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Washington, Jun 15, 2011 - WASHINGTON, DC— House Small Business Committee Chairman Sam Graves (R-MO) today held a full committee hearing to examine two bills designed to ensure that federal agencies comply with the Regulatory Flexibility Act (RFA). Although long ignored by federal agencies, the RFA requires the administration to consider the effects of their rules on small businesses and other small entities. 

Graves introduced the Small Business Size Standard Flexibility Act of 2011 (H.R. 585) and also joined with House Judiciary Chairman Lamar Smith (R-TX) to introduce the Regulatory Flexibility Improvements Act of 2011 (H.R. 527) in February. Together, the bills will close loopholes used by agencies to avoid compliance with the RFA, require a better assessment of the impacts that regulations will have on small businesses, force agencies to perform better periodic review of rules, and grant the Chief Counsel for Advocacy at the Small Business Administration greater powers for enforcement of the RFA.  

“Federal agencies can no longer ignore the RFA,” said Graves. “Apparently, it has been assumed that it’s a choice whether or not to follow a federal statute. It is not. The RFA plays an enormous role in protecting our nation’s number one job creators from unnecessary, duplicative and costly federal mandates. 

“Excessive federal regulations already cost small firms over $10,500 per employee, which is more than 35 percent higher than the cost of regulatory compliance for large businesses. The ‘one-size fits all’ regulations produced by the administration disproportionally hinder small businesses and this legislation will help alleviate these needless burdens. Economic recovery begins with our small businesses. But this will not happen unless we rein in the mass of regulations coming from Washington.  
 
“Today’s witnesses provided very useful information on what changes may be necessary to further refine the bill and make sure it is widely followed by the administration. I look forward to working with my colleagues and getting this bill worked through Congress as soon as possible and then off to the president’s desk for his signature.”

Click HERE for Chairman Graves’ opening statement, witness testimony and additional materials from today’s hearing.