What is the Federal Regulatory Flexibility Act?

The Federal Regulatory Flexibility Act (FRFA) is a federal law that applies to all 50 states, including Texas. It requires federal agencies to consider the impact of their regulations on people in the business community, particularly small businesses, to ensure that federal regulations are not overly burdensome. This law attempts to balance the need for effective regulation with the need to minimize the cost for those impacted by the regulations. When a federal agency proposes a regulation, they must analyze the impact of the proposed regulation on businesses. The analysis must include: the nature and number of small businesses that would be affected, the potential impacts of the regulation on those businesses, and the potential alternatives to the regulation that could minimize the impact of the regulation on the businesses. The FRFA also requires the federal agency to provide the public the opportunity to comment on the proposed regulation and to consider the comments made by the public prior to enacting the regulation. This helps ensure that the federal regulations reflect the views of those in the business community. In Texas, the Office of the Governor monitors the implementation of the FRFA and works with state agencies to ensure compliance with this federal law. While the FRFA does not apply directly to state regulations, the state of Texas has adopted many of the requirements of the FRFA to ensure state regulations are also properly analyzed and do not overly burden businesses.

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What is the Federal Regulatory Flexibility Act?

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