NEWSRELEASE
For Release: May 5, 2004
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 04-14 ADVO
Regulatory
Protections For Small Business
Need Improvement
Chief Counsel For Advocacy Supports H.R. 2345
WASHINGTON, D.C. Small businesses need the Regulatory Flexibility Improvements Act of 2003 (H.R. 2345) to protect them from regulatory over-reach, according to congressional testimony delivered today by Thomas M. Sullivan, Chief Counsel for Advocacy. Sullivan also suggested ways to make the legislation stronger.
Sullivan testified to the U.S. House of Representatives, Committee on Small Business that, "Advocacy believes that H.R. 2345 makes several needed improvements to the Regulatory Flexibility Act. . . . H.R. 2345 will improve the Regulatory Flexibility Act to allow for a more thorough analysis, foster the consideration of alternatives that will reduce the regulatory burden on small entities, and improve the transparency in the rulemaking process."
Based on discussions with small entity representatives, the Office of Advocacy strongly supports certain provisions of the bill, including:
- Defining economic impact to include foreseeable indirect economic impacts;
- Expanding the scope of applicability of the RFA to IRS actions that impose recordkeeping requirements;
- Requiring agencies to estimate the cumulative economic impact of a proposed rule on small entities, and
- Expanding the current panel process to CMS, IRS and the FCC.
Advocacy also believes that changes to H.R. 2345 would increase protections for small entities. Suggested changes include:
- Making the expanded panel process consistent with the process that is currently in place;
- Keeping industry size determinations within the SBAs Office of Size Standards, and
- Requiring agencies to provide written responses to all comments submitted by Advocacy, setting into law a key provision of President Bushs Executive Order 13272.
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 on small business issues.
For the complete testimony, visit the Office of Advocacy website at www.sba.gov/advo.
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Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsels efforts. For more information on the Office of Advocacy, visit www.sba.gov/advo, or call (202) 205-6533.