H.R. 2792 offers support and facilitates opportunities for small business by its changes to the RFA.
Rep. Ann Wagner (R-Mo.) has introduced H.R. 2792, the Small Entity Update Act, which would require the Securities and Exchange Commission (SEC) to report on and revise the definition of ‘small entity’ under the Regulatory Flexibility Act (RFA) every five years.
The purpose of the bill is to help reduce unnecessary burdens on small entities, as well as expand the number of entities to be covered under the definition.
Under current law, agencies subject to the RFA need to determine if their rules have a significant economic impact on small entities, including businesses, nonprofit organizations, and governmental jurisdictions. If so, agencies must consider alternatives to minimize these impacts.
The Congressional Budget Office (CBO) estimates implementation would cost around $2 million over the next five years; however, because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects the net effect on discretionary spending through 2028 would be negligible.
While this CBO analysis assumes no changes in appropriation from the last Session, support for H.R. 2792 continues to be sustained in Congress, with the House unanimously passing the bill last Tuesday, just 40 days after its introduction.
NSBA supports Congress’ endorsement of this legislation and encourages its uninterrupted passage into law, which is now pending in the Senate Committee on Banking.
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