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 of the general statutes 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, which may include creating additional reports, hiring employees, or modifying products.

Additionally, the bill emphasizes the importance of communication with small businesses during the development of regulations and mandates that agencies consider alternative compliance methods that minimize adverse impacts on small businesses. These methods may include less stringent requirements, simplified processes, performance standards, or exemptions from certain regulations. The changes are set to take effect on July 1, 2025, and aim to enhance the regulatory environment for small businesses by ensuring their needs and challenges are adequately addressed in the regulatory process.