Vote Smart's Synopsis:

Vote to pass a bill that requires federal agencies to consider and propose alternatives for any proposed rule that has any significant economic impact on small businesses.

Highlights:

• Defines “economic impact” as any direct economic effect and any “reasonably foreseeable” indirect economic effect on small businesses resulting from a proposed or final rule (Sec. 2).

• Expands the information that an agency is required to include in its initial and final regulatory flexibility analysis, including, but not limited to, a detailed description of any disproportionate economic impact on small businesses (Sec. 4). 

• Amends the review panel process to require the Chief Counsel for Advocacy of the Small Business Administration to convene a review panel for proposed rules that are likely to have a “significant” economic impact on a “substantial” number of small businesses, whereas existing law only requires certain agencies to convene a review panel for such rules (Sec. 6). 

• Requires the chief counsel to submit a report to the agency following consultation with the review panel, including, but not limited to, an assessment of the economic impact of a proposed rule and a discussion of alternatives that will minimize “significant” adverse economic impacts or maximize beneficial “significant” economic impacts (Sec. 6).

• Authorizes the chief counsel to waive the requirement to convene a review panel if the chief counsel determines that it is impracticable, unnecessary, or contrary to the public interest (Sec. 6).

• Expands the powers of the chief counsel to include the authority to issue or modify rules governing agency compliance with the requirements of the Regulatory Flexibility Act of 1980 (Sec. 5).

Full Bill Text

Full Bill Text