Oregon Increases Protections For Small Business

WASHINGTON, D.C. – Oregon’s small businesses may experience a friendlier regulatory environment, thanks to a new law that gives Oregon small businesses a voice in the state’s regulatory process.

 “I’m pleased that our collaboration with the Small Business Administration and others has delivered this model legislation for Oregon,” said Governor Ted Kulongoski upon signing the regulatory flexibility bill. “These changes will help us continue to strengthen Oregon’s business climate while maintaining our high standards and quality of life.”

House Bill 3238 implements key elements of regulatory flexibility model legislation drafted by the Office of Advocacy of the U.S. Small Business Administration. Similar to the federal Regulatory Flexibility Act, the model legislation encourages entrepreneurial success by requiring state agencies to consider the impact of their policies on small business before they issue final regulations.

Specifically, the new law enhances Oregon's administrative procedure laws by including a requirement that state agencies analyze the economic impact of a proposed regulation on small business before they regulate. It also requires state agencies to conduct a review of existing rules every five years to ensure the rule has had its intended effect and that there is a continued need for a rule. The addition of HB 3238 to Oregon’s existing regulatory flexibility laws completes a good regulatory framework for small businesses in that state.

“This bill enacts a long-sought reform: that when state agencies make a rule, they should consider its impact on small businesses,” said House Speaker Karen Minnis.

Lawn & Landscape’s first-ever Rating the States issue ranked Oregon 21st among the 50 states for its overall business friendliness, based on state demographics, taxes, and housing. The state is home to 1,079 landscaping service firms, which are responsible for 6,324 jobs and $439 million in economic output for the state. Learn more about the Rating the States issue and Oregon’s ranking by clicking here.

The bill’s primary sponsor Representative Kim Thatcher said, “Small companies are the backbone of our state’s economy and should not have to shoulder disproportionate regulatory costs and burdens. Not only does the new law require agencies to understand the economic impact of their actions on small business before they regulate, but it also requires agencies to review existing regulations which may unduly burden small business.”

The bill received support from Oregon small business stakeholders, including the Oregon National Federation of Independent Business and the Office of Regulatory Streamlining, Oregon Department of Consumer and Business Services.

For more information, visit the Small Business Friendly Regulation, Model Legislation for States section of the Office of Advocacy Web site at www.sba.gov/advo/laws/law_modeleg.html.