Legislations’ impacts to be determined

As of October, state government agencies in Connecticut must 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,” said Gov. M. Jodi Rell, in a prepared statement. “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.”

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

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.

Rhode Island and Maine have passed similar legislation.