The Small Business Impact Statement Act of 1979 and the Small Business Regulatory Relief Act

Commenting on two regulatory bills before the House of Representatives, GAO shared its views on the need to consider the adverse impact of government regulation on small business. Incorporation of the objectives of the pending legislation in more comprehensive regulatory reform legislation would make regulation less burdensome to small business. Various forms of flexible regulation exist which could reduce the regulatory burden and meet the goals of these bills without the problems of regulation tiered by firm size. The one-time review of rules contained in the proposed legislation needs reconsideration. To balance the need for review with the problems of business confidence, effective enforcement and compliance, and agency staff demands, consideration should be given to including in the bill, or requiring each agency to develop, criteria for choosing which regulations will be reviewed, and when. An appropriate role for GAO would be, upon request, to assist Congress in reviewing the analyses carried out by the agencies.