Bill > SB01402

This bill modifies the regulatory flexibility analysis (RFA) that government agencies must conduct when creating new regulations that could impact small businesses. The bill expands the existing requirements for the RFA, mandating that agencies provide more comprehensive details about how a proposed regulation might affect small businesses. Specifically, agencies must now identify the scope and objectives of the proposed regulation, the types and number of small businesses potentially affected, and a detailed assessment of potential compliance challenges. These challenges now include additional reporting, recordkeeping, administrative oversight, hiring needs, professional consulting, capital investments, training, taxes, employee benefits, and potential product or packaging modifications. The bill also requires agencies to document their communication with small businesses during regulation development and provide alternative compliance methods that minimize adverse impacts on small businesses. These alternative methods could include less stringent reporting requirements, more flexible compliance schedules, simplified requirements, performance-based standards, or even partial or complete exemptions for small businesses. The changes will take effect on July 1, 2025, giving agencies time to adjust their regulatory analysis processes.