Regulatory Flexibility and Reform Act

Because the burdens of government regulation frequently fall relatively heavily on individuals of limited means and on small businesses, small organizations, and small governmental jurisdictions, alternative regulatory methods which would reduce these burdens without loss of regulatory efficiency and effectiveness are suggested. The objectives of S. 3330 are similar to those of the President's March 1978 Executive Order on improving government regulation, particularly with regard to reducing the paperwork burden and soliciting early public participation in agency rulemaking. The bill does not require agencies to sacrifice regulatory goals in order to lighten the regulatory burden. However, poorly conceived and designed regulations could create unintended incentives for institutions to become or remain small in order to escape vigorous or costly regulation. Agencies may have some difficulty in choosing among alternative regulatory methods as suggested by the proposed legislation. The role of GAO needs to be clarified, and the sunset provision of the legislation requires more consideration. Alternative regulatory methods include: (1) less or no regulation imposed on individuals, businesses, organizations, and governmental jurisdictions of limited means; (2) grants or subsidies to assist smaller organizations in complying with costly regulations; (3) progressive regulation offering a choice of when to comply; and (4) performance oriented regulations allowing firms to choose how to comply with performance goals. Uniform regulation may be justified if it does not place smaller businesses or governments at a disadvantage or if important policy goals are at stake.