EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

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

1-2 the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3 Sec. 2. "Small business" means a business conducted for profit

1-4 which employs fewer than 150 full-time or part-time employees.

1-5 Sec. 3. 1. Before conducting a workshop for a proposed regulation

1-6 pursuant to NRS 233B.061, an agency shall determine whether the

1-7 proposed regulation is likely to:

2-1 (a) Impose a direct and significant economic burden upon a small

2-2 business; or

2-3 (b) Directly restrict the formation, operation or expansion of a small

2-4 business.

2-5 2. If an agency determines pursuant to subsection 1 that a proposed

2-6 regulation is likely to impose a direct and significant economic burden

2-7 upon a small business or directly restrict the formation, operation or

2-8 expansion of a small business, the agency shall:

2-9 (a) Insofar as practicable, consult with owners and officers of small

2-10 businesses that are likely to be affected by the proposed regulation.

2-11 (b) Consider methods to reduce the impact of the proposed regulation

2-12 on small businesses, including, without limitation:

2-13 (1) Simplifying the proposed regulation;

2-14 (2) Establishing different standards of compliance for a small

2-15 business; and

2-16 (3) Modifying a fee or fine set forth in the regulation so that a small

2-17 business is authorized to pay a lower fee or fine.

2-18 (c) Prepare a small business impact statement and make copies of the

2-19 statement available to the public at the workshop conducted and the

2-20 public hearing held pursuant to NRS 233B.061.

2-21 Sec. 4. A small business impact statement prepared pursuant to

2-22 section 3 of this act must set forth the following information:

2-23 1. A description of the manner in which comment was solicited from

2-24 affected small businesses, a summary of their response and an

2-25 explanation of the manner in which other interested persons may obtain

2-26 a copy of the summary.

2-27 2. The estimated economic effect of the proposed regulation on the

2-28 small businesses which it is to regulate, including, without limitation:

2-29 (a) Both adverse and beneficial effects; and

2-30 (b) Both direct and indirect effects.

2-31 3. A description of the methods that the agency considered to reduce

2-32 the impact of the proposed regulation on small businesses and a

2-33 statement regarding whether the agency actually used any of those

2-34 methods.

2-35 4. The estimated cost to the agency for enforcement of the proposed

2-36 regulation.

2-37 5. If the proposed regulation provides a new fee or increases an

2-38 existing fee, the total annual amount the agency expects to collect and

2-39 the manner in which the money will be used.

2-40 6. If the proposed regulation includes provisions which duplicate or

2-41 are more stringent than federal, state or local standards regulating the

2-42 same activity, an explanation of why such duplicative or more stringent

2-43 provisions are necessary.

3-1 Sec. 5. 1. A small business that is aggrieved by a regulation

3-2 adopted by an agency on or after January 1, 2000, may object to all or a

3-3 part of the regulation by filing a petition with the agency that adopted the

3-4 regulation within 90 days after the date on which the regulation was

3-5 adopted.

3-6 2. A petition filed pursuant to subsection 1 may be based on the

3-7 following grounds:

3-8 (a) The agency failed to prepare a small business impact statement as

3-9 required pursuant to section 3 of this act; or

3-10 (b) The small business impact statement prepared by the agency

3-11 pursuant to section 3 of this act did not consider or significantly

3-12 underestimated the economic effect of the regulation on small

3-13 businesses.

3-14 3. After receiving a petition pursuant to subsection 1, an agency shall

3-15 determine whether the petition has merit. If the agency determines that

3-16 the petition has merit, the agency may, pursuant to this chapter, take

3-17 action to amend the regulation to which the small business objected.

3-18 Sec. 6. NRS 233B.030 is hereby amended to read as follows:

3-19 233B.030 As used in this chapter, unless the context otherwise

3-22 those sections.

3-23 Sec. 7. Chapter 237 of NRS is hereby amended by adding thereto the

3-24 provisions set forth as sections 8 to 15, inclusive, of this act.

3-25 Sec. 8. As used in sections 8 to 15, inclusive, of this act, unless the

3-26 context otherwise requires, the words and terms defined in sections 9, 10

3-27 and 11 of this act have the meanings ascribed them in those sections.

3-28 Sec. 9. "Business" means a trade or occupation conducted for

3-29 profit.

3-30 Sec. 10. "Local government" means a political subdivision of this

3-31 state, including, without limitation, a city, county, irrigation district,

3-32 water district or water conservancy district.

3-33 Sec. 11. "Rule" means an ordinance, regulation, resolution or other

3-34 type of instrument by the adoption of which the governing body of a local

3-35 government exercises legislative powers. The term does not include an

3-36 ordinance, regulation, resolution or other type of instrument by the

3-37 adoption of which the governing body of a local government exercises

3-38 legislative powers authorized pursuant to chapter 271, 278, 278A or 278B

3-39 of NRS.

3-40 Sec. 11.5. The provisions of sections 8 to 15, inclusive, of this act do

3-41 not apply with respect to a rule for which a local government does not

3-42 have the authority to consider less stringent alternatives, including,

3-43 without limitation, a rule that the local government is required to adopt

4-1 pursuant to a federal or state statute or regulation or pursuant to a

4-2 contract or agreement into which the local government has entered.

4-3 Sec. 12. 1. Before adopting a proposed rule, the governing body of

4-4 a local government shall determine whether the proposed rule is likely to:

4-5 (a) Impose a direct and significant economic burden upon a business;

4-6 or

4-7 (b) Directly restrict the formation, operation or expansion of a

4-8 business.

4-9 2. If the governing body of a local government determines pursuant

4-10 to subsection 1 that a proposed rule is likely to impose a direct and

4-11 significant economic burden upon a business or directly restrict the

4-12 formation, operation or expansion of a business, the governing body

4-13 shall:

4-14 (a) Insofar as practicable, consult with trade associations or owners

4-15 and officers of businesses that are likely to be affected by the proposed

4-16 rule.

4-17 (b) Consider methods to reduce the impact of the proposed rule on

4-18 businesses, including, without limitation:

4-19 (1) Simplifying the proposed rule;

4-20 (2) Establishing different standards of compliance for a business;

4-21 and

4-22 (3) Modifying a fee or fine set forth in the rule so that a business is

4-23 authorized to pay a lower fee or fine.

4-24 (c) Prepare a business impact statement and make copies of the

4-25 statement available to any interested person before holding a hearing to

4-26 adopt the rule.

4-27 Sec. 13. A business impact statement prepared pursuant to section

4-28 12 of this act must set forth the following information:

4-29 1. A description of the manner in which comment was solicited from

4-30 affected businesses, a summary of their response and an explanation of

4-31 the manner in which other interested persons may obtain a copy of the

4-32 summary.

4-33 2. The estimated economic effect of the proposed rule on the

4-34 businesses which it is to regulate, including, without limitation:

4-35 (a) Both adverse and beneficial effects; and

4-36 (b) Both direct and indirect effects.

4-37 3. A description of the methods that the governing body of the local

4-38 government considered to reduce the impact of the proposed rule on

4-39 businesses and a statement regarding whether the governing body

4-40 actually used any of those methods.

4-41 4. The estimated cost to the local government for enforcement of the

4-42 proposed rule.

5-1 5. If the proposed rule provides a new fee or increases an existing

5-2 fee, the total annual amount the local government expects to collect and

5-3 the manner in which the money will be used.

5-4 6. If the proposed rule includes provisions which duplicate or are

5-5 more stringent than federal, state or local standards regulating the same

5-6 activity, an explanation of why such duplicative or more stringent

5-7 provisions are necessary.

5-8 Sec. 14. 1. A business that is aggrieved by a rule adopted by the

5-9 governing body of a local government on or after January 1, 2000, may

5-10 object to all or a part of the rule by filing a petition with the governing

5-11 body that adopted the rule within 30 days after the date on which the rule

5-12 was adopted.

5-13 2. A petition filed pursuant to subsection 1 may be based on the

5-14 following grounds:

5-15 (a) The governing body of the local government failed to prepare a

5-16 business impact statement as required pursuant to section 12 of this act;

5-17 or

5-18 (b) The business impact statement prepared by the governing body

5-19 pursuant to section 12 of this act did not consider or significantly

5-20 underestimated the economic effect of the rule on businesses.

5-21 3. After receiving a petition pursuant to subsection 1, the governing

5-22 body of a local government shall determine whether the petition has

5-23 merit. If the governing body determines that the petition has merit, the

5-24 governing body may take action to amend the rule to which the business

5-25 objected.

5-26 4. Each governing body of a local government shall provide a

5-27 procedure for an aggrieved business to object to a rule adopted by the

5-28 governing body. The procedure must be filed with the clerk of the local

5-29 government and available upon request at no charge.

5-30 Sec. 15. The governing body of a local government may adopt a rule

5-31 without complying with the provisions of sections 8 to 14, inclusive, of

5-32 this act if the governing body declares, by unanimous vote, that

5-33 emergency action is necessary to protect public health and safety. Such a

5-34 rule may remain in effect for not more than 6 months after the date on

5-35 which it was adopted.

5-36 Sec. 16. This act becomes effective on January 1, 2000.