Bill Overview
Title: Small Business Regulatory Flexibility Improvements Act
Description: This bill modifies the rulemaking requirements and procedures of federal agencies under the Regulatory Flexibility Act of 1980 and the Small Business Regulatory Enforcement Fairness Act of 1996, including, among others, how agencies consider economic impact.
Sponsors: Rep. Cline, Ben [R-VA-6]
Target Audience
Population: Individuals employed by small businesses
Estimated Size: 60000000
- The bill seeks to modify how federal agencies consider the economic impact of regulations on small businesses.
- The Regulatory Flexibility Act of 1980 and the Small Business Regulatory Enforcement Fairness Act of 1996 both focus on small businesses and their interaction with regulatory frameworks.
- Small businesses make up a significant portion of businesses worldwide and are typically more sensitive to regulatory changes than larger corporations.
- Globally, small businesses employ a large percentage of the workforce, though exact numbers vary by country.
- The bill does not specify particular industries but targets small businesses across various sectors that are subject to federal regulations.
Reasoning
- The policy is designed to alleviate regulatory burdens for small businesses, which could improve operating conditions for them and potentially lead to job stability and growth.
- Given that small businesses often struggle with compliance costs, reducing these burdens could allow for reallocation of resources, potentially increasing employee satisfaction and wellbeing.
- The policy aims to enhance the rulemaking process, which may take several years to fully implement and show effects, suggesting changes in wellbeing may be gradual.
- Not all small businesses will be equally affected, as the impact depends heavily on their reliance on federal regulations.
- The maximum reach appears to be substantial, as 99.9% of US businesses are small businesses. However, the exact impact on individual wellbeing scores might vary significantly.
Simulated Interviews
Small Business Owner - Retail (Pasadena, CA)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I often feel overwhelmed by compliance paperwork. If the new policy reduces that burden, it would really help us.
- Any reduction in paperwork means more time I can dedicate to improving my products and helping my staff.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Software Developer (Austin, TX)
Age: 38 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Our startup could thrive if we spend less on compliance.
- I'm hopeful for more resources shifting to innovation rather than paperwork.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 4 |
Marketing Manager (Chicago, IL)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 6/20
Statement of Opinion:
- With fewer regulatory hurdles, we can expand our client base faster.
- Optimistic about the reduction in compliance costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 6 | 5 |
Retired (Denver, CO)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- This policy seems like a step in the right direction, but only time will tell how effective it is.
- I've seen many attempts; implementation quality will be key.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Barista (Philadelphia, PA)
Age: 24 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- If the shop can run with fewer costs, my job feels more secure.
- Hoping for better stability in shifts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Consultant (Seattle, WA)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- While deregulation might simplify things for clients, it could decrease my workload.
- I might need to pivot my consulting focus.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 5 |
| Year 20 | 4 | 5 |
Restaurant Owner (Portland, OR)
Age: 42 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Navigating food service regulations is tough. Any relief would be welcome.
- Policy might help prioritize better training for my staff instead of paperwork.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Freelancer - Graphic Design (Miami, FL)
Age: 33 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 11/20
Statement of Opinion:
- If my clients are less stressed by regulations, I expect more consistent work.
- In theory, it's a potential win for me as well.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Owner - Small Manufacturing Firm (Omaha, NE)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Streamlining would be fantastic; there are so many regulations we're required to adhere to.
- Policy might allow us to focus more on expansion.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 9 | 3 |
| Year 20 | 8 | 3 |
Warehouse Manager (Boise, ID)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- If logistics become simpler due to reduced regulations, our operations can be more efficient.
- Hoping for cost-saving measures from decreased regulatory burdens.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $50000000 (Low: $40000000, High: $60000000)
Year 3: $55000000 (Low: $44000000, High: $66000000)
Year 5: $60000000 (Low: $48000000, High: $72000000)
Year 10: $70000000 (Low: $56000000, High: $84000000)
Year 100: $100000000 (Low: $80000000, High: $120000000)
Key Considerations
- Small businesses are a critical component of the U.S. economy, making regulatory flexibility potentially impactful on national economic performance.
- The bill's success largely depends on the efficiency and effectiveness of newly implemented regulatory assessment procedures, which can vary between agencies.
- There might be variations in outcomes across different industries within the small business sector.