NEWSRELEASE
For Release: December 16,
2002
Contact: John McDowell (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 02-48 ADVO
Entrepreneurial Success Model Legislation Offered To State Legislators
Federal Law Has Saved Billions, State Laws Expected To Do Same
WASHINGTON, D.C. Small business will save billions in foregone regulatory compliance costs should states enact model legislation recently unveiled by Thomas M. Sullivan, Chief Counsel for Advocacy. Introduced at the American Legislative Exchange Council (ALEC) States and Nation Policy Summit, the legislation is modeled after the federal Regulatory Flexibility Act (RFA). That act encourages entrepreneurial success by requiring federal agencies to consider their impact on small business before they issue final regulations.
"The Office of Advocacy saved small business owners over $4 billion in foregone regulatory compliance costs last year alone," said Sullivan. "We did that by bringing the voice of small business to federal agencies early in the regulatory process. The same thing can happen in the states if they adopt this model legislation," he said.
By listening to small business, federal agencies can ensure that funds, which would have been spent on over burdensome new regulations, are instead available for hiring new employees, purchasing new equipment, and making other investments. At the same time, agencies still meet their regulatory goals such as higher environmental quality, greater travel safety, better workplace conditions, and increased family financial security.
Currently states offer a patchwork of laws that protect small business owners and their employees from excessive regulatory mandates. Some states offer protections similar to the RFA and enforcement mechanisms that mirror the role of the Office of Advocacy of the U.S. Small Business Administration (SBA). Other states offer little or no protection from the one-size-fits-all regulatory mentality.
"We brought this model legislation to the members of ALEC because we know that they care about entrepreneurial success," said Sullivan. "These state legislators are well aware that small business employs over half of the work force. If they want to decrease unemployment, grow their economies, and increase state revenues, it makes sense that they will want to level the playing field for small business," he said.
For more information, complete text of the model legislation, and a report outlining existing state regulatory protection for small business, 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.