House committee criticizes agencies for non-compliance with small business rules

Reps. Steve Chabot (R-OH) and Nydia Velázquez (D-NY) urged the heads of federal agencies to adhere to federal law requiring them to publish a compliance guide for every rule that impacts small businesses.

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The requirement was enacted as part of the Small Business Regulatory Enforcement Fairness Act (SBREFA), enacted by President George W. Bush in 2007. Section 212 of the law states that the federal agencies must report annually to Congress on their compliance with this section. After an investigation, the House Committee on Small Business found that very few agencies have met the reporting requirement since 2007. Approximately 135 agencies and sub-agencies have been contacted about their reporting negligence. The deadline for these reports is May 25.

“On this National Small Business Week, I want to ensure America’s 30 million small businesses that their voice is heard throughout our federal government,” Chabot, chairman of the House Small Business Committee, said. “Not only is it irresponsible for these agencies to disregard Section 212 of SBREFA – it’s breaking the law. Ranking Member Nydia Velázquez and I have written to agencies requesting that they comply with the law, produce these documents, and present them to the committee.”

Velazquez said small businesses deserve transparency from their federal government.

“I am deeply troubled that numerous federal agencies have failed to adhere to a law that requires them to take into account the unique effect that regulations have on small businesses. I am proud to join with Chairman Chabot in holding these agencies accountable to the law, and to small business owners across the country,” Velazquez said.