Senate bill forces agencies to disclose indirect costs to small businesses

What does this do?

S 495 requires federal agencies to estimate not only direct regulatory costs but also indirect costs on small businesses connected through supply or business relationships. Agencies must publish that analysis within 10 days of issuing a rule. If an agency misses its required 10-year review of an existing rule, that rule automatically stops being effective until the agency justifies reinstating it.

Who does it affect?

Small business owners across many industries are affected, as are federal regulatory agencies. The Small Business Administration's Office of Advocacy takes on a larger oversight role under the bill.

Why does it matter?

Small businesses or groups representing them could petition the Small Business Administration's Office of Advocacy to challenge an agency's finding that a rule does not significantly affect them, with the office required to publish findings within 30 days. If an agency refuses to cooperate with that review, the rule cannot apply to small businesses at all.

Where does it stand?