The Regulatory Flexibility Act : hearing before the Committee on Small Business, House of Representatives, One Hundred Third Congress, first session, Washington, DC, July 28, 1993

United States. Congress. House. Committee On Small Business

Sujets

• Small business
• United States
• Administrative law

Informations

• Publié par: les_archives_du_savoir
• Nombre de lectures: 13
• Langue: English
• Poids de l'ouvrage: 10 Mo

Extrait

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FIRST SESSION
1993WASHINGTON, DC, JULY 28,
Committee on Small BusinessPrinted for the use of the
103-38No.Serial
PRINTING OFFICEGOVERNMENTU.S.
: 1993WASHINGTON
Government Printing OlTiceFor sale by the U.S.
DC 20402Congressional Sales Office. Washington.Superintendent of Documents.
0-16-043228-6ISBNCOMMITTEE ON SMALL BUSINESS
JOHN J. LaFALCE, New York, Chairman
NEAL SMITH, Iowa JAN MEYERS, Kansas
IKE SKELTON, Missouri LARRY COMBEST, Texas
LouisianaROMANO L. MAZZOLI, Kentucky RICHARD H. BAKER,
RON WYDEN, Oregon JOEL HEFLEY, Colorado
MACHTLEY, Rhode IslandNORMAN SISISKY, Virginia RONALD K.
JOHN CONYERS, JIM RAMSTAD, MinnesotaJr., Michigan
JAMES Nevada SAM JOHNSON, TexasH. BILBRAY,
KWEISI MFUME, Maryland WILLIAM H. ZELIFF, Jr., New Hampshire
FLOYD H. FLAKE, New York MICHAEL A. "MAC" COLLINS, Georgia
BILL SARPALIUS, Texas SCOTT McINNIS, Colorado
GLENN POSHARD, Illinois HUFFINGTON, California
EVA M. CLAYTON, North Carolina JAMES M. TALENT, Missouri
MARTIN T. MEEHAN, Massachusetts JOE KNOLLENBERG, Michigan
PAT BANNER, Missouri JAY DICKEY, Arkansas
TED STRICKLAND, Ohio JAY KIM, California
NYDIA M. VELAZQUEZ, New York DONALD A. MANZULLO, Illinois
MassachusettsCLEO FIELDS, Louisiana PETER G, TORKILDSEN,
MARJORIE MARGOLIES-MEZVINSKY, ROB PORTMAN, Ohio
Pennsylvania
WALTER R. TUCKER III, California
PennsylvaniaRON KLINK,
LUCILLE ROYBAL-ALLARD, California
EARL F. HILLIARD, Alabama
H. MARTIN LANCASTER, North Carolina
THOMAS H. ANDREWS, Maine
MAXINE WATERS, California
BENNIE G. THOMPSON, Mississippi
Jeanne M. Roslanowick, Staff Director
Stephen P. Lynch, Minority Staff
(II)CONTENTS
Page
1Hearing held on July 28, 1993
WITNESSES
1993Wednesday, July 28,
for Law and Finance, and generalBusker, William S., senior vice president
officer, the American Trucking Associations,counsel and chief financial
21Inc
ofRepresentative in Congress from the StateEwing, Hon. Thomas W., a
4Illinois
BusinessActing Chief Counsel for Advocacy, U.S. SmallFreedman, Doris S.,
• 9Administration
of Inde-Mark W., legislative representative, National FederationIsakowitz,
15Businesspendent
Contractors Associa-Lawson, Frank E., Jr., president, the National Roofing
18tion
Small Business United, onMcDonough, Leo, president, TEC/Pennsylvania
••.•• 23behalf of National Small Business United
National Association ofMorrison, James, director of Government Relations,
Regulatory Flexibility Act Coali-the Self-employed, and representing the
12tion
APPENDIX
supplied for the record:Freedman, Doris S., information
264 requested by Chairman LaFalceAdditional
Implementation ofthe Chief Counsel for Advocacy onAnnual Report of
211Regulatory Flexibility Actthe
241comment lettersSelected
statements:Opening
45Huffington, Hon. Michael
33LaFalce, Hon. John J
35Meyers, Jan
46Portman, Hon. Rob
41Poshard, Hon. Glenn
40Ramstad, Jim
38Sisisky, Hon. Norman
42Skelton, Ike
Prepared statements:
187with attachmentBusker, William S.,
196amendmentProposed
47Hon. Thomas W., with attachmentsEwing,
Clinton 63Correspondence between Rep. Ewing and President
analysis and additionalDear Colleague letter with section-by-section
52information on Regulatory Flexibility Act
59H.R. 830
65regulatory flexibilityMiscellaneous letters to Rep. Ewing re
99Freedman, Doris S
122Isakowitz, MarkW
134with attachmentsLawson, Frank E., Jr.,
145material safety data sheetsMiscellaneous
159 survey sheets
197McDonough, Leo
(III)IV
Page
Prepared statements—Continued
117Morrison, James
Statements submitted for the record:
Associated Builders and Contractors, Inc 206
International Association 209Dairy Foods
Roberts, Hon. Pat 95THE REGULATORY FLEXIBILITY ACT
WEDNESDAY, JULY 28, 1993
House of Representatives,
Committee Smallon Business,
Washington, DC.
The committee met, pursuant to notice, at 8:45 a.m., in room
2359-A, Rayburn House Office Building, Hon. John J. LaFalce
(chairman of the committee) presiding.
Chairman LaFalce. Good morning. The Small Business Commit-
tee will come to order.
In 1980, Congress passed, and President Carter signed, the Regu-
latory Flexibility Act [RFA]. This act has become a legislative mile-
stone in the effort to reduce the regulatory burden on small busi-
nesses. Essentially, the act requires Federal agencies to consider
the costs that their regulations impose on small businesses and to
minimize those costs. Today, our committee will review the effec-
tiveness of the act and explore ways that it might be strengthened
and its implementation made more effective.
Our hearing is very timely. The Clinton administration has put
this issue at the top of its small business agenda. The new SBA Ad-
ministrator, Erskine Bowles, recently testified before this commit-
tee, that it is a priority of the administration to, quote:
Get rid of the unnecessary paperwork and bureaucratic regulations that inhibit
the growth and productivity of small business. Government have a dis-
proportionately adverse effect on small companies. The President wants to attack
this issue head-on, and I am absolutely committed to doing that.
Chairman LaFalce. Furthermore, President Clinton himself
stated that, quote:
The Regulatory Flexibility Act has played an important role in many rulemak-
ings by ensuring that the effects on small businesses are considered during the rule-
making process. However, experience with the act suggests that improvements may
needed in its implementation.be
Chairman LaFalce. Vice President Gore is now heading up a
National Performance Review, which is designed to improve the
operation of Government, including the responsiveness and flexibil-
ity of Federal regulatory policy.
The administration's attention to this issue reflects its impor-
tance to the small business community. When a Government
agency promulgates a regulation, the burden of that regulation fre-
quently falls hardest on small businesses. This occurs not through
any malice or carelessness on the part of the Federal agency, but
rather because of the economies of scale involved in complying
with Federal regulations. For example, the costs of complying with
a particular regulation for a large company, including staff time,recordkeeping, on, are often roughly the same as for a smalland so
company. large company can spread the compli-However, since the
competitive advantageance costs over a larger output, it gains a
over the small company.
This competitive advantage is rooted not in the large company's
ability to produce a better product than the small company or to
produce it more efficiently or to sell it more effectively. It is merely
function of the relative burden of complying with Federal regula-a
tions.
was designed to address this prob-The Regulatory Flexibility Act
the impact of theirlem by requiring Federal agencies to consider
is enableregulations on small businesses. The act's purpose to
small companies to compete on the merits with large companies, on
the basis of price, quality, efficiency, and innovation. The goal is to
correct the potential bias against small businesses that is inherent
in the regulatory process.
small businesses have the chance to compete on theWhen
can perform well and inmerits, there is no question that they
the past 15 years,many cases outperform large businesses. Over
growth and inno-small business has, in fact, been the engine of job
vation in an otherwise lethargic economy.
We are pressed for time and, rather than continue, I am going to
ask if any other members have any opening statements they wish
make and first call upon the distinguished ranking minorityto
member, Mrs. Meyers.
may be found in the appendix.][Chairman LaFalce's statement
Mrs. Meyers. Thank you.
my thanks to youMr. Chairman, at the outset I want to express
for your leadership in holding this important hearing.
lateThe Regulatory Flexibility Act, which was enacted in 1980,
was the result of the efforts of many small businesses throughout
The issues of regulatory relief and regulatory flexibil-this country.
dominant theme at the 1980 White House Conference onity were a
the participants at that conference pushed forSmall Business, and
present and former members of thislegislative action. Some of the
advocating for more flexible reg-committee were at the forefront of
Ike Skelton, who probablyulations for small business. Particula