Expands scope of New Jersey Regulatory Flexibility Act dealing with economic impact of rules on small businesses.
Impact
The legislation seeks to streamline administrative processes, making it less burdensome for small businesses to comply with state regulations. Specifically, AB 147 requires that agencies consider several factors when proposing or re-adopting rules that may impact small businesses, including the necessity of the rule and feedback from the public. By mandating a regulatory flexibility analysis, the bill ensures that the needs and limitations of small businesses are considered, promoting a healthier business environment within New Jersey's economic landscape.
Summary
Assembly Bill 147 aims to amend the New Jersey Regulatory Flexibility Act with the goal of enhancing the law's application to small businesses. The bill defines small businesses as those with fewer than 100 full-time employees or annual sales under $6 million. It mandates that state agencies, when developing new rules, should seek to simplify reporting and compliance requirements to minimize the burden on small businesses, provided public health and safety are not compromised. This initiative reflects a recognition of the disproportionately high regulatory costs small businesses face, which can hinder their growth and innovation.
Contention
While supporters of AB 147 argue that it simplifies regulatory frameworks and encourages small business growth, opponents may raise concerns about the effectiveness of compliance oversight. Some may fear that loosening regulations could compromise public health and safety by allowing less stringent enforcement of regulations. Additionally, although aimed at reducing administrative burdens, the practical implementation of these measures may face challenges, including resistance from larger regulatory bodies used to more stringent oversight practices.
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.