New Jersey Assembly Bill A147

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Expands scope of New Jersey Regulatory Flexibility Act dealing with economic impact of rules on small businesses.

Impact

The legislation seeks to streamline administrative processes, making it less burdensome for small businesses to comply with state regulations. Specifically, AB 147 requires that agencies consider several factors when proposing or re-adopting rules that may impact small businesses, including the necessity of the rule and feedback from the public. By mandating a regulatory flexibility analysis, the bill ensures that the needs and limitations of small businesses are considered, promoting a healthier business environment within New Jersey's economic landscape.

Summary

Assembly Bill 147 aims to amend the New Jersey Regulatory Flexibility Act with the goal of enhancing the law's application to small businesses. The bill defines small businesses as those with fewer than 100 full-time employees or annual sales under $6 million. It mandates that state agencies, when developing new rules, should seek to simplify reporting and compliance requirements to minimize the burden on small businesses, provided public health and safety are not compromised. This initiative reflects a recognition of the disproportionately high regulatory costs small businesses face, which can hinder their growth and innovation.

Contention

While supporters of AB 147 argue that it simplifies regulatory frameworks and encourages small business growth, opponents may raise concerns about the effectiveness of compliance oversight. Some may fear that loosening regulations could compromise public health and safety by allowing less stringent enforcement of regulations. Additionally, although aimed at reducing administrative burdens, the practical implementation of these measures may face challenges, including resistance from larger regulatory bodies used to more stringent oversight practices.