Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act; DUMP Red Tape Act
Summary
The "DUMP Red Tape Act" (H.R. 4305) directs the Chief Counsel for Advocacy of the Small Business Administration (SBA) to establish a Red Tape Hotline. This hotline will receive notifications from small businesses regarding burdensome agency rules and regulations. The Chief Counsel is then required to report annually to the SBA Administrator and Congress on the notifications received and recommendations for reducing the burden on small entities.
Expected Effects
The Act aims to provide a direct channel for small businesses to voice concerns about regulatory burdens. This could lead to the identification and potential streamlining or elimination of unnecessary regulations. Ultimately, the goal is to reduce compliance costs and administrative burdens on small businesses.
Potential Benefits
- Provides a direct line of communication for small businesses to report burdensome regulations.
- Increases transparency regarding the impact of agency rules on small businesses.
- May lead to the simplification or elimination of unnecessary regulations, reducing compliance costs.
- Could foster a more business-friendly regulatory environment, encouraging entrepreneurship.
- The annual report to Congress ensures accountability and oversight of agency regulations.
Most Benefited Areas:
Potential Disadvantages
- The hotline's effectiveness depends on the SBA's responsiveness and ability to act on the information received.
- There is no guarantee that reported regulations will be changed or eliminated.
- The hotline may create additional administrative burden for the SBA.
- Larger businesses do not have direct access to this hotline, potentially creating an uneven playing field.
- The focus on small businesses may overshadow broader regulatory issues affecting the overall economy.
Constitutional Alignment
The Act appears to align with the spirit of promoting the general welfare, as stated in the Preamble of the US Constitution, by aiming to reduce burdens on small businesses. Congress's power to regulate commerce (Article I, Section 8) implicitly includes the power to oversee and adjust regulations affecting businesses. The Act does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).