANSMIT  TO  THE  AGENCY
WHICH  ESTABLISHED THE COMMITTEE A REPORT CONTAINING SUCH PROPOSED RULE,
WHICH SHALL BE PROPOSED FOR ADOPTION BY THE AGENCY WITHIN SIXTY DAYS  OF
RECEIPT  OF  THE  REPORT. IF THE COMMITTEE DOES NOT REACH CONSENSUS ON A
PROPOSED RULE, THE COMMITTEE MAY TRANSMIT TO THE AGENCY A REPORT  SPECI-
FYING  ANY AREAS IN WHICH THE COMMITTEE REACHED A CONSENSUS. THE COMMIT-
TEE MAY INCLUDE IN THE REPORT AND OTHER INFORMATION, RECOMMENDATIONS  OR
MATERIALS THAT THE COMMITTEE CONSIDERS APPROPRIATE. ANY COMMITTEE MEMBER
MAY  INCLUDE AS AN ADDENDUM TO THE REPORT ADDITIONAL INFORMATION, RECOM-
MENDATIONS OR MATERIALS.
(B) ANY REPORT TRANSMITTED PURSUANT TO THIS SECTION SHALL BE  PROVIDED
TO THE COMMITTEE AT THE SAME TIME SUCH REPORT IS PROVIDED TO THE AGENCY.
7.  IN  ADDITION  TO  THE  REPORT  REQUIRED BY SUBDIVISION SIX OF THIS
SECTION, A COMMITTEE SHALL SUBMIT TO THE AGENCY THE  RECORDS,  MATERIALS
AND  REPORTS  THAT  WERE USED TO ARRIVE AT ITS RECOMMENDATIONS. ALL SUCH
RECORDS SHALL BE MADE AVAILABLE TO THE PUBLIC FOR INSPECTION  AND  COPY-
8.  ALL  RECORDS AND REPORTS MADE PURSUANT TO THIS SECTION, EXCEPT FOR
ANY PERSONAL NOTES AND MATERIALS OF THE FACILITATOR OR  MEMBERS  OF  THE
COMMITTEE, SHALL BE OPEN AND ACCESSIBLE TO THE PUBLIC FOR INSPECTION AND
§ 256. COMMITTEE TERMINATION. A NEGOTIATED RULE MAKING COMMITTEE SHALL
TERMINATE  UPON  PROMULGATION  OF  THE  FINAL  RULE UNDER CONSIDERATION,
UNLESS THE COMMITTEE'S CHARTER CONTAINS AN EARLIER TERMINATION DATE.
§ 257. SERVICES, FACILITIES  AND  PAYMENT  OF  EXPENSES  OF  COMMITTEE
MEMBERS.  1.  AN  AGENCY  MAY  EMPLOY  OR  ENTER  INTO CONTRACTS FOR THE
SERVICES OF AN INDIVIDUAL OR ORGANIZATION TO SERVE  AS  THE  FACILITATOR
FOR  A  NEGOTIATED  RULE MAKING COMMITTEE UNDER THIS ARTICLE, OR MAY USE
THE SERVICES OF A STATE EMPLOYEE TO ACT AS THE FACILITATOR  FOR  SUCH  A
2.  FOR  THE  PURPOSES OF THIS SECTION, AN AGENCY MAY USE THE SERVICES
AND FACILITIES OF OTHER STATE AGENCIES, AND PUBLIC AND PRIVATE  AGENCIES
AND  INSTRUMENTALITIES, WITH THE CONSENT OF SUCH AGENCIES AND INSTRUMEN-
TALITIES,  AND  MAY  RECEIVE  AND  ACCEPT  VOLUNTARY  AND  UNCOMPENSATED
S. 4590                             6
3.  MEMBERS OF A COMMITTEE SHALL BE RESPONSIBLE FOR THEIR OWN EXPENSES
OF PARTICIPATION ON SUCH COMMITTEE.
§ 258. JUDICIAL REVIEW. ANY ACTION RELATING TO ESTABLISHING, ASSISTING
OR TERMINATING A NEGOTIATED RULE MAKING COMMITTEE PURSUANT TO THIS ARTI-
CLE  SHALL  NOT  BE  SUBJECT TO JUDICIAL REVIEW. NOTHING IN THIS SECTION
SHALL BAR JUDICIAL REVIEW OF A RULE IF SUCH JUDICIAL REVIEW IS OTHERWISE
PROVIDED BY LAW. A RULE WHICH IS THE PRODUCT OF NEGOTIATED  RULE  MAKING
AND  IS  SUBJECT  TO  JUDICIAL  REVIEW SHALL NOT BE ACCORDED ANY GREATER
DEFERENCE BY A COURT THAN A RULE WHICH IS  THE  PRODUCT  OF  OTHER  RULE
§ 4. The provisions of this act shall preempt and supersede any incon-
sistent executive order relating to negotiated rule making.
S4590A (ACTIVE) - Details
S4590A (ACTIVE) - Summary
S4590A (ACTIVE) - Sponsor Memo
BILL NUMBER: S4590A
by adding a formal negotiated rulemaking Article 2-A to the State Admin-
istrative Procedure Act. Negotiated rule making allows small business
owners and representatives of all significant interests who would be
affected by a regulation to meet and develop as broad a consensus as
possible on terms of a rule making proposal.
less likely, and improve the terms of a regulation.
negotiated rule making act of 2018."
Section three establishes a new Article 2-A to the State Administrative
Procedure Act (SAPA) which will encourage state agencies to use a proc-
ess for selecting rule proposals as candidates for negotiated rulemak-
ing, and for the identification and nomination of representatives of
interests necessary to negotiated rule making proceedings.
framework for the opportunity to select appropriate subjects for negoti-
ated rule making and the conduct of negotiated rule making.
1990 (P.L. 101-648)) as unanimous concurrence of all represented inter-
ests, unless they all agree to another definition.
Section 252 sets forth the process and standards for agency determi-
nations of the need for negotiated rule making for a specific rule. To
be a candidate for negotiated rule making, a rule must significantly
affect a limited number of small business and identifiable interests,
and it must be possible to put together a balanced committee of repre-
sentatives of these interests, who are willing to negotiate in good
faith to reach a consensus on a proposed rule.
persons who believe their interests will not be adequately represented,
or the committee as proposed is not fair and balanced, may nominate
alternate or additional persons to serve on the committee. Special
efforts must be made to include small businesses, residents of rural
areas, inner-city urban areas, minority and disadvantaged groups and
other interests who may otherwise be underrepresented in the negotiated
rule making process. Decisions of the agency regarding committee member-
ship may be appealed to the agency, which shall decide appeals within 30
committee to reach consensus on aspects of the proposed rule.
The committee shall issue a report indicating those matters on which it
Section 256 provides that the committee shall terminate upon promulga-
tion of the final rule under consideration, unless an earlier date is
contained in the committee's charter, or unless the agency decides
Section 257 provides for support services for the committee's function-
process. In many instances, public comments are not adequately taken in
to account and acted on by the agency, resulting in no consideration of
small businesses or the public's concerns.  Negotiated rule making, if
planned and conducted properly and in a spirit of openness and fairness,
can counteract systemic tendencies toward confrontation and onerous rule
S4590A (ACTIVE) - Bill Text download pdf
4590--A
Introduced  by  Sens.  JACOBS, MURPHY -- read twice and ordered printed,
the "small business negotiated rule making act of 2018".
LBD02219-02-8
S. 4590--A                          2
S. 4590--A                          3
(F) THE AGENCY HAS ADEQUATE RESOURCES AND IS WILLING  TO  COMMIT  SUCH
(G)  THE  NEGOTIATED  RULE  MAKING  WILL  NOT IMPOSE A DISADVANTAGE ON
PERSONS WHOSE PARTICIPATION IS ESSENTIAL BUT WHO LACK THE  RESOURCES  TO
PARTICIPATE,  OR, IF PARTICIPATION WOULD IMPOSE SUCH DISADVANTAGE, IT IS
MANNER CONSISTENT WITH SECTION TWO HUNDRED FIFTY-SEVEN OF THIS  ARTICLE;
THE  PROPOSED  RULE  AS  THE BASIS FOR A RULE PROPOSED BY THE AGENCY FOR
2. AN AGENCY WHICH DETERMINES THAT THE PROPOSAL OF A  NEGOTIATED  RULE
MAKING  PROCEEDING  IS  APPROPRIATE  AND  IN  THE  PUBLIC INTEREST SHALL
PROPOSE SUCH ACTION TO THE COMMITTEE. SUCH PROPOSAL SHALL  INDICATE  THE
RULE  MAKING  PROCEEDING AND THE BASIS FOR DETERMINING THAT THE PROPOSED
LIST OF INTERESTS IS FAIR AND BALANCED. THE AGENCY'S PROPOSAL  SHALL  BE
§  253.  NOTICE  OF  PROPOSED  COMMITTEE  FORMATION.  1.  IF AN AGENCY
APPROVES THE PROPOSAL TO CONDUCT A NEGOTIATED RULE MAKING    PROCEEDING,
THEN  THE  AGENCY SHALL PUBLISH IN THE STATE REGISTER AND SUCH TRADE AND
(A) AN ANNOUNCEMENT THAT THE AGENCY INTENDS TO ESTABLISH A  NEGOTIATED
(B)  A  DESCRIPTION  OF THE SUBJECT AND SCOPE OF THE RULE TO BE DEVEL-
(C) A LIST OF SMALL BUSINESSES AND OTHER  INTERESTS  WHICH  HAVE  BEEN
(E)  A  PROPOSED  AGENDA  AND  SCHEDULE FOR COMPLETING THE WORK OF THE
COMMITTEE, INCLUDING A TARGET DATE FOR PUBLICATION BY THE  AGENCY  OF  A
(F)  A  DESCRIPTION  OF  ADMINISTRATIVE  SUPPORT TO BE PROVIDED TO THE
(G) A SOLICITATION OF COMMENTS ON THE PROPOSAL TO ESTABLISH A  COMMIT-
(H)  AN  EXPLANATION  OF  HOW  A  PERSON MAY APPLY TO NOMINATE ANOTHER
2. SPECIAL EFFORTS SHALL BE MADE BY  THE  AGENCY  TO  SOLICIT  PARTIC-
IPATION  BY SMALL BUSINESSES, RESIDENTS OF RURAL AREAS, INNER-CITY URBAN
AREAS, MINORITY AND DISADVANTAGED GROUPS, AND OTHER  INTERESTS  WHO  MAY
OTHERWISE  NOT  BE REPRESENTED OR MAY BE UNDERREPRESENTED IN THE NEGOTI-
3. PERSONS WHO WOULD BE SIGNIFICANTLY AFFECTED BY A PROPOSED RULE  AND
WHO  BELIEVE THAT THEIR INTERESTS WOULD NOT BE ADEQUATELY REPRESENTED BY
ANY PERSON PROPOSED BY THE AGENCY TO REPRESENT THEIR INTERESTS,  OR  WHO
BELIEVE  THAT  THE PROPOSED REPRESENTATION OF INTERESTS ON THE COMMITTEE
S. 4590--A                          4
WILL NOT BE FAIR AND BALANCED, MAY APPLY FOR OR NOMINATE ANOTHER  PERSON
FOR  MEMBERSHIP  ON  THE  COMMITTEE  TO  REPRESENT  SUCH INTERESTS OR TO
S. 4590--A                          5
S. 4590--A                          6