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Updated: 9:27 p.m. Saturday, March 5, 2011 | Posted: 9:26 p.m. Saturday, March 5, 2011

Ohio legislation targets rules on small business

By Mark McGregor

Staff Writer

Amid much attention surrounding Senate Bill 5 that would affect Ohio’s public sector employees’ collective bargaining rights, another bill affecting private, small business is working its up the Ohio legislature.

Senate Bill 2, introduced in early February as a companion to House Bill 94 — the Common Sense Initiative — is legislation that would adopt a new small business rule process and create a Common Sense Initiative Office within the Office of the Governor.

The initiative, Gov. John Kasich’s office says, would make it easier for small companies to conduct better business in the state.

The bill passed Feb. 23 on the Senate floor in a near unanimous vote, 32-1, then passed March 2 81-24 on the floor of the House of Representatives.

It will now be kicked back to the Senate for approval of a small amendment made in the House.

State Rep. Ross McGregor, R-Springfield, voted in favor of the bill.

The legislation is of particular interest to McGregor as chair of the Joint Committee on Agency Rule Review. JCARR is tasked with reviewing all regulations from a legislative perspective, according to McGregor.

It would authorize JCARR to recommend invalidation of a draft rule if an agency proposing a rule “failed to demonstrate that the regulatory intent justifies the rule’s adverse impact on businesses.”

It would also specify that the interest of small business will have to be taken into consideration when promulgating a rule and would increase what JCARR could do in regards to impact on small business, McGregor said.

Ohio Lt. Gov. Mary Taylor would oversee the Common Sense Initiative Office within governor’s office. CSIO would evaluate rules that may have an adverse impact on businesses.

The governors office would be required to have the CSIO in operation no later than Aug. 15, pending the bill’s passage.


Summary of Senate Bill 2

Establishes new rule review process to assess whether proposed or existing administrative rules of certain state agencies have an adverse impact on business to mitigate that impact and eliminates existing small business rule review process.

Creates theCommon Sense Initiative Office (CSIO) within the Office of the Governor to evaluate rules that may have an adverse impact on business. Required

Creates the Small Business Advisory Council composed of small business representatives to advise the CSIO on adverse impacts of draft rules.

Requires the CSIO to develop standards to evaluate a draft rule’s impact on business.

Authorizes the Joint Committee on Agency Rule Review (JCARR) to recommend invalidation of a draft rule on the grounds that the agency proposing the rule failed to demonstrate that the regulatory intent justifies the rule’s adverse impact on business.

Requires the CSIO to create a public comment system for rules it reviews.

Requires state agencies to develop customer service performance standards for the agencies and their officers and employees.

Requires the CSIO to annually report certain information to the governor and members of the General Assembly.

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