S. 5178: Small Business Regulatory Flexibility Improvements Act

This bill would change how federal agencies evaluate and report the effects of regulations on small businesses and certain other small entities. It would require agencies to provide more detailed analysis of how proposed rules may affect small businesses, including not only direct costs but also indirect effects and any benefits to small businesses. The bill would also expand coverage to include tribal organizations and certain land management plans in the regulatory flexibility review process.

Small-Business Impact Analysis

Under the bill, agencies would need to prepare more thorough small-business impact analyses when issuing regulations. These analyses would have to look more closely at how rules affect small businesses overall, including indirect compliance effects and potential beneficial outcomes. The bill also increases public reporting requirements and review of these analyses.

Plain-Language Guidance and SBA Oversight

The bill would require plain-language guides to help small businesses understand federal regulatory requirements. It would also strengthen oversight by the Small Business Administration (SBA), giving the SBA a larger role in reviewing agency compliance with small-business impact requirements. In addition, the Government Accountability Office (GAO) would be directed to study the SBA’s advocacy resources.

Paperwork Penalties

The bill would waive first-time paperwork fines for small businesses in many cases. The waiver would not apply if the violation is serious, has not been corrected, involves taxes, or creates a public health or safety risk.

Judicial Review

The bill would expand the ability to challenge agency compliance in court, giving affected parties more opportunity to seek judicial review if they believe an agency did not properly consider small-business impacts.

Relevant Companies

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