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.
Impact
The passage of HB 358 would fundamentally alter how agencies perform regulatory impact analyses. Agencies will now be required to provide detailed descriptions of potential economic impacts, including alternatives to proposed rules that could lessen adverse effects or enhance positive outcomes for small businesses. Moreover, the bill removes the previous authority that allowed agencies to waive regulatory flexibility analyses, thereby ensuring a more consistent approach to assessing the effects of new regulations on small entities. This could significantly reduce compliance costs and administrative burdens for small businesses navigating federal regulations.
Summary
House Bill 358, known as the Small Business Regulatory Flexibility Improvements Act, aims to enhance the regulatory environment for small businesses by amending the Regulatory Flexibility Act of 1980. This bill is designed to require federal agencies to consider the economic impact of proposed rules on small entities in a more comprehensive manner. Specifically, it mandates agencies evaluate not only direct consequences but also reasonably foreseeable indirect effects that could arise from new regulations. By doing so, the bill seeks to alleviate the burdens placed on small businesses due to overly stringent regulatory frameworks, allowing for a more conducive environment for growth and entrepreneurship.
Contention
Discussion around HB 358 has raised points of contention among legislators. Proponents of the bill, primarily Republican lawmakers and small business advocates, argue that it is a necessary step toward reducing bureaucratic red tape that disproportionately affects small enterprises. Critics, however, may express concerns about the possible unintended consequences of reducing regulatory oversight that might impact public safety, health, or welfare. Therefore, while the bill aims to champion small businesses, balancing this with the need for essential regulatory safeguards remains a critical consideration.
Regulatory Accountability Act This bill expands and provides statutory authority for notice-and-comment rulemaking procedures to require federal agencies to consider (1) whether a rulemaking is required by statute or is within the discretion of the agency, (2) whether existing laws or rules could be amended or rescinded to address the problem, and (3) reasonable alternatives to a new rule. For proposed major or high-impact rules that have a specified significant economic impact or adverse effect on the public health or safety, an agency must publish notice of such rulemaking to invite interested parties to propose alternatives and ideas to accomplish the agency's objectives; allow persons interested in high-impact or certain major rules to petition for a public hearing with oral presentation, cross-examination, and the burden of proof on the proponent of the rule; adopt the rule that maximizes net benefits within the scope of the statutory provision authorizing the rule, unless the agency explains the costs and benefits that justify adopting an alternative rule and such rule is approved by the Office of Information and Regulatory Affairs (OIRA); and publish a framework and metrics for measuring the ongoing effectiveness of the rule. Agencies must notify OIRA with certain information about a proposed rulemaking, including specified discussion and preliminary explanations concerning a major or high-impact rule. Further, OIRA must establish certain rulemaking guidelines. Additionally, the bill (1) revises the scope of judicial review of agency actions, and (2) establishes requirements for agencies issuing guidance.
All Economic Regulations are Transparent Act of 2023 or the ALERT Act of 2023 This bill establishes various reporting requirements with respect to federal agency rulemaking. Specifically, each agency must submit a monthly report to the Office of Information and Regulatory Affairs (OIRA) for each rule the agency expects to propose or finalize during the following year, including information about the objectives and legal basis for the rule as well as whether the rule is subject to periodic review based on its significant economic impact. Additionally, each agency must submit a monthly report for any rule expected to be finalized during the following year for which the agency has issued a general notice of proposed rulemaking, including an approximate schedule for completing action on the rule and an estimate of its cost and economic effects. OIRA must publish this information online and, subject to certain exceptions, a rule may not take effect until the information has been published for at least six months. The bill also requires OIRA to annually publish in the Federal Register specified information it receives from agencies under this bill, including a list of each rule an agency has proposed and the total cost of all rules proposed or finalized. OIRA must further publish online (1) any analysis of the costs or benefits of rules that were proposed or finalized during the previous year, and (2) a list of rules that were subjected to various forms of review during the previous year.
Regulatory Accountability Act This bill expands and provides statutory authority for notice-and-comment rulemaking procedures to require federal agencies to consider (1) whether a rulemaking is required by statute or is within the discretion of the agency, (2) whether existing laws or rules could be amended or rescinded to address the problem, and (3) reasonable alternatives to a new rule. For proposed major or high-impact rules that have a specified significant economic impact or adverse effect on the public health or safety, an agency must publish notice of such rulemaking to invite interested parties to propose alternatives and ideas to accomplish the agency's objectives; allow persons interested in high-impact or certain major rules to petition for a public hearing with oral presentation, cross-examination, and the burden of proof on the proponent of the rule; adopt the rule that maximizes net benefits within the scope of the statutory provision authorizing the rule, unless the agency explains the costs and benefits that justify adopting an alternative rule and such rule is approved by the Office of Information and Regulatory Affairs (OIRA); and publish a framework and metrics for measuring the ongoing effectiveness of the rule. Agencies must notify OIRA with certain information about a proposed rulemaking, including specified discussion and preliminary explanations concerning a major or high-impact rule. Further, OIRA must establish certain rulemaking guidelines. Additionally, the bill (1) revises the scope of judicial review of agency actions, and (2) establishes requirements for agencies issuing guidance.
Article I Regulatory Budget Act This bill requires the establishment of a federal regulatory budget to limit the costs of federal regulations. It also establishes requirements for disclosing the projected costs of federal regulations and procedures for enforcing the regulatory budget.