2006 Code of Virginia § 2.2-4007.1 - Regulatory flexibility for small businesses; periodic review of regulations.

2.2-4007.1. Regulatory flexibility for small businesses; periodic review ofregulations.

A. As used in this section, "small business" means a business entity,including its affiliates, that (i) is independently owned and operated and(ii) employs fewer than 500 full-time employees or has gross annual sales ofless than $6 million.

B. In addition to the requirements of 2.2-4007, prior to the adoption ofany proposed regulation, the agency proposing a regulation shall prepare aregulatory flexibility analysis in which the agency shall consider utilizingalternative regulatory methods, consistent with health, safety,environmental, and economic welfare, that will accomplish the objectives ofapplicable law while minimizing the adverse impact on small businesses. Theagency shall consider, at a minimum, each of the following methods ofreducing the effects of the proposed regulation on small businesses:

1. The establishment of less stringent compliance or reporting requirements;

2. The establishment of less stringent schedules or deadlines for complianceor reporting requirements;

3. The consolidation or simplification of compliance or reportingrequirements;

4. The establishment of performance standards for small businesses to replacedesign or operational standards required in the proposed regulation; and

5. The exemption of small businesses from all or any part of the requirementscontained in the proposed regulation.

C. Prior to the adoption of any proposed regulation that may have an adverseeffect on small businesses, each agency shall notify the Joint Commission onAdministrative Rules of its intent to adopt the proposed regulation. TheJoint Commission on Administrative Rules shall advise and assist agencies incomplying with the provisions of this section.

D. In addition to the requirements of 2.2-4017, on or before July 1, 2009,an agency shall review its existing regulations to determine whether theyshould be continued without change or be amended or repealed, consistent withthe stated objectives of applicable law, to minimize the economic impact ofregulations on small businesses. If an agency head determines that completionof the review of existing regulations is not feasible by July 1, 2009, thatagency shall publish a statement certifying that determination. An agency mayextend the date required by this subsection in increments of one year, not toexceed a total of five years.

E. In addition to other requirements of 2.2-4017, all final regulationsadopted after July 1, 2005, shall be reviewed every five years to ensure thatthey minimize the economic impact on small businesses in a manner consistentwith the stated objectives of applicable law.

F. The regulatory review required by this section shall include considerationof:

1. The continued need for the rule;

2. The nature of complaints or comments received concerning the regulationfrom the public;

3. The complexity of the regulation;

4. The extent to which the regulation overlaps, duplicates, or conflicts withfederal or state law or regulation; and

5. The length of time since the regulation has been evaluated or the degreeto which technology, economic conditions, or other factors have changed inthe area affected by the regulation.

(2005, cc. 619, 682.)