South Dakota requires agencies to assess costs of permanent rules

An agency prepares and signs an analysis before proceeding with a proposed permanent rule. The requirement applies to agencies seeking to adopt permanent rules. The analysis explains why the rule is needed, its legal basis, alternatives, and estimated costs and benefits. It also estimates effects on small businesses, identifies sources and uncertainty, and is signed by the agency’s chief officer. A small business has 25 or fewer full-time employees. The agency prepares the analysis before proceeding under the rule adoption process.

The Interim Rules Review Committee may send a major rule back for changes, find enough legislative authority to complete review, or recommend that lawmakers decide it through legislation. A major rule is one likely to cause more than $3 million in costs over the two years after adoption, including costs paid by businesses, people, other nongovernmental groups, or local governments. If an agency changes a major rule for another committee review, it sends an updated analysis at least 20 days before the hearing. The committee reports each rule handled under this section to the Legislative Research Council’s Executive Board each year before the regular session. An agency seeking another committee review after changing a major rule submits an updated analysis at least 20 days before the hearing.

An agency shares the analysis with officials and publishes it online as part of the proposed-rule process; the committee considers it when reviewing proposed rules. These steps apply to proposed permanent rules. The agency sends the analysis with the proposed rule to the responsible department head, commissioner, or officer for written approval to proceed. The agency also sends it to code counsel and the finance commissioner and publishes it online with other rule materials. The agency sends the analysis for written approval before proceeding and publishes it at least 20 days before the public hearing.

A permanent major rule completes the adoption process only if the committee finds enough legislative authority or a statute specifically directs the rule. This condition applies to permanent major rules. The committee may find sufficient legislative authority for the agency to implement the rule. If the committee does not make that determination, a statute must specifically direct adoption, amendment, or repeal of the rule. The condition applies when the agency completes the permanent rule adoption process.