H.R. 427: Regulations from the Executive in Need of Scrutiny Act (REINS Act)

By SBE Council at 9 February, 2015, 8:18 pm

UPDATE: On July 28, 2015 the U.S. the House of Representatives passed H.R. 427 by a vote of 243-165.

The Honorable Todd Young

United States House of Representatives

1007 Longworth House Office Building

Washington, D.C. 20515

Dear Representative Young:

Serious regulatory reform is needed to revitalize entrepreneurship, small business growth, our economy, and quality job creation. Therefore, the Small Business & Entrepreneurship Council (SBE Council) strongly supports the Regulations from the Executive In Need of Scrutiny (REINS) Act, H.R. 427.

U.S. entrepreneurship and startup activity are in a frail state. While economic uncertainty and difficulties accessing capital present barriers to new business formation, excessive government regulation drives uncertainty and creates new obstacles. When the policy ecosystem becomes noxious for startups and small businesses, our entire economy suffers.

Regulatory costs are just as real and often just as substantial as taxes. As made clear by the SBA Office of Advocacy, small firms are disproportionately burdened by regulations. Unfortunately, the current regulatory process allows for substantial and costly regulations to be imposed on small businesses, consumers and the economy without direct input from those impacted or from elected lawmakers.

H.R. 427 requires that Congress take an up-or-down vote on every new major rule – defined as having an economic impact of $100 million or more – before such a rule could be enforced. This substantive regulatory reform measure would serve as an important check on the regulatory system, and have a positive effect in terms of how regulation affects small businesses, and therefore, consumers and the economy.

H.R. 427 will bring accountability to our nation’s regulatory system, and SBE Council thanks you for your leadership in spearheading this important legislative effort.

Sincerely,

Karen Kerrigan, President and CEO