Book Description

The Regulatory Flexibility Act (RFA) of 1980 (5 U.S.C. 601-612) requires federal agencies to assess the impact of their forthcoming regulations on small entities (i.e., small businesses, small governments, and small not-for-profit organizations). For example, the act requires the analysis to describe why a regulatory action is being considered; the small entities to which the rule will apply and, where feasible, an estimate of their number; the projected reporting, recordkeeping, and other compliance requirements of the rule; and any significant alternatives to the rule that would accomplish the statutory objectives while minimizing the impact on small entities. This analysis is not required, however, if the head of the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA does not define significant economic impact or substantial number of small entities, thereby giving federal agencies substantial discretion regarding when the act's requirements are triggered. Other requirements in the RFA and elsewhere (e.g., that agencies reexamine their existing rules, develop compliance guides, and convene advocacy review panels) also depend on the whether the agencies determine that their rules have a significant impact on a substantial number of small entities.