Us Congress 2023-2024 Regular Session

Us Congress House Bill HB358

Introduced
1/13/23  
Refer
1/13/23  

Caption

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.

Companion Bills

No companion bills found.

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