SB 456 Creates new provisions for the interaction of agencies and small business regarding rules
Sponsor: Nodler
LR Number: 1727S.01I Fiscal Note: 1727-01
Committee: Small Business, Insurance & Industrial Relations
Last Action: 3/16/2005 - Hearing Conducted S Small Business, Insurance & Industrial Relations Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2005

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Current Bill Summary


SB 456 - The act adds an "affected small business" definition which includes anything that is directly related to the formation, operation, or expansion of a small business. The section also excludes legislative or judicial agencies from the definition of agency for this section.

Small businesses are not required to exhaust administrative remedies in suits against agencies if the party bringing the action is a small business claiming a material violation of Section 536.300 by the state agency requirement for a small business impact statement for the amendment or rule.

Before submitting proposed rules for adoption, the state agency, after determining whether or not the proposed rule affects small business, the agency shall consider creative, innovative or flexible methods of compliance for small business.

The agency then prepares a business impact statement and must submit that, along with the proposed rules, to the small business regulatory fairness board prior to providing notice for a public hearing. The statement shall now include a reasonable determination of the businesses that will be affected by the proposed rules. The statement shall also include provisions that are related to any federal, state, or county standards with explanation for imposing the standard.

The act also lays out what the small business statement, submitted by the agency after the public hearing shall include.

The board is granted the power to adopt rules necessary to implement these new sections.

The act also establishes the grounds upon which a small business may file a written petition objecting to all or part of the adopted rules, and the subsequent procedure.

A requirement that agencies with rules that affect small business shall submit a list of such rules to the General Assembly and the small business regulatory fairness board by June 13th each odd numbered year and provide the list to the head of each agency. There are also provisions regarding public testimony for any agency report.

Finally a small business affected by a regulation under this section is entitled to judicial review in a circuit court in the county where the small business has its primary place of business or Cole county.

ANDY LYSKOWSKI