Expands scope of New Jersey Regulatory Flexibility Act dealing with economic impact of rules on small businesses.
Impact
The bill calls for a more tailored approach in the rule-making process, wherein state agencies will employ methods such as simplifying compliance or establishing different reporting timelines for small businesses. Furthermore, the legislation mandates that agencies conduct a regulatory flexibility analysis when proposing new rules or re-adopting existing ones, every seven years. This analysis includes assessing the necessity and complexity of existing rules while considering public feedback to ensure continued relevance and minimal impact on small business operations.
Summary
A4259 expands the New Jersey Regulatory Flexibility Act to improve the economic impact of state rules on small businesses. This legislation specifically defines 'small business' as those businesses employing fewer than 100 full-time employees or with gross annual sales of less than $6 million. The bill requires state agencies to adopt compliance or reporting requirements that minimize the adverse economic effects on small businesses, ensuring public health, safety, and welfare are not compromised. This move is intended to alleviate the disproportionate regulatory burden placed on smaller enterprises compared to larger counterparts.
Contention
Critics of the bill might contend that while reducing regulatory burdens for small businesses is beneficial, there is a risk that such changes could weaken the enforcement of essential health, safety, and environmental protections. There could be concerns that the consolidation of reporting requirements could enable small businesses to avoid responsibilities that larger companies have, potentially leading to an uneven playing field. Additionally, the bill introduces a petition process for small businesses to contest rulings they perceive as unfair, which could be seen as an avenue for frivolous claims, thus straining state agencies with more appeals.
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.
Requires State agencies, when developing and proposing rules, to utilize approaches that will accomplish objectives of statutory law while minimizing adverse economic impact on municipalities.
Requires State agencies, when developing and proposing rules, to utilize approaches that will accomplish objectives of statutory law while minimizing adverse economic impact on municipalities.