SmallBizResource Blog -- Government

Reform Regulations That Affect Your Small Business

Posted by Gayle Kesten Monday, Dec 1, 2008, 11:50 AM ET

Times change. Rules that made sense when they were enacted become outdated as years pass. Here's your chance to determine 10 federal laws to go under the microscope in the new year.

The Small Business Regulatory Review and Reform Initiative -- r3 for short and put forth by the SBA's Office of Advocacy -- gives us the chance to nominate existing federal regulations that we think should be revised or ditched. From the r3 Web site: "r3 includes the process under Section 610 of the Regulatory Flexibility Act for agencies to consider whether their current regulations are still needed, and the degree to which technology, economic conditions, or other factors have changed since their rules were first promulgated."

The cumulative regulatory burden exceeds $1 trillion -- "more per household than the cost of health insurance," according to the Office of Advocacy, which is an independent voice for small business within the federal government. "The smallest of businesses bear the brunt of business regulations. They annually pay 45 percent more per employee to comply with regulations than big businesses do."

The r3 program is now in its second year; last year the Office of Advocacy received 82 nominations, of which 50 followed ALL of the rules and were considered, and 10 were chosen for potential reform. Interestingly, four of those 10 were aimed at the Environmental Protection Agency (EPA), such as to update outdated rules by which dry cleaners have to test their equipment. Another law, this one governed by the IRS, asked to simplify the home-office business deduction.

To date (and as a result), the EPA reformed a rule involving recycling, and a bill regarding the home-office deduction has been introduced to the House. You can view the status of all 10 laws here, but note the list is already 3 months old.

Think about the federal regulations that affect, frustrate and cost you. Nominations are being accepted until Dec. 31 by e-mail at advocacy@sba.gov, by fax at (202) 205-6928, or by calling to make delivery arrangements to the Office of Advocacy at (202) 205-6533. Keep in mind you also have to be willing to be publicly identified on the Advocacy's Web site and elsewhere.

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