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HB 3668

APA-FISCAL IMPACT

104th Regular Session Introduced by Jed Davis

Requires agencies to analyze and offset any net new costs a proposed rule would impose on private sector and local governments before second notice; otherwise the rule cannot proce

Referred to Rules Committee
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Bill Summary · HB 3668

Summary — HB 3668 (APA — Fiscal Impact)

Introduced: 02/18/2025 by Rep. Jed Davis
Bill No.: HB 3668 — Amends the Illinois Administrative Procedure Act (5 ILCS 100) — changes Section 5‑40 and adds Section 5‑132.
Status (as of record): Read 1st time 03/25/2025; Referred to State Affairs; previously referred to Rules Committee.

Purpose / Intent

The bill requires state agencies to identify and address any "net new costs" that a proposed administrative rule would impose on private-sector entities and on units of local government and taxing bodies (excluding the State of Illinois) before the rule proceeds to the second notice stage. If net new costs are identified, agencies must include mitigating "reliefs" in the text of the proposed rule; otherwise adoption, filing, modification, or repeal of the rule is prohibited. The Joint Committee on Administrative Rules (JCAR) is given an explicit oversight role and the bill creates a private cause of action for injured parties if agencies adopt rules in violation of these requirements.

Key provisions

  • Timing: Requires the analysis before the agency provides the additional notice to JCAR (i.e., before the “second notice” under current Section 5‑40(c)).
  • Scope of cost analysis: Agencies must perform a “good‑faith analysis” of net new costs on:
    • (i) entities in the private sector, and
    • (ii) units of local government and taxing bodies other than the State.
  • Mitigation requirement: If net new costs are found, the proposed rule text must include “reliefs” that balance those net new costs.
  • Adoption prohibition: On and after the effective date, no rule, modification, or repeal that imposes net new costs on the covered entities may be adopted or filed with the Secretary of State.
  • Oversight and enforcement:
    • JCAR is tasked with scrutinizing agency compliance; failures may trigger prohibition or suspension of a proposed rule.
    • Creates a private cause of action permitting parties injured by a rule adopted in violation of these new requirements to sue (specific remedies and standards in added Section 5‑132 are not fully included in the text excerpt).
  • Statutory changes: Amends 5 ILCS 100/5‑40 and adds new 5 ILCS 100/5‑132.

Who is affected

  • State administrative agencies (additional analytical and documentation requirements; potential constraints on rulemaking).
  • Private‑sector entities (businesses; may receive reliefs or be protected from net new regulatory costs).
  • Units of local government and taxing bodies (similarly protected from net new costs).
  • JCAR (expanded review role).
  • Parties harmed by noncompliant rule adoptions (gains standing to sue under the private cause of action).

Procedural/timeliness notes

  • The bill builds on existing two‑stage rulemaking in Section 5‑40: a 45‑day “first notice” and a 45‑day “second notice” to JCAR (with possible 45‑day extension). The mandated cost analysis must be completed during/after the first notice and before notice to JCAR.
  • Effective date not listed in the provided excerpt.

Potential impacts and uncertainties

  • Likely to increase pre‑rulemaking workload for agencies (cost analyses, drafting reliefs).
  • Could delay or block rules that create new costs for businesses or local governments; may shift costs to the State or require agencies to identify offsets.
  • Expected to increase JCAR’s workload and potentially litigation (private enforcement).
  • The bill’s effect hinges on definitions and standards not fully specified in the excerpt (e.g., how “net new costs” and acceptable “reliefs” are defined or quantified), which could produce administrative and judicial interpretation disputes.

Compiled from official sources — confirm details with the bill’s official record.

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