Lyddy Backing Business-Friendly Bill, Attends Health Care Cost Summit

By John Voket

Newtown’s State Representative Christopher Lyddy announced this week that he is supporting the passage of House Bill 5930, An Act Requiring Small Business Impact Analysis for Proposed Regulations.

The legislation ensures potential state regulations are reviewed for their impacts on small businesses. It also directs agencies to consider other less burdensome ways to achieve a regulation’s goal, when adverse impacts are identified.

A recent posting from the US Small Business Administration Office of Advocacy noted that fellow Democratic Representative Diana Urban of Stonington, a strong voice for small business in the state as well as trade groups and individuals, voiced her support for the action recently before the Connecticut House Commerce Committee.

The SBA report states the proposed legislation would require that a state agency, prior to adopting a new regulation, complete an economic impact analysis. Several of those who testified noted that this legislation would afford small businesses the opportunity to “weigh-in” on proposed regulations.

For example, Lisa Hunter, executive director for the Independent Electrical Contractors, told the committee that “too often, we are unaware of how regulation will impact us until we are facing deadlines and have to scramble to comply or face penalties. House Bill 5930 will help address these concerns and improve our business climate.”

Using a recent regulatory change from the agenda of the Connecticut Legislative Regulation Review Committee, Representative Urban provided a Small Business Impact Analysis Template. The simple four-step process she presented demonstrated how an agency can determine an economic impact estimate of a proposed regulation in simple, understandable terms.

Her proposal is designed to help small business owners understand the cost of proposed regulations would be in plain terms.

While current law already directs agencies to conduct a regulatory flexibility analysis, this bill would require that the business cost impact and regulatory flexibility analyses be completed when the rule is first proposed, rather than “prior to the adoption of the proposed regulation.” The change will provide small businesses an opportunity to alert regulators to unanticipated costs and less onerous approaches to achieving their regulatory goals.

The bill also expands the definition of small business from businesses employing fewer than 50 employees to businesses employing fewer than 75.

Health Policy Discussions

In other news, Rep Lyddy also participated in a roundtable discussion at the Danbury Public Library April 6 with Secretary of the State Susan Bysiewicz and area small business owners to discuss business-friendly health care policies that will help local companies thrive.

“These initiatives are a way to support our local economy,” Rep Lyddy said in a release. “Small businesses can’t thrive if they are crippled by costly adverse regulations and constantly increasing health care costs.”

Rep Lyddy added, “Small businesses and nonprofits depend on their ability to attract talented employees, and a business can’t succeed if they aren’t able to offer affordable, quality health care. At the very least, this provides a voluntary option for employers.”

The proposed health care legislation would open access to the state employee health insurance plan to small businesses, nonprofits and municipal employees. It is estimated that small businesses could save thousands of dollars annually in employee health care costs by joining the plan.

There are currently more than 200,000 people in the state insurance pool.

According to Chris Fairchild, a local Newtown realtor quoted in the release, participation in the state health plan would be ideal for her and other independent contractors, “since we currently pay expensive individual insurance premium often with inferior coverage. This partnership be a boost for small businesses and allow us to offer more affordable and attractive health care plans to our employees.”

Beth Agen, executive director of Newtown Youth & Family Services, said her agency is fortunate to receive insurance coverage under the Town of Newtown’s policy, but as the town looks for ways to cut back, the agency could be facing increased costs to insure its staff in the future.

“Like other human service agencies during this difficult economic time, there is increased demand for our programs, without increases in funding,” Ms Agen said. “A health care program like this would help our agency to continue serve its clients.”