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HR421119th CongressWALLET

Small Business Regulatory Flexibility Improvements Act

Sponsored By: Representative Cline, Ben [R-VA-6]

In Committee

Summary

Stronger economic-impact protections for small businesses. This bill would force agencies to measure and disclose both direct and reasonably foreseeable indirect costs of rules and to analyze alternatives that reduce harm or increase benefits for small entities.

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  • Small businesses and small organizations would get clearer, quantified analyses of rule costs and plain-language compliance guides. First-time paperwork violations by small businesses would generally avoid civil fines, with limited exceptions and a 24-hour correction window for health or safety hazards.
  • Federal agencies would have to include land management plan revisions in flexibility analyses, quantify impacts or justify non-quantification, publish a periodic review plan within 180 days, and review covered rules every 10 years.
  • The SBA Office of Advocacy and its Chief Counsel would gain formal pre-rule roles. The Chief Counsel must identify affected small entities within 15 days and deliver a panel report within 60 days, and the Office could participate in judicial and appellate challenges over size standards and final rules.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Early review and cost analysis for rules

If enacted, agencies would give the SBA Office of Advocacy drafts and impact materials before publishing big proposed rules. Rules likely to affect the economy by $100,000,000 a year or that hurt many small firms would trigger a 15-day window for the SBA to form a review panel and a 60-day panel report. Agencies would have to quantify direct and reasonably foreseeable indirect costs, including energy and startup costs, or explain in detail why quantification is impracticable. The bill would also expand what counts as a regulatory effect to include recordkeeping and interpretive rules and would set clearer rules for which nonprofits and tribal organizations count as "small."

First-time paperwork fine waiver for small firms

If enacted, small businesses would not face a civil fine for a first-time information‑collection or paperwork violation by the same agency in the prior 5 years. Agencies could still fine firms in certain cases, such as where the violation risks serious public harm, hides criminal activity, involves tax or debt collection, or is not fixed within 6 months after written notice. If the violation threatens health or safety, an agency could avoid a fine if the business corrects it within 24 hours of written notice. If an agency imposes a fine in a danger-to-health case without offering the 24-hour fix, the agency must tell Congress within 60 days.

Regular rule reviews and Advocacy power

If enacted, each agency would publish a plan within 180 days to review rules that significantly affect many small businesses. Agencies must review existing such rules within 10 years and post annual lists and reports to Congress and the SBA Chief Counsel. Agencies should amend or rescind rules that unduly hurt small firms, though an agency may extend a review for up to 2 years with notice. The bill would also let the Chief Counsel for Advocacy set or approve size definitions for some laws and let the Chief Counsel be joined or participate in court cases; the Comptroller General would report in 90 days on whether the Chief Counsel has enough resources.

Sponsors & CoSponsors

Sponsor

Cline, Ben [R-VA-6]

VA • R

Cosponsors

  • Rep. Hageman, Harriet M. [R-WY-At Large]

    WY • R

    Sponsored 1/15/2025

  • Rep. Ellzey, Jake [R-TX-6]

    TX • R

    Sponsored 1/15/2025

  • Rep. Brecheen, Josh [R-OK-2]

    OK • R

    Sponsored 1/15/2025

  • Rep. Fitzgerald, Scott [R-WI-5]

    WI • R

    Sponsored 1/15/2025

  • Rep. Webster, Daniel [R-FL-11]

    FL • R

    Sponsored 2/21/2025

  • Rep. Van Drew, Jefferson [R-NJ-2]

    NJ • R

    Sponsored 2/21/2025

Roll Call Votes

No roll call votes available for this bill.

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