Regulatory Flexibility for Small Businesses
Monday, November 27, 2006

MEMORANDUM

TO: Members of the Senate Economic Growth Committee

FROM: Nichole F. LoPresti, Director, Government Relations

RE: S-1335 (Sarlo, Kyrillos) / A-2327 (Chivukula, Schaer, Gregg)

DATE: November 27, 2006

The Chamber of Commerce Southern New Jersey strongly supports S-1335 (Sarlo, Kyrillos) / A-2327 (Chivukula, Schaer, Gregg), which would expand the scope of the New Jersey Regulatory Flexibility Act dealing with the impact of rules on small businesses.

We firmly believe that the simplification for compliance and regulation of small businesses is a worthwhile venture. By doing this, it will help alleviate some of the strain placed upon small businesses which are trying to navigate through the regulatory maze within our state. Small businesses will not be overwhelmed by cumbersome rules and regulations, but will have access to simplified rules that have been consolidated and reviewed thoroughly.

Every four years, our organization conducts an Environmental Issues survey of our membership to assess how state rules and regulations impact their businesses. In 2004, environmental laws and regulations remained near the top of the most important legislative/regulatory issues impacting businesses. It ranked second behind healthcare, which remained the number one issue of concern. Of those surveyed an astounding 31 percent said that environmental compliance has had a substantial impact on their company’s profitability in the last two years.

In addition, 21 percent of respondents noted that environmental laws and regulations were the primary reasons they located their company’s facility outside of New Jersey. It is clear to see that regulations and their impact on small businesses are an issue of major importance to those who do business in our state. With small business accounting for most of the growth in our economy, it is time for State agencies to recognize the need to explore alternative regulatory approaches to minimize the economic impact of rules on small businesses, while still satisfying the regulatory objective.

Therefore, we urge you to vote yes on S-1335 (Sarlo, Kyrillos) / A-2327 (Chivukula, Schaer, Gregg).