| 1 | A bill to be entitled |
| 2 | An act relating to small business regulatory relief; |
| 3 | creating s. 288.001, F.S.; designating the Florida Small |
| 4 | Business Development Center Network as the principal |
| 5 | business assistance organization for small businesses in |
| 6 | the state; creating s. 288.7001, F.S.; providing a short |
| 7 | title; providing definitions; creating the Small Business |
| 8 | Regulatory Advisory Council; providing for appointments, |
| 9 | membership, and meetings; providing powers and duties of |
| 10 | the council; providing administrative location for |
| 11 | council; providing for periodic review of agency rules by |
| 12 | the council with agency sunset review; providing timelines |
| 13 | for review; providing for the council to issue a report; |
| 14 | creating s. 288.7002, F.S.; providing definitions; |
| 15 | creating the Office of Small Business Advocate; providing |
| 16 | for selection of the Florida Small Business Advocate; |
| 17 | providing for preferred qualifications of the advocate; |
| 18 | providing duties of the advocate; providing for agency |
| 19 | cooperation with the advocate; providing for an annual |
| 20 | report by the advocate to the Governor and Legislature; |
| 21 | amending s. 11.908, F.S.; including the Small Business |
| 22 | Regulatory Advisory Council among groups that may be |
| 23 | consulted for agency or committee review; amending s. |
| 24 | 11.911, F.S.; providing for the inclusion of the report of |
| 25 | the Small Business Regulatory Advisory Council in the |
| 26 | Legislative Sunset Committee's recommendations; amending |
| 27 | s. 11.919, F.S.; requiring agency assistance to the Small |
| 28 | Business Regulatory Advisory Council; authorizing the |
| 29 | council to access or request information and assistance; |
| 30 | amending s. 120.54, F.S.; requiring an agency to prepare a |
| 31 | statement of estimated regulatory costs; requiring agency |
| 32 | notification to the Small Business Regulatory Advisory |
| 33 | Council relating to proposed agency action affecting small |
| 34 | business; requiring an agency to adopt regulatory |
| 35 | alternatives offered by the council under certain |
| 36 | circumstances; providing for rule filing extension when |
| 37 | regulatory alternatives are offered by the council; |
| 38 | providing for outside review of regulatory alternatives |
| 39 | not adopted by an agency and for an agency response; |
| 40 | amending s. 120.74, F.S.; requiring biennial rule review |
| 41 | by each agency to consider the impact of rules on small |
| 42 | business; requiring the economic impact of the rules to be |
| 43 | included in a report to the Legislature; providing an |
| 44 | effective date. |
| 45 |
|
| 46 | Be It Enacted by the Legislature of the State of Florida: |
| 47 |
|
| 48 | Section 1. Section 288.001, Florida Statutes, is created |
| 49 | to read: |
| 50 | 288.001 The Florida Small Business Development Center |
| 51 | Network; purpose.--The Florida Small Business Development Center |
| 52 | Network is the principal business assistance organization for |
| 53 | small businesses in the state. |
| 54 | Section 2. Section 288.7001, Florida Statutes, is created |
| 55 | to read: |
| 56 | 288.7001 Small Business Regulatory Advisory Council.-- |
| 57 | (1) SHORT TITLE.--This section may be cited as the "Small |
| 58 | Business Regulatory Relief Act." |
| 59 | (2) DEFINITIONS.--As used in this section, the term: |
| 60 | (a) "Agency" means an agency as defined in s. 120.52. |
| 61 | (b) "Council" means the Small Business Regulatory Advisory |
| 62 | Council. |
| 63 | (c) "Rule" means a rule as defined in s. 120.52. |
| 64 | (d) "Small business" means a small business as defined in |
| 65 | s. 288.703. |
| 66 | (3) CREATION OF SMALL BUSINESS REGULATORY ADVISORY |
| 67 | COUNCIL; MEMBERSHIP; POWERS AND DUTIES.-- |
| 68 | (a) The Small Business Regulatory Advisory Council is |
| 69 | created. The council shall consist of nine members who are |
| 70 | current or former small business owners, three appointed by the |
| 71 | Governor, three appointed by the President of the Senate, and |
| 72 | three appointed by the Speaker of the House of Representatives. |
| 73 | The initial appointments to the council must be made within 60 |
| 74 | days after the effective date of this act. The members shall be |
| 75 | from different geographic regions of the state. Members shall |
| 76 | serve 4-year terms; however, in order to establish staggered |
| 77 | terms, for the initial appointments, each appointing official |
| 78 | shall appoint one member to a 2-year term and two members to a |
| 79 | 4-year term. A member shall not serve more than three |
| 80 | consecutive terms. Members shall select the chairperson from |
| 81 | among the members of the council. The council shall meet |
| 82 | quarterly or upon the call of the chairperson. A majority of the |
| 83 | members constitutes a quorum for the conduct of business. |
| 84 | Members of the council shall serve without compensation. The |
| 85 | appointing official may remove his or her appointee without |
| 86 | cause at any time. A member whose term has expired shall |
| 87 | continue to serve on the council until such time as a |
| 88 | replacement is appointed. Vacancies shall be filled for the |
| 89 | remainder of the term and by the original appointing official. |
| 90 | (b) The council is established, assigned to, and |
| 91 | administratively housed within the Florida Small Business |
| 92 | Development Center Network, which shall provide staff support to |
| 93 | the council. |
| 94 | (c) The council may: |
| 95 | 1. Provide agencies with recommendations regarding |
| 96 | proposed rules or programs that may adversely affect small |
| 97 | business; |
| 98 | 2. Consider requests from small business owners to review |
| 99 | rules or programs adopted by an agency; |
| 100 | 3. Consider requests from small business owners to review |
| 101 | small business owners' private property rights related to rules |
| 102 | or programs adopted or implemented by an agency; and |
| 103 | 4. Review rules promulgated by an agency to determine |
| 104 | whether a rule places an unnecessary burden on small business |
| 105 | and make recommendations to the agency to mitigate the adverse |
| 106 | effects. |
| 107 | (d) The council does not have authority to: |
| 108 | 1. Initiate or intervene in any administrative or judicial |
| 109 | proceeding; or |
| 110 | 2. Issue subpoenas. |
| 111 | (e) The council shall prepare and submit a written annual |
| 112 | report to the Governor, the President of the Senate, and the |
| 113 | Speaker of the House of Representatives that describes the |
| 114 | activities and recommendations of the council. |
| 115 | (4) PERIODIC REVIEW OF RULES.-- |
| 116 | (a) In coordination with the sunset review schedule |
| 117 | provided in s. 11.905, the council may review rules of agencies |
| 118 | subject to sunset review to determine whether the rules should |
| 119 | be continued without change or should be amended or repealed to |
| 120 | reduce the impact of the rules on small businesses, subject to |
| 121 | the requirement that the recommendations of the council must be |
| 122 | feasible and consistent with the stated objectives of the rules. |
| 123 | (b) In reviewing agency rules to reduce the impact on |
| 124 | small businesses, the council, in coordination with the agency, |
| 125 | shall consider the following factors: |
| 126 | 1. Continued need for the rule; |
| 127 | 2. The nature of complaints or comments received from the |
| 128 | public concerning the rule; |
| 129 | 3. The complexity of the rule; |
| 130 | 4. The extent to which the rule overlaps, duplicates, or |
| 131 | conflicts with other federal, state, and local government rules; |
| 132 | and |
| 133 | 5. The length of time since the rule has been evaluated or |
| 134 | the degree to which technology, economic conditions, or other |
| 135 | factors have changed in the topical area affected by the rule. |
| 136 | (c) Within 6 months after the agency report is submitted |
| 137 | to the Joint Legislative Sunset Committee pursuant to s. 11.907, |
| 138 | the council shall provide a report to the Governor, the |
| 139 | President of the Senate, the Speaker of the House of |
| 140 | Representatives, and the Joint Legislative Sunset Committee that |
| 141 | includes recommendations and evaluations of agency rules and |
| 142 | programs regarding regulatory fairness for small businesses. A |
| 143 | component of the report shall be a rating system, developed by |
| 144 | the council, entitled "Small Business Friendliness and |
| 145 | Development Scorecard." |
| 146 | Section 3. Section 288.7002, Florida Statutes, is created |
| 147 | to read: |
| 148 | 288.7002 Small business advocate.-- |
| 149 | (1) DEFINITIONS.-- |
| 150 | (a) "Advocate" means the Florida Small Business Advocate, |
| 151 | who is also the Director of the Office of Small Business |
| 152 | Advocate. |
| 153 | (b) "Director" means the Director of the Office of Small |
| 154 | Business Advocate. |
| 155 | (c) "Office" means the Office of Small Business Advocate. |
| 156 | (2) OFFICE OF SMALL BUSINESS ADVOCATE.--The Office of |
| 157 | Small Business Advocate is established, assigned to, and |
| 158 | administratively housed within the Florida Small Business |
| 159 | Development Center Network. The director shall be the Florida |
| 160 | Small Business Advocate. |
| 161 | (3) DIRECTOR OF THE OFFICE OF SMALL BUSINESS ADVOCATE; |
| 162 | APPOINTMENT; DUTIES.-- |
| 163 | (a) The advocate shall be selected by the director of the |
| 164 | Florida Small Business Development Center Network and shall be |
| 165 | an employee of or under contract with the Florida Small Business |
| 166 | Development Center Network. Preferred qualifications for the |
| 167 | advocate include at least 5 years' experience in small business, |
| 168 | extensive knowledge of the issues and challenges of importance |
| 169 | to small business, and actual experience in small business |
| 170 | advocacy and assistance. |
| 171 | (b) The duties and functions of the advocate shall include |
| 172 | the following: |
| 173 | 1. Act as staff for the Small Business Regulatory Advisory |
| 174 | Council. |
| 175 | 2. Serve as principal advocate in the state on behalf of |
| 176 | small businesses, including, but not limited to, advisory |
| 177 | participation in the consideration of all legislation and |
| 178 | administrative rules that affect small businesses and advocacy |
| 179 | on state policy and programs related to small businesses on |
| 180 | disaster preparedness and recovery, including providing |
| 181 | technical assistance. |
| 182 | 3. Represent the views and interests of small businesses |
| 183 | before agencies whose policies and activities may affect small |
| 184 | businesses. Among other activities, the advocate may encourage |
| 185 | standardized applications and information packages that would |
| 186 | include all the information needed by each agency that a |
| 187 | business has to deal with to prevent an applicant from having to |
| 188 | fill out duplicative information on forms from various agencies. |
| 189 | 4. Enlist the cooperation and assistance of public and |
| 190 | private agencies, businesses, and other organizations in |
| 191 | disseminating information about the programs and services |
| 192 | provided by all levels of government that are of benefit to |
| 193 | small businesses and information on how small businesses can |
| 194 | participate in, or make use of, those programs and services. |
| 195 | 5. Issue a report every 2 years evaluating the efforts of |
| 196 | agencies that significantly regulate small businesses, to assist |
| 197 | minority and other small business enterprises and to make |
| 198 | recommendations that may be appropriate to assist the |
| 199 | development and strengthening of minority and other small |
| 200 | business enterprises. |
| 201 | 6. Consult with experts and authorities in the fields of |
| 202 | small business investment, venture capital investment, and |
| 203 | commercial banking and other comparable financial institutions |
| 204 | involved in the financing of business; with individuals with |
| 205 | regulatory, legal, economic, or financial expertise, including |
| 206 | members of the academic community; and with individuals who |
| 207 | generally represent the public interest. |
| 208 | 7. Seek the assistance and cooperation of all agencies and |
| 209 | departments providing services to, or affecting, small business, |
| 210 | to ensure coordination of state efforts. |
| 211 | 8. Receive and respond to complaints from small businesses |
| 212 | concerning the actions of agencies and the operative effects of |
| 213 | state laws and regulations adversely affecting those businesses. |
| 214 | The advocate shall establish an annual process for small |
| 215 | businesses to nominate agency rules or programs for reform. The |
| 216 | advocate shall publish those nominations online and update the |
| 217 | status of agency action on the proposed reforms twice yearly. |
| 218 | 9. Counsel small businesses on how to resolve questions |
| 219 | and problems concerning the relationship of small business to |
| 220 | state government. |
| 221 | 10. Maintain, publicize, and distribute an annual list of |
| 222 | persons serving as small business ombudsmen throughout state |
| 223 | government. |
| 224 | 11. Coordinate a statewide conference on small business |
| 225 | with public and private organizations and entities impacting |
| 226 | small business in the state. |
| 227 | 12. Coordinate annual public meetings to share best |
| 228 | practices for small business disaster preparedness. The meetings |
| 229 | shall be held in consultation with regional and statewide small |
| 230 | business organizations and shall take place in different |
| 231 | locations throughout the state. |
| 232 | (4) REPORTS, DOCUMENTS, AND INFORMATION FURNISHED TO THE |
| 233 | SMALL BUSINESS ADVOCATE; ANNUAL REPORTS.-- |
| 234 | (a) Each agency of the state shall furnish to the advocate |
| 235 | the reports, documents, and information that are public records |
| 236 | and that the director deems necessary to carry out his or her |
| 237 | functions under this chapter. |
| 238 | (b) The advocate shall prepare and submit a written annual |
| 239 | report to the Governor, the President of the Senate, and the |
| 240 | Speaker of the House of Representatives that describes the |
| 241 | activities and recommendations of the office. |
| 242 | Section 4. Subsection (2) of section 11.908, Florida |
| 243 | Statutes, is amended to read: |
| 244 | 11.908 Committee duties.--No later than March 1 of the |
| 245 | year in which a state agency or its advisory committees are |
| 246 | scheduled to be reviewed, the committee shall and the joint |
| 247 | committee may: |
| 248 | (2) Consult with the Legislative Budget Commission, the |
| 249 | Small Business Regulatory Advisory Council, relevant substantive |
| 250 | and appropriations committees of the Senate and the House of |
| 251 | Representatives, the Governor's Office of Policy and Budgeting, |
| 252 | the Auditor General, and the Chief Financial Officer, or their |
| 253 | successors, relating to the review of the agency and its |
| 254 | advisory committees. |
| 255 | Section 5. Paragraph (a) of subsection (2) of section |
| 256 | 11.911, Florida Statutes, is amended to read: |
| 257 | 11.911 Committee recommendations.-- |
| 258 | (2) In its report on a state agency, the joint committee |
| 259 | shall: |
| 260 | (a) Make recommendations on the abolition, continuation, |
| 261 | or reorganization of each state agency and its advisory |
| 262 | committees and on the need for the performance of the functions |
| 263 | of the agency and its advisory committees. If the committee |
| 264 | recommends continuation or reorganization, the committee shall |
| 265 | include in its recommendations the report of the Small Business |
| 266 | Regulatory Advisory Council, as provided in s. 288.7001, |
| 267 | regarding the rules of each agency. |
| 268 | Section 6. Subsection (1) of section 11.919, Florida |
| 269 | Statutes, is amended to read: |
| 270 | 11.919 Assistance of and access to state agencies.-- |
| 271 | (1) The committee and the Small Business Regulatory |
| 272 | Advisory Council may access or request information and request |
| 273 | the assistance of state agencies and officers. When assistance |
| 274 | is requested, a state agency or officer shall assist the |
| 275 | committee and the Small Business Regulatory Advisory Council. |
| 276 | Section 7. Paragraph (b) of subsection (3) of section |
| 277 | 120.54, Florida Statutes, is amended to read: |
| 278 | 120.54 Rulemaking.-- |
| 279 | (3) ADOPTION PROCEDURES.-- |
| 280 | (b) Special matters to be considered in rule adoption.-- |
| 281 | 1. Statement of estimated regulatory costs.--Prior to the |
| 282 | adoption, amendment, or repeal of any rule other than an |
| 283 | emergency rule, an agency is encouraged to prepare a statement |
| 284 | of estimated regulatory costs of the proposed rule, as provided |
| 285 | by s. 120.541. However, an agency shall prepare a statement of |
| 286 | estimated regulatory costs of the proposed rule, as provided by |
| 287 | s. 120.541, if the proposed rule will have an impact on small |
| 288 | business. |
| 289 | 2. Small businesses, small counties, and small cities.-- |
| 290 | a. Each agency, before the adoption, amendment, or repeal |
| 291 | of a rule, shall consider the impact of the rule on small |
| 292 | businesses as defined by s. 288.703 and the impact of the rule |
| 293 | on small counties or small cities as defined by s. 120.52. |
| 294 | Whenever practicable, an agency shall tier its rules to reduce |
| 295 | disproportionate impacts on small businesses, small counties, or |
| 296 | small cities to avoid regulating small businesses, small |
| 297 | counties, or small cities that do not contribute significantly |
| 298 | to the problem the rule is designed to address. An agency may |
| 299 | define "small business" to include businesses employing more |
| 300 | than 100 persons, may define "small county" to include those |
| 301 | with populations of more than 75,000, and may define "small |
| 302 | city" to include those with populations of more than 10,000, if |
| 303 | it finds that such a definition is necessary to adapt a rule to |
| 304 | the needs and problems of small businesses, small counties, or |
| 305 | small cities. The agency shall consider each of the following |
| 306 | methods for reducing the impact of the proposed rule on small |
| 307 | businesses, small counties, and small cities, or any combination |
| 308 | of these entities: |
| 309 | (I) Establishing less stringent compliance or reporting |
| 310 | requirements in the rule. |
| 311 | (II) Establishing less stringent schedules or deadlines in |
| 312 | the rule for compliance or reporting requirements. |
| 313 | (III) Consolidating or simplifying the rule's compliance |
| 314 | or reporting requirements. |
| 315 | (IV) Establishing performance standards or best-management |
| 316 | practices to replace design or operational standards in the |
| 317 | rule. |
| 318 | (V) Exempting small businesses, small counties, or small |
| 319 | cities from any or all requirements of the rule. |
| 320 | b.(I) If the agency determines that the proposed action |
| 321 | will affect small businesses as defined by the agency as |
| 322 | provided in sub-subparagraph a., the agency shall send written |
| 323 | notice of the rule to the Small Business Regulatory Advisory |
| 324 | Council and small business ombudsman of the Office of Tourism, |
| 325 | Trade, and Economic Development not less than 28 days prior to |
| 326 | the intended action. |
| 327 | (II) Each agency shall adopt those regulatory alternatives |
| 328 | offered by the Small Business Regulatory Advisory Council small |
| 329 | business ombudsman and provided to the agency no later than 21 |
| 330 | days after the council's ombudsman's receipt of the written |
| 331 | notice of the rule which it finds are feasible and consistent |
| 332 | with the stated objectives of the proposed rule and which would |
| 333 | reduce the impact on small businesses. When regulatory |
| 334 | alternatives are offered by the Small Business Regulatory |
| 335 | Advisory Council small business ombudsman, the 90-day period for |
| 336 | filing the rule in subparagraph (e)2. is extended for a period |
| 337 | of 21 days. |
| 338 | (III) If an agency does not adopt all alternatives offered |
| 339 | pursuant to this sub-subparagraph, it shall, prior to rule |
| 340 | adoption or amendment and pursuant to subparagraph (d)1., file a |
| 341 | detailed written statement with the committee explaining the |
| 342 | reasons for failure to adopt such alternatives. Within 3 working |
| 343 | days of the filing of such notice, the agency shall send a copy |
| 344 | of such notice to the Small Business Regulatory Advisory Council |
| 345 | small business ombudsman. The Small Business Regulatory Advisory |
| 346 | Council may make a request of the President of the Senate and |
| 347 | the Speaker of the House of Representatives that the presiding |
| 348 | officers direct the Office of Program Policy Analysis and |
| 349 | Government Accountability to determine whether the rejected |
| 350 | alternatives reduce the impact on small business while meeting |
| 351 | the stated objectives of the proposed rule. Within 60 days after |
| 352 | the date of the directive from the presiding officers, the |
| 353 | Office of Program Policy Analysis and Government Accountability |
| 354 | shall report to the Administrative Procedures Committee its |
| 355 | findings as to whether an alternative reduces the impact on |
| 356 | small business while meeting the stated objectives of the |
| 357 | proposed rule. The Office of Program Policy Analysis and |
| 358 | Government Accountability shall consider the proposed rule, the |
| 359 | economic impact statement, the written statement of the agency, |
| 360 | the proposed alternatives, and any comment submitted during the |
| 361 | comment period on the proposed rule. The Office of Program |
| 362 | Policy Analysis and Government Accountability shall submit a |
| 363 | report of its findings and recommendations to the Governor, the |
| 364 | President of the Senate, and the Speaker of the House of |
| 365 | Representatives. The Administrative Procedures Committee shall |
| 366 | report such findings to the agency, and the agency shall respond |
| 367 | in writing to the Administrative Procedures Committee if the |
| 368 | Office of Program Policy Analysis and Government Accountability |
| 369 | found that the alternative reduced the impact on small business |
| 370 | while meeting the stated objectives of the proposed rule. If the |
| 371 | agency will not adopt the alternative, it must also provide a |
| 372 | detailed written statement to the committee as to why it will |
| 373 | not adopt the alternative. |
| 374 | Section 8. Section 120.74, Florida Statutes, is amended to |
| 375 | read: |
| 376 | 120.74 Agency review, revision, and report.-- |
| 377 | (1) Each agency shall review and revise its rules as often |
| 378 | as necessary to ensure that its rules are correct and comply |
| 379 | with statutory requirements. Additionally, each agency shall |
| 380 | perform a formal review of its rules every 2 years. In the |
| 381 | review, each agency must: |
| 382 | (a) Identify and correct deficiencies in its rules; |
| 383 | (b) Clarify and simplify its rules; |
| 384 | (c) Delete obsolete or unnecessary rules; |
| 385 | (d) Delete rules that are redundant of statutes; |
| 386 | (e) Seek to improve efficiency, reduce paperwork, or |
| 387 | decrease costs to government and the private sector; and |
| 388 | (f) Contact agencies that have concurrent or overlapping |
| 389 | jurisdiction to determine whether their rules can be coordinated |
| 390 | to promote efficiency, reduce paperwork, or decrease costs to |
| 391 | government and the private sector; and. |
| 392 | (g) Determine whether the rules should be continued |
| 393 | without change or should be amended or repealed to reduce the |
| 394 | impact on small business while meeting the stated objectives of |
| 395 | the proposed rule. |
| 396 | (2) Beginning October 1, 1997, and by October 1 of every |
| 397 | other year thereafter, the head of each agency shall file a |
| 398 | report with the President of the Senate, the Speaker of the |
| 399 | House of Representatives, and the committee, with a copy to each |
| 400 | appropriate standing committee of the Legislature, which |
| 401 | certifies that the agency has complied with the requirements of |
| 402 | this subsection. The report must specify any changes made to its |
| 403 | rules as a result of the review and, when appropriate, recommend |
| 404 | statutory changes that will promote efficiency, reduce |
| 405 | paperwork, or decrease costs to government and the private |
| 406 | sector. The report must specifically address the economic impact |
| 407 | of the rules on small business. The report must identify the |
| 408 | types of cases or disputes in which the agency is involved which |
| 409 | should be conducted under the summary hearing process described |
| 410 | in s. 120.574. |
| 411 | Section 9. This act shall take effect July 1, 2008. |