HB 33: "An Act relating to the effect of regulations on small businesses; and providing for an effective date."
00 HOUSE BILL NO. 33 01 "An Act relating to the effect of regulations on small businesses; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 44.62 is amended by adding a new section to read: 05 Sec. 44.62.198. Regulations affecting small businesses. (a) Before an 06 agency adopts a proposed regulation that may have an adverse effect on small 07 businesses, the agency shall prepare an economic effect statement that provides 08 (1) an identification and estimate of the number of small businesses 09 that would be subject to the proposed regulation; 10 (2) the projected reporting, recordkeeping, and other administrative 11 costs that small businesses would be required to incur in order to comply with the 12 proposed regulation, including an identification of the type of professional skills 13 necessary to prepare the report or record or to take the administrative action; 14 (3) a statement of the probable effect that the proposed regulation
01 would have on the small businesses affected by the proposed regulation; and 02 (4) a description of any alternative methods of achieving the purpose 03 of the proposed regulation that would be less intrusive or less costly for the small 04 businesses affected by the proposed regulation. 05 (b) Before an agency adopts a proposed regulation that may have an adverse 06 effect on small businesses, the agency shall prepare a regulatory flexibility analysis in 07 which the agency shall consider using regulatory methods that 08 (1) minimize the adverse effect of the regulation on small businesses 09 while accomplishing the objectives of statutes authorizing the proposed regulation; 10 and 11 (2) are consistent with health, safety, environmental welfare, and 12 economic welfare. 13 (c) When preparing the regulatory flexibility analysis under (b) of this section, 14 the agency shall consider 15 (1) the establishment of less stringent compliance or reporting 16 requirements for small businesses; 17 (2) the establishment of less stringent schedules or deadlines for 18 compliance or reporting requirements for small businesses; 19 (3) the consolidation or simplification of compliance or reporting 20 requirements for small businesses; 21 (4) the establishment of performance standards to replace design or 22 operational standards for small businesses; and 23 (5) the exemption of small businesses from all or any part of the 24 requirements contained in the proposed regulation. 25 (d) Before an agency adopts a proposed regulation that may have an adverse 26 effect on small businesses, the agency shall notify the Department of Commerce, 27 Community, and Economic Development of the agency's intent to adopt the proposed 28 regulation. The Department of Commerce, Community, and Economic Development 29 shall advise and assist agencies to comply with this section. 30 (e) Every five years after the agency's adoption of a proposed regulation that is 31 subject to this section, the agency shall review the regulation to ensure that the
01 regulation minimizes its economic effect on small businesses in a manner consistent 02 with the objectives of the statutes that authorized the regulation. 03 (f) When reviewing a regulation under (e) of this section, the agency shall 04 consider 05 (1) the continued need for the regulation; 06 (2) the nature of complaints or comments received by the agency from 07 the public concerning the regulation; 08 (3) the complexity of the regulation; 09 (4) the extent to which the regulation overlaps, duplicates, or conflicts 10 with other federal, state, and local government regulations; and 11 (5) the degree to which technology, economic conditions, or other 12 factors have changed in the area affected by the regulation. 13 (g) A small business that is adversely affected or aggrieved by an agency's 14 final adoption of a proposed regulation that is subject to this section may bring an 15 action in the superior court to determine whether the agency complied with this 16 section. 17 (h) In this section, 18 (1) "proposed regulation" means a proposal by an agency for a new 19 regulation or for a change in, addition to, or repeal of an existing regulation; 20 (2) "regulation" has the meaning given in AS 44.62.640, except that 21 "regulation" does not include a declaratory ruling or an intra-agency or interagency 22 memorandum; 23 (3) "small business" means a business entity, including its affiliates, 24 that 25 (A) is independently owned and operated; and 26 (B) employs fewer that 100 full-time employees or has gross 27 annual sales of less than $6,000,000. 28 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION. (a) AS 44.62.198, enacted by sec. 1 of this Act, applies to a proposed 31 regulation proposed on or after January 1, 2006. In this section, " proposed regulation" has
01 the meaning given in AS 44.62.198, enacted by sec. 1 of this Act. 02 (b) Within four years after the effective date of this Act, each state agency shall 03 review its regulations that are in existence on the effective date of this Act to determine 04 whether the regulations should be continued without change, amended, or repealed to 05 minimize the effect of the regulations on small businesses in a manner consistent with 06 AS 44.62.198, enacted by sec. 1 of this Act. If the head of an agency determines that 07 completion of the review of an existing regulation is not feasible within the four-year period, 08 the agency shall publish a statement certifying that determination, and the agency may extend 09 the completion date by one year at a time for a maximum of five years. 10 * Sec. 3. This Act takes effect January 1, 2006.