H.R.421 - Small Business Regulatory Flexibility Improvements Act (119th Congress)
Summary
H.R.421, the Small Business Regulatory Flexibility Improvements Act, aims to amend the Regulatory Flexibility Act to ensure a more thorough analysis of the potential impacts of regulations on small businesses. The bill seeks to broaden the scope of rules covered by the Act, including those with indirect effects and beneficial effects, and to include impacts on tribal organizations and land management plans.
It also focuses on enhancing the detail and accessibility of regulatory flexibility analyses, increasing the power of the Chief Counsel for Advocacy of the Small Business Administration, and establishing procedures for gathering comments and periodically reviewing rules. The Act includes provisions for waiving fines for first-time paperwork violations by small businesses and allows for judicial review of compliance with the Regulatory Flexibility Act after the publication of the final rule.
Ultimately, the bill intends to reduce the regulatory burden on small businesses by ensuring that agencies fully consider the economic impact of their rules and explore alternatives that minimize adverse effects or maximize beneficial effects.
Expected Effects
The likely effect of this bill is a reduction in the regulatory burden on small businesses. This would be achieved through more comprehensive analysis of regulatory impacts, increased oversight by the Small Business Administration, and greater opportunities for small businesses to provide input on proposed rules.
This could lead to increased business investment and job creation. It could also result in more efficient and effective regulations that better balance the needs of small businesses with other public policy goals.
However, the increased analysis and review processes could also slow down the rulemaking process and increase costs for regulatory agencies.
Potential Benefits
- Reduced regulatory burden: Small businesses may experience a decrease in compliance costs due to more tailored and flexible regulations.
- Increased transparency: Enhanced regulatory flexibility analyses and public access to information will allow for greater transparency in the rulemaking process.
- Greater input: Small businesses will have more opportunities to provide input on proposed rules through the review panel process and direct engagement with the Chief Counsel for Advocacy.
- Waiver of fines: First-time paperwork violations may be waived, providing relief to small businesses that inadvertently fail to comply with regulations.
- Improved access to credit: The bill requires analysis of any impairment of the ability of small entities to have access to credit.
Most Benefited Areas:
Potential Disadvantages
- Increased complexity: The expanded requirements for regulatory flexibility analyses could make the rulemaking process more complex and time-consuming for agencies.
- Potential for delay: The additional review and comment periods could delay the implementation of important regulations.
- Increased costs for agencies: Agencies may incur additional costs to comply with the enhanced analysis and review requirements.
- Possible loopholes: The waiver provisions for paperwork violations could be exploited, leading to non-compliance with regulations.
- Unintended consequences: The focus on minimizing adverse impacts on small businesses could lead to regulations that are less effective in achieving their intended goals.
Constitutional Alignment
The bill aligns with the spirit of promoting the general welfare, as stated in the Preamble of the US Constitution, by aiming to reduce the regulatory burden on small businesses, which are vital to the economy. Congress's authority to regulate commerce (Article I, Section 8) is the basis for the Regulatory Flexibility Act, which this bill amends.
The bill also seeks to ensure due process by providing small businesses with greater opportunities to participate in the rulemaking process. This aligns with the Fifth Amendment's guarantee that no person shall be deprived of property without due process of law.
However, the bill's provisions regarding the Chief Counsel for Advocacy's authority could raise concerns about the separation of powers if they unduly interfere with the executive branch's regulatory authority. Overall, the bill appears to be generally aligned with the Constitution, with potential areas for scrutiny regarding the balance of power.
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).