HS HCS HB 978 -- SMALL BUSINESS (Baker)

This substitute establishes the Small Business Regulatory
Fairness Board, which will work with agencies and small
businesses on issues concerning the impact of agency rules and
regulations on small businesses.  The substitute outlines the
membership of the board.  All members of the board, except for
the chair of the minority business advocacy committee, must be
current or former small business owners.

The board is specifically prohibited from interfering with,
modifying, preventing, or delaying an agency's enforcement
action; intervening in legal actions; and subpoenaing witnesses
to testify or produce documents at hearings held by the board.

The substitute defines "small business" as a for-profit
enterprise with fewer than 50 full- or part-time employees.  The
substitute requires state agencies to determine whether proposed
rules affect small businesses prior to submitting or filing
proposed rules with the Secretary of State's office.  For
proposed rules that affect small businesses, the agency must
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
board on the day the proposed order of rulemaking is filed with
the Secretary of State's office.  The substitute outlines the
requirements of the impact statement.  Rules that are required to
have a small business impact statement but do not are invalid,
and the Secretary of State cannot publish the rule.

The board is allowed to file a written petition with the agency
that has adopted rules, objecting to or requesting the adoption,
amendment, or repeal of all or part of any rule affecting small
business.  Any small business may ask the board to file a
petition for the adoption, amendment, or repeal of a rule; and
the board may hold a hearing or solicit testimony to assist in
making its determination of whether to file a petition.  Within
60 days of receipt of the petition, the agency will determine
whether the rule should be adopted, amended, or repealed based on
specific factors.

The substitute 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 substitute requires
the board to submit an evaluation report to the Governor and the
General Assembly regarding these issues.

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

Small businesses claiming a material violation of the small
business impact statement requirement are allowed to bring a
declaratory judgment action after the filing of the final order
of rulemaking, without exhausting their administrative remedies.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $22,413
to Unknown in FY 2005, $22,413 to Unknown in FY 2006, and Unknown
in FY 2007.  Could exceed $100,000 per year.  Estimated Cost on
Other State Funds of Unknown in FY 2005, $63,968 to Unknown in FY
2006, and $57,132 to Unknown in FY 2007.  Could exceed $100,000
per year.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am