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Bill > A3578


NJ A3578

NJ A3578
Expands scope of New Jersey Regulatory Flexibility Act dealing with economic impact of rules on small businesses.


summary

Introduced
03/12/2018
In Committee
10/15/2018
Crossed Over
Passed
Dead
01/08/2020

Introduced Session

2018-2019 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 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, which deals with the economic impact of rules on small businesses. The bill redefines "small business" to include those with fewer than 100 full-time employees or gross annual sales of less than $6 million. It requires agencies to use approaches like consolidating or simplifying compliance or reporting requirements for small businesses, as long as public health, safety, or welfare is not endangered. The bill also establishes a process for small businesses to petition an agency if they are adversely affected by a rule, and allows for judicial review if the agency rejects the petition, while addressing concerns about frivolous appeals.

Committee Categories

Government Affairs

Sponsors (6)

Last Action

Reported out of Assembly Committee, 2nd Reading (on 10/15/2018)

bill text


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