Overview
Title
To require the Administrator of the Small Business Administration to ensure that the small business regulatory budget for a fiscal year is not greater than zero, and for other purposes.
ELI5 AI
The bill wants to make sure that small businesses don't have to pay any extra money because of new rules, and it asks for a report every year to see how these rules affect them.
Summary AI
S. 4401, also known as the "Small Business Regulatory Reduction Act," is a bill introduced in the U.S. Senate that aims to limit the regulatory costs for small businesses. It requires the Administrator of the Small Business Administration (SBA) to ensure that the regulatory budget for small businesses is zero, meaning no additional regulatory costs should be imposed. The bill also mandates that the SBA Administrator submits a yearly report to Congress detailing the impact of federal regulations on small businesses, sorted by the agency responsible for the regulations.
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AnalysisAI
Summary of the Bill
The proposed legislation, titled the "Small Business Regulatory Reduction Act," is focused on managing the financial impact of governmental rulemaking on small businesses. Introduced in the Senate by Senator Marshall and other co-sponsors, it specifically calls for the Administrator of the Small Business Administration (SBA) to ensure that the cost of regulatory compliance for small businesses remains at zero each fiscal year. Additionally, the bill mandates the SBA Administrator to submit an annual report to Congress, detailing how rules from various federal agencies affect small businesses, both retrospectively and prospectively.
Significant Issues
One of the major issues with the bill is the stipulation that the small business regulatory budget must balance at zero. This condition could hinder the SBA’s ability to implement necessary regulations, even if they might benefit small businesses or enhance public welfare. The concept of having a "zero-cost" rulemaking process raises questions about how regulations that incur costs but offer significant benefits or protections might be handled.
Another issue is the lack of specificity on how the impact on small businesses is to be measured and reported. The requirement for the SBA to report on other agencies' regulations that impact small businesses lacks clear guidelines on assessing this impact, which might lead to inconsistent or insufficiently informative assessments. Furthermore, the definition of "small business regulatory budget" narrowly focuses on costs without addressing potential economic benefits that certain regulations might provide.
Impact on the Public
The broader impact of this bill on the public can be multifaceted. On the one hand, ensuring that small businesses don't incur excessive regulatory costs could foster a more favorable environment for entrepreneurs and small firms, potentially spurring economic growth and job creation. It could lead to reduced administrative burdens on small businesses, allowing them to allocate more resources to growth and innovation, rather than compliance.
On the other hand, the rigid requirement of maintaining a zero regulatory budget might mean that some beneficial regulations that could enhance public health, safety, or environmental standards may not be enacted. This could have adverse implications, especially if new or amended regulations are needed to address emerging threats or societal issues.
Impact on Stakeholders
The primary stakeholders affected by this bill are small businesses. The legislation is designed to reduce their regulatory burden, conceivably making it easier for them to operate without the costs associated with new federal regulations. This could potentially create a more business-friendly climate, encouraging more people to start businesses and contributing to economic vitality.
For the SBA and other federal agencies, the bill might impose significant challenges. The requirement to ensure no regulatory budget overreach demands stringent oversight and potentially limits the capacity of these agencies to address new issues through regulation. Additionally, the lack of clear methodologies for assessing and reporting the impact on small businesses could complicate compliance and enforcement actions for these federal entities.
Overall, while the bill aims to support small businesses by alleviating regulatory burdens, it must be balanced with considerations for necessary regulations that ensure protection and fairness, both of which are essential for a well-functioning society.
Issues
The requirement in Section 2(a) that the small business regulatory budget must be zero could prevent the implementation of necessary regulations that might benefit small businesses or protect the public, which could lead to legal and ethical concerns about safety and fairness.
Section 2(b) mandates a report on regulations but lacks clarity on how the impact on small businesses is measured, which could create inconsistencies and make the report less useful for stakeholders.
The definition of 'small business regulatory budget' in Section 2(c) is limited to costs associated with the rulemaking by the Administrator, without considering the broader economic impact or benefits that might justify certain regulatory measures.
The term 'impact on small business concerns' used in Section 2(b) is vague and needs a clearer definition to ensure consistent and accurate assessment across different regulatory contexts.
Section 2(a)'s approach to ensuring a zero regulatory budget does not account for the evolving nature of business regulations, potentially hindering the adaptation and competitiveness of small businesses in changing economic contexts.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act states that it may be referred to as the "Small Business Regulatory Reduction Act."
2. Small Business Administration rulemaking costs to small business concerns Read Opens in new tab
Summary AI
The Small Business Administration (SBA) must make sure that the cost of its rules to small businesses is zero each year. The SBA administrator has to submit a report to Congress within 60 days after the fiscal year ends, detailing regulations from other agencies that affect small businesses, sorted by agency and covering the past and upcoming fiscal years. The "small business regulatory budget" is defined as the cost of creating, changing, or ending rules for small businesses as per the Small Business Act.