S3172

An Act concerning the Legislative and public review of certain Executive Branch actions, amending various parts of the statutory law, and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. There is created, in the Office of Administrative Law in the Department of the Treasury, a Commission on Efficiency and Regulatory Review, the purpose and goals of which shall be to engage in the regular review of certain Executive Orders and Executive Branch agency rules and regulations, in order to assess the economic impacts of those orders, rules, and regulations and promote and ensure efficiency in the implementation and enforcement thereof.

b. The commission shall consist of one member of the public and 12 ex officio members.

(1) The member of the public shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve as chairperson of the commission.

(2) The 12 ex officio members shall be as follows:

(a) the Director of the Office of Administrative Law, or a designee;

(b) the Executive Director of the New Jersey Business Action Center in the Department of State, or a designee;

(d) the State Treasurer, or a designee;

(e) the Executive Director of the New Jersey Economic Development Authority, or a designee;

(f) the Chief Counsel to the Governor, or a designee;

(g) the Commissioner of Environmental Protection, or a designee;

(h) the Commissioner of Labor and Workforce Development, or a designee;

(i) the President of the Senate, or a designee;

(j) the Speaker of the General Assembly, or a designee;

(k) the Senate Minority Leader, or a designee; and

(l) the General Assembly Minority Leader, or a designee.

c. The chairperson, acting in his or her discretion, may appoint additional members to serve on the commission, as necessary to ensure that the commission membership has the requisite expertise and representation for, and on behalf of, businesses, workers, and local governments. Any additional members appointed by the chairperson pursuant to this subsection shall serve at the pleasure of, and for the term established by, the chairperson.

d. Members of the commission shall serve without compensation, but shall be reimbursed for travel and other reasonable expenses incurred in association with their service on the commission, within the limits of funds appropriated to the commission for its purposes.

e. The commission shall organize as soon as practicable, but not more than 30 days, after the effective date of this act, and shall meet at least once every six months thereafter, upon the call of the chairperson, and at such other times as may be designated by the chairperson. A majority of members of the commission shall constitute a quorum for the transaction of commission business.

f. Each year, in addition to the meetings required pursuant to subsection e. of this section, the commission shall hold at least two public hearings in different regions of the State, at such times and places as the chairperson shall determine, and appropriate business leaders, workers' groups, local government officials, taxpayers, and other interested parties shall be invited to testify, at each public hearing, on relevant issues surrounding the rules, regulations, and executive orders that are the subject of the hearing.

2. (New section) a. The commission shall:

(1) review all rules and regulations proposed or adopted by an Executive Branch agency, and all operative Executive Orders issued by the Governor, in order to: assess their potential or actual effects on the State's economy; determine whether their costs and other burdens on businesses, workers, and local governments outweigh their intended benefits; and establish a basis for providing recommendations to the Governor for the amendment, rescission, or repeal of any rules, regulations, or Executive Orders that are determined to be unduly burdensome to the State's businesses, workers, and local governments;

(2) call upon any department, office, division, or agency of this State to supply the commission with data and other information, personnel, or assistance, as the commission may deem necessary for the discharge of its duties;

(3) solicit both written and oral comments from the public, including from professional, labor, community, and environmental organizations, businesses, workers, and from other affected persons or entities as the commission deems appropriate, and consider the views expressed by those parties in any report;

(4) formulate recommendations about which regulatory programs could be delegated to licensed professionals or local governments, in order to increase the efficiency of State government; and

(5) annually prepare and submit a written report to the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), in which the commission shall provide a description of the commission's activities, as well as recommendations for the repeal, rescission, or amendment of any rules and regulations or Executive Orders that are determined to be unduly burdensome to the State's businesses, workers, and local governments, and recommendations about which regulatory programs could be delegated to licensed professionals, or to local governments, in order to increase the efficiency of State government.

b. Each department, office, division, or agency of the State shall cooperate with the commission and furnish it with such information, personnel, and assistance, as may be necessary for the effectuation of the commission's duties.

c. A report provided by the commission pursuant to this section, including any recommendations promoting the repeal, rescission, or amendment of any rules, regulations, or Executive Orders identified therein, shall:

(1) be advisory in nature;

(2) not be deemed to confer any legal rights upon, or to alter the statutory or regulatory duties or requirements applicable to, any persons or entities who are subject to, or are otherwise affected by those rules, regulations, or orders; and

(3) not be used as a basis upon which to support any legal claims challenging the actions or inactions of any department, office, division, agency, or employee of the State.

3. Section 5 of P.L.1991, c.423 (C.13:1D-109) is amended to read as follows:

5. a. Not later than February 1 of each year [for three consecutive years, beginning on February 1 next following the first full year of implementation of the review schedules adopted pursuant to section 2 of this act], the department shall submit to the Speaker of the General Assembly and the Assembly [Energy and] Environment, Natural Resources and Solid Waste Committee, and to the President of the Senate and the Senate [Environmental Quality] Environment and Energy Committee, or the successor to the Assembly or Senate committee, a report on the disposition of all applications filed in the preceding year for which review schedules have been established pursuant to section 2 of [this act] P.L.1991, c.423 (C.13:1D-106). The report shall contain the following information for each class or category of permit, certificate, registration, license, or other approval for which application was made, and the review schedule therefor:

(1) the number of applications filed with the department;

(2) the number of completed applications reviewed by the department, and the average number of days required from the date of filing of an application to determine the application's completeness;

(3) the number of completed applications on which the department took final action within the time-frame allotted in the review schedule;

(4) the number of completed applications on which the department failed to take final action within the time-frame established therefor, and the average number of days in excess of that time-frame required for the taking of final action thereon;

(5) the number of completed applications on which the department failed to take final action within the time-frames of the review schedules, where the cause of delay was the result of an applicant's failure to provide in a timely manner additional information required by the department, a failure of a governmental agency, other than the department, to comment or take final action on the application within the time allotted therefor, or for such other reasons (identify) as are beyond the control of the department.

b. The report shall also contain an assessment of the review schedules or procedures, including:

(1) identification of any special problems, including administrative bottlenecks or manpower or other resources, hampering the achievement of review schedule guidelines;

(2) evaluation of the adequacy of existing review schedules in promoting an efficient, effective and equitable processing of applications;

(3) identification of any changes made in review schedules during the preceding year and the reasons therefor, and of any significant management initiatives taken by the department to improve the review process; and

(4) such recommendations for simplifying, expediting or otherwise improving the review process as the department determines will best promote more efficient, effective and equitable review processes.

(cf: P.L.1991, c.423, s.5)

4. Section 3 of P.L.1968, c.410 (C.52:14B-3) is amended to read as follows:

3. In addition to other rule-making requirements imposed by law, each agency shall:

(1) adopt as a rule a description of its organization, stating the general course and method of its operations and the methods whereby the public may obtain information or make submissions or requests;

(2) adopt rules of practice setting forth the nature and requirements of all formal and informal procedures available, including a description of all forms and instructions used by the agency, and if not otherwise set forth in an agency's rules, a table of all permits and their fees, violations and penalties, deadlines, processing times and appeals procedures. A complete list of the agency's permits, fees, violations, penalties, deadlines, processing times, and appeals procedures shall also be made available for public viewing through publication on the agency's Internet website;

(3) make available for public viewing, through publication on the agency's Internet website, and through any other means, all final agency orders, decisions, and opinions, in accordance with the provisions of chapter 73 of the laws of 1963 as amended and supplemented (C.47:1A-1 et seq.);

(4) make available for public viewing, through publication on the agency's Internet website, all of the agency's rule-making and public hearing notices, publicity documents, press releases, final and non-confidential agency reports, and rule-making petitions received by the agency pursuant to subsection (f) of section 4 of P.L.1968, c.410 (C.52:14B-4); and

(5) publish in the New Jersey Register a quarterly calendar setting forth a schedule of the agency's anticipated rule-making activities for the next six months. The calendar shall include the name of the agency and agency head, a citation to the legal authority authorizing the rule-making action and a synopsis of the subject matter and the objective or purpose of the agency's proposed rules.

In a manner prescribed by the Director of the Office of Administrative Law, each agency shall appropriately publicize that copies of its calendar are available to interested persons for a reasonable fee. The amount of the fee shall be set by the director.

An agency shall notify the Director of the Office of Administrative Law when it wishes to amend its calendar of rule-making activities. Any amendment which involves the addition of any rule-making activity to an agency's calendar shall provide that the agency shall take no action on that matter until at least 45 days following the first publication of the amended calendar in which the announcement of that proposed rule-making activity first appears.

The provisions of this paragraph shall not apply to rule-making:

(a) required or authorized by federal law when failure to adopt rules in a timely manner will prejudice the State;

(b) subject to a specific statutory authorization requiring promulgation in a lesser time period;

(d) [for which the agency has published a notice of pre-proposal of a rule in accordance with rules adopted by the Director of the Office of Administrative Law] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill); or

(e) for which a comment period of at least 60 days, commencing on the date of the formal notice of action required pursuant to subsection a. of section 4 of P.L.1968, c.410 (C.52:14B-4), is provided.

A proposed rule falling within any of the exceptions to the provisions of this subsection shall so indicate in the notice of proposal.

(cf: P.L.2013, c.259, s.3)

5. Section 4 of P.L.1968, c.410 (C.52:14B-4) is amended to read as follows:

4. (a) Prior to the adoption, amendment, or repeal of any rule, except as may be otherwise provided, the agency shall:

(1) Give at least 30 days' notice of its intended action. The notice shall include a statement of either the terms or substance of the intended action or a description of the subjects and issues involved, and the time when, the place where, and the manner in which interested persons may present their views thereon. The notice shall be mailed to all persons who have made timely requests of the agency for advance notice of its rule-making proceedings and, in addition to any other public notice required by law, shall be published in the New Jersey Register. Notice shall also be distributed to the news media maintaining a press office to cover the State House Complex, and made available for public viewing through publication on the agency's Internet website. Each agency shall additionally publicize the intended action and shall adopt rules to prescribe the manner in which it will do so. In order to inform those persons most likely to be affected by or interested in the intended action, each agency shall distribute notice of its intended action to interested persons, and shall publicize the same, through the use of an electronic mailing list or similar type of subscription-based e-mail service. Additional publicity methods that may be employed include publication of the notice in newspapers of general circulation or in trade, industry, governmental or professional publications, distribution of press releases to the news media and posting of notices in appropriate locations, including the agency's Internet website. The rules shall prescribe the circumstances under which each additional method shall be employed;

(2) Prepare for public distribution at the time the notice appears in the Register, and make available for public viewing through publication on the agency's Internet website, a statement setting forth a summary of the proposed rule, as well as a clear and concise explanation of the purpose and effect of the rule, the specific legal authority under which its adoption is authorized, a description of the expected socio-economic impact of the rule, including an assessment of the proposed rule's potential or actual effects on the State's economy, a regulatory flexibility analysis [,] or the statement of finding that a regulatory flexibility analysis is not required, as provided in section 4 of P.L.1986, c.169 (C.52:14B-19), a jobs impact statement which shall include an assessment of the number of jobs to be generated or lost if the proposed rule takes effect, an agriculture industry impact statement, as provided in section 7 of P.L.1998, c.48 (C.4:1C-10.3), a housing affordability impact statement, a smart growth development impact statement, as provided in section 31 of P.L.2008, c.46 (C.52:14B-4.1b), [and] a racial and ethnic community criminal justice and public safety impact statement as required in section 3 of P.L.2017, c.286 (C.2C:48B-2), and a cost-benefit analysis evaluating whether, and the extent to which, the costs imposed on residents, businesses, workers, and local governments, as a result of the implementation of the proposed rule are likely to exceed the benefits thereof. The agency proposing the rule shall utilize the best available science, data, and studies when preparing the statements required pursuant to this paragraph, and the Office of Administrative Law shall review and certify the adequacy of each such statement, prior to, and as a precondition of, its distribution and posting on the Internet, as provided by this paragraph. The scientific reports, data, and studies used by the agency to support the rule shall be made available to the public upon the publication of the rule proposal;

(3) Afford all interested persons a reasonable opportunity to submit data, views, comments, or arguments, orally or in writing. The agency shall consider fully all written and oral submissions respecting the proposed rule, including any written submissions that are received by the agency through its e-mail systems or electronic mailing lists. If, within 30 days of the publication of the proposed rule, sufficient public interest is demonstrated in an extension of the time for submissions, the agency shall provide an additional 30-day period for the receipt of submissions by interested parties. The agency shall not adopt the proposed rule until after the end of that 30-day extension.

The agency shall conduct a public hearing on the proposed rule at the request of a committee of the Legislature, or a governmental agency or subdivision, or if sufficient public interest is shown, provided such request is made to the agency within 30 days following publication of the proposed rule in the Register. The agency shall provide at least 15 days' notice of such hearing, shall publish such hearing notice on its Internet website, and shall conduct the hearing in accordance with the provisions of subsection (g) of this section.

The head of each agency shall adopt as part of its rules of practice adopted pursuant to section 3 of P.L.1968, c.410 (C.52:14B-3) definite standards of what constitutes sufficient public interest for conducting a public hearing and for granting an extension pursuant to this paragraph; and

(4) Prepare for public distribution, and make available for public viewing through publication on the agency's Internet website, a report listing all parties offering written or oral submissions concerning the rule, summarizing the content of the submissions, and providing the agency's response to the data, views, comments, and arguments contained in the submissions.

(b) A rule prescribing the organization of an agency may be adopted at any time without prior notice or hearing. Such rules shall be effective upon filing in accordance with section 5 of P.L.1968, c.410 (C.52:14B-5) or upon any later date specified by the agency.

(c) If an agency finds that an imminent peril to the public health, safety, or welfare requires adoption of a rule upon fewer than 30 days' notice and states in writing its reasons for that finding, and the Governor concurs in writing that an imminent peril exists, the agency may proceed to adopt the rule without prior notice or hearing, or upon any abbreviated notice and hearing that it finds practicable. The agency shall publish, on its Internet website, a summary of any rule adopted pursuant to this subsection, and the statement of reasons for the agency's finding that an imminent peril exists. Any rule adopted pursuant to this subsection shall be effective for a period of not more than 60 days, unless each house of the Legislature passes a resolution concurring in its extension for a period of not more than 60 additional days. The rule shall not be effective for more than 120 days unless repromulgated in accordance with normal rule-making procedures.

(d) No rule hereafter adopted is valid unless adopted in substantial compliance with P.L.1968, c.410 (C.52:14B-1 et seq.). A proceeding to contest any rule on the ground of noncompliance with the procedural requirements of P.L.1968, c.410 (C.52:14B-1 et seq.) shall be commenced within one year from the effective date of the rule.

(e) An agency [may] shall file a notice of intent with respect to a proposed rule-making proceeding with the Office of Administrative Law, for publication in the New Jersey Register at [any time] least 90 days prior to the formal notice of action required in subsection (a) of this section. The notice shall be for the purpose of eliciting the views of interested parties on an action prior to the filing of a formal rule proposal. Such notice shall be distributed to interested persons through the use of an electronic mailing list or similar type of subscription-based e-mail service, and made available for public viewing through publication on the agency's Internet website. The agency shall afford all interested persons a reasonable opportunity to submit data, views, comments, or arguments, orally or in writing, on the proposed action, and shall fully consider all written and oral submissions, including any written submissions received by the agency through its e-mail systems or electronic mailing lists. An agency may use informal conferences and consultations as means of obtaining the viewpoints and advice of interested persons with respect to contemplated rule-making. An agency may also appoint committees of experts or interested persons or representatives of the general public to advise it with respect to any contemplated rule-making.

(f) An interested person may petition an agency to adopt a new rule, or amend or repeal any existing rule. Such petition may be submitted to the agency through mail, e-mail, electronic mailing list, or through any other means. Each agency shall prescribe by rule the form for the petition and the procedure for the consideration and disposition of the petition. The petition shall state clearly and concisely:

(1) The substance or nature of the rule-making which is requested;

(2) The reasons for the request and the petitioner's interest in the request; and

(3) References to the authority of the agency to take the requested action.

The petitioner may provide the text of the proposed new rule, amended rule, or repealed rule.

Within 60 days following receipt by an agency of any such petition, the agency shall either: (i) deny the petition, giving a written statement of its reasons; (ii) grant the petition and initiate a rule-making proceeding within 90 days of granting the petition; or (iii) refer the matter for further deliberations, which shall be concluded within 90 days of referring the matter for further deliberations. Upon conclusion of such further deliberations, the agency shall either deny the petition and provide a written statement of its reasons or grant the petition and initiate a rule-making proceeding within 90 days. Upon the receipt of the petition, the agency shall file a notice stating the name of the petitioner and the nature of the request with the Office of Administrative Law for publication in the New Jersey Register. Notice of formal agency action on such petition shall also be filed with the Office of Administrative Law for publication in the Register, and shall be made available for public viewing through publication on the agency's Internet website.

If an agency fails to act in accordance with the time frame set forth in the preceding paragraph, upon written request by the petitioner, the Director of the Office of Administrative Law shall order a public hearing on the rule-making petition and shall provide the agency with a notice of the director's intent to hold the public hearing if the agency does not. If the agency does not provide notice of a hearing within 15 days of the director's notice, the director shall schedule, and provide the public with a notice of, that hearing at least 15 days prior thereto. Hearing notice shall also be made available for public viewing through publication on the agency's Internet website. If the public hearing is held by the Office of Administrative Law, it shall be conducted by an administrative law judge, a person on assignment from another agency, a person from the Office of Administrative Law assigned pursuant to subsection o. of section 5 of P.L.1978, c.67 (C.52:14F-5), or an independent contractor assigned by the director. The petitioner and the agency shall participate in the public hearing and shall present a summary of their positions on the petition, a summary of the factual information on which their positions on the petition are based and shall respond to questions posed by any interested party. The hearing procedure shall otherwise be consistent with the requirements for the conduct of a public hearing as prescribed in subsection (g) of section 4 of P.L.1968, c.410 (C.52:14B-4), except that the person assigned to conduct the hearing shall make a report summarizing the factual record presented and the arguments for and against proceeding with a rule proposal based upon the petition. This report shall be filed with the agency and delivered or mailed to the petitioner. A copy of the report shall be filed with the Legislature along with the petition for rule-making.

(g) All public hearings shall be conducted by a hearing officer, who may be an official of the agency, a member of its staff, a person on assignment from another agency, a person from the Office of Administrative Law assigned pursuant to subsection o. of section 5 of P.L.1978, c.67 (C.52:14F-5) or an independent contractor. The hearing officer shall have the responsibility to make recommendations to the agency regarding the adoption, amendment or repeal of a rule. These recommendations shall be made public. At the beginning of each hearing, or series of hearings, the agency, if it has made a proposal, shall present a summary of the factual information on which its proposal is based, and shall respond to questions posed by any interested party. Hearings shall be conducted at such times and in locations which shall afford interested parties the opportunity to attend. A verbatim record of each hearing shall be maintained, and copies of the record shall be available to the public at no more than the actual cost, which shall be that of the agency where the petition for rule-making originated.

(cf: P.L.2017, c.286, s.4)

6. Section 1 of P.L.2011, c.33 (C.52:14B-4.10) is amended to read as follows:

1. a. Notwithstanding any other provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), or any rule adopted pursuant thereto, to the contrary, where, following a notice of proposal and upon conclusion of the public comment period, an agency determines that it would be appropriate to make substantial changes to the proposed rule upon adoption, the agency may make those changes upon adoption if the changes are a logical outgrowth of the proposed rule [the] . Alternatively, the agency may [follow] adopt substantive changes by following the procedure set forth in this section, instead of filing a new notice of proposal.

As used in this section, "substantial changes" means any changes to a proposed rule that would significantly: enlarge or curtail who and what will be affected by the proposed rule; change what is being prescribed, proscribed, or otherwise mandated by the rule; or enlarge or curtail the scope of the proposed rule and its burden on those affected by it.

b. Upon making a determination that it would be appropriate to make substantial changes to a proposed rule upon adoption, an agency may submit a public notice to the Office of Administrative Law setting forth the proposed changes. The public notice shall include: (1) a description of the changes between the rule as originally proposed and the new proposed changes; (2) the specific reasons for proposing the additional changes; (3) a discussion of how the new proposed changes would alter the impact statements and analyses included in the notice of proposal; (4) a report listing all parties submitting comments on the originally proposed rule provisions subject to the proposed additional changes, summarizing the content of the submissions on those provisions, and providing the agency's response to the data, views, and arguments contained in the submissions; and (5) the manner in which interested persons may present their views on the new proposed changes.

c. (1) Upon receipt of a public notice pursuant to subsection b. of this section, the Office of Administrative Law shall publish the notice in the New Jersey Register.

(2) The agency submitting the public notice containing substantial changes to a notice of proposal shall comply with the notice requirements set forth in paragraphs (1) and (3) of subsection (a) of section 4 of P.L.1968, c.410 (C.52:14B-4), and provide a comment period of 60 days from the date the public notice is published in the New Jersey Register in which interested parties may present their views on the new proposed changes.

d. Upon the conclusion of the 60 day public comment period, the agency may proceed with a notice of adoption in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). As part of the notice of adoption, the agency shall prepare for public distribution a report listing all parties submitting comments concerning the provisions of the proposed rule changes contained in the public notice, summarizing the content of the submissions that are related to the proposed rule changes contained in the public notice, and providing the agency's response to the data, views, and arguments contained in the relevant submissions.

e. A notice of proposal that includes a public notice pursuant to this section shall expire 18 months after the date of publication of the notice of proposal in the New Jersey Register.

(cf: P.L.2011, c.33, s.1)

7. Section 10 of P.L.2001, c.5 (C.52:14B-5.1) is amended to read as follows:

10. a. (Deleted by amendment, P.L.2011, c.45)

b. Every rule adopted on or after the effective date of P.L.2001, c.5 (C.52:14B-4.1a et al.) shall expire seven years following the effective date of the rule unless a sooner expiration date has been established for the rule. The expiration date shall be included in the adoption notice of the rule in the New Jersey Register and noted in the New Jersey Administrative Code.

c. (1) Notwithstanding any other provision of P.L.1968, c.410 (C.52:14B-1 et seq.), or rule adopted pursuant thereto, to the contrary, in the case of a proposed readoption without changes to the existing rule, or a proposed readoption with technical changes as approved by the Office of Administrative Law, an agency may continue in effect an expiring rule for a seven-year period [by filing] , unless the agency receives a public comment that is adverse to the rule. The agency shall file a public notice with the Office of Administrative Law for publication in the New Jersey Register at least 30 days prior to the expiration date of the rule, and provide an opportunity for public comment on the proposed rule extension. The notice filed pursuant to this paragraph shall include the citation for the rule, a general description of the rule, the specific legal authority under which the rule is authorized, and the new expiration date of the rule. [The notice] If the agency receives no public comment that is adverse to the rule, the rule continuation pursuant to this paragraph shall be effective [upon filing] 30 days after the notice is filed with the Office of Administrative Law. If the agency receives public comment that is adverse to the rule, any continuation of the rule shall be treated as a new rule proposal for the purposes of conforming with the provisions of P.L.1968, c.410 (C.52:14B-1 et seq.).

Upon the receipt of a public notice pursuant to this paragraph, the Office of Administrative Law shall publish the notice in the New Jersey Register. The new expiration date of the rule shall be noted in the New Jersey Administrative Code.

As used in this paragraph, "technical changes" means changes to: correct spelling, grammar and punctuation; correct codification; update contact information; or correct cross-references.

(2) In the case of a proposed readoption of an expiring rule with substantive changes, an agency may continue the expiring rule for a seven-year period by duly proposing the readoption with substantive changes and readopting the rule prior to its expiration. The proposed readoption shall be treated as a new rule proposal for the purposes of conforming with the provisions of P.L.1968, c.410 (C.52:14B-1 et seq.). Upon the filing of a notice of proposed readoption with substantive changes, the expiration date of the rule shall be extended for 180 days, if such notice is filed prior to the expiration of the rule.

As used in this paragraph, "substantive changes" means any changes that are not technical changes as defined in paragraph (1) of this subsection.

d. (1) The Governor may, upon the request of an agency head, and prior to the expiration date of the rule, continue in effect an expiring rule for a period to be specified by the Governor.

(2) The Governor may, upon the request of an agency head within five days after the expiration of a rule, restore the effectiveness of an expired rule as of its expiration date, for a period to be specified by the Governor, in order to effect the readoption of the rule in accordance with subsection c. of this section.

e. This section shall not apply to any rule repealing a rule or any rule prescribed by federal law or whose expiration would violate any other federal or State law, in which case the federal or State law shall be cited in the publication of the rule.

(cf: P.L.2011, c.45, s.1)

8. Sections 1 through 3 of this act shall take effect immediately and sections 4 through 7 of this act shall take effect one year after the date of enactment.

STATEMENT

This bill would make various changes to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which establishes the procedures by which State agencies adopt rules and regulations. The bill would also establish a "Commission on Efficiency and Regulatory Review" to review rules and regulations and Executive Orders issued, respectively, by a State agency or by the Governor. In addition, the bill would require the Department of Environmental Protection (DEP) to convey certain information regarding permit issuances to the Legislature.

The bill would establish the Commission on Efficiency and Regulatory Review in the Office of Administrative Law in the Department of the Treasury. The commission would be chaired by a member of the public appointed by the Governor with the advice and consent of the Senate, and would be composed of various members of the Executive Branch and the Legislature, or their designees. Section 2 of the bill would establish the duties of the commission, including to review all proposed and adopted rules and regulations and operative Executive Orders issued by the Governor to: assess their potential or actual effects on the State's economy; determine whether their costs and other burdens on businesses, workers, and local governments outweigh their intended benefits; and establish a basis for providing recommendations to the Governor for the amendment, rescission, or repeal of any rules, regulations, or Executive Orders that unduly burden the State's businesses, workers, and local governments.

The bill would also amend P.L.1991, c.423 (C.13:1D-105), which established a three-year requirement for the DEP to provide an annual report to the Legislature on DEP permit applications and issuances, in order to make this requirement permanent.

Finally, the bill would amend the "Administrative Procedure Act" to:

(1) require the socio-economic impact statement that accompanies proposed rules to include an assessment of the proposed rule's effects on the State's economy;

(2) require proposed rules to be accompanied by a cost-benefit analysis;

(3) require State agencies to use the best available scientific reports, data, and studies when formulating the various rulemaking impact statements that are required under law and to make those reports, data, and studies available to the public upon the publication of the rule proposal;

(4) require the Office of Administrative Law to review and certify the adequacy of rulemaking impact statements;

(5) require State agencies to file a statement of intent for each rule proposal at least 90 days prior to the formal notice of action for the rule proposal, and to accept public comment on the rule proposal;

(6) require that, in order to make substantive changes to a rule proposal upon adoption, the potential changes must be a logical outgrowth of the proposed rule; otherwise, the agency may alternatively adopt substantial changes by following the procedure set forth in law instead of filing a new proposal;

(7) allow State agencies to extend existing rules with no changes or technical changes using an expedited process only if the rule extension proposal receives no adverse comments from the public. If the proposal receives adverse public comment, the agency would be required to readopt the rules using the ordinary process under the "Administrative Procedure Act"; and

(8) clarify that rule extensions with substantive changes are required to be effectuated using the ordinary process under the "Administrative Procedure Act," not an expedited process.