House Bill to Help Protect Small Businesses

Motor, Apr 2005 by Nash, Tom

A bill to better protect small business from burdensome federal regulations-the Regulatory Flexibility Improvements Act (H.R. 682)-has been introduced in the U.S. House of Representatives by Rep. Donald Manzullo, R-IL, chairman of the Small Business Committee. The bill has six co-sponsors: U.S. Reps. Steve Chabot, R-OH; Mike Pence, R-IN; Ric Keller, R-FL; Steve King, R-IA; Todd Akin, R-MO; and Lynn Westmoreland, R-GA.

The Regulatory Flexibility Act (RFA) enacted in 1980 requires federal agencies to assess the impact of proposed regulations on small businesses before implementing them. It requires federal agencies to examine alternatives that can lessen the burdens on small businesses. The proposed new legislation will prevent agencies from ignoring the harm some regulations do to those businesses.

If passed, H.R. 682 would require federal agencies to complete a more detailed economic impact analysis, including examining the indirect costs to small business, before enacting new regulations. In addition, the bill would give more enforcement authority to the U.S. Small Business Administration's Office of Advocacy.

"America's small employers face a heavy regulatory burden, which harms their bottom line and makes it much more difficult for them to compete in the world marketplace," said Rep. Manzullo. "This legislation simply requires federal agencies to take a closer look at proposed regulations."