CHAPTER 11 HOUSE BILL No. 2036 An Act concerning rules and regulations; relating to the rules and regulations filing act;
amending K.S.A. 77-416 and K.S.A. 2000 Supp. 77-420a and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 77-416 is hereby amended to read as follows: 77-
416. (a) Every state agency shall file with the secretary of state every rule
and regulation adopted by it and every amendment and revocation
thereof. Every rule and regulation, other than a temporary rule and reg-
ulation, filed in the office of the secretary of state shall be filed in tripli-
cate, and nine copies of every temporary rule and regulation shall be filed
in the office of the secretary of state, and each section shall include a
citation to the statutory section or sections being implemented or inter-
preted and a citation of the authority pursuant to which it, or any part
thereof, was adopted. Every rule and regulation filed in the office of the
secretary of state shall be accompanied by a copy of the economic impact
statement required by subsection (b), a copy of the environmental benefit
statement if required by subsection (d) and any document which is
adopted by reference by the rule and regulation, except that for the pur-
pose of avoiding unwarranted expense the board may authorize and direct
the secretary of state to file any rule and regulation without the document
which is adopted by such rule and regulation whenever the board deter-
mines that: (1) The document is a technical manual of limited public
interest; (2) the cost of providing file copies of such document is excessive
in view of its limited public interest; and (3) the document will be available
for public inspection during normal business hours in the office of the
agency adopting the rule and regulation. A copy of any document adopted
by reference in a rule and regulation shall be available from the state
agency which adopted the rule and regulation upon request by any person
interested therein. The state agency, under the direction of the secretary
of state, shall number each section with a distinguishing number and, in
making a compilation of the rules and regulations, the sections shall be
arranged in numerical order. A decimal system of numbering shall be
prohibited.

      (b) At the time of drafting a proposed rule and regulation or amend-
ment to an existing rule and regulation, the state agency shall prepare a
statement of the economic impact of such proposed rule and regulation
or amendment upon all governmental agencies or units and all persons
which will be subject thereto and upon the general public. The economic
impact statement shall include: (1) A brief description of the proposed
rules and regulations and what is intended to be accomplished by their
adoption; (2) whether the proposed rule and regulation is mandated by
federal law as a requirement for participating in or implementing a fed-
erally subsidized or assisted program and whether the proposed rules and
regulations exceed the requirements of applicable federal law; (3) a de-
scription of the cost, the persons who will bear the costs and those who
will be affected by the proposed rules and regulations, including the
agency proposing the rules and regulations, other governmental agencies
or units, private citizens and consumers of the products or services which
are the subject of the rules and regulations or the enforcement thereof;
and (4) a description of any less costly or less intrusive methods that were
considered by the state agency for achieving the stated purpose of the
rules and regulations and why such methods were rejected in favor of the
proposed rules and regulations. The state agency may consult with other
state agencies when preparing the economic impact statement. The state
agency shall consult with the League of Kansas municipalities, Kansas
association of counties and the Kansas association of school boards, as
appropriate, when preparing the economic impact statement of a pro-
posed rule and regulation which increases or decreases revenues of cities,
counties or school districts or imposes functions or responsibilities on
cities, counties or school districts which will increase their expenditures
or fiscal liability. The state agency shall reevaluate and, when necessary,
update the statement at the time of giving notice of hearing on a proposed
rule and regulation and at the time of filing a rule and regulation with
the secretary of state. If a public hearing was held prior to the adoption
of the rule and regulation, a state agency at the time of filing a rule and
regulation with the secretary of state shall include as a part of the eco-
nomic impact statement a statement specifying the time and place at
which the hearing was held and the attendance at the hearing. A copy of
the current economic impact statement shall be available from the state
agency upon request by any party interested therein.

      (c) Upon request of the state rules and regulations board, the joint
committee on administrative rules and regulations or the chairperson of
either committee or board, the director of the budget shall review the
economic impact statement prepared by any state agency and shall pre-
pare a supplemental or revised statement. If possible, the supplemental
or revised statement shall include a reliable estimate in dollars of the
anticipated change in revenues and expenditures of the state. It also shall
include a statement, if determinable or reasonably foreseeable, of the
immediate and long-range economic impact of the rule and regulation
upon persons subject thereto and the general public. If, after careful
investigation, it is determined that no dollar estimate is possible, the state-
ment shall set forth the reasons why no dollar estimate can be given.
Every state agency is directed to cooperate with the division of the budget
in the preparation of any statement pursuant to this subsection when, and
to the extent, requested by the director of the budget.

      (d) At the time of drafting a proposed environmental rule and regu-
lation or amendment to an existing environmental rule and regulation,
the state agency shall prepare a statement of the environmental benefit
of such proposed rule and regulation or amendment. The environmental
benefit statement shall include a description of the need for and the
environmental benefits which will likely accrue as the result of the pro-
posed rule and regulation or amendment. The description shall summa-
rize, when applicable, research indicating the level of risk to the public
health or the environment being removed or controlled by the proposed
rule and regulation or amendment. When specific contaminants are to
be controlled by the proposed rule and regulation or amendment, the
description shall indicate the level at which the contaminants are consid-
ered harmful according to currently available research. The state agency
may consult with other state agencies when preparing the environmental
benefit statement. The state agency shall reevaluate and, when necessary,
update the statement at the time of giving notice of hearing on a proposed
rule and regulation and at the time of filing a rule and regulation with
the secretary of state. A copy of the current environmental benefit state-
ment shall be available from the state agency upon request by any party
interested therein.

      (e) In addition to the requirements of subsection (b), the economic
impact statement for all environmental rules and regulations shall include:
(1) A description of the capital and annual costs of compliance with the
proposed rules and regulations, and the persons who will bear those costs;
(2) a description of the initial and annual costs of implementing and en-
forcing the proposed rules and regulations, including the estimated
amount of paperwork, and the state agencies, other governmental agen-
cies or other persons or entities who will bear the costs; (3) a description
of the costs which would likely accrue if the proposed rules and regula-
tions are not adopted, the persons who will bear the costs and those who
will be affected by the failure to adopt the rules and regulations; and (4)
a detailed statement of the data and methodology used in estimating the
costs used in the statement.

      (f) On and after the effective date of this act, the secretary of state
shall have the discretion to return to the appropriate state agency or
otherwise dispose of any document or other material which has been
adopted previously by reference and filed with the secretary of state.

      K.S.A. 2000 Supp. 77-420a is hereby amended to read as follows: 77-
420a. Prior No rule and regulation shall be adopted prior to the effective
date of the statute authorizing its adoption, but prior to the effective date
of a such statute authorizing the adoption of a rule and regulation, a , the
proposed rule and regulation may be submitted to the secretary of ad-
ministration and to the attorney general for approval as required by K.S.A.
77-420, and amendments thereto, and notice of the proposed rule and
regulation may be given and a hearing held thereon in the manner pro-
vided by K.S.A. 77-421, and amendments thereto, but such rule and reg-
ulation shall not be submitted to or filed with the secretary of state prior
to the effective date of the statute authorizing its adoption.

 Sec.  2. K.S.A. 77-416 and K.S.A. 2000 Supp. 77-420a are hereby re-
pealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved March 15, 2001.
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