Governor Rell: New Law Aimed

at Helping Small Businesses

Governor M. Jodi Rell today announced that beginning October 1, Connecticut law requires state government agencies to 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,” Governor Rell said.  “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.  This is good news for small businesses and good news for jobs in Connecticut.”

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’s Regulations Review Committee.   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 as well as the Connecticut General Assembly’s Commerce Committee about the regulation if it could adversely affect small businesses.  

Connecticut also joins Rhode Island and Maine who passed similar legislation to boost their small business competitive environment.

Governor Rell signed HB 5930, “An Act Requiring Small Business Impact Analyses For Proposed Regulations,” on May 8, 2009.  The bill was passed unanimously by the General Assembly.