On April 18, 2025, the Florida State Legislature introduced House Bill 433, a significant piece of legislation aimed at reforming the state's regulatory framework concerning small businesses and local governments. The bill seeks to address the impact of proposed rules on small entities by mandating that state agencies consider the potential adverse effects before implementing new regulations.

The key provisions of House Bill 433 include requirements for agencies to assess whether proposed rules will negatively impact small businesses, small counties, or small cities. Specifically, if a rule is expected to increase regulatory costs by more than $200,000 within a year, or if it poses an adverse impact on small businesses, the agency must provide detailed information regarding its decision-making process. This transparency is intended to ensure that the rulemaking record is comprehensive and accessible.

Notably, the bill encourages agencies to tailor their regulations to minimize disproportionate impacts on smaller entities, allowing for flexibility in defining what constitutes a "small business" or "small county." This approach aims to prevent unnecessary burdens on smaller operations that do not significantly contribute to the issues the regulations seek to address.

The introduction of House Bill 433 has sparked debates among lawmakers and stakeholders. Proponents argue that the bill is a necessary step to protect small businesses from overregulation, which can stifle economic growth and innovation. They emphasize that small businesses are vital to Florida's economy and should not be disproportionately affected by broad regulatory measures.

Opponents, however, express concerns that the bill may weaken essential regulations designed to protect public health and safety. They argue that by allowing agencies to define "small" in broader terms, the bill could lead to loopholes that undermine the effectiveness of regulations intended to address significant issues.

The economic implications of House Bill 433 could be substantial. Supporters believe that reducing regulatory burdens on small businesses may lead to increased job creation and economic activity. Conversely, critics warn that if regulations are too lax, it could result in negative consequences for public welfare and environmental protections.

As the legislative process unfolds, the future of House Bill 433 remains uncertain. It will likely undergo further scrutiny and amendments as lawmakers weigh the balance between fostering a supportive environment for small businesses and ensuring adequate regulatory oversight. The outcome of this bill could set a precedent for how Florida approaches regulatory practices in the years to come.