Panel clears Reg Flexibility Act changes
Sept. 19, 2013 – The House Small Business Committee on Wednesday passed H.R. 2542, the “Regulatory Flexibility Improvements Act,” after amending it to clarify that the indirect costs regulators need to weigh include compliance costs and effects on revenue.
The bill, supported by NAFCU, would clarify under the Regulatory Flexibility Act that agencies must measure both the direct economic impact and reasonably foreseeable indirect economic impact that regulations are having on small entities, including credit unions. It would also require detailed impact analyses, including estimates of cumulative economic impacts, in both proposed and final rules.
The amendment noted above ensures that costs for compliance and revenue impacts would have to be weighed by regulators as they evaluate their regulations’ impact on small entities, including credit unions.
NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt urged cost vs. benefit analyses for rules affecting all credit unions, regardless of asset size, in a letter sent Tuesday in support of the bill.
The bill, which the committee approved by voice vote, awaits House action.