This bill amends current law to require State agencies to consider the economic impact of proposed rules on all municipalities, rather than just small municipalities. Specifically, it removes the term "small" from the definition of municipalities affected by state mandates, thereby broadening the scope of the law to include all local units. The bill emphasizes that when developing and proposing rules, agencies must utilize approaches that achieve statutory objectives while minimizing adverse economic impacts on municipalities.

The bill also mandates that agencies conduct a State mandate flexibility analysis for proposed rules, which includes estimates of compliance costs and the number of municipalities affected. This analysis aims to ensure that the economic implications of new rules are carefully evaluated, especially in light of recent tax levy restrictions that may strain municipal budgets. By requiring a more comprehensive consideration of the financial effects on all municipalities, the bill seeks to promote fiscal responsibility and support local governance.

Statutes affected:
Introduced: 52:14B-25