Proper Consideration of Small Entities in Agency Rulemaking

2002-08-16Executive Order 13272
Signed by: George W. Bush
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Headline: Requires Agencies to Consider Small Businesses in Rulemaking

What it does: Agencies must establish written procedures to assess and address draft rules' impacts on small businesses, small governmental jurisdictions, and small organizations.

Real World Impact:
  • Requires agencies to adopt written procedures to evaluate impacts on small entities.
  • Obliges agencies to notify and consider comments from the Small Business advocacy office.
  • Mandates annual reporting by the advocacy office to the Office of Management and Budget on compliance.
Topics: small business, rulemaking, government oversight, regulatory compliance

Summary

This order requires federal agencies to create procedures to identify and take into account how proposed rules affect small businesses, small governmental jurisdictions, and small organizations.

It directs the Small Business Administration's advocacy office to advise agencies, provide training, and comment on draft rules, and it requires agencies to notify and consider that office's comments.

The goal is to reduce unintended burdens on small entities and to promote compliance with the Regulatory Flexibility Act.

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