Malloy Vetoes Small Business Regulatory Measure

Governor Dannel Malloy this week vetoed a bill designed to help small business and improve Connecticut’s regulatory climate.

SB 302 passed both chambers of the Connecticut General Assembly unanimously during the 2016 legislative session.

The bill, which became Public Act 16-32, called upon state agencies, when proposing regulations impacting small business, to answer a series of practical questions.

The questions are the same that state agencies in Massachusetts and Rhode Island are required to answer when proposing regulations affecting small business in those states.

For example:

• “Will small businesses have to create, file or issue additional reports?”
• “Will small businesses have to implement additional recordkeeping procedures?”
• “Will the regulation have the effect of creating additional taxes and/or fees for small businesses?”

Unfortunately, Governor Malloy determined that answering such questions would “place an undue burden on our agencies.”

"This is extremely disappointing," said Eric Brown, CBIA’s lead attorney on regulatory matters.

"We're convinced that in the end, being more aware of who is impacted by a proposed regulation and how, would actually save agencies time in the long run and result in higher quality regulations."

In his veto message, the Governor did say his administration was willing to work on a revised bill next year.

However, administrative proposals in this and recent years focused on making it easier for state agencies to adopt regulations rather than ensuring regulations aren't overly broad, stringent, or difficult to understand.

"We will be back fighting for this measure next year," Brown said.

"It's critical that we improve the regulatory climate in Connecticut, particularly for small businesses."

For more information, contact CBIA’s Eric Brown (860.244.1926) | @CBIAericb