Senate Bill 2808

AN ACT TO CODIFY SECTION 25-43-1.108, MISSISSIPPI CODE OF 1972, TO REDUCE REGULATION AND CONTROL REGULATORY COSTS BY REQUIRING STATE AGENCIES TO IDENTIFY AT LEAST ONE REGULATION FOR ELIMINATION FOR EVERY ONE NEW REGULATION WHICH IS PROPOSED FOR ADOPTION; TO DIRECT THE SECRETARY OF STATE TO ISSUE REGULATIONS TO PROVIDE GUIDANCE TO STATE AGENCIES IN STANDARDIZING THE MEASUREMENT OF REGULATORY COSTS AND IN IMPLEMENTING THIS ACT; TO REQUIRE ANNUAL REPORTS BY THE SECRETARY OF STATE REGARDING THE REDUCTION OF REGULATORY COSTS BY STATE AGENCIES; AND FOR RELATED PURPOSES.

SECTION 1. The following provision shall be codified as Section 25-43-1.108, Mississippi Code of 1972:

25-43-1.108 (1) Purpose. It is the policy of the Legislature to be prudent and financially responsible in the expenditure of funds, from both public and private sources. In addition to the management of the direct expenditure of taxpayer dollars through the budgeting process, it is essential to manage the costs associated with the governmental imposition of private expenditures required to comply with Federal regulations. Toward that end, it is important that for every one (1) new regulation issued, at least one (1) prior regulation be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process.

(2) Regulatory Cap. (a) Unless prohibited by law, whenever a state department or agency (agency) publicly proposes for notice and comment or otherwise promulgates a new regulation, it shall identify at least one (1) existing regulation to be repealed.

(b) For fiscal year 2021, the heads of all state agencies are directed that the total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero (0), unless otherwise required by law.

(c) In furtherance of the requirement of subsection (a) of this section, any new incremental costs associated with new regulations shall, to the extent permitted by law, be offset by the elimination of existing costs associated with at least one (1) prior regulation. Any state agency eliminating existing costs associated with prior regulations under this subsection shall do so in accordance with the Administrative Procedure Act and other applicable law.

(d) The Secretary of State shall provide the heads of agencies with guidance on the implementation of this section. Such guidance shall address, among other things, processes for standardizing the measurement and estimation of regulatory costs; standards for determining what qualifies as new and offsetting regulations; standards for determining the costs of existing regulations that are considered for elimination; processes for accounting for costs in different fiscal years; methods to oversee the issuance of rules with costs offset by savings at different times or different agencies; and emergencies and other circumstances that might justify individual waivers of the requirements of this section. The Secretary of State shall consider phasing in and updating these requirements.

(e) The head of each agency shall identify, for each regulation that increases incremental cost, the offsetting regulations described in this section, and provide the agency's best approximation of the total costs or savings associated with each new regulation or repealed regulation.

SECTION 2. The Secretary of State shall report annually to the Speaker of the House and the Lieutenant Governor no later than February 1, 2021, February 1, 2022, and February 1, 2023, on the progress of the regulatory program established pursuant to this act.

SECTION 3. This act shall take effect and be in force from and after July 1, 2020.