Last edited 12:40 p.m., May 25, 2016
After missing its annual report in 2014, Missouri’s Small Business Regulatory Fairness Board described itself as operating at a “sub-par level” earlier this year, prompting action from the Missouri auditor’s office.
In its 2016 annual report, the board said it was unable to meet its statutorily required duties. It reported a number of serious internal problems, including failures in proper tracking of board documents and archives resulting in missing records, as well as board vacancies that undermine the board’s ability to operate, according to a news release.
Missouri Auditor Michelle Galloway currently is conducting an independent audit of the board.
The investigation is expected to wrap up in the next couple of months.
“Missouri’s small businesses contribute tremendously to the state’s overall economic well-being,” Galloway said in the release. “They are the backbone of our state’s economy.
“This board should be the voice of small businesses in combating regulatory red tape. The level of dysfunction reported by the board is unacceptable and does a disservice to small-business owners across Missouri.”
The Missouri Chamber of Commerce and Industry spoke out on the issue in a separate news release, pointing to companies struggling through regulations and asking for the state to re-energize the board on behalf of small businesses.
“For too long, Missouri bureaucrats have ignored the interests of small businesses and have continually enacted harmful regulations that make it difficult for these job creators to even keep the doors open,” chamber President and CEO Dan Mehan said in the release. “The Small Business Regulatory Fairness Board is a powerful tool that can help solve this problem and make sure our state is respecting our most important source of new job creation.
“We welcome the state auditor’s work to investigate the board’s current state, and we hope this action spurs new activity to protect our vital small businesses.”
The audit comes as only 16 percent of Missouri business leaders say they are satisfied with how the state regulates businesses, according to a statewide Gallup survey in the chamber’s Missouri 2030 strategic plan.
The Small Business Regulatory Fairness Board was created by the legislature in 2004 to provide input to state agencies on rules adversely affecting small businesses. In essence, the board acts as a voice for small businesses, ensuring small-business interests are considered when state officials craft rules and regulations.
State law provides for staff support from the Missouri Department of Economic Development, according to the auditor’s release.
The state auditor’s office is accepting information through
moaudit@auditor.mo.gov.
