Wednesday, February 11, 2009

Forgotten Small Business Laws


Regulatory Flexibility Act of 1980

Small Business Regulatory Enforcement Fairness Act of 1996

These laws are designed to protect small business from burdensome and unfair regulatory action. Read them carefully and see how much this whole CPSIA mess is contradictory to the intent of these laws. It's hard to select just a quote from them because the entire text is relevant but here's an easy one:

IN GENERAL.--For each rule or group of related rules for which an agency is required to prepare a final regulatory flexibility analysis under section 605(b) of title 5, United States Code, the agency shall publish 1 or more guides to assist small entities in complying with the rule and shall entitle such publications 'small entity compliance guides'.

(2) PUBLICATION OF GUIDES.--The publication of each guide under this subsection shall include--

(A) the posting of the guide in an easily identified location on the website of the agency; and

(B) distribution of the guide to known industry contacts, such as small entities, associations, or industry leaders affected by the rule.

(3) PUBLICATION DATE.--An agency shall publish each guide (including the posting and distribution of the guide as described under paragraph (2))--

(A) on the same date as the date of publication of the final rule (or as soon as possible after that date); and

(B) not later than the date on which the requirements of that rule become effective.

So, the posting of the guide on THE DAY the law took effect did not even come close to meeting the requirements of distribution of the guide. That alone should be grounds for delaying the effects on small business. The fact that the phthalate ban became retroactive just a few DAYS before the implementation is contrary to any remotely reasonable approach. The CPSC should not be able to be overturned by a state court.

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