2004 Year in Review

Manzullo Bill Better Protects Small Employers

(WASHINGTON) House Small Business Committee Chairman Don Manzullo (R-IL) today said legislation is needed to beef up the federal Regulatory Flexibility Act (RFA) so it can better protect small businesses from burdensome federal regulations.

The RFA, enacted in 1980, requires federal agencies to assess the impact of proposed regulations on small businesses before implementing them. A key component requires the agencies to examine alternatives that can lessen the burdens on small businesses. The RFA contains too many loopholes to be effective, however.

Manzullo, who held a full committee hearing on the issue Wednesday, has introduced legislation to put more teeth into the RFA. The Regulatory Flexibility Improvements Act (H.R. 2345) requires federal agencies to complete a more detailed economic impact analysis, including examining the indirect costs, on small business before enacting new regulations. In addition, the bill gives more enforcement authority to the U.S. Small Business Administration's Office of Advocacy, the watchdog for small businesses within the federal government, primarily by giving Advocacy's Chief Counsel the ability to write one set of binding rules on how agencies should properly interpret the RFA.

Manzullo congratulated President Bush and his Administration for their efforts since 2002 to improve agency compliance with the RFA. Those efforts, however, continue to be impeded by the flaws of the RFA itself, he said.

"America's small employers face a heavy regulatory burden which harms their bottom line and makes it much more difficult for them to compete in the world marketplace," Manzullo said. "This legislation simply requires federal agencies to take a closer look at proposed regulations to make sure they are not burdening small employers. We should be doing everything we can to provide a more favorable economic climate for small employers, America's job creators."

by  Editor, theCity1.com
May 11, 2004