1.    As used in this section:

a.    “Small business” means a business entity, including its affiliates, which: (1) Is independently owned and operated; and

(2) Employs fewer than twenty-five full-time employees or has gross annual sales of less than two million five hundred thousand dollars; b.    “Small entity” includes small business, small organization, and small political subdivision; c.    “Small organization” means any not-for-profit enterprise that is independently owned and operated and is not dominant in its field; and

d.    “Small political subdivision” means a political subdivision with a population of less than five thousand.

2.    Before adoption of any proposed rule, the adopting agency shall prepare a regulatory analysis in which, consistent with public health, safety, and welfare, the agency considers utilizing regulatory methods that will accomplish the objectives of applicable statutes while minimizing adverse impact on small entities. The agency shall consider each of the following methods of reducing impact of the proposed rule on small entities:

a.    Establishment of less stringent compliance or reporting requirements for small entities; b.    Establishment of less stringent schedules or deadlines for compliance or reporting requirements for small entities; c.    Consolidation or simplification of compliance or reporting requirements for small entities;    d.    Establishment of performance standards for small entities to replace design or operational standards required in the proposed rule; and

e.    Exemption of small entities from all or any part of the requirements contained in the proposed rule.

3.    Before adoption of any proposed rule that may have an adverse impact on small entities, the adopting agency shall prepare an economic impact statement that includes consideration of:

a.    The small entities subject to the proposed rule; b.    The administrative and other costs required for compliance with the proposed rule; c.    The probable cost and benefit to private persons and consumers who are affected by the proposed rule; d.    The probable effect of the proposed rule on state revenues; and

e.    Any less intrusive or less costly alternative methods of achieving the purpose of the proposed rule.

4.    For any rule subject to this section, a small entity that is adversely affected or aggrieved by final agency action is entitled to judicial review of agency compliance with the requirements of this section. A small entity seeking judicial review under this section must file a petition for judicial review within one year from the date of final agency action.

5.    This section does not apply to the ethics commission, any agency that is an occupational or professional licensing authority, and the following agencies or divisions of agencies:

a.    Council on the arts. b.    Beef commission.

c.    Dairy promotion commission. d.    Dry bean council.

e.    Highway patrol troopers’ retirement board. f.    Indian affairs commission.

g.    Board for Indian scholarships. h.    State personnel board.

i.    Potato council.

j.    Board of public school education.

k.    Real estate trust account committee. l.    Seed commission.

m.    Soil conservation committee. n.    Oilseed council.

o.    Wheat commission.

p.    State seed arbitration board. q.    North Dakota lottery.

6.    This section does not apply to rules mandated by federal law.

7.    The adopting agency shall provide the administrative rules committee copies of any regulatory analysis or economic impact statement, or both, prepared under this section when the committee is considering the associated rules.