Prerequisites to adoption of rule by local government

1. Before a governing body of a local government adopts a proposed rule, the governing body or its designee must make a concerted effort to determine whether the proposed rule will impose a direct and significant economic burden upon a business or directly restrict the formation, operation or expansion of a business. The governing body of a local government or its designee must notify chambers of commerce, trade associations or owners and officers of businesses which are likely to be affected by the proposed rule that they may submit data or arguments to the governing body or its designee as to whether the proposed rule will: (a) Impose a direct and significant economic burden upon a business; or (b) Directly restrict the formation, operation or expansion of a business. Ê Notification provided pursuant to this subsection must include the date by which the data or arguments must be received by the governing body or its designee, which must be at least 15 working days after the notification is sent. 2. After the period for submitting data or arguments specified in the notification provided pursuant to subsection 1 has expired and, if applicable, after a workshop held pursuant to subsection 5, the governing body or its designee shall determine whether the proposed rule is likely to: (a) Impose a direct and significant economic burden upon a business; or (b) Directly restrict the formation, operation or expansion of a business. Ê If no data or arguments were submitted pursuant to subsection 1, the governing body or its designee shall make its determination based on any information available to the governing body or its designee. 3. If the governing body or its designee determines pursuant to subsection 2 that a proposed rule is likely to impose a direct and significant economic burden upon a business or directly restrict the formation, operation or expansion of a business, the governing body or its designee shall consider methods to reduce the impact of the proposed rule on businesses, including, without limitation: (a) Simplifying the proposed rule; (b) Establishing different standards of compliance for a business; and (c) Modifying a fee or fine set forth in the rule so that a business is authorized to pay a lower fee or fine. 4. After making a determination pursuant to subsection 2, the governing body or its designee shall prepare a business impact statement. 5. A governing body of a local government shall hold a workshop to solicit comments from persons on one or more general topics to be addressed in a proposed rule if two or more local chambers of commerce or trade associations, or any combination thereof, submit a request for the holding of a workshop on the proposed rule to the governing body on or before the date by which data or arguments must be received on the proposed rule as specified in the notification provided pursuant to subsection 1. The governing body or its designee must notify chambers of commerce, trade associations or owners and officers of businesses which are likely to be affected by the proposed rule of the date, time and location of the workshop. 6. The governing body of a local government shall maintain an electronic mailing list of chambers of commerce, trade associations and owners and officers of businesses. The electronic mailing list must be updated on or before January 31 of each year. The governing body of a local government must provide notification pursuant to this section to each chamber of commerce and trade association by electronic mail regardless of whether the chamber of commerce or trade association has requested that it be placed on the electronic mailing list. Nothing in this section prohibits the governing body from also providing notification pursuant to this section by mail.