Section 1: Scope of the Economist’s Responsibilities

An economist in the legislature, or within a pre-existing agency within the state legislature will produce (i) Regulatory Impact Analyses (RIAs) of proposed rules and regulations prior to the adoption of said rules and regulation, (ii) RIAs of existing rules and regulations, and (iii) impact analysis of grants received from the federal government or from other sources external to state government.

Section 2: Grant and Regulatory Impact Analysis.

The analysis conducted by the economist shall include:

1. Statement of need.
2. Legal basis for rule or grant.
3. Examination of alternatives (for new rules or grants).
4. Evaluation of costs and benefits (for each alternative for new rules or grants), including:
   1. Estimated primary or direct benefits.
   2. Estimated cost savings or financial benefits to society.
   3. Estimated compliance costs for regulated entities.
   4. Estimated secondary or indirect costs.
   5. Estimated effect on state revenue.
   6. Estimated effect on state expenditures, including estimated administrative expenses
   7. Estimated opportunity cost. The analysis must identify the opportunity cost of compliance, as a result of the removal of private capital from the market.
5. Sources Consulted
6. Key assumptions and sources of uncertainty.

Section 3: Referrals.

The economist shall evaluate or conduct the analysis as described in Section 1 upon referral by a chair or ranking member of a committee of either house.  The economist shall undertake such a review in the order of referral unless, in a given session, the Senate President and Speaker of the House direct otherwise.

Section 4: Report

Upon completion, analysis of each rule or grant should be made publicly available. At the end of each calendar year, the economist shall provide the Senate President and the Speaker of the House a report summarizing the matters evaluated that year.