Congressman Don Manzullo (R-IL) voted today for legislation to beef up the federal Regulatory Flexibility Act (RFA) so it can better protect small businesses from burdensome federal regulations. The House passed the bill 263-159. Manzullo authored similar legislation in 2005 when he was Chairman of the House Small Business Committee.
The RFA, enacted in 1980, requires federal agencies to assess the impact of proposed regulations on small businesses before implementing them. A key component requires the agencies to examine alternatives that can lessen the burdens on small businesses, who spend 36 percent more than their larger counterparts to comply with federal regulations. The RFA contains too many loopholes to be effective, however.
The Regulatory Flexibility Improvements Act of 2011 (H.R. 527) requires federal agencies to complete a more detailed economic impact analysis, including examining the indirect costs, on small business before enacting new regulations. In addition, the bill gives more enforcement authority to the U.S. Small Business Administration’s Office of Advocacy, the watchdog for small businesses within the federal government, primarily by giving Advocacy’s Chief Counsel the ability to write one set of binding rules on how agencies should properly interpret the RFA.
“America’s small employers face a heavy regulatory burden that harms their bottom line and makes it much more difficult for them to compete. This legislation simply requires federal agencies to take a closer look at proposed regulations to make sure they are not burdening small employers,” Manzullo said. “When I was Chairman of the Small Business Committee, I saw numerous examples of agencies using loopholes to avoid adhering to the Regulatory Flexibility Act. We should be doing everything we can to provide a more favorable economic climate for our small employers, who create the majority of all net new jobs each year.”
Click here to view Manzullo’s floor remarks on the legislation.
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