Oregon has moved to improve regulatory flexibility for small businesses operating in that state. The new law implements key elements of regulatory flexibility model legislation drafted by the Office of Advocacy of the U.S. Small Business Administration. Similar to the federal Regulatory Flexibility Act, the model legislation encourages entrepreneurial success by requiring state agencies to consider the impact of their policies on small business before they issue final regulations.
Specifically, the new law enhances Oregon’s administrative procedure laws by including a requirement that state agencies analyze the economic impact of a proposed regulation on small business before they regulate. It also requires state agencies to conduct a review of existing rules every five years to ensure the rule has had its intended effect and that there is a continued need for a rule. This new bill is an addition to existing regulatory flexibility laws in Oregon and completes a good regulatory framework for small businesses in that state.
The bill’s primary sponsor Representative Kim Thatcher said, “Small companies are the backbone of our state’s economy and should not have to shoulder disproportionate regulatory costs and burdens. Not only does the new law require agencies to understand the economic impact of their actions on small business before they regulate, but it also requires agencies to review existing regulations which may unduly burden small business.”
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