LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 1336

STATE OF NEW JERSEY

214th LEGISLATURE

 

DATED: DECEMBER 13, 2011

 

 

SUMMARY

 

Synopsis:

Expands scope of New Jersey Regulatory Flexibility Act dealing with economic impact of rules on small businesses.

Type of Impact:

Minimal.

Agencies Affected:

Office of Administrative Law; Division of Business Assistance, Marketing, and International Trade; and various State agencies.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Cost

Minimal

Minimal

Minimal

 

 

 

 

·        The Office of Legislative Services (OLS) estimates that this legislation will have no fiscal impact on State agencies because each entity can comply with the provisions of this legislation with available resources.

·        The OLS estimates that this legislation could have a minimal fiscal impact on the Judiciary.  The new appeals process could have a minimal fiscal impact; however, it is unclear to what extent small businesses will choose to file an appeal or have the resources to participate in such an appeals process.

·        This bill makes changes to the “New Jersey Regulatory Flexibility Act” in order to expand the scope of this law with regard to small businesses, defined as businesses that employ fewer than 100 full-time employees or having gross annual sales of less than $6 million.

·        The bill requires an agency to use, when developing rules, the consolidation or simplification of a compliance or reporting requirement for small businesses as an approach to minimize the rule’s impact on small businesses, so long as the public health, safety, or general public welfare is not endangered.

·        The bill requires an agency to consider, when re-adopting rules (generally done every five years), a series of factors, as part of the regulatory flexibility analysis to ensure that the rule continues to have a minimal impact on small businesses.  In all other cases, the agency must complete this analysis and file its findings for the record with the Office of Administrative Law and the Division of Business Assistance, Marketing, and International Trade.

·        The bill establishes a process by which a small business that is adversely affected economically or aggrieved by final rule-making action may file a petition with the agency objecting to all or a part of a rule subject to regulatory flexibility analysis and seek judicial review of a determination on the petition to the Appellate Division of the Superior Court.

 

 

BILL DESCRIPTION

 

Senate Bill No. 1336 (1R) of 2010 makes changes to the “New Jersey Regulatory Flexibility Act” in order to expand the scope of the law with regard to small businesses, defined as businesses that employ fewer than 100 full-time employees or having gross annual sales of less than $6 million.

The bill requires an agency to use, when developing rules, the consolidation or simplification of a compliance or reporting requirement for small businesses as an approach to minimize the rule’s impact on small businesses, so long as the public health, safety, or general public welfare is not endangered.

The bill requires an agency to consider, when re-adopting rules (generally done every five years), a series of factors, as part of the regulatory flexibility analysis to ensure that the rule continues to have a minimal impact on small businesses.  In all other cases, the agency must complete this analysis and file its findings for the record with the Office of Administrative Law and the Division of Business Assistance, Marketing, and International Trade.

The bill establishes a process by which a small business that is adversely affected economically or aggrieved by final rule-making action may file a petition with the agency objecting to all or a part of a rule subject to regulatory flexibility analysis and seek judicial review of a determination on the petition to the Appellate Division of the Superior Court.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

None received, however, the Judiciary provided an analysis of an identical bill, Assembly Bill No. 832 (1R) of 2008, which stated that although it is unable to precisely determine the fiscal impact of this legislation, it is anticipated that any fiscal impact would be nominal.

 

OFFICE OF LEGISLATIVE SERVICES

 

The OLS estimates that this legislation will have no fiscal impact on State agencies because each entity can comply with the provisions of this legislation with available resources.

The OLS concurs with the Judiciary in its estimate that it does not anticipate any significant fiscal impact from this legislation.  The appeals process, although new, could have a minimal fiscal impact; however, it is unclear to what extent small businesses will choose to file an appeal or have the resources to participate in such an appeals process.

 

 

Section:

Commerce, Labor and Industry

Analyst:

Robin C. Ford

Senior Fiscal Analyst

Approved:

David J. Rosen

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).