Small Business Regulatory Flexibility Improvements Act
Small Business Regulatory Flexibility Improvements Act
Plain Language Summary
# Small Business Regulatory Flexibility Improvements Act Summary **What It Would Do** This bill would strengthen protections for small businesses when federal agencies create new regulations. It would require agencies to more thoroughly analyze how their rules affect small companies—including indirect costs, not just direct ones. When a rule would significantly impact small businesses, agencies would need to explore and document alternative approaches that could reduce harmful effects or increase beneficial ones.
The bill also expands which types of agency decisions require this economic impact analysis. **Who It Affects** Small businesses would be the primary beneficiaries, as the bill aims to give them greater consideration in the regulatory process. Federal agencies that create rules (like the EPA, Labor Department, and others) would face new procedural requirements. Congress would gain more oversight authority to review these analyses. **Current Status** The bill was introduced in the 119th Congress by Representative Ben Cline (R-Virginia) and is currently in committee, meaning it hasn't yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Small Business Regulatory Flexibility Improvements Act This bill modifies the rulemaking requirements and procedures of federal agencies under the Regulatory Flexibility Act of 1980 and the Small Business Regulatory Enforcement Fairness Act of 1996, including how agencies consider economic impact with respect to small entities. Specifically, the bill requires agencies to consider the direct, and the reasonably foreseeable indirect, economic effect of a rule on small entities when determining whether a rule is likely to have a significant economic impact. Further, the regulatory flexibility analysis for rules with a significant economic impact must include a detailed description of alternatives to a proposed rule that minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities. The bill also expands the types of agency actions (e.g., revisions to land management plans) that are subject to a regulatory impact analysis. The bill removes the authority for an agency to waive the regulatory flexibility analysis requirements and requires the Office of Advocacy of the Small Business Administration to issue rules for compliance with such requirements.The bill also modifies the procedures for the (1) gathering of comments for a proposed rule, (2) periodic review of agency rules, and (3) judicial review of final rules.
Latest Action
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 13 - 12.