Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act; DUMP Red Tape Act
Summary
The DUMP Red Tape Act directs the Chief Counsel for Advocacy of the Small Business Administration (SBA) to establish a 'Red Tape Hotline.' This hotline will receive notifications from small businesses regarding burdensome agency rules. The Chief Counsel will then report annually to the SBA Administrator and Congress on the received notifications and provide recommendations.
Expected Effects
The Act aims to reduce the regulatory burden on small businesses by creating a direct channel for them to report issues. This could lead to the streamlining or elimination of some regulations. The annual reports will provide data to Congress and the SBA on which regulations are most problematic.
Potential Benefits
- Provides a direct line for small businesses to voice concerns about burdensome regulations.
- Increases transparency regarding the impact of regulations on small businesses.
- Could lead to the simplification or elimination of unnecessary regulations, fostering a more business-friendly environment.
- The hotline will generate data that can inform future regulatory reform efforts.
- May improve the efficiency of government agencies by identifying areas where regulations are overly complex or burdensome.
Most Benefited Areas:
Potential Disadvantages
- The hotline's effectiveness depends on the SBA's responsiveness to the reported issues.
- There is no guarantee that reported regulations will be changed or eliminated.
- The hotline may create additional administrative burden for the SBA.
- Larger businesses may not benefit directly from this hotline, as it is specifically targeted at small entities.
- The cost of establishing and maintaining the hotline could potentially outweigh the benefits if not managed efficiently.
Constitutional Alignment
The Act appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by aiming to reduce burdens on businesses, which can facilitate interstate commerce. It also aligns with Congress's power to oversee and regulate government agencies. The First Amendment right to petition the government for redress of grievances is also supported by this Act.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).