Oregon Increases Protections For Small Business

Gives Small Business A Voice In The State Regulatory Process

Oregon’s small businesses may experience a friendlier
regulatory environment, thanks to a new law that gives Oregon small
businesses a voice in the state’s regulatory process.

Upon signing the regulatory flexibility bill Governor Ted Kulongoski
said, “I’m pleased that our collaboration with the SBA and others has
delivered this model legislation for Oregon. These changes will help us
continue to strengthen Oregon’s business climate while maintaining our high
standards and quality of life.”

House Bill 3238 implements key elements of regulatory flexibility model
legislation (http://www.sba.gov/advo/laws/law_modeleg.html) 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. The addition of HB 3238 to Oregon’s existing
regulatory flexibility laws completes a good regulatory framework for small
businesses in that state.

“This bill enacts a long-sought reform: that when state agencies make a
rule, they should consider its impact on small businesses,” said House
Speaker Karen Minnis.

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.”

The bill received support from Oregon small business stakeholders,
including the Oregon National Federation of Independent Business and the
Office of Regulatory Streamlining, Oregon Department of Consumer and
Business Services.

For more information, visit the Small Business Friendly Regulation, Model
Legislation for States section of the Office of Advocacy website at
http://www.sba.gov/advo/laws/law_modeleg.html.