Indiana REINS-style state law
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The Indiana REINS-style state law (Senate Bill 4) is a REINS-style state law signed by Governor Eric Holcomb (R) on March 13, 2024, that requires review of rules with implementation and compliance costs of $1 million or more over a two-year period by the Budget Committee. The Budget Committee consists of four state legislators and the state budget director and is established within the Indiana State Budget Agency "to serve as liaison between the legislative and executive, including the administrative branches of government, and to provide information to the general assembly with respect to the management of state fiscal affairs so that it may have a better insight into the budgetary and appropriation needs of the various state agencies."[1][2][3]
REINS-style state laws refer to state laws in the spirit of the federal Regulations from the Executive in Need of Scrutiny (REINS) Act. These laws often require legislative approval of proposed state agency rules that carry associated costs in excess of a certain monetary threshold, however, the Indiana bill instead requires review of rules by the state Budget Committee.
Indiana Senate Bill 4 includes the following provisions:[1]
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The statement required under this subsection must include a reference to any data, studies, or analyses relied upon by the agency in determining that the imposition of the requirement or cost is necessary.
(e) Except as provided in subsection (f), if the implementation and compliance costs of a proposed rule are expected to exceed the threshold set forth in subsection (c)(6), the publisher may not publish the proposed rule until the budget committee has reviewed the rule.[4] |
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Background
- See also: Rulemaking, REINS Act
The federal REINS Act, which provisions of the Indiana state law were modeled on, was initially designed by Tea Party activist Lloyd Rogers in 2009. Rogers contacted former U.S. Representative Geoff Davis (R-Ky.) to propose legislation requiring that "all rules, regulations, or mandates that require citizens, state or local government financial expenditures must first be approved by the U.S. Congress before they can become effective." The proposal was incorporated into the Republican Party's Pledge to America legislative agenda leading up to the 2010 election cycle and was later introduced as legislation. It has since been introduced in the 112th Congress (2011-2013) through the 118th Congress (2023-2025).[5][6]
Legislative history
The bill was introduced into the Indiana State Senate on January 16, 2024, by State Senators Chris Garten (R), Ryan Mishler (R), and Travis Holdman (R) as Senate Bill (SB) 4. After passing the state senate on January 23, 2024, the bill passed the state house on February 27, 2024, with amendments. The amendments were rejected by the state senate and the bill was referred to a conference committee for further consideration. The final version of the bill was approved by the state house and the state senate on March 11, 2024, and signed into law by the governor on March 13, 2024.[1]
Below is an abbreviated timeline of the legislative history of the Indiana REINS-style state law:[1]
- January 16, 2024: SB 4 was introduced to the Indiana State Senate by State Senators Chris Garten (R), Ryan Mishler (R), and Travis Holdman (R) and referred to the Committee on Appropriations.
- January 18, 2024: The committee released a report recommending passage of SB 4 as amended by the committee.
- January 23, 2024: The bill passed the Indiana State Senate as amended with a vote of 48-0.
- February 6, 2024: The bill was referred to the House Committee on Ways and Means.
- February 22, 2024: The committee released a report recommending passage of SB 4 as amended by the committee.
- February 27, 2024: The bill passed the Indiana House of Representatives with a vote of 95-0.
- February 29, 2024: The Indiana State Senate dissented from the Indiana House of Representatives' amendments and the state senate and state house appointed conferees.
- March 8, 2024:The Indiana State Senate and Indiana House of Representatives voted 46-0 and 68-25, respectively, to adopt the conference committee's report.
- March 11, 2024: The bill was signed by the senate president pro tempore and the speaker of the house.
- March 12, 2024: The bill was signed by the president of the senate.
- March 13, 2024: The bill was signed into law by Governor Eric Holcomb (R).
Provisions
The sections below contain a series of quotes explaining the major provisions of the law related to the adoption of administrative rules, according to a fiscal impact statement prepared by the Indiana Office of Fiscal and Management Analysis.[7]
Rulemaking process
The following section outlines amendments related to the rulemaking process:[7]
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Rulemaking Process: The bill makes technical corrections to various statutes concerning rulemaking. It requires agencies to submit a copy of the notice of the first public comment period and regulatory analysis to the small business ombudsman. It provides that the legislative notice required for rule readoptions must be submitted not later than January 1 of the year preceding the year in which the rule expires. The bill provides that the publisher of the Indiana Register shall assign a document control number when an agency submits the legislative notice during rule readoption instead of when the agency submits the notice of proposed readoption.
Interim Rule for Fee Reduction: The bill provides that an agency may adopt interim rules to implement a reduction, a full or partial waiver, or an elimination of a fee, fine, or civil penalty included in an administrative rule.
Licensure Rules: The bill specifies certain deadlines within the statutes governing an agency's failure to enact required licensure rules.[4] |
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Review of rules over a certain monetary threshold
The following section outlines requirements for review by the Budget Committee of proposed rules with estimated implementation and compliance costs of $1 million or more:[7]
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The bill requires an agency to conduct a regulatory analysis for certain proposed rules, including if the implementation and compliance costs are at least $1 M. It provides that if a proposed rule has implementation and compliance costs of at least $1 M, the following: (1) The rule cannot be published in the Indiana Register until the Budget Committee has reviewed the rule. (2) The SBA and the Office of Management and Budget may not approve any part of the proposed rule prior to review of the proposed rule by the Budget Committee. It provides that for a provisional rule or an interim rule that has implementation and compliance costs of at least $1 M, the Governor may not approve a rule prior to the Budget Committee's review of the rule. It requires the Office of Management and Budget to notify the Legislative Council of certain proposed rules that have a fiscal impact of over $1 M over the course of two years.[4] |
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See also
- REINS Act
- REINS Act (Wisconsin)
- Florida REINS-style state law
- Kansas REINS-style state law
- REINS-style state laws
- Rulemaking
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 Indiana General Assembly, "Senate Enrolled Act No. 4," accessed May 21, 2024
- ↑ Indiana State Budget Agency, "Budget Committee Members," accessed May 30, 2024
- ↑ Justia, "IN Code § 4-12-1-11 (2023)," accessed May 30, 2024
- ↑ 4.0 4.1 4.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ The Jackson Sun, "We were never closer to seeing REINS Act become law," January 4, 2017
- ↑ Boston Herald, "Smith: Congress can regain power with REINS," January 6, 2017
- ↑ 7.0 7.1 7.2 Legislative Services Agency, "Fiscal Impact Statement," accessed May 21, 2024
