Summary
Allows small businesses to challenge a government agency's claim that a new rule will not have a big financial impact on them.
What problem does this solve?
Government agencies sometimes create rules without fully understanding how they will financially harm small businesses. This bill creates a formal process for small businesses to request a review of an agency's decision and forces agencies to re-evaluate old rules.
What does this bill do?
Reference
Text:
Section:
Sec. 605A(a)
Header:
Filing a petition To review agency certification of a proposed rule
Allows small businesses to petition for review
Creates a process for any small business or group to ask the Chief Counsel for Advocacy of the Small Business Administration to review an agency's claim that a new rule won't significantly harm them.
Forces agencies to re-evaluate rules
If the Chief Counsel determines a rule will have a significant economic impact on small businesses, the agency that made the rule must perform a detailed analysis of its effects.
Penalizes agencies for not cooperating
If a government agency fails to participate in a review meeting with the Chief Counsel, the new rule will not apply to small businesses.
Reference
Text:
Section:
Sec. 4
Header:
Review procedures for section 610 periodic review of rules
Requires periodic review of existing rules
Requires agencies to review existing rules every 10 years. If a review is not done on time, the rule will no longer be effective until the review is completed.
Increases transparency of rule guidance
Requires agencies to publish all guidance documents for rules that affect small businesses on a public website like regulations.gov and allow for public comments.
Considers indirect costs of rules
Requires agencies to analyze the potential indirect costs a new rule might have on small businesses, not just the direct costs.
Who does this affect?
- Small businesses
- Federal government agencies
- Small business advocacy groups
What is the real world impact?
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Protects small businesses from regulations
Gives small businesses a stronger voice by allowing them to formally challenge a federal agency's claim that a new rule won't be costly. This ensures that the economic impact on small companies is properly considered before new rules are made.
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Creates roadblocks for new regulations
Introduces new procedures that could be used to delay or stop federal agencies from putting new rules in place. This could slow down the creation of important protections for the public, workers, or the environment by allowing business groups to challenge them.
When does this start?
This bill would take effect when it is signed into law and includes several specific deadlines for agencies and reviewers.
Petition Review Deadline
The Chief Counsel has 10 days after receiving a petition to decide if it needs a full review.
Full Review Publication
The Chief Counsel must publish the results of a full review within 30 days of starting it.
Rule Reinstatement Period
If a rule expires because it wasn't reviewed in 10 years, the agency has 180 days to complete the review to put it back into effect.
Application to Past Rules
The requirement for a 10-year review of rules applies to all rules made in the five years before this act becomes law, as well as all future rules.