WASHINGTON – Pennsylvania Governor Edward Rendell has vetoed a bill that would have required state regulators to consider the financial impact of new regulations on small businesses. The Pennsylvania Credit Union Association had said it would be "supportive of any initiative that gives consideration to the needs of small businesses when making regulations," according to Michael Wishnow, PCUA's senior vice president, communications and marketing. HB 2442, which recently unanimously passed both houses of the Pennsylvania General Assembly, would have strengthened Pennsylvania's Independent Regulatory Review Commission (IRRC) in its role of the reviewing regulations, according to the SBA's Office of Advocacy. The legislation would have required state regulators to consider the financial, economic, and social impact of new regulations on small businesses. Rendell said the IRRC has "a deficient election process." "I have received no evidence that the Commission's election process for chair is flawed," the Governor wrote in his Dec. 1 veto message to the legislature. "I am impressed with the hard work of the members of the Commission and believe their guidance on the structure and operation of the Commission is warranted before any legislation is passed affecting this structure." HB 2442 would have implemented some elements of small business friendly regulatory legislation put forward as a model by the SBA. Similar to the federal Regulatory Flexibility Act (RFA), the model encourages entrepreneurial success by requiring state agencies to consider their impact on small business before they issue final regulations. So far, small business regulatory flexibility has been signed into law by governors in Connecticut, Kentucky, Missouri, Rhode Island, South Carolina, South Dakota, and Wisconsin and is being considered in 17 states, according to the SBA. [email protected]