Substitute Senate Bill No. 1402, now Public Act No. 25-109, modifies the regulatory flexibility analysis required for regulations affecting small businesses. The bill repeals subsection (b) of section 4-168a and replaces it with new provisions that require agencies to prepare a regulatory flexibility analysis before or at the same time as posting a notice regarding proposed regulations. This analysis must identify the scope and objectives of the regulation, the types and number of businesses affected, and the potential compliance burdens on small businesses. Notably, the analysis now includes additional compliance requirements such as the retention of records, modification of employee benefits, and changes to product packaging, while also removing the previous requirement for small businesses to pay additional taxes or fees.

Furthermore, the bill emphasizes the importance of communication between agencies and small businesses during the development of regulations. It mandates that agencies consider alternative compliance methods that minimize adverse impacts on small businesses, which may include less stringent requirements, simplified processes, and exemptions from certain regulations. The changes aim to enhance the regulatory environment for small businesses by ensuring that their needs and challenges are taken into account during the regulatory process. The new provisions will take effect on July 1, 2025.