1. (a) The notice of proposed adoption or amendment of a regulation shall include a determination as to whether or not the adoption or amendment affects small business. For purposes of this section, an adoption or amendment affects small business if a small business within the meaning of Government Code section 11342.610:

   1. (1) Is legally required to comply with the regulation;
   2. (2) Is legally required to enforce the regulation;
   3. (3) Derives a benefit from the enforcement of the regulation; or
   4. (4) Incurs a detriment from the enforcement of the regulation.
2. (b) If an agency determines that the regulation does not affect small business, the agency shall include in the notice of proposed action a brief explanation of the reason(s) for the agency's determination.

Note: Authority cited: Sections 11342.4 and 11349.1, Government Code. Reference: Sections 11340(g), 11342.610 and 11346.4(a)(3), Government Code.

History

1. Renumbering of former section 4 to section 3 filed 2-4-2026; operative 4-1-2026 (Register 2026, No. 6).