State government; require preparation and distribution of a regulatory impact analysis prior to adopting, amending, or repealing any regulatory rule
Impact
The bill is particularly impactful for small businesses and charitable organizations as it delineates requirements for agencies to consider the economic implications of their regulatory decisions. Agencies must now evaluate how proposed rules affect small businesses—defined as those independently owned and operated with fewer than 100 employees—by potentially adjusting compliance requirements to alleviate any undue burden. Additionally, regulations that impose new filing or reporting requirements on charitable organizations will only be permissible if a compelling state interest is demonstrated, aiming to protect these entities from excessive administrative demands.
Summary
House Bill 697 aims to enhance the process by which state agencies adopt, amend, or repeal regulatory rules in Georgia by mandating the preparation and distribution of a regulatory impact analysis. This analysis must be completed and included with notices of intended regulatory actions, ensuring that stakeholders are aware of the expected benefits and costs associated with proposed changes. The bill is designed to improve transparency in the decision-making processes of state agencies, allowing for a clearer understanding of the implications that regulatory changes may have on the public and specific sectors.
Contention
Notably, the requirement for agencies to prepare a regulatory impact analysis may introduce concerns regarding the efficiency of rule-making processes. Critics may argue that the additional bureaucracy could slow down necessary regulations, impacting the agility and responsiveness of state agencies. However, proponents contend that the benefits of improved transparency and stakeholder engagement will outweigh these concerns, creating a more informed regulatory environment. Furthermore, the bill lays out specific procedural guidelines that must be adhered to, which some may see as a useful structure while others might interpret it as unnecessary procedural red tape.
Small Business Regulatory Flexibility Improvements Act This bill modifies the rulemaking requirements and procedures of federal agencies under the Regulatory Flexibility Act of 1980 and the Small Business Regulatory Enforcement Fairness Act of 1996, including how agencies consider economic impact with respect to small entities. Specifically, the bill requires agencies to consider the direct, and the reasonably foreseeable indirect, economic effect of a rule on small entities when determining whether a rule is likely to have a significant economic impact. Further, the regulatory flexibility analysis for rules with a significant economic impact must include a detailed description of alternatives to a proposed rule that minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities. The bill also expands the types of agency actions (e.g., revisions to land management plans) that are subject to a regulatory impact analysis. The bill removes the authority for an agency to waive the regulatory flexibility analysis requirements and requires the Office of Advocacy of the Small Business Administration to issue rules for compliance with such requirements. The bill also modifies the procedures for the (1) gathering of comments for a proposed rule, (2) periodic review of agency rules, and (3) judicial review of final rules.