As a result, a small business with the same economic costs becomes uncompetitive because of higher prices or the company is less profitable with fewer options to react to market changes. Obviously, the definitions used in an economic analysis also must withstand critical review. For instance, agencies are compelled to use definitions for small business established by SBA in most instances. This critical definition question is one of several lynch pins in an agency's demonstration of compliance with the Regulatory Flexibility Act. Finally, agencies should not be tempted to certify a rule because they believe the benefits of a regulation will pay for the costs.
Small businesses face immediate costs, and benefits are often long coming or evasive.
Because several agencies historically dismissed the importance of evaluating the regulatory impact on small business and ignored the requirements of the RFA, Congress and the President were compelled to enact the Small Business Regulatory Enforcement Fairness Act of 1996. If the status quo were achieving the objectives of the Regulatory Flexibility Act, there would have been little need for a new law. The 1996 legislation renews a public policy commitment to small business, reminds agencies of their obligations under RFA, and allows small businesses through judicial review to challenge agencies that fail to comply with the law. To assist MSHA in its compliance with RFA, we offer these comments. The agency should assure it uses the proper definition of small business or follows the proper procedures for using an alternative definition of small business.