If enacted, HB 9032 will alter the existing framework for regulatory analysis conducted by federal agencies. The bill mandates that initial and final regulatory flexibility analyses include detailed descriptions of the expected number of small entities affected, their specific compliance requirements, and an estimation of economic impacts beyond existing burdens. By placing greater emphasis on understanding these effects, the bill aspires to mitigate any disproportionate impacts that regulations may have on small businesses. Such changes could lead to more tailored and considerate regulatory environments that promote entrepreneurial growth and innovation.
Summary
House Bill 9032, titled the 'Enhanced Regulatory Flexibility Assessment Act,' aims to amend the Regulatory Flexibility Act by demanding a more thorough analysis of potential impacts on small entities from federal rules. The primary objective of this bill is to ensure that federal agencies conduct comprehensive evaluations that assess not just the direct implications of regulations, but also their broader economic impact on small businesses as well as potential conflicts with existing regulations. This is seen as a necessary step towards better representation and protection of small entities in the regulatory process, which often sees them overlooked compared to larger corporations.
Contention
Notably, while the bill is generally supported by advocates for small business interests who argue for a more equitable regulatory landscape, there could be resistance from entities that may perceive enhanced flexibility analysis as an additional bureaucratic step that might delay or complicate the implementation of necessary regulations. Debates may arise regarding the balance between protecting small businesses and the efficiency of regulatory processes, as well as the potential for increased costs associated with these in-depth analyses. Critics may argue this could inadvertently hinder timely regulatory actions meant for public safety or consumer protection.
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.
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.