Assembly Bill No. 486–Assemblymen Goldwater, Lee, Perkins, Buckley,

Neighbors, Berman, Gibbons, Marvel, Price, Ohrenschall, Anderson,

Freeman, Parnell, Koivisto, McClain, Angle, Mortenson, Humke,

Claborn, de Braga, Chowning, Bache, Evans, Leslie, Nolan,

Giunchigliani, Arberry, Williams, Collins, Manendo, Parks, Beers,

Carpenter, Segerblom, Thomas and Dini

Joint Sponsors: Senators Rawson, O’Connell and Titus

CHAPTER........

AN ACT relating to administrative procedure affecting businesses; requiring certain

governmental entities to consider the impact on small businesses of regulations

promulgated by the governmental entity; requiring local governmental entities to

consider the impact on businesses of certain rules promulgated by the governmental

entity; and providing other matters properly relating thereto.

 

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 233B of NRS is hereby amended by adding thereto

the provisions set forth as sections 2 to 5, inclusive, of this act.

Sec. 2. "Small business" means a business conducted for profit

which employs fewer than 150 full-time or part-time employees.

Sec. 3. 1. Before conducting a workshop for a proposed regulation

pursuant to NRS 233B.061, an agency shall determine whether the

proposed regulation is likely to:

(a) Impose a direct and significant economic burden upon a small

business; or

(b) Directly restrict the formation, operation or expansion of a small

business.

2. If an agency determines pursuant to subsection 1 that a proposed

regulation is likely to impose a direct and significant economic burden

upon a small business or directly restrict the formation, operation or

expansion of a small business, the agency shall:

(a) Insofar as practicable, consult with owners and officers of small

businesses that are likely to be affected by the proposed regulation.

(b) Consider methods to reduce the impact of the proposed regulation

on small businesses, including, without limitation:

(1) Simplifying the proposed regulation;

(2) Establishing different standards of compliance for a small

business; and

(3) Modifying a fee or fine set forth in the regulation so that a small

business is authorized to pay a lower fee or fine.

(c) Prepare a small business impact statement and make copies of the

statement available to the public at the workshop conducted and the

public hearing held pursuant to NRS 233B.061.

Sec. 4. A small business impact statement prepared pursuant to

section 3 of this act must set forth the following information:

1. A description of the manner in which comment was solicited from

affected small businesses, a summary of their response and an

explanation of the manner in which other interested persons may obtain

a copy of the summary.

2. The estimated economic effect of the proposed regulation on the

small businesses which it is to regulate, including, without limitation:

(a) Both adverse and beneficial effects; and

(b) Both direct and indirect effects.

3. A description of the methods that the agency considered to reduce

the impact of the proposed regulation on small businesses and a

statement regarding whether the agency actually used any of those

methods.

4. The estimated cost to the agency for enforcement of the proposed

regulation.

5. If the proposed regulation provides a new fee or increases an

existing fee, the total annual amount the agency expects to collect and

the manner in which the money will be used.

6. If the proposed regulation includes provisions which duplicate or

are more stringent than federal, state or local standards regulating the

same activity, an explanation of why such duplicative or more stringent

provisions are necessary.

Sec. 5. 1. A small business that is aggrieved by a regulation

adopted by an agency on or after January 1, 2000, may object to all or a

part of the regulation by filing a petition with the agency that adopted the

regulation within 90 days after the date on which the regulation was

adopted.

2. A petition filed pursuant to subsection 1 may be based on the

following grounds:

(a) The agency failed to prepare a small business impact statement as

required pursuant to section 3 of this act; or

(b) The small business impact statement prepared by the agency

pursuant to section 3 of this act did not consider or significantly

underestimated the economic effect of the regulation on small

businesses.

3. After receiving a petition pursuant to subsection 1, an agency shall

determine whether the petition has merit. If the agency determines that

the petition has merit, the agency may, pursuant to this chapter, take

action to amend the regulation to which the small business objected.

Sec. 6. NRS 233B.030 is hereby amended to read as follows:

233B.030 As used in this chapter, unless the context otherwise

requires, the words and terms defined in NRS 233B.031 to 233B.0385,

inclusive, and section 2 of this act have the meanings ascribed to them in

those sections.

Sec. 7. Chapter 237 of NRS is hereby amended by adding thereto the

provisions set forth as sections 8 to 15, inclusive, of this act.

Sec. 8. As used in sections 8 to 15, inclusive, of this act, unless the

context otherwise requires, the words and terms defined in sections 9, 10

and 11 of this act have the meanings ascribed them in those sections.

Sec. 9. "Business" means a trade or occupation conducted for

profit.

Sec. 10. "Local government" means a political subdivision of this

state, including, without limitation, a city, county, irrigation district,

water district or water conservancy district.

Sec. 11. "Rule" means an ordinance, regulation, resolution or other

type of instrument by the adoption of which the governing body of a local

government exercises legislative powers. The term does not include an

ordinance, regulation, resolution or other type of instrument by the

adoption of which the governing body of a local government exercises

legislative powers authorized pursuant to chapter 271, 278, 278A or 278B

of NRS.

Sec. 11.5. The provisions of sections 8 to 15, inclusive, of this act do

not apply with respect to a rule for which a local government does not

have the authority to consider less stringent alternatives, including,

without limitation, a rule that the local government is required to adopt

pursuant to a federal or state statute or regulation or pursuant to a

contract or agreement into which the local government has entered.

Sec. 12. 1. Before adopting a proposed rule, the governing body of

a local government shall determine whether the proposed rule is likely to:

(a) Impose a direct and significant economic burden upon a business;

or

(b) Directly restrict the formation, operation or expansion of a

business.

2. If the governing body of a local government determines pursuant

to subsection 1 that a proposed rule is likely to impose a direct and

significant economic burden upon a business or directly restrict the

formation, operation or expansion of a business, the governing body

shall:

(a) Insofar as practicable, consult with trade associations or owners

and officers of businesses that are likely to be affected by the proposed

rule.

(b) Consider methods to reduce the impact of the proposed rule on

businesses, including, without limitation:

(1) Simplifying the proposed rule;

(2) Establishing different standards of compliance for a business;

and

(3) Modifying a fee or fine set forth in the rule so that a business is

authorized to pay a lower fee or fine.

(c) Prepare a business impact statement and make copies of the

statement available to any interested person before holding a hearing to

adopt the rule.

Sec. 13. A business impact statement prepared pursuant to section

12 of this act must set forth the following information:

1. A description of the manner in which comment was solicited from

affected businesses, a summary of their response and an explanation of

the manner in which other interested persons may obtain a copy of the

summary.

2. The estimated economic effect of the proposed rule on the

businesses which it is to regulate, including, without limitation:

(a) Both adverse and beneficial effects; and

(b) Both direct and indirect effects.

3. A description of the methods that the governing body of the local

government considered to reduce the impact of the proposed rule on

businesses and a statement regarding whether the governing body

actually used any of those methods.

4. The estimated cost to the local government for enforcement of the

proposed rule.

5. If the proposed rule provides a new fee or increases an existing

fee, the total annual amount the local government expects to collect and

the manner in which the money will be used.

6. If the proposed rule includes provisions which duplicate or are

more stringent than federal, state or local standards regulating the same

activity, an explanation of why such duplicative or more stringent

provisions are necessary.

Sec. 14. 1. A business that is aggrieved by a rule adopted by the

governing body of a local government on or after January 1, 2000, may

object to all or a part of the rule by filing a petition with the governing

body that adopted the rule within 30 days after the date on which the rule

was adopted.

2. A petition filed pursuant to subsection 1 may be based on the

following grounds:

(a) The governing body of the local government failed to prepare a

business impact statement as required pursuant to section 12 of this act;

or

(b) The business impact statement prepared by the governing body

pursuant to section 12 of this act did not consider or significantly

underestimated the economic effect of the rule on businesses.

3. After receiving a petition pursuant to subsection 1, the governing

body of a local government shall determine whether the petition has

merit. If the governing body determines that the petition has merit, the

governing body may take action to amend the rule to which the business

objected.

4. Each governing body of a local government shall provide a

procedure for an aggrieved business to object to a rule adopted by the

governing body. The procedure must be filed with the clerk of the local

government and available upon request at no charge.

Sec. 15. The governing body of a local government may adopt a rule

without complying with the provisions of sections 8 to 14, inclusive, of

this act if the governing body declares, by unanimous vote, that

emergency action is necessary to protect public health and safety. Such a

rule may remain in effect for not more than 6 months after the date on

which it was adopted.

Sec. 16. This act becomes effective on January 1, 2000.

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