On Tuesday the House Committee on Small Business was set to review seven legislative proposals aimed at curbing the significant regulatory burdens imposed by the Biden-Harris administration.

The move comes after a report by the committee highlighted $1.7 trillion in regulatory costs and over 300 million compliance hours required of small businesses, with Republicans seeking to address concerns that federal agencies have bypassed established rules meant to protect small enterprises from excessive regulatory pressure, as the Washington Examiner reports.

The full committee will be conducting a markup session on the seven bills designed to strengthen protections under the Regulatory Flexibility Act (RFA) of 1980. According to critics, the Biden-Harris administration has allegedly circumvented this act, creating an excessive regulatory framework for small businesses across the nation.

Findings Spark Legislative Push for Small Business Relief

In May, the House Committee on Small Business issued a report detailing the extent of the regulatory impact on small businesses. The report found that federal agencies failed to properly assess the economic costs of their regulatory actions in 28 cases.

Additionally, these agencies allegedly did not ensure their rules would not significantly affect small entities, nor did they examine for conflicting or duplicative regulations.

To address these issues, House Republicans have put forward the “Prove It Act,” a bipartisan proposal that seeks to ensure small business input is considered in the regulatory process. Other proposed bills focus on increasing transparency and accountability within federal agencies, particularly concerning the development and implementation of regulations affecting small enterprises.

Proposals Seek to Strengthen Regulatory Flexibility Act

The primary purpose of the seven bills under consideration is to reinforce the RFA. Passed in 1980, the act was designed to ensure that federal regulations take into account the unique challenges faced by small businesses.

Critics of the Biden-Harris administration argue that federal agencies have been certifying rules without proper economic assessments, bypassing this critical layer of protection for small enterprises.

The proposed legislation would address the gaps in regulatory oversight and require agencies to adhere more closely to the RFA’s requirements. Among the proposals is a heightened review process that ensures the economic impact on small businesses is thoroughly examined before new regulations are enacted.

Increased Compliance Hours and Costs for Small Businesses

One of the most alarming findings in the committee's May report was the staggering number of compliance hours imposed on small businesses. The report noted that 312 million hours were spent on paperwork and other compliance-related tasks due to federal regulations. This, combined with the $1.7 trillion cost estimate, has fueled Republican efforts to reduce the regulatory burden.

Rep. Roger Williams (R-TX), a key supporter of the new legislation, emphasized the toll these regulations have taken on small businesses. "The regulatory burden placed on Main Street America throughout the Biden-Harris Administration is hard to comprehend," Williams said. He argued that the legislation would provide much-needed transparency and accountability, giving small businesses a fairer chance to thrive in the current economic climate.

Allegations of Improper Certification by Federal Agencies

The report also pointed out instances where federal agencies allegedly certified that their rules would not significantly affect small businesses without conducting proper analysis. Critics accuse these agencies of failing to meet congressional oversight standards and not providing requested information regarding their regulatory processes.

The new legislative proposals aim to hold federal agencies more accountable for their actions by requiring greater scrutiny and justification for the rules they propose. The goal is to prevent future instances of improper certification and to ensure that the interests of small businesses are adequately represented in the regulatory framework.

Trade Groups Push for More Input in Regulatory Process

Trade groups representing small businesses have voiced their concerns over the lack of input they have in the current regulatory process. In a letter addressing the findings, these groups emphasized the importance of increasing small business involvement and transparency.

The letter stated, "One proposal, the bipartisan Prove It Act, would increase small business input in the regulatory process and ensure agencies are fully accounting for the impact of regulations on small businesses." These groups also support other legislative measures aimed at improving transparency and ensuring that federal agencies follow proper procedures when creating new regulations.

Republicans Push for Accountability and Transparency

The House Committee on Small Business has made it clear that the focus of the new legislation is to provide greater accountability from federal agencies and to reduce the regulatory burden on small businesses. By implementing these changes, Republicans hope to foster a more business-friendly environment that allows small enterprises to grow without being stifled by excessive regulations.

The proposed bills also call for federal agencies to be more transparent in their decision-making processes. Lawmakers are urging agencies to provide more detailed reports on how they arrive at regulatory decisions, particularly when those decisions could have a significant impact on small businesses.

Conclusion: Seven Bills to Ease Regulatory Pressure on Small Enterprises

In response to the findings of the May report, the House Committee on Small Business is working to pass seven bills that would enhance the protections offered to small businesses under the Regulatory Flexibility Act. The bipartisan Prove It Act, along with other legislative proposals, aims to increase small business input and ensure that federal agencies properly assess the economic impact of their regulations.

House Republicans are pushing for greater transparency and accountability, seeking to create a more balanced regulatory environment where small businesses are not unfairly burdened by excessive compliance requirements. If passed, the legislation would provide much-needed relief to Main Street America, allowing small enterprises to focus on growth and innovation without the constant pressure of regulatory obstacles.