I thank the chairman for yielding. Mr. Chairman, I rise in strong support of H.R. 5, the Regulatory Accountability Act. In response to the previous gentleman's comments, I would just note that none of the regulations that we are…
I thank the chairman for yielding.
Mr. Chairman, I rise in strong support of H.R. 5, the Regulatory Accountability Act.
In response to the previous gentleman's comments, I would just note that none of the regulations that we are considering today--the legislation--is going to do away with regulations altogether or even significantly, especially, regulations that have to do with people's safety. We are not trying to do anything that is going to affect the safety of the American people. We are just trying to make sure the regulations are smarter, and that is what this is all about.
I am also pleased that title III of H.R. 5 is a bill that I sponsored last term and in this Congress--the Small Business Regulatory Flexibility Improvements Act. The Committee on Small Business, which I happen to chair, and the Committee on the Judiciary have crafted this bill with bipartisan input over many years.
I thank Chairman Goodlatte for working with us on this important legislation, and I thank him for his leadership.
Small businesses are found in every congressional district and in every industry. They provide livelihoods for millions of workers and for their families. Small businesses employ nearly half of the private sector workforce and generate two out of every three new jobs in the private sector today. The Federal Government should be doing everything it can to encourage these small but mighty job creators. Unfortunately, oppressive red tape has had the opposite effect of discouraging investment, expansion, and job growth. I am not saying that all regulations are bad, but there are too many rules. For too long, agencies have ignored their true effect, their true impact, on small businesses. Small businesses are at a real disadvantage because they have fewer resources and rarely have in-house counsel, the regulatory compliance staff that would be necessary to guide them through this maze. Generally, small businesses just don't have that.
So shouldn't regulators, at the very least, examine the effects of new rules on small businesses and consider ways to reduce excessive burdens?
Of course they should. There is a law, the Regulatory Flexibility Act, or the RFA, which requires agencies to conduct this commonsense assessment when they regulate. Even though the law has been on the books for over 36 years, agencies too frequently just ignore its requirements.
The Small Business Regulatory Flexibility Improvements Act, which is title III in this bill, eliminates loopholes that agencies like the Internal Revenue Service have used to avoid compliance with the RFA. It also forces agencies to analyze not only the direct, but also the indirect effects of rules on small businesses, just as agencies are required to do when promulgating major rules affecting, for example, the environment. It gives small businesses additional opportunities for early input on proposed rules and regulations and strengthens the RFA's requirements for agencies to periodically review old rules.
Nothing in our legislation today takes away an agency's ability to issue a rule or a regulation, but it will force the rulemakers to think carefully before they act. It is great legislation, and I urge my colleagues to support it.
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, I yield myself such time as I may consume.
I offer this amendment to address a longstanding problem: agencies not fully analyzing the effects of regulations on small businesses.
Under the current Regulatory Flexibility Act, an agency may certify a rule if it expects that the rule will not have--and I am quoting the current law here--``a significant economic impact on a substantial number of small entities.''
When an agency certifies a rule, it does not need to perform a full regulatory flexibility analysis. This provision makes sense because not every rule affects small businesses.
Unfortunately, agencies appear to be abusing this provision. According to a recent study, agencies only prepared analyses for approximately 8 percent of rules finalized between 1996 and 2012.
A recent example of this occurred with the controversial waters of United States rule. The Environmental Protection Agency and Army Corps of Engineers certified that rule despite the significant and direct consequences for farmers, ranchers, and home builders. Most of those are small businesses.
Although the Small Business Administration Chief Counsel for Advocacy sent a letter to the agencies stating that the certification was improper and urging them to withdraw the rule, the agencies ignored the Chief Counsel and proceeded to finalize it anyway.
This amendment addresses this problem by requiring agencies to include--and I am quoting my amendment--``an economic assessment or a summary thereof that is sufficiently detailed to support the agency's certification.'' This will be published in the Federal Register as part of the detailed statement and certification for the proposed rule.
This approach mirrors the one used in the National Environmental Policy Act. When an agency finds a project to have no significant impacts on the environment, it is required to provide an environmental assessment or a summary of it. Since agencies are required to provide a threshold analysis when they issue a finding of no significant impact for actions that could affect the environment, it just makes sense to extend the same type of requirement to rules that could affect small businesses. Small businesses, after all, are the folks that are responsible for creating two-thirds, or about 70 percent, of the new jobs created nowadays. So anything that burdens these small businesses is something that is, by definition, bad for the economy and bad for job creation.
This particular amendment, I think, improves the underlying legislation. It makes sense. I urge my colleagues to support this amendment, which will further strengthen the RFA and ensure that agencies' decisions are supported by data.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself such time as I may consume. I will be brief, and then I will invite my colleague from Virginia to respond.
Just a couple of quick points. First of all, relative to this significant economic impact language that my distinguished colleague from Georgia is talking about, that is already in the existing law, so we are not changing anything there. We are not saying it ought to say a significant economic impact. It already says that in the existing law. Both the bureaucrats and the courts are used to determining what the terminology like ``significant'' means under the rule or regulation or the law, just as what a reasonable man is. ``Reasonable'' is quite common throughout the legal structure.
We are also not giving discretion to Ms. McMahon, the soon-to-be head of the SBA. It is to the Chief Counsel, and he is independent.
I yield to the gentleman from Virginia (Mr. Goodlatte), our chairman.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I rise in opposition to this amendment.
Mr. Chairman, I yield myself such time as I may consume.
Just a couple of points. First, before speaking in opposition to this amendment, I would note that the ranking member, Ms. Velazquez, and I worked very much in a bipartisan and cooperative manner on a whole range of issues. We have done that when she chaired the committee and I was the ranking member, and we do that now that I am the chair and she is the ranking member. I commend her for that cooperation. We have actually gotten a lot of things done in the Small Business Committee on behalf of small businesses all across the country in both Democratic and Republican districts.
That being said, I would also note that this particular language, in essence, replaces our H.R. 5, title III, with Ms. Velazquez's version. She mentioned that hers is bipartisan. Ours is as well. Mr. Cuellar was a principal cosponsor of this particular legislation, so, by definition, it is bipartisan. I would also note that we have dealt with this a number of times over the years, and we have included a significant number of Democratic amendments already in our underlying bill as well. So it truly is bipartisan.
The gentlewoman from New York's amendment would essentially strike title III of the bill, and it would replace it with alternative language. While I am heartened that she agrees that the Regulatory Flexibility Act needs to be improved, this amendment just does not go far enough to address, in my view, most Federal agencies' habitual disregards for small businesses. We know that the bureaucracy does disregard small businesses time and time again. That is why we feel so strongly about this bill.
Ms. Velazquez's amendment includes a few of the reforms that the current title has, but, unfortunately, it fails to include many other important ones. Her amendment does not close the loophole the IRS uses to avoid complying with the RFA, for example, and it does not provide additional opportunities for small businesses to provide input on proposed rules through the Small Business Advocacy Review panel process.
It does not require the Chief Counsel for Advocacy to issue government-wide RFA compliance regulations that all agencies must follow. Without these compliance regulations, agencies will just continue to develop their own interpretations of the RFA to avoid complying with the law's requirement.
America's small businesses deserve more meaningful reform, and the current title III of the bill, in our view, does just that; therefore, I would urge my colleagues, respectfully, to oppose this amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I don't think we need to increase bureaucracy or hire a whole lot more people to implement this. We have plenty of people right now who work for the Federal Government, and I am sure that we can shift some resources around, people can work harder and smarter, and we can be leaner and meaner. The bureaucracy has grown far too large over the years.
That money comes from somewhere. Where does it come from? It comes out of the hardworking taxpayers of our country. A lot of those folks are small business folks, and they are folks that
have gotten the short end of the stick far too often.
Hopefully, this Congress will move legislation that comes out of this body in a direction where, rather than throw roadblocks, hindrances, and more problems in the pathway of small businesses, we are going to help them. I know the last thing they want to hear is: I am from the government, and I am here to help you.
The fact is the government does exist, and to the extent we can help them, we ought to do that. But most of the small businesses that I talk to, what they say is: just get the heck off my back. Quit telling me how to do what I know how to do best.
So we are not anarchists over here. We are not saying that we don't need any bureaucracy, we don't need any government, and we don't need any regulations. We do need some regulations, but we overregulate now. Hopefully, this is just one step in scaling back on the overregulation that comes out of Washington and is like a wet blanket over small businesses all over the country and like a wet blanket over the American economy. So let's get that wet blanket off, let's get the economy moving, and let's Make America Great Again.
Mr. Chair, I yield back the balance of my time.
Mr. Chairman, I claim the time in opposition to the amendment.
Mr. Chairman, a longstanding position of the Chief Counsel for Advocacy of the Small Business Administration has been that land management plans developed by the Forest Service and by the Bureau of Land Management are rules and that they are subject to analysis under the RFA. The same conclusion--that a land resource management plan is a rule--has been reached by the Government Accountability Office.
Given the potentially significant consequences to small businesses that rely on public lands and small communities that border those lands, the Forest Service and the Bureau of Land Management should assess the impacts of their plans on these small entities. That is all this does.
We are saying: How is this going to affect small businesses? Seventy percent of the new jobs created in America are created by small businesses? Should we care about what the bureaucrats are doing, how it affects those folks that are creating all these jobs?
Common sense says yes, we ought to do that.
This bill already includes a reform to prepare those agencies to prepare regulatory flexibility analyses when they are developing changes to resource management plans to determine how small businesses and small communities would be affected.
Striking this provision from the bill would do away with a needed reform for small businesses, such as farmers and ranchers and their small communities, especially those located in the Western United States, which contains the vast majority of Federal lands.
I would also note that my esteemed colleague talks about Republicans trying to destroy health care in this country. That is obviously absurd. We are trying to save health care. We are trying to make sure that Americans aren't forced to pay a heck of a lot more and have higher deductions, things they can't afford. Plans right now they are in, they are paying for plans and oftentimes get zero health care out of those plans because the deductibles are now so high under ObamaCare that they can't even use it.
I think there are a whole lot of people, when this was forced through this Congress on a purely partisan vote by my colleagues, the Democrats at that time, and by this President, there were a lot of Republicans who would have loved to have joined with them to do something to help people get health care who didn't have it. That is a worthy cause. But that could have been done without screwing up everybody else's health care in this country. That is what they failed to do when they did this. We are hoping, in a bipartisan way, we can work together to improve health care for lots of folks in this country. We will see if that is going to work out or not.
I would also note that there is nobody on this side of the aisle who thinks we need no government at all, we need no regulations, we need no rules; but we don't want to overregulate the job creators in this country so that they can't create jobs. Those jobs
that people don't get, those are real people; or people who get knocked out of that employment are real people, and they have families. We ought to be supporting them. Overregulation kills those jobs.
I would finally note, relative to climate change, what we are saying is that if we are going to do something, let's do it in a smart manner. Let's not try to save some things and then knock thousands, probably millions of Americans out of their jobs. There is a smart way of doing it and there is a wrong way of doing it. We would like to do it the smart way.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield back the balance of my time.