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OLR Bill Analysis
sSB 1402
AN ACT MODIFYING THE REGULATORY FLEXIBILITY ANALYSIS
OF REGULATIONS AFFECTING SMALL BUSINESSES.
SUMMARY
This bill expands the information that must be included in the
regulatory flexibility analysis that agencies must prepare before
adopting regulations that directly affect small businesses.
Under the bill, the analysis must include whether small businesses,
to comply with the proposed regulation, may be required to (1) retain
records for a period of time, (2) change or provide an additional
employee benefit, or (3) change a product manufactured by the small
business or its packaging. By law, the analysis must already indicate
whether small businesses may be required to take other specific actions,
including implementing additional recordkeeping procedures, hiring
additional employees or professionals, or paying additional taxes and
fees.
Generally, these analyses must be prepared by state boards,
commissions, departments, or officers authorized by law to make
regulations or to determine contested cases. Agencies must include
these analyses in any fiscal note they prepare to estimate the proposed
regulation’s fiscal impact on the state, municipalities, and small
businesses.
EFFECTIVE DATE: July 1, 2025
BACKGROUND
Regulatory Flexibility Analyses
Each regulatory flexibility analysis must identify, among other
things, (1) the types of businesses potentially affected by the proposed
regulation, (2) the total number of small businesses potentially subject 2025SB-01402-R000339-BA.DOCX
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to it, and (3) whether and to what extent the proposed regulation
provides alternative compliance methods for small businesses.
Under this law, a “small business” is a business entity that (1) is
independently owned and operated and (2) employs fewer than 250
full-time employees or has gross annual sales of less than $5 million. The
agency may define “small business” to include a greater number of full-
time employees, up to the applicable federal standard or 500, whichever
is less.
COMMITTEE ACTION
Commerce Committee
Joint Favorable Substitute
Yea 20 Nay 0 (03/13/2025)