Senate Bill 112, as amended by the House Committee on State Affairs, amends the
Administrative Procedures Act, found in chapter 1-26, by requiring agencies to develop an
impact statement on small business when promulgating rules. Section 1 of the bill defines "small
business" as a business entity that employs 25 or fewer employees. Section 2 of the bill requires
an agency to develop an impact statement when any proposed rule has a direct impact on small
business. The impact statement is to include the following:
1 .
A narrative explaining the effect of the proposed rule on small business, and why the rule
is needed;
2 .
Identifying and estimating the number of small businesses that would be subject to the
proposed rule;
3 .
The projected reporting and record keeping required for compliance, including the types
of skills necessary for a small business to keep or report records;
4 .
A statement of the probable effect on impacted small business; and
5 .
A description of any alternative to the proposed rule that would be less intrusive or less
costly.
The Department of Game, Fish, and Parks is exempted from SB 112.
Due to the complex nature of the promulgation of rules, the cost of SB 112 cannot be
readily determined. The bill expands the promulgating duties of agencies. However, in
Section 2 of the bill, agencies are only required to use information which is readily available and
from existing resources when developing an impact statement.
APPROVED BY:_______________________________________ DATE:____________