Bill Text: DE HB390 | 2009-2010 | 145th General Assembly | Draft

---

Bill Title: An Act To Amend Title 29 Of The Delaware Code Relating To The Regulatory Flexibility Act And The Administrative Procedures Act.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2010-06-23 - HS 1 for HB 390 - Assigned to Executive Committee in Senate [HB390 Detail]

Download: Delaware-2009-HB390-Draft.html

---

SPONSOR:	Rep. B. Short & Sen. Katz;
	Reps. Bennett, Briggs King, Gilligan, Hocker, Q. Johnson, Kovach, Lavelle, Ramone, Scott, D. Short, Wilson; Sens. Booth, Henry

HOUSE OF REPRESENTATIVES

145th GENERAL ASSEMBLY

HOUSE BILL NO. 390

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO THE REGULATORY FLEXIBILITY ACT AND THE ADMINISTRATIVE PROCEDURES ACT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend Chapter 104, Title 29 of the Delaware Code by striking the language currently existing in section §10404(a) in its entirety and substituting in place thereof the following:

"(a)Prior to the issuance of any regulation, an agency shall prepare a regulatory flexibility analysis in which the agency shall, where lawful, feasible and desirable, consider utilizing regulatory methods that will accomplish the objectives of applicable statutes while minimizing the adverse impact on small businesses.The agency shall consider, without limitation, the following methods of reducing the impact of the proposed regulation on small businesses:

(1)The establishment of less stringent compliance or reporting requirements for small businesses;

(2)The establishment of less stringent schedules or deadlines for compliance or reporting requirements for small businesses;

(3)The consolidation or simplification of compliance or reporting requirements for small businesses;

(4)The establishment of performance standards for small businesses to replace design or operational standards required in the proposed regulation; and

(5)The exemption of small businesses from all or part of the requirements contained in the proposed rule.".

Section 2.Amend Chapter 104, Title 29 of the Delaware Code by striking the language currently existing in section §10404(b) in its entirety and substituting in place thereof the following:

"(b)Prior to the adoption of any proposed regulation that may have an adverse impact on small businesses, each agency shall prepare an economic impact statement that includes the following:

(1)     The nature of any reports and the estimated cost to prepare same by individuals and/or small businesses that would be required to comply with a new rule;

(2)     The nature and estimated costs of other measures or investments that would be required by individuals and/or small businesses in complying with a rule;

(3)     The nature and estimated cost of any legal, consulting and/or accounting services that individuals and/or small businesses would incur in complying with a rule;

(4)     The ability of individuals and/or small businesses to absorb the costs estimated under paragraphs (1), (2) and (3) of this subsection without suffering economic harm and without adversely affecting competition in the marketplace;

(5) The additional cost, if any, to the agency of administering or enforcing a rule which exempts or sets lesser standards for compliance by individuals and/or small businesses; and

(6) The impact on the public interest of exempting or setting lesser standards of compliance for individuals and/or small businesses.".

Section 3.Amend Chapter 104, Title 29 of the Delaware Code by striking the language currently existing in section §10407 in its entirety and substituting in place thereof the following:

     "(a)Within four (4) years of the enactment of this law, each agency shall review all agency rules existing at the time of enactment to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objectives of those statutes, to minimize economic impact of the rules on small businesses in a manner consistent with the stated objective of applicable statutes.If the head of the agency determines that completion of the review of existing rules is not feasible by the date established above, the agency shall publish a statement certifying such determination.The agency may extend the completion date for such review by one (1) year.

                    (b) Rules adopted after the enactment of this law should be reviewed every five (5) years after publication of such rules as the final rule to ensure that such rules minimize the economic impact on small businesses in a manner consistent with the stated objectives of applicable statutes.

                    (c) In reviewing rules to minimize the economic impact of the rule on small businesses, the agency shall consider the following factors:

(1)The continued need for the rule;

(2)The nature of complaints or comments received from the public concerning the rule;

(3)The complexity of the rule;

(4)The extent to which the rule overlaps, duplicates or conflicts with other Federal, State, and/or local governmental rules; and

(5)The length of time since the rule has been evaluated and/or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule.".

Section 4.Amend Chapter 104, Title 29 of the Delaware Code by adding a new section 10409 as follows:

"§10409.Judicial Review.

(a) For any regulation subject to this section, a small business that is adversely affected or aggrieved by final agency action is entitled to judicial review of agency compliance with the requirements of this section in a court of competent jurisdiction.

(b) A small business may seek judicial review during the period beginning on the date of final agency action and ending one (1) year later.".

Section 5.Amend Chapter 104, Title 29 of the Delaware Code by adding a new section 10410 as follows:

"§10410.Notice.

At the same time an agency is required to provide notice of a proposed rule under §10115 of the Administrative Procedure Act, the agency shall publish the economic impact statement and regulatory flexibility analysis.".

Section 6.Amend §10115(a)(1), Chapter 101, Title 29 of the Delaware Code by inserting "the economic impact and regulatory flexibility analysis pursuant to §10141, et. seq., of this title," in between "the agency to act," and "and reference to any other regulations".

SYNOPSIS

Small businesses are the backbone of the economy in Delaware.In fact, 80% of the companies in Delaware employ less than 20 employees, according to recent statistics from the U.S. Census Bureau.

The goal of regulatory flexibility is to foster a climate for entrepreneurial success so that small businesses will continue to create jobs, produce innovative new products and services, bring more Americans into the economic mainstream, and broaden the tax base.In 2002, the Office of Advocacy presented state model legislation, patterned after the federal Regulatory Flexibility Act, to improve the state regulatory climate for small business.

This legislation adopts much of the model legislation with the intent of aiding and fostering small job growth in our State by creating a friendlier regulatory environment for small businesses.