House Small Business Committee Chairman Sam Graves (R-Mo.) announced on Tuesday that a coalition of 125 business and manufacturing groups have overwhelmingly endorsed his legislation, the Regulatory Flexibility Improvement Act.
The proposed bill would improve and modernize the Regulatory Flexibility Act of 1980, according to a letter written by the coalition.
The RFA currently requires federal agencies to assess the economic impact that their own regulations have on small businesses and to consider alternatives if the impact is determined to be significant. Graves said the agencies have found loopholes in the law that allows them to skirt compliance.
The proposed legislation would require agencies to conduct an improved analysis before adopting a new regulation.
“Small businesses are the backbone of the nation’s economy, and their ability to operate efficiently and free of unnecessary regulatory burdens is critical for our country’s economic recovery,” the letter said. “This bipartisan legislation would reform the regulatory process to ensure that all federal agencies appropriately consider the impact of their rules on small businesses across America.”
Organizations that signed the letter include the National Federation of Independent Business, the National Association of Manufacturers and the National Association of Home Builders.
The committee is scheduled to mark up the bill on Wednesday.