Federal agencies would have to prove rules don't hurt small businesses

What does this do?

HR 1163 requires federal agencies to conduct fuller analyses before certifying that a new rule will not significantly affect small businesses, including indirect costs on suppliers and customers. Small businesses could file a petition with the Small Business Administration's Office of Advocacy to trigger an independent review of any such certification. Agencies would also be required to publicly post guidance documents related to these rules and accept comments from small businesses on them.

Who does it affect?

Small business owners across all industries are the primary group affected, as they gain a formal process to challenge federal regulations they believe were incorrectly assessed. Federal agencies that write regulations face new procedural requirements, stricter deadlines, and added workload.

Why does it matter?

If an agency fails to complete its required ten-year review of existing rules, those rules automatically stop being in effect until the agency completes a process to reinstate them. Agencies must absorb all new responsibilities within their existing budgets, with no additional funding provided.

What does it cost, and who pays?

• No new funding provided
• Agencies absorb all added costs
• All industries potentially affected

Where does it stand?