New Law Assesses Impact Of Regulations

On Small Businesses

Governor M. Jodi Rell recently announced that as of October 1, Connecticut law requires state government agencies to measure the impact of proposed new regulations on small businesses before they are adopted.

“In these tough economic times, any new government regulation can potentially mean lost jobs or even lost businesses,” Gov Rell said. “We need to do everything we can to preserve and grow jobs here in Connecticut, and this law takes us in the right direction.

All too often, small businesses are burdened with new regulations that bind them with red tape. From now on, any new rules must pass an economic impact analysis. This is good news for small businesses and good news for jobs in Connecticut.

The law states that any state agency proposing a regulation must identify how it affects businesses with 75 or fewer employees and include the analysis as part of the fiscal note it must submit to the Connecticut General Assembly’s Regulations Review Committee.

 If the impact on small businesses is negative, the state agency must consider other less burdensome ways to achieve the regulation’s goal.

Before adopting a regulation, the law requires state agencies to notify the public about how to obtain copies of the small business impact and regulatory flexibility analyses. The agencies must also notify the Department of Economic and Community Development as well as the Connecticut General Assembly’s Commerce Committee about the regulation if it could adversely affect small businesses.

Newtown’s State Representative Christopher Lyddy supported the passage of House Bill 5930 earlier this legislative session.

 “This new law is a way to support our local economy while fully understanding the impact of legislative action on small businesses,” Rep Lyddy said. “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 and maintain talented employees, and a business can’t succeed if they are faced with unnecessary red tape while trying to provide affordable, quality health care benefits.”

Rhode Island and Maine have passed similar legislation to boost their small business competitive environment.