Regulatory Flexibility Act

Status of Agencies' Compliance Gao ID: T-GGD-95-112 March 8, 1995

The Regulatory Flexibility Act requires federal agencies to assess the effects of their proposed rules on small entities. The Small Business Administration (SBA) is required to monitor and report on agencies' compliance with the act. This testimony, which is based on an April 1994 GAO report (GAO/GGD-94-105), discusses the reasons for agencies' lack of compliance with the act. GAO recommended several measures that SBA and the Office of Management and Budget (OMB) could take to improve agency compliance, such as having SBA notify OMB of any concerns about an agency's compliance. GAO also noted that Congress might want to consider clarifying SBA's authority and responsibilities. Although SBA and OMB are working more closely together, the act still does not spell out who is responsible for interpreting key statutory language and issuing related guidance.



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