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 <subject>Federal agencies</subject>
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 <subject>Nonprofit organizations</subject>
 <subject>Proposed legislation</subject>
 <subject>Small business</subject>
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<titleInfo>
 <title>Regulatory Flexibility Act: Congress Should Revisit and Clarify Elements of the Act to Improve Its Effectiveness</title>
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<abstract>Federal regulation is one of the basic tools of government used
to implement public policy. In 1980, the Regulatory Flexibility  
Act (RFA) was enacted in response to concerns about the effect	 
that regulations can have on small entities, including small	 
businesses, small governmental jurisdictions, and certain small  
not-for-profit organizations. Congress amended RFA in 1996, and  
the President issued Executive Order 13272 in 2002, to strengthen
requirements for agencies to consider the impact of their	 
proposed rules on small entities. However, concerns about the	 
regulatory burden on small entities persist, prompting		 
legislative proposals such as H.R. 682, the Regulatory		 
Flexibility Improvements Act, which would amend RFA. At the	 
request of Congress, GAO has prepared many reports and		 
testimonies reviewing the implementation of RFA and related	 
policies. On the basis of that body of work, this testimony (1)  
provides an overview of the basic purpose and requirements of	 
RFA, (2) highlights the main impediments to the Act&apos;s		 
implementation that GAO&apos;s reports identified, and (3) suggests	 
elements of RFA that Congress might consider amending to improve 
the effectiveness of the Act. GAO&apos;s prior reports and testimonies
contain recommendations to improve the implementation of RFA and 
related regulatory process requirements.</abstract>
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<identifier type="preferred citation">GAO-06-998T</identifier>
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<note>Testimony</note>
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 <topic>Federal agencies</topic>
 <topic>Federal regulations</topic>
 <topic>Nonprofit organizations</topic>
 <topic>Proposed legislation</topic>
 <topic>Small business</topic>
 <topic>Legislative interpretation</topic>
 <topic>Policies and procedures</topic>
 <topic>Public policy</topic>
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