House Bill 1349, now known as Act 76, mandates that state agencies, when proposing a new regulation to the Independent Regulatory Review Commission, must identify the possible impacts on small businesses and provide alternative accommodating requirements.
The commission has the authority to reject proposals if it feels a regulation would not be in the best interest of the public.
Under the law, agencies must identify how a new regulation will affect businesses financially, economically and socially.
They also must estimate the number of small businesses that will be affected, project the cost of compliance for the small businesses and describe methods by which the state agency could reduce the proposed regulation’s impact.
York County Democratic Rep. Eugene DePasquale called the change an important move for Pennsylvania because it will ease the regulatory burdens placed on small, family-owned businesses.
The new law is expected to have only minimal, if any, effect on commonwealth funds, according to the fiscal note attached to the bill.
“It is anticipated that administrative staff within commonwealth agencies could absorb the extra step in the proposed regulatory process without adding additional staff,” the note prepared by the House Appropriations Committee said.