HB 7109

1
A bill to be entitled
2An act relating to small business regulatory relief;
3creating s. 288.001, F.S.; designating the Florida Small
4Business Development Center Network as the principal
5business assistance organization for small businesses in
6the state; creating s. 288.7001, F.S.; providing a short
7title; providing definitions; creating the Small Business
8Regulatory Advisory Council; providing for appointments,
9membership, and meetings; providing powers and duties of
10the council; providing administrative location for
11council; providing for periodic review of agency rules by
12the council with agency sunset review; providing timelines
13for review; providing for the council to issue a report;
14creating s. 288.7002, F.S.; providing definitions;
15creating the Office of Small Business Advocate; providing
16for selection of the Florida Small Business Advocate;
17providing for preferred qualifications of the advocate;
18providing duties of the advocate; providing for agency
19cooperation with the advocate; providing for an annual
20report by the advocate to the Governor and Legislature;
21amending s. 11.908, F.S.; including the Small Business
22Regulatory Advisory Council among groups that may be
23consulted for agency or committee review; amending s.
2411.911, F.S.; providing for the inclusion of the report of
25the Small Business Regulatory Advisory Council in the
26Legislative Sunset Committee's recommendations; amending
27s. 11.919, F.S.; requiring agency assistance to the Small
28Business Regulatory Advisory Council; authorizing the
29council to access or request information and assistance;
30amending s. 120.54, F.S.; requiring an agency to prepare a
31statement of estimated regulatory costs; requiring agency
32notification to the Small Business Regulatory Advisory
33Council relating to proposed agency action affecting small
34business; requiring an agency to adopt regulatory
35alternatives offered by the council under certain
36circumstances; providing for rule filing extension when
37regulatory alternatives are offered by the council;
38providing for outside review of regulatory alternatives
39not adopted by an agency and for an agency response;
40amending s. 120.74, F.S.; requiring biennial rule review
41by each agency to consider the impact of rules on small
42business; requiring the economic impact of the rules to be
43included in a report to the Legislature; providing an
44effective date.
45
46Be It Enacted by the Legislature of the State of Florida:
47
48     Section 1.  Section 288.001, Florida Statutes, is created
49to read:
50     288.001  The Florida Small Business Development Center
51Network; purpose.--The Florida Small Business Development Center
52Network is the principal business assistance organization for
53small businesses in the state.
54     Section 2.  Section 288.7001, Florida Statutes, is created
55to read:
56     288.7001  Small Business Regulatory Advisory Council.--
57     (1)  SHORT TITLE.--This section may be cited as the "Small
58Business 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
62Council.
63     (c)  "Rule" means a rule as defined in s. 120.52.
64     (d)  "Small business" means a small business as defined in
65s. 288.703.
66     (3)  CREATION OF SMALL BUSINESS REGULATORY ADVISORY
67COUNCIL; MEMBERSHIP; POWERS AND DUTIES.--
68     (a)  The Small Business Regulatory Advisory Council is
69created. The council shall consist of nine members who are
70current or former small business owners, three appointed by the
71Governor, three appointed by the President of the Senate, and
72three appointed by the Speaker of the House of Representatives.
73The initial appointments to the council must be made within 60
74days after the effective date of this act. The members shall be
75from different geographic regions of the state. Members shall
76serve 4-year terms; however, in order to establish staggered
77terms, for the initial appointments, each appointing official
78shall appoint one member to a 2-year term and two members to a
794-year term. A member shall not serve more than three
80consecutive terms. Members shall select the chairperson from
81among the members of the council. The council shall meet
82quarterly or upon the call of the chairperson. A majority of the
83members constitutes a quorum for the conduct of business.
84Members of the council shall serve without compensation. The
85appointing official may remove his or her appointee without
86cause at any time. A member whose term has expired shall
87continue to serve on the council until such time as a
88replacement is appointed. Vacancies shall be filled for the
89remainder of the term and by the original appointing official.
90     (b)  The council is established, assigned to, and
91administratively housed within the Florida Small Business
92Development Center Network, which shall provide staff support to
93the council.
94     (c)  The council may:
95     1.  Provide agencies with recommendations regarding
96proposed rules or programs that may adversely affect small
97business;
98     2.  Consider requests from small business owners to review
99rules or programs adopted by an agency;
100     3.  Consider requests from small business owners to review
101small business owners' private property rights related to rules
102or programs adopted or implemented by an agency; and
103     4.  Review rules promulgated by an agency to determine
104whether a rule places an unnecessary burden on small business
105and make recommendations to the agency to mitigate the adverse
106effects.
107     (d)  The council does not have authority to:
108     1.  Initiate or intervene in any administrative or judicial
109proceeding; or
110     2.  Issue subpoenas.
111     (e)  The council shall prepare and submit a written annual
112report to the Governor, the President of the Senate, and the
113Speaker of the House of Representatives that describes the
114activities and recommendations of the council.
115     (4)  PERIODIC REVIEW OF RULES.--
116     (a)  In coordination with the sunset review schedule
117provided in s. 11.905, the council may review rules of agencies
118subject to sunset review to determine whether the rules should
119be continued without change or should be amended or repealed to
120reduce the impact of the rules on small businesses, subject to
121the requirement that the recommendations of the council must be
122feasible and consistent with the stated objectives of the rules.
123     (b)  In reviewing agency rules to reduce the impact on
124small businesses, the council, in coordination with the agency,
125shall consider the following factors:
126     1.  Continued need for the rule;
127     2.  The nature of complaints or comments received from the
128public concerning the rule;
129     3.  The complexity of the rule;
130     4.  The extent to which the rule overlaps, duplicates, or
131conflicts with other federal, state, and local government rules;
132and
133     5.  The length of time since the rule has been evaluated or
134the degree to which technology, economic conditions, or other
135factors have changed in the topical area affected by the rule.
136     (c)  Within 6 months after the agency report is submitted
137to the Joint Legislative Sunset Committee pursuant to s. 11.907,
138the council shall provide a report to the Governor, the
139President of the Senate, the Speaker of the House of
140Representatives, and the Joint Legislative Sunset Committee that
141includes recommendations and evaluations of agency rules and
142programs regarding regulatory fairness for small businesses. A
143component of the report shall be a rating system, developed by
144the council, entitled "Small Business Friendliness and
145Development Scorecard."
146     Section 3.  Section 288.7002, Florida Statutes, is created
147to read:
148     288.7002  Small business advocate.--
149     (1)  DEFINITIONS.--
150     (a)  "Advocate" means the Florida Small Business Advocate,
151who is also the Director of the Office of Small Business
152Advocate.
153     (b)  "Director" means the Director of the Office of Small
154Business Advocate.
155     (c)  "Office" means the Office of Small Business Advocate.
156     (2)  OFFICE OF SMALL BUSINESS ADVOCATE.--The Office of
157Small Business Advocate is established, assigned to, and
158administratively housed within the Florida Small Business
159Development Center Network. The director shall be the Florida
160Small Business Advocate.
161     (3)  DIRECTOR OF THE OFFICE OF SMALL BUSINESS ADVOCATE;
162APPOINTMENT; DUTIES.--
163     (a)  The advocate shall be selected by the director of the
164Florida Small Business Development Center Network and shall be
165an employee of or under contract with the Florida Small Business
166Development Center Network. Preferred qualifications for the
167advocate include at least 5 years' experience in small business,
168extensive knowledge of the issues and challenges of importance
169to small business, and actual experience in small business
170advocacy and assistance.
171     (b)  The duties and functions of the advocate shall include
172the following:
173     1.  Act as staff for the Small Business Regulatory Advisory
174Council.
175     2.  Serve as principal advocate in the state on behalf of
176small businesses, including, but not limited to, advisory
177participation in the consideration of all legislation and
178administrative rules that affect small businesses and advocacy
179on state policy and programs related to small businesses on
180disaster preparedness and recovery, including providing
181technical assistance.
182     3.  Represent the views and interests of small businesses
183before agencies whose policies and activities may affect small
184businesses. Among other activities, the advocate may encourage
185standardized applications and information packages that would
186include all the information needed by each agency that a
187business has to deal with to prevent an applicant from having to
188fill out duplicative information on forms from various agencies.
189     4.  Enlist the cooperation and assistance of public and
190private agencies, businesses, and other organizations in
191disseminating information about the programs and services
192provided by all levels of government that are of benefit to
193small businesses and information on how small businesses can
194participate in, or make use of, those programs and services.
195     5.  Issue a report every 2 years evaluating the efforts of
196agencies that significantly regulate small businesses, to assist
197minority and other small business enterprises and to make
198recommendations that may be appropriate to assist the
199development and strengthening of minority and other small
200business enterprises.
201     6.  Consult with experts and authorities in the fields of
202small business investment, venture capital investment, and
203commercial banking and other comparable financial institutions
204involved in the financing of business; with individuals with
205regulatory, legal, economic, or financial expertise, including
206members of the academic community; and with individuals who
207generally represent the public interest.
208     7.  Seek the assistance and cooperation of all agencies and
209departments providing services to, or affecting, small business,
210to ensure coordination of state efforts.
211     8.  Receive and respond to complaints from small businesses
212concerning the actions of agencies and the operative effects of
213state laws and regulations adversely affecting those businesses.
214The advocate shall establish an annual process for small
215businesses to nominate agency rules or programs for reform. The
216advocate shall publish those nominations online and update the
217status of agency action on the proposed reforms twice yearly.
218     9.  Counsel small businesses on how to resolve questions
219and problems concerning the relationship of small business to
220state government.
221     10.  Maintain, publicize, and distribute an annual list of
222persons serving as small business ombudsmen throughout state
223government.
224     11.  Coordinate a statewide conference on small business
225with public and private organizations and entities impacting
226small business in the state.
227     12.  Coordinate annual public meetings to share best
228practices for small business disaster preparedness. The meetings
229shall be held in consultation with regional and statewide small
230business organizations and shall take place in different
231locations throughout the state.
232     (4)  REPORTS, DOCUMENTS, AND INFORMATION FURNISHED TO THE
233SMALL BUSINESS ADVOCATE; ANNUAL REPORTS.--
234     (a)  Each agency of the state shall furnish to the advocate
235the reports, documents, and information that are public records
236and that the director deems necessary to carry out his or her
237functions under this chapter.
238     (b)  The advocate shall prepare and submit a written annual
239report to the Governor, the President of the Senate, and the
240Speaker of the House of Representatives that describes the
241activities and recommendations of the office.
242     Section 4.  Subsection (2) of section 11.908, Florida
243Statutes, is amended to read:
244     11.908  Committee duties.--No later than March 1 of the
245year in which a state agency or its advisory committees are
246scheduled to be reviewed, the committee shall and the joint
247committee may:
248     (2)  Consult with the Legislative Budget Commission, the
249Small Business Regulatory Advisory Council, relevant substantive
250and appropriations committees of the Senate and the House of
251Representatives, the Governor's Office of Policy and Budgeting,
252the Auditor General, and the Chief Financial Officer, or their
253successors, relating to the review of the agency and its
254advisory committees.
255     Section 5.  Paragraph (a) of subsection (2) of section
25611.911, Florida Statutes, is amended to read:
257     11.911  Committee recommendations.--
258     (2)  In its report on a state agency, the joint committee
259shall:
260     (a)  Make recommendations on the abolition, continuation,
261or reorganization of each state agency and its advisory
262committees and on the need for the performance of the functions
263of the agency and its advisory committees. If the committee
264recommends continuation or reorganization, the committee shall
265include in its recommendations the report of the Small Business
266Regulatory Advisory Council, as provided in s. 288.7001,
267regarding the rules of each agency.
268     Section 6.  Subsection (1) of section 11.919, Florida
269Statutes, is amended to read:
270     11.919  Assistance of and access to state agencies.--
271     (1)  The committee and the Small Business Regulatory
272Advisory Council may access or request information and request
273the assistance of state agencies and officers. When assistance
274is requested, a state agency or officer shall assist the
275committee and the Small Business Regulatory Advisory Council.
276     Section 7.  Paragraph (b) of subsection (3) of section
277120.54, 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
282adoption, amendment, or repeal of any rule other than an
283emergency rule, an agency is encouraged to prepare a statement
284of estimated regulatory costs of the proposed rule, as provided
285by s. 120.541. However, an agency shall prepare a statement of
286estimated regulatory costs of the proposed rule, as provided by
287s. 120.541, if the proposed rule will have an impact on small
288business.
289     2.  Small businesses, small counties, and small cities.--
290     a.  Each agency, before the adoption, amendment, or repeal
291of a rule, shall consider the impact of the rule on small
292businesses as defined by s. 288.703 and the impact of the rule
293on small counties or small cities as defined by s. 120.52.
294Whenever practicable, an agency shall tier its rules to reduce
295disproportionate impacts on small businesses, small counties, or
296small cities to avoid regulating small businesses, small
297counties, or small cities that do not contribute significantly
298to the problem the rule is designed to address. An agency may
299define "small business" to include businesses employing more
300than 100 persons, may define "small county" to include those
301with populations of more than 75,000, and may define "small
302city" to include those with populations of more than 10,000, if
303it finds that such a definition is necessary to adapt a rule to
304the needs and problems of small businesses, small counties, or
305small cities. The agency shall consider each of the following
306methods for reducing the impact of the proposed rule on small
307businesses, small counties, and small cities, or any combination
308of these entities:
309     (I)  Establishing less stringent compliance or reporting
310requirements in the rule.
311     (II)  Establishing less stringent schedules or deadlines in
312the rule for compliance or reporting requirements.
313     (III)  Consolidating or simplifying the rule's compliance
314or reporting requirements.
315     (IV)  Establishing performance standards or best-management
316practices to replace design or operational standards in the
317rule.
318     (V)  Exempting small businesses, small counties, or small
319cities from any or all requirements of the rule.
320     b.(I)  If the agency determines that the proposed action
321will affect small businesses as defined by the agency as
322provided in sub-subparagraph a., the agency shall send written
323notice of the rule to the Small Business Regulatory Advisory
324Council and small business ombudsman of the Office of Tourism,
325Trade, and Economic Development not less than 28 days prior to
326the intended action.
327     (II)  Each agency shall adopt those regulatory alternatives
328offered by the Small Business Regulatory Advisory Council small
329business ombudsman and provided to the agency no later than 21
330days after the council's ombudsman's receipt of the written
331notice of the rule which it finds are feasible and consistent
332with the stated objectives of the proposed rule and which would
333reduce the impact on small businesses. When regulatory
334alternatives are offered by the Small Business Regulatory
335Advisory Council small business ombudsman, the 90-day period for
336filing the rule in subparagraph (e)2. is extended for a period
337of 21 days.
338     (III)  If an agency does not adopt all alternatives offered
339pursuant to this sub-subparagraph, it shall, prior to rule
340adoption or amendment and pursuant to subparagraph (d)1., file a
341detailed written statement with the committee explaining the
342reasons for failure to adopt such alternatives. Within 3 working
343days of the filing of such notice, the agency shall send a copy
344of such notice to the Small Business Regulatory Advisory Council
345small business ombudsman. The Small Business Regulatory Advisory
346Council may make a request of the President of the Senate and
347the Speaker of the House of Representatives that the presiding
348officers direct the Office of Program Policy Analysis and
349Government Accountability to determine whether the rejected
350alternatives reduce the impact on small business while meeting
351the stated objectives of the proposed rule. Within 60 days after
352the date of the directive from the presiding officers, the
353Office of Program Policy Analysis and Government Accountability
354shall report to the Administrative Procedures Committee its
355findings as to whether an alternative reduces the impact on
356small business while meeting the stated objectives of the
357proposed rule. The Office of Program Policy Analysis and
358Government Accountability shall consider the proposed rule, the
359economic impact statement, the written statement of the agency,
360the proposed alternatives, and any comment submitted during the
361comment period on the proposed rule. The Office of Program
362Policy Analysis and Government Accountability shall submit a
363report of its findings and recommendations to the Governor, the
364President of the Senate, and the Speaker of the House of
365Representatives. The Administrative Procedures Committee shall
366report such findings to the agency, and the agency shall respond
367in writing to the Administrative Procedures Committee if the
368Office of Program Policy Analysis and Government Accountability
369found that the alternative reduced the impact on small business
370while meeting the stated objectives of the proposed rule. If the
371agency will not adopt the alternative, it must also provide a
372detailed written statement to the committee as to why it will
373not adopt the alternative.
374     Section 8.  Section 120.74, Florida Statutes, is amended to
375read:
376     120.74  Agency review, revision, and report.--
377     (1)  Each agency shall review and revise its rules as often
378as necessary to ensure that its rules are correct and comply
379with statutory requirements. Additionally, each agency shall
380perform a formal review of its rules every 2 years. In the
381review, 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
387decrease costs to government and the private sector; and
388     (f)  Contact agencies that have concurrent or overlapping
389jurisdiction to determine whether their rules can be coordinated
390to promote efficiency, reduce paperwork, or decrease costs to
391government and the private sector; and.
392     (g)  Determine whether the rules should be continued
393without change or should be amended or repealed to reduce the
394impact on small business while meeting the stated objectives of
395the proposed rule.
396     (2)  Beginning October 1, 1997, and by October 1 of every
397other year thereafter, the head of each agency shall file a
398report with the President of the Senate, the Speaker of the
399House of Representatives, and the committee, with a copy to each
400appropriate standing committee of the Legislature, which
401certifies that the agency has complied with the requirements of
402this subsection. The report must specify any changes made to its
403rules as a result of the review and, when appropriate, recommend
404statutory changes that will promote efficiency, reduce
405paperwork, or decrease costs to government and the private
406sector. The report must specifically address the economic impact
407of the rules on small business. The report must identify the
408types of cases or disputes in which the agency is involved which
409should be conducted under the summary hearing process described
410in s. 120.574.
411     Section 9.  This act shall take effect July 1, 2008.


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