Small Business Flexibility Act

Summary#

This bill would change the Regulatory Flexibility Act (chapter 6 of title 5, U.S. Code) to require more and clearer analysis of how federal rules affect small entities. It expands what counts as a covered rule, requires agencies to count indirect and beneficial economic effects on small entities, and adds tribal organizations to the groups considered. The bill adds land management plans to the kinds of agency actions that need analysis and includes certain recordkeeping and information-collection requirements. It revises the definition of a "small organization" for some nonprofit enterprises and allows agencies to set agency-specific definitions after consultation.

The bill requires agencies to publish clearer regulatory agendas and plain-language summaries on their websites. It makes initial and final regulatory flexibility analyses more detailed and requires either numeric estimates of effects or an explanation why numbers are not possible. The Chief Counsel for Advocacy at the Small Business Administration would get new rulemaking and review powers, including early access to draft materials, convening review panels, producing reports on proposed rules, and the ability to intervene or file comments in agency proceedings. Agencies must perform periodic reviews of rules that have significant effects on many small entities and publish plans and annual reports about those reviews. The bill also changes when judicial review of agency compliance with RFA requirements can be sought and adjusts court jurisdiction for certain implementing rules.

The bill directs the Comptroller General to study whether the Chief Counsel has the capacity and resources to carry out the new duties. It also adds a provision to the Paperwork Reduction Act that generally bars civil fines for first-time paperwork violations by small businesses, with several listed exceptions and a short correction period for some violations.

What it means for you#

• Small businesses, small nonprofits, tribal organizations, and local governments may see agencies analyze rules in more detail before and after rules are made. Agencies must look at indirect costs, startup costs, energy costs, and possible benefits to small entities.
• Agencies must post plain-language summaries and full analyses on their websites, and include sector information from the North American Industrial Classification System when a rule may significantly affect many small entities.
• The Chief Counsel for Advocacy will get earlier access to agency drafts, can convene review panels, and will produce reports that become part of the rulemaking record. Agencies must say how they responded to those reports.
• Agencies must review existing significant rules on a regular schedule (within 10 years) and may amend or rescind rules to reduce harms to small entities or increase benefits, consistent with statutes.
• Small businesses may be protected from civil fines for a first-time paperwork-collection violation in many cases, unless specific exceptions apply. For some health or safety risks, agencies may require correction within 24 hours to avoid fines.

Expenses#

No publicly available information on federal costs, savings, or budget effects is included in the provided bill text or metadata.

Proponents' View#

No publicly available information in the provided text states specific proponents' statements or arguments beyond the bill language and sponsor list.

Opponents' View#

No publicly available information in the provided text states specific opponents' statements or arguments.