- Perfected -

SCS/SB 69 - This act requires state agencies which are proposing rules to consider alternative compliance methods for small businesses and to prepare a small business impact statement.

The act creates the Small Business Regulatory Fairness Board. The Department of Economic Development will provide staff for the Board. The Board shall provide agencies with input regarding proposed rules, consider requests from small business owners for review of agency rules, review agency rules and make recommendations to the agency and general assembly regarding the need for a rule or legislation, conduct hearings and solicit input from regulated small businesses and prepare an annual evaluation report to the Governor. The Board shall not have the power to interfere with an agency or administrative enforcement action, intervene in legal actions between a small business and an agency, subpoena witnesses or documents or unduly burden the rulemaking authority of an agency.

The Board shall consist of two members appointed by the Governor, one member appointed by the Lieutenant Governor, one member who is chair of the minority business advocacy commission, two members appointed by the House of Representatives, two members appointed by the senate, one member appointed by the speaker of the House and one member appointed by the President Pro Tempore of the Senate.

Small business owners may petition an agency objecting to any rule, and the agency shall forward the petition to the Board and the Joint Committee on Administrative Rules. The agency must determine whether its impact statement or public hearing addressed the actual impact on small business and will submit a written response to the Board. The agency may determine the petition warrants adoption of amended or new rules, or may determine no additional action is necessary. A small business may seek review of the agency's decision by the Board. The Board shall report its findings to the Governor and General Assembly, which may take action as appropriate.

Any agency that can assess administrative penalties or fines shall waive or reduce such fines upon a business if the business meets certain conditions relating to correction of the violation by the business or the unintentional nature of the violation. The act sets out conditions where the agency is not required to waive or reduce the fine.

A small business that is adversely affected by a final agency action may seek judicial review of the agency's compliance with the provisions of this act. The period for seeking judicial review shall begin on the date the proposed rule becomes final and shall end a year later.

This act is similar to SB 1205 (2002).

JIM ERTLE