JEFFERSON CITY, Mo. – Missouri State Auditor Nicole Galloway announced Monday that her office will audit the Missouri Small Business Regulatory Fairness Board. The board issued its required annual report last week, which described an organization operating on a “sub-par level,” unable to meet its statutorily required duties.
In announcing the audit, Missouri State Auditor Nicole Galloway noted “dysfunction” on the board and said the board’s current state was “unacceptable” and a “disservice” to Missouri’s business community. When it was created, the Small Business Regulatory Fairness Board was intended to act as a voice for small businesses in Missouri, ensuring small business interests are considered when state officials craft rules and regulations.
“Missouri’s small businesses contribute tremendously to the state’s overall economic well-being. They are the backbone of our state’s economy. This board should be the voice of small businesses in combating regulatory red-tape,” Auditor Galloway said. “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 believes the audit is appropriate, saying “it’s time for the state to finally stand up for small business and re-energize this critical board.”
However, the board is currently hampered by a lack of new appointments to fill previous members’ expired terms. The inaction on the board comes as only 16 percent of Missouri business leaders say they are satisfied with how the state regulates businesses, according to a recent statewide Gallup survey of business leaders as part of the Missouri Chamber of Commerce and Industry’s Missouri 2030 strategic plan.
“For too long, Missouri bureaucrats have ignored the interests of small businesses and have continually enacted harmful regulations that make it difficult these job creators to even keep the doors open,” said Daniel P. Mehan, President and CEO of the Missouri Chamber. “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 annual report is the board’s first in several years. In it, the board 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.
Upon reviewing the report, Galloway announced her office would begin an independent audit of the entity to provide recommendations for improvements. The board was created by the legislature in 2004 to provide input to state agencies on rules adversely affecting small businesses. State law provides for staff support from the Missouri Department of Economic Development.
Rachael Herndon was the editor at The Missouri Times and also produced This Week in Missouri Politics, published Missouri Times Magazine, and co-hosted the #MoLeg podcast. She joined The Missouri Times in 2014, returning to political reporting after working as a campaign and legislative staffer.
Rachael studied at the University of Missouri – Columbia. She lives in Jefferson City with her husband, Brandon, and their two children.
