Virginia small business owners may soon feel relief with new oversight legislation on regulations.
The Virginia General Assembly passed a bill that will give them more oversight on regulations that could derail small business in the state. Gov. McAuliffe signed the legislation earlier this week.
The Administrative Process Act requires a full economic analysis before regulations can be put in place.
“Small businesses across the state are seeking relief from burdensome regulations, and this legislation helps to ensure that the General Assembly understands the anticipated effects of a proposed regulation before it becomes effective,” NFIB/Virginia state director Nicole Riley said in a statement.
As approved by Gov. McAuliffe, any agency that puts forth a proposal for regulations must also send a copy of that regulation to the Department of Planning and Budget for an economic impact analysis. The agency, in conjunction with the department, would need to complete the economic impact analysis within 45 days to fully understand the number of businesses and entities that would be affected by the regulation.
“This is my fourth legislative session in the House, and in that time the number of harmful rules and regulations that have been proposed has increased,” Delegate Margaret Ransone, who wrote the bill, told Northern Neck News. “This legislation aims to protect small businesses, local governments and other entities by ensuring the legislative branch is appropriately reviewing these regulations before they are implemented.”
The Administrative Process Act will strengthen small business interests in Virginia. Should the economic impact analysis indicate an adverse effect on small business, the report must also include the number of businesses that will be affected and what those administrative compliance costs will be for business owners.
At the end of 2014, Virginia was ranked as the fourth best state in the U.S. for business by Forbes, dropping down from the top spot the year before. One reason the Commonwealth has remained at the top is due to its regulatory environment, which was rated No. 1 by Forbes. With the passage of this new oversight, there is reason to believe the regulatory environment in the state will remain friendly for small business by requiring more scrutiny for future proposals.
