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S 5178

Small Business Regulatory Flexibility Improvements Act

119th Congress Introduced by Rick Scott

Expands and tightens how rules are analyzed for small entities, broadening coverage, improving analyses and alternatives, transparency, and public input to protect small businesses

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 5178

Summary of Bill: Small Business Regulatory Flexibility Improvements Act (S. 5178, 119th Congress)

  • Purpose and intent

    • The bill amends the Regulatory Flexibility Act (RFA) to expand and strengthen how federal rules are analyzed for their effects on small entities. It aims to ensure more thorough consideration of economic impacts, broaden the scope of rules covered, and enhance transparency, accountability, and public engagement in the rulemaking process as it affects small businesses, including tribal organizations and certain small governmental entities.

  • Key provisions and changes

    • Clarification and expansion of rules covered by the RFA
    • Redefines “rule” to align with existing references and excludes certain veterans-related protections and narrow, targeted rate/price-related rules.
    • Adds rules with indirect effects on small entities to be considered under the RFA, including indirect compliance costs and revenue impacts.
    • Inclusion of rules affecting tribal organizations and land management plans
    • Applies RFA analyses to rules affecting tribal organizations.
    • Expands the concept of “land management plans” (Forest Service and Interior) and requires analyses for revisions or amendments to these plans.
    • Expanded regulatory analyses and alternatives
    • Initial Regulatory Flexibility Analyses (RFAs) must include a detailed description of alternatives that minimize adverse economic impacts or maximize beneficial impacts on small entities.
    • Final RFAs must describe both adverse and beneficial impacts in detail and consider alternatives.
    • Introduces quantitative or clearly explained non-quantified descriptions of impacts and requires consideration of disproportionate impacts and access to credit.
    • Enhancement of reporting requirements and public accessibility
    • Expands the Regulatory Agenda reporting to require a brief sector description of affected NAICS codes.
    • Agencies must prominently display plain-language summaries of RFAs on agency websites; the SBA’s Office of Advocacy must also publish summaries by agency.
    • Strengthened procedures for gathering input and interagency review
    • Reforms the process for obtaining small-entity input before final rulemaking; requires prior notice to the SBA Chief Counsel for Advocacy and a review panel to assess potential impacts.
    • The Chief Counsel for Advocacy may provide reports and recommendations to agencies; agencies must address such input in the rulemaking record.
    • Periodic rule reviews and ongoing oversight
    • Establishes a plan for periodic review of rules with significant economic impact on small entities, to be updated and published, with a 10-year review horizon for existing rules and post-rule review for new rules.
    • Judicial review and enforcement enhancements
    • Expands the scope of judicial review to include final rules under the RFA.
    • Allows the Chief Counsel for Advocacy to intervene or comment on agency compliance with administrative procedures.
    • Small-business size standards and enforcement
    • Grants the Chief Counsel authority to establish size standards for purposes of this act and to approve such standards, with judicial review available for challenges to these standards.
    • Administrative and compliance measures
    • Repeals a waiver/delay authority and imposes new compliance powers for the Chief Counsel.
    • Adds a mechanism to grant first-time violation relief from civil fines for small businesses under certain conditions, with specified exceptions.

  • Affected parties and potential impact

    • Small entities: The bill directly targets small businesses, startups, and small organizations by expanding coverage, enhancing analysis, and increasing protections against disproportionate costs.
    • Tribes and tribal organizations: Explicit inclusion in RFA coverage.
    • Land management agencies (Forest Service, Interior) and related land management plans: Expanded rulemaking coverage.
    • Federal agencies: Greater requirements for RFAs, agendas, transparency, and outreach; increased scrutiny of economic impacts and public input.
    • SBA Office of Advocacy: Expanded role in reviewing, advising, and reporting on rulemaking.

  • Procedural and timeline notes

    • If enacted, agencies would issue new RFA guidance within 270 days.
    • Annual and periodic rule reviews would commence following enactment, with plans due and updates published on a 10-year cycle for existing rules.
    • Compliance and judicial review provisions broaden the avenues for oversight and litigation.

Overall, S. 5178 seeks to strengthen the Regulatory Flexibility Act by broadening coverage, enhancing analysis and alternatives, increasing transparency and public participation, and providing stronger tools to protect small entities from adverse regulatory impacts.

Compiled from official sources — confirm details with the bill’s official record.

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