Senator Snowe Introduces Regulatory Flexibility Reform Act Of 2005
Words: Senator Snowe, Thomas SullivanSmall businesses will have a stronger role in regulatory decision making if Congress passes the Regulatory Flexibility Reform Act of 2005 introduced by Senator Olympia Snowe (R-ME) today.
The Regulatory Flexibility Reform Act of 2005 modifies the existing Regulatory Flexibility Act (RFA) so that:
- Federal agencies will be required to review all 10-year old regulations for their current impact on small business. This will encourage agencies to update their rules, ensuring that regulatory protections reflect current conditions.
- Executive Order 13272 will be codified into law. This will ensure that independent agencies comply with the RFA and that all federal agencies consider the Office of Advocacy?s comments on behalf of small business when they issue final rules.
- When federal regulations are implemented by the states, federal agencies will help state officials analyze the impact of those rules on small entities. States will gain insight into regulatory alternatives that will enable them to meet federal requirements while minimizing their impact on small entities.
"Senator Snowe is a true friend of small business," said Thomas M. Sullivan, Chief Counsel for Advocacy. "She clearly understands the unequal burden that small businesses face when complying with federal regulations. The Regulatory Flexibility Reform Act of 2005 is a positive step towards leveling the playing field for job creating small businesses."
Combined with S. 769 the Small Business Compliance Assistance Act of 2005, introduced by Senator Snowe in March, the new bill implements the Office of Advocacy?s four-point legislative agenda for the 109th Congress announced in April. This legislative agenda is designed to give small businesses a greater voice in the regulatory process by using a targeted approach to provide relief. Office of Advocacy statistics show that it annually costs the smallest of businesses $6,975 per employee to comply with federal regulations. That cost places a burden on small business that is 60 percent greater than costs incurred by large businesses.
The Office of Advocacy, the "small business watchdog" of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.
For more information, visit the Office of Advocacy website at www.sba.gov/advo.