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107049 1 (1978-08-23)

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07049 - EB2427450]

(Regulatory Flexibi.lity and Reform Act]. August 23. 1978. 12 pp.
TestiLony before the Senate Committee on the Judiciary:
Administrative Practice and Procedure Subcommittee; the Senate
Select Committee on Small Business; by Norton A. Byers, Deputy
Director, Proqram Analysis Div.
Contact: Progras Analysis Div.
Congressional Relevance: Senate Committee on the Judiciary:
    Administrative Practice and Procedure Subcommittee; Senate
    Select Cc dittee on Snail Business.
Authority: Regulatory flezibility and Refers Act; S. 3330 (95th
    Cong.). Administrative Procedure Act. Employe Retirement
    Income Security Act. 5 U.S.C. 553.

         Because the burdens of Government regulation frequently
fall relatively heavily on individua 8 of limited means and on
small businesses, small organizationse and coall governmental
jurisdictions, alternative regulatory methods which would reduce
these kurdens without loss of regulatory etficiency and
effectiveness are suggested. The objectives of S. 3330 axe
similar to those of the President's artch 1978 Executive Order
on Improving Government Regulation. partocularly with reazd to
reducing the paperwork burden and soliciting early public
participation in agency rulcmaking. The bil 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 vigcrous or costly
regulation. Agencies may have some difficulty in choosing among
alternative regulatory methods as suggested by the proposed
legislation. The role of the General accounting office needs to
be clarified, and the sunset provision of the legislat.on
requires more consideration. Alternative regulatory methods
include: less or no regulatioz imposed on individuals.
basinesses, organizations, and governmental jurisdictions of
limited means; grants or subsidies to assist smaller
organizations in complyiag with costly regulations; progressive
regulation offering a choice of when to comply; and perforsance
oriented regulations allowing firms to choose how to comply with
performance goals. Uniform regulation may be justified if it
does nct place smaller businesses or governments at a
disadvantage or if important policy goals are at stake. (RS)

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