Small 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) this week, according to a press release issued by the Office of Advocacy of the SBA.
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.
- The Executive Order that ensures that independent agencies comply with the RFA will be put into law.
- 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."
Statistics from the SBA Office of Advocacy 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.
Let's hope that the SBA and Senator Snowe also help restrict any impact of the recent Kelo Decision on property seizure.
