HB 7109

1
A bill to be entitled
2An act relating to small business regulatory relief;
3creating s. 11.9006, F.S.; providing a short title;
4providing findings and purpose; providing definitions;
5creating the Small Business Regulatory Advisory Council;
6providing for appointments, membership, and meetings;
7providing powers and duties of the council; providing for
8per diem and travel expenses of members; providing
9administrative location for council; providing for
10periodic review of agency rules by the council with agency
11sunset review; providing timelines for review; providing
12for the council to issue a report; creating s. 11.9007,
13F.S.; providing findings and purpose; providing
14definitions; creating the Office of Small Business
15Advocate; providing for selection of the Florida Small
16Business Advocate; providing for preferred qualifications
17of the advocate; providing duties of the advocate;
18providing for agency cooperation with the advocate;
19providing for an annual report by the advocate to the
20Governor and Legislature; amending s. 11.908, F.S.;
21including the Small Business Regulatory Advisory Council
22among groups that may be consulted for agency or committee
23review; amending s. 11.911, F.S.; providing for the
24inclusion of the report of the Small Business Regulatory
25Advisory Council in the Legislative Sunset Committee's
26recommendations; amending s. 11.919, F.S.; authorizing the
27Small Business Regulatory Advisory Council to access or
28request information and assistance of state agencies and
29officers; authorizing the council to inspect agency
30documents; amending s. 120.54, F.S.; requiring each agency
31to prepare a statement of estimated regulatory costs under
32certain circumstances; requiring written agency
33notification to the Small Business Regulatory Advisory
34Council relating to proposed agency action affecting small
35business; requiring the agency to adopt regulatory
36alternatives offered by the council under certain
37circumstances; providing for rule filing extension when
38regulatory alternatives are offered by the council;
39providing for outside review of regulatory alternatives
40not adopted by the agency for agency response; amending s.
41120.74, F.S.; requiring biennial rule review by each
42agency to consider the impact of rules on small business;
43requiring the economic impact of the rules to be included
44in a report to the Legislature; providing an effective
45date.
46
47Be It Enacted by the Legislature of the State of Florida:
48
49     Section 1.  Section 11.9006, Florida Statutes, is created
50to read:
51     11.9006  Small Business Regulatory Advisory Council.--
52     (1)  SHORT TITLE.--This section may be cited as the "Small
53Business Regulatory Relief Act."
54     (2)  FINDINGS AND PURPOSE.--
55     (a)  A vibrant and growing small business sector is
56critical in creating jobs in a dynamic economy;
57     (b)  At times, small businesses bear a disproportionate
58share of regulatory costs and burdens;
59     (c)  Fundamental changes that are needed in the regulatory
60culture of state agencies to make them not only more responsive,
61but responsive in a timely fashion, to small business should be
62made without compromising the statutory missions of the
63agencies;
64     (d)  When adopting rules to protect the health, safety, and
65economic welfare of the state, agencies should seek to achieve
66statutory goals as effectively and efficiently as possible
67without imposing unnecessary burdens on small businesses;
68     (e)  Uniform regulatory reporting requirements can impose
69unnecessary and disproportionately burdensome demands, including
70legal, accounting, and consulting costs, upon small businesses
71with limited resources;
72     (f)  The failure to recognize differences in the scale and
73resources of regulated businesses can adversely affect
74competition in the marketplace, discourage innovation, and
75restrict improvements in productivity;
76     (g)  Unnecessary rules create entry barriers in many
77industries and discourage potential entrepreneurs from
78introducing beneficial products and processes;
79     (h)  The practice of treating all regulated businesses as
80equivalent may lead to inefficient use of agency resources,
81enforcement problems and, in some cases, actions inconsistent
82with stated legislative intent of health, safety, environmental,
83economic welfare, and other legislation; and
84     (i)  Alternative regulatory approaches that do not conflict
85with applicable statutes may be available to minimize the
86significant economic impact of rules on small businesses.
87     (3)  DEFINITIONS.--As used in this section:
88     (a)  "Agency" means an agency as defined in s. 120.52.
89     (b)  "Council" means the Small Business Regulatory Advisory
90Council.
91     (c)  "Rule" means a rule as defined by s. 120.52.
92     (d)  "Small business" means a small business as defined in
93s. 288.703.
94     (4)  CREATION OF THE SMALL BUSINESS REGULATORY ADVISORY
95COUNCIL; MEMBERSHIP; POWERS AND DUTIES.--
96     (a)  The Small Business Regulatory Advisory Council is
97created. The council shall consist of nine members who are
98current or former small business owners, three appointed by the
99Governor, three appointed by the President of the Senate, and
100three appointed by the Speaker of the House of Representatives.
101The initial appointments to the council must be made within 60
102days from the effective date of this act. The members shall be
103from different geographic regions of the state. Members shall
104serve 4-year terms; however, in order to establish staggered
105terms, for the initial appointments, each appointing official
106shall appoint one member to a 2-year term and two members to a
1074-year term. A member may not serve more than three consecutive
108terms. Members shall select the chairperson from among the
109members of the council. The council shall meet quarterly or upon
110the call of the chairperson. A majority of the members
111constitutes a quorum for the conduct of business. Members of the
112council shall serve without compensation. Members are entitled
113to reimbursement for per diem and travel expenses as provided in
114s. 112.061. The appointing official may remove his or her
115appointee without cause at any time. A member whose term has
116expired shall continue to serve on the council until such time
117as a replacement is appointed. Vacancies shall be filled for the
118remainder of the term and by the original appointing official.
119     (b)  The council is independent from but administratively
120attached to the Office of Tourism, Trade, and Economic
121Development, which shall provide staff support to the council.
122     (c)  The council may:
123     1.  Provide agencies with recommendations regarding
124proposed rules or programs that may adversely affect small
125business;
126     2.  Consider requests from small business owners to review
127rules or programs adopted by an agency;
128     3.  Consider requests from small business owners to review
129small business owners' private property rights related to rules
130or programs adopted or implemented by an agency; and
131     4.  Review rules promulgated by an agency to determine
132whether a rule places an unnecessary burden on small business
133and make recommendations to the agency to mitigate the adverse
134effects.
135     (d)  The council does not have authority to:
136     1.  Initiate or intervene in any administrative or judicial
137proceeding; or
138     2.  Issue subpoenas.
139     (e)  The council shall prepare and submit a written annual
140report to the Governor, the President of the Senate, and the
141Speaker of the House of Representatives that describes the
142activities and recommendations of the council.
143     (5)  PERIODIC REVIEW OF RULES.--
144     (a)  In coordination with the sunset review schedule
145provided in s. 11.905, the council may review rules of agencies
146subject to sunset review to determine whether the rules should
147be continued without change or should be amended or repealed to
148reduce the impact of the rules on small businesses, subject to
149the requirement that the recommendations of the council must be
150feasible and consistent with the stated objectives of the rules.
151     (b)  In reviewing agency rules to reduce the impact on
152small businesses, the council, in coordination with the agency,
153shall consider the following factors:
154     1.  Continued need for the rule;
155     2.  The nature of complaints or comments received from the
156public concerning the rule;
157     3.  The complexity of the rule;
158     4.  The extent to which the rule overlaps, duplicates, or
159conflicts with other federal, state, and local government rules;
160and
161     5.  The length of time since the rule has been evaluated or
162the degree to which technology, economic conditions, or other
163factors have changed in the topical area affected by the rule.
164     (c)  Within 6 months after the agency report is submitted
165to the Joint Legislative Sunset Committee pursuant to s. 11.907,
166the council shall provide a report to the Governor, the
167President of the Senate, the Speaker of the House of
168Representatives, and the Joint Legislative Sunset Committee that
169includes recommendations and evaluations of agency rules and
170programs regarding regulatory fairness for small businesses. A
171component of the report shall be a rating system, developed by
172the council, entitled "Small Business Friendliness and
173Development Scorecard."
174     Section 2.  Section 11.9007, Florida Statutes, is created
175to read:
176     11.9007  Office of Small Business Advocate.--
177     (1)  FINDINGS AND PURPOSE.--
178     (a)  The Legislature finds and declares that it is in the
179public interest to aid, counsel, assist, and protect, insofar as
180is possible, the interests of small business concerns in order
181to preserve free competitive enterprise and maintain a healthy
182state economy.
183     (b)  The Legislature finds that the state should provide a
184point person to advocate the causes of small business and to
185provide small businesses with the information they need to
186survive in the marketplace.
187     (2)  DEFINITIONS.--
188     (a)  "Advocate" means the Florida Small Business Advocate,
189who is also the director of the Office of Small Business
190Advocate.
191     (b)  "Director" means the director of the Office of Small
192Business Advocate.
193     (c)  "Office" means the Office of Small Business Advocate.
194     (3)  OFFICE OF SMALL BUSINESS ADVOCATE; CREATION.--The
195Office of Small Business Advocate is created within the Office
196of Tourism, Trade, and Economic Development and the director
197shall be the Florida Small Business Advocate.
198     (4)  DIRECTOR OF THE OFFICE OF SMALL BUSINESS ADVOCATE;
199APPOINTMENT; DUTIES.--
200     (a)  The advocate shall be an employee and may be the
201director of the Office of Tourism, Trade, and Economic
202Development. Preferred qualifications for the advocate include
203at least 5 years' experience in small business, extensive
204knowledge of the issues and challenges of importance to small
205business, and actual experience in small business advocacy and
206assistance.
207     (b)  The duties and functions of the advocate shall include
208the following:
209     1.  Act as staff for the Small Business Regulatory Advisory
210Council.
211     2.  Serve as principal advocate in the state on behalf of
212small businesses, including, but not limited to, advisory
213participation in the consideration of all legislation and
214administrative rules that affect small businesses and advocacy
215on state policy and programs related to small businesses on
216disaster preparedness and recovery, including providing
217technical assistance.
218     3.  Represent the views and interests of small businesses
219before agencies whose policies and activities may affect small
220businesses. Among other activities, the advocate may encourage
221standardized applications and information packages that would
222include all the information needed by each agency that a
223business has to deal with to prevent an applicant from having to
224fill out duplicative information on forms from various agencies.
225     4.  Enlist the cooperation and assistance of public and
226private agencies, businesses, and other organizations in
227disseminating information about the programs and services
228provided by all levels of government that are of benefit to
229small businesses and information on how small businesses can
230participate in, or make use of, those programs and services.
231     5.  Issue a report every 2 years evaluating the efforts of
232agencies that significantly regulate small businesses, to assist
233minority and other small business enterprises and to make
234recommendations that may be appropriate to assist the
235development and strengthening of minority and other small
236business enterprises.
237     6.  Consult with experts and authorities in the fields of
238small business investment, venture capital investment, and
239commercial banking and other comparable financial institutions
240involved in the financing of business; with individuals with
241regulatory, legal, economic, or financial expertise, including
242members of the academic community; and with individuals who
243generally represent the public interest.
244     7.  Seek the assistance and cooperation of all agencies and
245departments providing services to, or affecting, small business,
246to ensure coordination of state efforts.
247     8.  Receive and respond to complaints from small businesses
248concerning the actions of agencies and the operative effects of
249state laws and regulations adversely affecting those businesses.
250The advocate shall establish an annual process for small
251businesses to nominate agency rules or programs for reform. The
252advocate shall publish those nominations online and update the
253status of agency action on the proposed reforms twice yearly.
254     9.  Counsel small businesses on how to resolve questions
255and problems concerning the relationship of small business to
256state government.
257     10.  Maintain, publicize, and distribute an annual list of
258persons serving as small business ombudsmen throughout state
259government.
260     11.  Coordinate a statewide conference on small business
261with public and private organizations and entities impacting
262small business in the state.
263     12.  Coordinate annual public meetings to share best
264practices for small business disaster preparedness. The meetings
265shall be held in consultation with regional and statewide small
266business organizations and shall take place in different
267locations throughout the state.
268     (5)  REPORTS, DOCUMENTS, AND INFORMATION FURNISHED TO THE
269SMALL BUSINESS ADVOCATE; ANNUAL REPORTS.--
270     (a)  Each agency of the state shall furnish to the advocate
271the reports, documents, and information that are public records
272and that the director deems necessary to carry out his or her
273functions under this chapter.
274     (b)  The advocate shall prepare and submit a written annual
275report to the Governor, the President of the Senate, and the
276Speaker of the House of Representatives that describes the
277activities and recommendations of the office.
278     Section 3.  Subsection (2) of section 11.908, Florida
279Statutes, is amended to read:
280     11.908  Committee duties.--No later than March 1 of the
281year in which a state agency or its advisory committees are
282scheduled to be reviewed, the committee shall and the joint
283committee may:
284     (2)  Consult with the Legislative Budget Commission, the
285Small Business Regulatory Advisory Council, relevant substantive
286and appropriations committees of the Senate and the House of
287Representatives, the Governor's Office of Policy and Budgeting,
288the Auditor General, and the Chief Financial Officer, or their
289successors, relating to the review of the agency and its
290advisory committees.
291     Section 4.  Paragraph (a) of subsection (2) of section
29211.911, Florida Statutes, is amended to read:
293     11.911  Committee recommendations.--
294     (2)  In its report on a state agency, the joint committee
295shall:
296     (a)  Make recommendations on the abolition, continuation,
297or reorganization of each state agency and its advisory
298committees and on the need for the performance of the functions
299of the agency and its advisory committees. If the committee
300recommends continuation or reorganization, the committee shall
301include in its recommendations the report of the Small Business
302Regulatory Advisory Council, as provided in s. 11.9006,
303regarding the rules of each agency.
304     Section 5.  Subsection (1) of section 11.919, Florida
305Statutes, is amended to read:
306     11.919  Assistance of and access to state agencies.--
307     (1)  The committee and the Small Business Regulatory
308Advisory Council may access or request information and request
309the assistance of state agencies and officers. When assistance
310is requested, a state agency or officer shall assist the
311committee and the Small Business Regulatory Advisory Council.
312     Section 6.  Paragraph (b) of subsection (3) of section
313120.54, Florida Statutes, is amended to read:
314     120.54  Rulemaking.--
315     (3)  ADOPTION PROCEDURES.--
316     (b)  Special matters to be considered in rule adoption.--
317     1.  Statement of estimated regulatory costs.--Prior to the
318adoption, amendment, or repeal of any rule other than an
319emergency rule, an agency is encouraged to prepare a statement
320of estimated regulatory costs of the proposed rule, as provided
321by s. 120.541. However, an agency shall prepare a statement of
322estimated regulatory costs of the proposed rule, as provided by
323s. 120.541, if the proposed rule will have an impact on small
324business.
325     2.  Small businesses, small counties, and small cities.--
326     a.  Each agency, before the adoption, amendment, or repeal
327of a rule, shall consider the impact of the rule on small
328businesses as defined by s. 288.703 and the impact of the rule
329on small counties or small cities as defined by s. 120.52.
330Whenever practicable, an agency shall tier its rules to reduce
331disproportionate impacts on small businesses, small counties, or
332small cities to avoid regulating small businesses, small
333counties, or small cities that do not contribute significantly
334to the problem the rule is designed to address. An agency may
335define "small business" to include businesses employing more
336than 100 persons, may define "small county" to include those
337with populations of more than 75,000, and may define "small
338city" to include those with populations of more than 10,000, if
339it finds that such a definition is necessary to adapt a rule to
340the needs and problems of small businesses, small counties, or
341small cities. The agency shall consider each of the following
342methods for reducing the impact of the proposed rule on small
343businesses, small counties, and small cities, or any combination
344of these entities:
345     (I)  Establishing less stringent compliance or reporting
346requirements in the rule.
347     (II)  Establishing less stringent schedules or deadlines in
348the rule for compliance or reporting requirements.
349     (III)  Consolidating or simplifying the rule's compliance
350or reporting requirements.
351     (IV)  Establishing performance standards or best-management
352practices to replace design or operational standards in the
353rule.
354     (V)  Exempting small businesses, small counties, or small
355cities from any or all requirements of the rule.
356     b.(I)  If the agency determines that the proposed action
357will affect small businesses as defined by the agency as
358provided in sub-subparagraph a., the agency shall send written
359notice of the rule to the Small Business Regulatory Advisory
360Council small business ombudsman of the Office of Tourism,
361Trade, and Economic Development not less than 28 days prior to
362the intended action.
363     (II)  Each agency shall adopt those regulatory alternatives
364offered by the Small Business Regulatory Advisory Council
365ombudsman and provided to the agency no later than 21 days after
366the council's ombudsman's receipt of the written notice of the
367rule which it finds are feasible and consistent with the stated
368objectives of the proposed rule and which would reduce the
369impact on small businesses. When regulatory alternatives are
370offered by the Small Business Regulatory Advisory Council
371ombudsman, the 90-day period for filing the rule in subparagraph
372(e)2. is extended for a period of 21 days.
373     (III)  If an agency does not adopt all alternatives offered
374pursuant to this sub-subparagraph, it shall, prior to rule
375adoption or amendment and pursuant to subparagraph (d)1., file a
376detailed written statement with the committee explaining the
377reasons for failure to adopt such alternatives. Within 3 working
378days of the filing of such notice, the agency shall send a copy
379of such notice to the Small Business Regulatory Advisory Council
380ombudsman. The Small Business Regulatory Advisory Council may
381request that the Office of Program Policy Analysis and
382Government Accountability determine whether the rejected
383alternatives reduce the impact on small business while meeting
384the stated objectives of the proposed rule. Within 30 days after
385the date of the request, the Office of Program Policy Analysis
386and Government Accountability shall report to the committee its
387findings as to whether an alternative reduces the impact on
388small business while meeting the stated objectives of the
389proposed rule. The Office of Program Policy Analysis and
390Government Accountability shall consider the proposed rule, the
391economic impact statement, the written statement of the agency,
392the proposed alternatives, and any comment submitted during the
393comment period on the proposed rule. The committee shall report
394such findings to the agency, and the agency shall respond in
395writing to the committee if the Office of Program Policy
396Analysis and Government Accountability found that the
397alternative reduced the impact on small business while meeting
398the stated objectives of the proposed rule. If the agency
399decides not to adopt the alternative, it must provide a detailed
400written statement to the committee as to why it will not adopt
401the alternative.
402     Section 7.  Section 120.74, Florida Statutes, is amended to
403read:
404     120.74  Agency review, revision, and report.--
405     (1)  Each agency shall review and revise its rules as often
406as necessary to ensure that its rules are correct and comply
407with statutory requirements. Additionally, each agency shall
408perform a formal review of its rules every 2 years. In the
409review, each agency must:
410     (a)  Identify and correct deficiencies in its rules;
411     (b)  Clarify and simplify its rules;
412     (c)  Delete obsolete or unnecessary rules;
413     (d)  Delete rules that are redundant of statutes;
414     (e)  Seek to improve efficiency, reduce paperwork, or
415decrease costs to government and the private sector; and
416     (f)  Contact agencies that have concurrent or overlapping
417jurisdiction to determine whether their rules can be coordinated
418to promote efficiency, reduce paperwork, or decrease costs to
419government and the private sector; and.
420     (g)  Determine whether the rules should be continued
421without change or should be amended or repealed to reduce the
422impact on small business while meeting the stated objectives of
423the proposed rule.
424     (2)  Beginning October 1, 1997, and by October 1 of every
425other year thereafter, the head of each agency shall file a
426report with the President of the Senate, the Speaker of the
427House of Representatives, and the committee, with a copy to each
428appropriate standing committee of the Legislature, which
429certifies that the agency has complied with the requirements of
430this subsection. The report must specify any changes made to its
431rules as a result of the review and, when appropriate, recommend
432statutory changes that will promote efficiency, reduce
433paperwork, or decrease costs to government and the private
434sector. The report must specifically address the economic impact
435of the rules on small business. The report must identify the
436types of cases or disputes in which the agency is involved which
437should be conducted under the summary hearing process described
438in s. 120.574.
439     Section 8.  This act shall take effect July 1, 2008.


CODING: Words stricken are deletions; words underlined are additions.