DOVER — A Republican member of the state House of Representatives is trying for a second time to make state agencies proposing new regulations consider impacts on businesses in the First State.
“Regulations carry the weight of law and may require businesses to make large investments in time and other resources to achieve compliance,” said Rep. Charles Postles, R-Milford, the prime sponsor of the bill not yet introduced.
Called the Regulatory Flexibility Act, the bill seeks to add an economic impact statement to the regulatory creation process.
State officials or agencies that propose a new rule expected to adversely impact small businesses would need to identify the affected enterprises and the administrative costs for compliance, as well as provide a description of any less intrusive or less expensive alternatives for achieving the same goal.
While present law requires every state regulation to be periodically reviewed, the new bill would mandate that this process emphasize minimizing the economic impact on small businesses. Under the bill, the agency would need to consider the continued need for the regulation, comments received from the public and the rule’s complexity. The review would also be required to look at the extent to which the regulation overlaps, duplicates or conflicts with other federal, state or local regulations; and the degree to which technology, economic conditions or other factors have changed since the regulation was put into place.
“I fully understand that regulations serve a valuable function, often playing a vital role in protecting public health, worker safety and the environment,” Rep. Postles said. “Having said that, the process of promulgating new regulations in Delaware is weighted in favor of the state agencies making the rules. It is easy for state officials to become so preoccupied with carrying out their agency’s mission that other valid considerations are not given proper attention, resulting in rules that needlessly hamper the viability of job-creating enterprises.”
Rep. Postles originally introduced a similar piece of legislation during the last legislative session but it failed to get a hearing in the House Administration Committee.
Rep. Postles said he is introducing a new version of the bill containing provisions to block any proposed regulations not complying with the economic impact disclosure reforms.
He added that he plans to work with other supporters of the measure to make a renewed push to get it to the floor for a vote before the end of the current legislative session.
“I hear entrepreneurs too frequently tell us that our state has become increasingly less business friendly over the last 10 to 15 years,” Rep. Postles said. “That’s a trend we need to reverse if we hope to have a brighter economic future. Small businesses are collectively our top employer in the state.”
