Introduced by Representative Alford on July 15, 2024, the bill proposes notable tweaks to the Regulatory Flexibility Act. Specifically, it demands that all federal agencies provide crystal-clear disclosures of their annual regulatory goals. The intention? To ensure that small entities are not blindsided by economic impacts stemming from new federal rules.
First and foremost, the bill insists on an addition to every agency’s regulatory agenda. This addition will require agencies to tag regulations with a brief description of which sectors of the North American Industrial Classification System (NAICS) would bear the brunt of any new rules anticipated to have considerable economic impacts on a significant number of small entities. It’s like a heads-up for the Davids amongst Goliaths, signaling which industries might need to brace for the regulatory storm.
Furthermore, the transparency crusade doesn’t stop there. The bill requires every federal agency to put up a plain language summary of their regulatory agenda on their respective websites within three days of its publication in the Federal Register. Think of it as a mandate for agencies to speak plainly and simply—no more deciphering dense governmental jargon.
In addition, the Chief Counsel for Advocacy will also take up the mantle of transparency. The bill mandates this office to compile all these plain language summaries by agency and display them conspicuously on the Small Business Administration (SBA) website. This will essentially create a one-stop shop for businesses seeking to understand what regulatory changes are on the horizon.
Rep. Alford’s bill is more than just an attempt at clearing bureaucratic smoke and mirrors; it is about making sure that the rules of the game are laid bare for small businesses that often operate on tight margins and limited resources. Under the current system, businesses may struggle to predict regulatory changes, putting them at a disadvantage. This bill aims to level the playing field by informing them ahead of time, thereby enabling better planning and preparation.
This isn’t just an exercise in idealism; it’s about practicality. For the small bakery that cares more about kneading dough than navigating regulations, or the family-owned auto-shop concerned with fixing engines rather than wading through legislative lingo, this bill could be a game-changer.
But like any proposed legislation, this bill is a double-edged sword. On one hand, it promises to provide businesses the foresight they need to adjust their strategies, possibly saving them from regulatory pitfalls. On the other hand, it might also expose agencies to more scrutiny and criticism, potentially slowing down the rulemaking process as they take extra care to ensure their communications are up to this new standard of clarity.
As for next steps, the bill has been referred to both the Committee on the Judiciary and the Committee on Small Business, where it will be scrutinized, debated, and possibly modified before it can move forward. The Speaker will determine the duration each committee has to consider the bill. Once through the House, it will march on to the Senate, and eventually to the desk of the President, where it will await the final nod of approval.
The business world, particularly its smaller constituents, will be watching this bill closely. Small businesses constitute the backbone of the American economy, employing nearly half of the workforce. Hence, the ripple effects of this bill could be far and wide, setting the stage for a regulatory environment that is as welcoming and comprehensible as it is robust and fair.
So, while the bill’s passages are yet to be sung in the halls of Capitol Hill, its verses are already resonating with an age-old democratic promise: a government of the people, by the people, for the people—expressed in language the people can actually understand.
