HB 322 -- Small Businesses

Co-Sponsors:  Baker, Jetton, St. Onge, Parker, Purgason, Hanaway,
Smith (118)

This bill requires state agencies to determine whether proposed
rules affect small businesses prior to submitting the proposed
rules for adoption, amendment, revision, or repeal.  If they do,
the agency must consider the practicality of less restrictive
alternatives that could be implemented to achieve the same
results as the proposed rule.  The agency must also consider
creative, innovative, or flexible methods of compliance for small
businesses and prepare a small business impact statement which
will be submitted with the proposed rules to the Small Business
Regulatory Fairness Board prior to providing notice of a public
hearing.  The bill outlines the requirements of the impact
statement.

These requirements will not apply to federally mandated
regulations that afford the agency no discretion to consider less
restrictive alternatives.

For any proposed rules that affect small business, the agency
will also submit a small business statement to the board after a
public hearing is held.  The bill outlines the requirements of
the statement.

The bill establishes the Small Business Regulatory Fairness Board
within the Department of Economic Development.  The board will
work with agencies and small businesses on issues concerning the
impact of agency rules and regulations on small businesses.  The
bill outlines the membership of the board.

The bill allows any effected small business to file a written
petition with the agency that has adopted rules, including rules
adopted prior to the bill's effective date.  The bill explains on
what grounds a rule can be objected to.  Upon submission of a
written petition, the agency must forward a copy of the petition
to the board and to the Joint Committee on Administrative Rules.
Within 60 days of the receipt of the petition, the agency will
determine whether the impact statement or public hearing
addressed the actual and significant impact on small business and
will submit a written response of the agency's determination to
the board.  Any small business may appeal the agency's
determination to the board.  The bill outlines the reasons on
which the board may base its decision regarding a small business
appeal of the agency's determination.

The bill requires each agency to submit to the General Assembly
and the board, by June 13 of each odd-numbered year, a list of
all rules which affect small business, a report describing the
specific public purpose or interest for adopting each rule, and
any other reasons that justify its continued existence.  The
General Assembly may take action in response to the report as it
finds appropriate.

The bill requires the board to provide to the head of each agency
a list of any rules adopted by the agency that affect small
business and have generated complaints or concerns.  Forty-five
days after being notified by the board of these rules, the agency
is required to submit a written report to the board in response
to the complaints or concerns.  The board may solicit testimony
at public meetings regarding any report submitted by an agency.
The bill requires the board to submit an evaluation report to the
Governor and the General Assembly regarding these issues.

The bill outlines occasions when an agency will waive or reduce
any administrative penalty or administrative fine for violation
of any statute, ordinance, or rules by a small business.

Small businesses that are adversely affected or aggrieved by the
final decision of an agency are entitled to judicial review of
the agency's compliance with the provisions of the bill.  The
small business can seek judicial review for a period of one year,
beginning on the date when the proposed rule becomes final.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am