HB3423 104TH GENERAL ASSEMBLY

LRB104 09670 AAS 19736 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3423

Introduced 2/18/2025, by Rep. Tony M. McCombie

SYNOPSIS AS INTRODUCED:

5 ILCS 80/8.32 new

Amends the Regulatory Sunset Act. Provides that the Department of Financial and Professional Regulation shall conduct a review of each current regulatory program, including any costs and fees associated with each program. Provides that the Department shall create a report based on this review for each program and deliver the report to the General Assembly no later than 12 months prior to the termination of each program under the Act. Sets forth requirements for the report. Provides that the Department shall conduct a review of each potential new program, including any costs and fees associated with the potential new program. Provides that the Department shall create a new program report based on this review and deliver the report to the General Assembly no later than 30 days after the filing date of the bill in which the program is proposed. Sets forth requirements for the report. Provides that the Department shall complete a review and report for any program reviewed which becomes law 24 months after the effective date of the bill in which the program was proposed and shall subsequently conduct review and reporting duties according to the provided schedule. Provides that nothing in the amendatory provisions shall be construed to prevent the Department from conducting a review or publishing and delivering a report prior to the filing date of a piece of legislation if the Department reasonably believes a new program is necessary to meet a demonstrated public safety or welfare interest or the Department has received requests to regulate a previously unregulated profession.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Regulatory Sunset Act is amended by adding Section 8.32 as follows:

(5 ILCS 80/8.32 new)

Sec. 8.32. Department of Financial and Professional Regulation licensure report.

(a) As used in this Section, "Department" means the Department of Financial and Professional Regulation.

(b) Notwithstanding any section of this Act, the Department shall conduct a separate review of each current program, including any costs and fees associated with each program. The Department shall create a report based on this review for each program and deliver the report to the General Assembly no later than 12 months prior to the termination of each program under this Act. The report must be published on the Department's website no later than 30 days prior to the date the report is delivered to the General Assembly. The report shall include, but is not limited to, the following recommendations and any data, assumptions, or other analysis utilized to make each recommendation:

(1) whether the program is necessary to meet a demonstrated public safety or welfare interest;

(2) whether the conditions that led to the initial creation of the program have changed and whether other conditions have arisen that would warrant more, less, or the same degree of regulation and oversight;

(3) if the program is necessary, whether the existing rules and regulations establish the least restrictive form of governmental regulation and oversight consistent with the demonstrated public interest, considering other available regulatory mechanisms;

(4) if the program is necessary, whether Department rules pertaining to the program enhance the demonstrated public interest and are within the scope of the legislative intent in creating the program;

(5) the economic impact of the program and, if national economic information is not available, whether the program stimulates or restricts competition;

(6) the budget and administration of the program, including, but not limited to:

(A) the adequacy of current staffing levels;

(B) the cost of required and current staffing levels to meet the needs of the issuance and disciplinary process;

(C) the adequacy of current physical, software, and technical resources;

(D) the cost of required and current physical, software, and technical resources;

(E) the speed of program application processing and issuance for both original licenses and renewals;

(F) the cost of program application processing;

(G) the necessity, efficiency, and efficacy of program disciplinary procedures; and

(H) the cost of disciplinary action;

(7) whether complaint, investigation, and disciplinary procedures adequately protect the public and whether final dispositions of complaints are in the demonstrated public interest or are self-serving to the profession or regulated entity;

(8) whether the scope of practice of the regulated occupation or profession contributes to the optimum use of personnel;

(9) whether the regulation and administration of the program includes input from numerous stakeholders and the public to ensure fairness;

(10) whether fees associated with the program are fair, taking into consideration factors that include, but are not limited to, the following:

(A) the average annual income of an applicant;

(B) the average annual income of a person in the occupation or profession;

(C) the cost of education and other requirements necessary to perform the services and duties of the occupation or profession;

(D) the cost to the Department of administering the program; and

(E) if fees are not fair, what a fair fee would look like;

(11) whether the current number of training, education, and continuing education days are only those demonstrably necessary to protect health and safety;

(12) whether the Department, via licensing or other programs, imposes any sanctions or disqualifications on applicants based on past criminal history and, if so, whether the sanctions or disqualifications serve a public safety or commercial or consumer protection interest, including data on the following:

(A) the number of applications that the agency denied based on the applicant's criminal history and the criminal offenses that led to the disqualification;

(B) the number of licenses or other credentials issued based upon the applicant's criminal history; and

(C) the number of licenses or other credentials revoked or suspended based on an individual's criminal conduct and the criminal offenses that led to the sanction; and

(13) whether administrative and statutory changes are necessary to improve agency operations to enhance the demonstrated public interest or to ensure that program standards for all applicants are not vague and are consistent with the demonstrated public safety or welfare interest necessitating the regulation.

Nothing in this subsection (b) shall be construed to prevent the Department from conducting a review or publishing and delivering a report prior to 12 months before the termination of the program if the Department reasonably believes a different level of regulation is the least restrictive level necessary to meet the demonstrated public safety or welfare interest or the Department received requests to alter the current level of regulation.

(c) Notwithstanding any section of this Act, the Department shall conduct a review of each potential new program, including any costs and fees associated with the potential new program. The Department shall create a new program report based on this review and deliver the report to the General Assembly no later than 30 days after the filing date of the bill in which the program is proposed. The report must be published on the Department's website no later than the date the report is delivered to the General Assembly. The report shall include, but is not limited to, the following recommendations and any data, assumptions, or other analysis utilized to make each recommendation:

(1) whether the program is necessary to meet a demonstrated public safety or welfare interest;

(2) the conditions that led to the proposal of the program and whether other conditions have arisen that would warrant more, less, or the same degree of regulation and oversight as that proposed;

(3) whether the proposed program establishes the least restrictive form of governmental regulation and oversight consistent with the demonstrated public interest, considering other available regulatory mechanisms;

(4) if the program is necessary, potential Department rules pertaining to the program and how these rules would enhance the demonstrated public interest and are within the scope of legislative intent;

(5) the estimated economic impact of the program and, if national economic information is not available, whether the program stimulates or restricts competition;

(6) the budget and administration constraints of the program, including, but not limited to:

(A) the adequacy of current staffing levels to meet the needs of the issuance and disciplinary process;

(B) the cost of maintaining appropriate staffing levels;

(C) the adequacy of current physical, software, and technical resources;

(D) the cost of additional physical, software, and technical resources, if necessary;

(E) the anticipated cost of program application processing; and

(F) the cost of anticipated program disciplinary procedures;

(7) whether proposed complaint, investigation, and disciplinary procedures adequately protect the public and whether potential methods of evaluating final dispositions of complaints are in the demonstrated public interest or are self-serving to the profession or regulated entity;

(8) whether the proposed scope of practice of the regulated occupation or profession contributes to the optimum use of personnel;

(9) whether the regulation and administration of the program as presented in the bill includes input from numerous stakeholders and the public to ensure fairness, or, if such inclusion may be facilitated by Department rulemaking, what type of rules would ensure such inclusion;

(10) if a fee amount is proposed in the bill, whether fees associated with the program are fair, taking into consideration factors that include, but are not limited to, the following:

(A) the average annual income of an applicant;

(B) the average annual income of a person in the occupation or profession;

(C) the cost of education and other requirements necessary to perform the services and duties of the occupation or profession;

(D) the cost to the Department of administering the program; and

(E) if fees are left to the discretion of the Department, an estimate of a fair fee;

(11) whether the proposed number of training, education, and continuing education days, if any, are only demonstrably necessary to protect health and safety. If no number of training, education, or continuing education days are proposed, a Department estimate thereof;

(12) whether the Department, through the program proposed, would impose any sanctions or disqualifications on applicants based on past criminal history and, if so, whether the sanctions or disqualifications proposed serve a public safety or commercial or consumer protection interest; and

(13) whether changes to the language of the bill in which the program is proposed are necessary to improve agency operations to enhance the demonstrated public interest or to ensure program standards for all applicants are not vague and are consistent with the demonstrated public safety or welfare interest necessitating the regulation and suggested language making the changes.

The Department shall complete a review and report under subsection (b) of this Section for any program reviewed under this subsection (c) which becomes law 24 months after the effective date of the bill in which the program was proposed and shall subsequently conduct review and reporting duties under subsection (b) according to the schedule provided therein.

Nothing in this subsection (c) shall be construed to prevent the Department from conducting a review or publishing and delivering a report hereunder prior to the filing date of a piece of legislation if the Department reasonably believes a new program is necessary to meet a demonstrated public safety or welfare interest or the Department has received requests to regulate a previously unregulated profession.