What This Bill Does
This bill requires certain federal agencies to provide more detailed explanations when they create new rules. Specifically, these agencies must analyze how their rules affect small businesses and explain why they did not choose options that would reduce costs for small companies.
Who It Affects
Covered agencies (as defined in the bill) that make rules. Small entities and small businesses subject to those rules.
Key Provisions
• Agencies must consider the impact of proposed rules on small entities when following the legal process for creating rules (Sec. 2)
• When an agency decides not to adopt options that would help small entities, it must provide a detailed written explanation of why the size and resources of small entities should not matter for the rule, based on facts, policy and legal reasons (Sec. 3)
• For covered agencies, the final written analysis of a rule must describe what steps the agency took to reduce extra costs for small entities and must include detailed justification if the agency chose not to adopt significant alternatives for small entities (Sec. 4)
What Changes
Agencies will need to write more detailed explanations in their regulatory analyses. These explanations must specifically address how rules affect small businesses and justify decisions not to use options that would help small companies. Agencies cannot simply ignore the impact on small entities without providing written reasons.
Important Definitions
"Covered agency" - Not specified in bill text
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1749
To impose additional requirements for covered agencies in regulatory flexibility
analysis.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 2023
Mr. FITZGERALD (for himself, Mr. NORMAN, Mr. FALLON, and Mrs. MILLER
of Illinois) introduced the following bill; which was referred to the Com-
mittee on the Judiciary, and in addition to the Committees on Small
Business, and Financial Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To impose additional requirements for covered agencies in
regulatory flexibility analysis.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Making the CFPB Ac-
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countable to Small Businesses Act of 2023’’.
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•HR 1749 IH
SEC. 2. RULEMAKING UNDER DODD-FRANK WALL STREET
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REFORM AND CONSUMER PROTECTION ACT.
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Section 1022(b)(2)(A) of the Dodd-Frank Wall
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Street Reform and Consumer Protection Act (12 U.S.C.
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5512(b)(2)(A)) is amended—
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(1) in clause (i), by striking ‘‘and’’ at the end;
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(2) in clause (ii), by striking the semicolon at
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the end and inserting ‘‘; and’’; and
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(3) by adding at the end the following:
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‘‘(iii) the impact of proposed rules on
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small entities, in accordance with section
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609 of title 5, United States Code;’’.
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SEC. 3. INITIAL REGULATORY FLEXIBILITY ANALYSIS.
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Section 603(d)(1) of title 5, United States Code, is
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amended—
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(1) in subparagraph (B), by striking ‘‘and’’ at
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the end;
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(2) in subparagraph (C), by striking the period
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and inserting ‘‘; and’’; and
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(3) by adding at the end the following:
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‘‘(D) where the covered agency does not
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adopt any alternatives described in paragraphs
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(1) through (4) of subsection (c), a detailed jus-
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tification of the covered agency’s determination
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that the relative size and resources of small en-
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•HR 1749 IH
tities should have no bearing on the rule, sup-
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ported by factual, policy and legal reasons.’’.
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SEC. 4. FINAL REGULATORY FLEXIBILITY ANALYSIS.
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Section 604(a) of title 5, United States Code, is
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amended in the second paragraph (6) to read as follows:
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‘‘(7) for a covered agency, as defined in section
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609(d)(2), a description of the steps the agency has
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taken to minimize any additional cost of credit for
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small entities and, where no significant alternatives
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for small entities was adopted, a detailed justifica-
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tion of the covered agency’s determination that the
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relative size and resources of small entities should
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have no bearing on the rule, supported by factual,
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policy and legal reasons.’’.
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Æ
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