Senate Bill No. 1402 aims to enhance the regulatory flexibility analysis that state agencies must conduct before implementing regulations affecting small businesses. The bill mandates that the analysis include additional considerations, such as whether small businesses may need to retain records for a specified duration, modify or provide additional employee benefits, or alter the products they manufacture or their packaging. These additions complement existing requirements for agencies to assess the potential impacts of regulations on small businesses, including the need for additional reporting, hiring, or incurring extra costs.

The bill also emphasizes the importance of communication between agencies and small businesses during the development of regulations, ensuring that alternative compliance methods are considered to minimize adverse impacts. The effective date for these changes is set for July 1, 2025. Overall, the bill seeks to provide a more comprehensive framework for understanding and mitigating the regulatory burdens on small businesses, while maintaining the necessary oversight for public health and safety.