It’s been more than a month since the Georgia Senate passed a crucial measure to provide regulatory relief for Georgia small businesses, but as the Legislature begins its final week of the session, the measure is still pending in the House. The Red Tape Rollback Act (SB 28) advanced out of the Senate with a 33-21 vote in favor on February 24. A House Committee passed a substitute of the bill almost two weeks ago, and time is running out to get the bill over the finish line this session.
Among the bill’s many favorable changes, it would create a clear process for state policymakers to request a small business impact analysis for any bill introduced in the legislature. Having analysis specific to small businesses will be an important tool for legislators as they consider bills during the session and ensure that small businesses don’t get overlooked as the economic impact of legislation is discussed.
Even more importantly, the bill will mean direct regulatory relief for small businesses in the state. SB 28 would require state agencies to consider the economic impact of proposed rules, and the costliest rules—those with implementation and compliance costs over three million dollars for a five-year period—must be submitted to the legislature for approval. Subjecting regulations to legislative review, particularly in times of divided government, will mean that bad and more costly regulations are unlikely to withstand the review process. From a checks and balances/constitutional standpoint, this is also a positive change by potentially reining in rogue state agencies.
Also positive for small businesses, SB 28 would create a process for state agencies to periodically review all existing regulations over a four-year cycle and consider the costs, benefits, and alternatives of each rule, with public input. Agencies that have already taken steps to decrease regulations by 10 percent over the course of the cycle would be exempt from the review process, meaning the regulatory burden will decrease over time.
Quantifying the impact of pending legislation and regulations, particularly on small businesses, is likely to lead to better policies, with a more limited economic impact overall. The regulatory review process for all existing regulations is a crucial change for forcing agencies to consider less costly alternatives and to get defunct and bad regulations off the books. Together, these changes will be good for free enterprise in Georgia by lowering the compliance burden small businesses must deal with. With just a few days left this session, it’s vital that legislators advance SB 28 and send it to Governor Kemp’s desk.