                                 CODE OF VIRGINIA

ECONOMIC IMPACT ANALYSIS (§ 2.2-4007.04)

A. Before delivering any proposed regulation under consideration to the
Registrar as required in § 2.2-4007.05, the agency shall submit on the Virginia
Regulatory Town Hall a copy of that regulation to the Department of Planning and
Budget. In addition to determining the public benefit, the Department of
Planning and Budget in coordination with the agency shall, within 45 days,
prepare an economic impact analysis of the proposed regulation, as follows:

   1. The economic impact analysis shall include but need not be limited to the
   projected number of businesses or other entities to which the regulation would
   apply; the identity of any localities and types of businesses or other
   entities particularly affected by the regulation; the projected number of
   persons and employment positions to be affected; the impact of the regulation
   on the use and value of private property, including additional costs related
   to the development of real estate for commercial or residential purposes; and
   the projected costs to affected businesses, localities, or entities of
   implementing or complying with the regulations, including the estimated fiscal
   impact on such localities and sources of potential funds to implement and
   comply with such regulation. A copy of the economic impact analysis shall be
   provided to the Joint Commission on Administrative Rules; and

   2. If the regulation may have an adverse effect on small businesses, the
   economic impact analysis shall also include (i) an identification and estimate
   of the number of small businesses subject to the regulation; (ii) the
   projected reporting, recordkeeping, and other administrative costs required
   for small businesses to comply with the regulation, including the type of
   professional skills necessary for preparing required reports and other
   documents; (iii) a statement of the probable effect of the regulation on
   affected small businesses; and (iv) a description of any less intrusive or
   less costly alternative methods of achieving the purpose of the regulation. As
   used in this subdivision, &#8220;small business&#8221; has the same meaning as
   provided in subsection A of &#xA7; 2.2-4007.1.

B. In the event the Department cannot complete an economic impact statement
within the 45-day period, it shall advise the agency and the Joint Commission on
Administrative Rules as to the reasons for the delay. In no event shall the
delay exceed 30 days beyond the original 45-day period.

C. Agencies shall provide the Department with such estimated fiscal impacts on
localities and sources of potential funds. The Department may request the
assistance of any other agency in preparing the analysis. The Department shall
deliver a copy of the analysis to the agency drafting the regulation, which
shall comment thereon as provided in &#xA7; 2.2-4007.05, a copy to the Registrar
for publication with the proposed regulation, and an electronic copy to each
member of the General Assembly. No regulation shall be promulgated for
consideration pursuant to &#xA7; 2.2-4007.05 until the impact analysis has been
received by the Registrar. For purposes of this section, the term
&#8220;locality, business, or entity particularly affected&#8221; means any
locality, business, or entity that bears any identified disproportionate
material impact that would not be experienced by other localities, businesses,
or entities. The analysis shall represent the Department&#8217;s best estimate
for the purposes of public review and comment on the proposed regulation. The
accuracy of the estimate shall in no way affect the validity of the regulation,
nor shall any failure to comply with or otherwise follow the procedures set
forth in this subsection create any cause of action or provide standing for any
person under Article 5 (&#xA7; 2.2-4025 et seq.) or otherwise to challenge the
actions of the Department hereunder or the action of the agency in adopting the
proposed regulation.

D. In the event the economic impact analysis completed by the Department reveals
that the proposed regulation would have an adverse economic impact on businesses
or would impose a significant adverse economic impact on a locality, business,
or entity particularly affected, the Department shall advise the Joint
Commission on Administrative Rules, the House Committee on Appropriations, and
the Senate Committee on Finance and Appropriations within the 45-day period. The
Joint Commission on Administrative Rules shall review such rule or regulation
and issue a statement containing the Commission&#8217;s findings in accordance
with &#xA7; 30-73.3.

E. The Department shall revise and reissue its economic impact analysis within
the time limits set forth for the Department&#8217;s review of regulations at
the final stage pursuant to the Governor&#8217;s executive order for executive
branch review if any of the following conditions is present that would
materially change the Department&#8217;s analysis:

   1. Public comment timely received at the proposed stage indicates significant
   errors in the economic impact analysis; or

   2. There is significant or material difference between the agency&#8217;s
   proposed economic impact analysis and the anticipated negative economic
   impacts to the business community as indicated by public comment.
   				The determination of whether a condition is present under this subsection
   shall be made by the Department and shall not be subject to judicial review.

HISTORY: 2007, cc. 316, 561, 873, 916; 2015, c. 608; 2017, cc. 483, 493, 599.