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Bill > S1787


NJ S1787

NJ S1787
Expands scope of New Jersey Regulatory Flexibility Act dealing with economic impact of rules on small businesses.


summary

Introduced
03/07/2016
In Committee
03/07/2016
Crossed Over
Passed
Dead
01/08/2018

Introduced Session

2016-2017 Regular Session

Bill Summary

This bill makes changes to the "New Jersey Regulatory Flexibility Act" in order to expand the scope of the law with regard to small businesses, defined as businesses that employ fewer than 100 full-time employees or having gross annual sales of less than $6 million. The bill requires an agency to use, when developing rules, the consolidation or simplification of a compliance or reporting requirement for small businesses as an approach to minimize the rule's impact on small businesses, so long as the public health, safety, or general public welfare is not endangered. Under the bill, an agency seeking to continue in effect an expiring rule by duly proposing for re-adoption the rule, with amendment, prior to its expiration, is to consider a series of factors, as part of the regulatory flexibility analysis, which are set forth in the bill. This review is to be conducted by the agency at the time a rule is proposed for re-adoption (which is generally every seven years), to ensure that the rule continues to have a minimal impact on small businesses. The bill establishes a process by which a small business that is adversely affected economically or aggrieved by final rule-making action may file a petition with the agency objecting to all or a part of a rule subject to regulatory flexibility analysis. For cases in which the agency rejects the petition, this process addresses concerns about frivolous appeals without creating unprecedented procedures with respect to the courts. Specifically, the amended bill: (1) establishes a petition process as a prerequisite for a court appeal; (2) requires the appeal petition to be filed within 90 days after final rule-making action; (3) creates an optional summary disposition process based on affidavits; (4) sets sanctions for frivolous appeals; and (5) places a restriction on appeals based on compliance with the regulatory flexibility process.

AI Summary

This bill expands the scope of the New Jersey Regulatory Flexibility Act to better address the economic impact of rules on small businesses, defined as those with fewer than 100 full-time employees or gross annual sales less than $6 million. The key provisions include: requiring agencies to consider approaches like consolidating or simplifying compliance requirements for small businesses when developing rules; requiring agencies to analyze the continued need for existing rules and their impact on small businesses during the rule re-adoption process; establishing a petition process for small businesses to object to rules based on inadequate regulatory flexibility analysis; and providing for judicial review of agency compliance with the Act, including the ability for the court to impose sanctions for frivolous appeals.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 03/07/2016)

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