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SBAM Testifies in Support of Review of Administrative Rules

March 26, 2010

This week, the House Government Operations Committee took up HB 4988 sponsored by State Rep. Arlan Meekhof.  HB 4988 would provide an annual review of regulatory rules that effect businesses.  And more importantly for our members, it would require a periodic review of the impact rules have on small businesses.

The review would have to consider:  the continued need for the rules, the nature of any complaints or comments received from the public about the rules, the complexity of complying with the rules, the extent to which the rules conflict with or duplicate similar rules or regulations of the federal government or local government, and the date of the last evaluation of the rules and the degree to which technology, economic conditions, or other factors have changed regulatory activity covered by the rules.

Complying with the various rules and regulations that businesses face can be costly and time-consuming, especially for small businesses.  Large businesses have compliance officers and attorneys on staff to deal with these regulations.  Small businesses do not, and therefore must hire people to advise them on coming into compliance with these rules.

Additionally, increased administrative costs due to reporting requirements also have a disproportionate effect on small businesses.  It is much easier for larger businesses to absorb these costs when they have hundreds of employees.  Businesses with fewer employees cannot spread the cost as much and therefore are placed with a greater regulatory cost impact.

The bill was not voted on in committee this past week.  We will keep you posted on its progress.  A similar bill was passed by the Senate last year.  

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