Office of Advocacy
    U.S. Small Business Administration

    NEWSRELEASE

    For Release: September 9, 2003
    Contact:     John McDowell (202) 205-6941
    john.mcdowell@sba.gov
    SBA Number:     03-45 ADVO

    State Legislator Organization Endorses Small Business Friendly Regulation

    Rare Endorsement Of Federal Agency Sponsored State Model Legislation by American Legislative Exchange Council


    WASHINGTON, D.C. – The nation’s largest bi-partisan membership association of state legislators, the American Legislative Exchange Council (ALEC), has endorsed Office of Advocacy state model legislation promoting small business friendly policies. The vote in favor of the legislation marks a rare endorsement by ALEC of state model legislation proposed by a federal agency.

    “We’re pleased with the ALEC endorsement,” said Thomas M. Sullivan, Chief Counsel for Advocacy. “It means that the model legislation has strong grassroots support and that small business owners across the country can look forward to the legislation being introduced in their states. The backing of ALEC adds to the model legislation victories in the North Dakota, and Colorado, legislatures. It’s good to see that state policy makers are realizing that piling on more and more regulations, without considering their impact on small business, destroys jobs and economic growth for their constituents,” he said.

    The legislation, modeled after the federal Regulatory Flexibility Act (RFA), requires state agencies to consider their impact on small business before imposing regulatory mandates. By listening to small business, state agencies can ensure that small business resources that would have been spent on over burdensome new regulations are instead available for hiring new employees and making new investments. At the same time, agencies still meet their regulatory goals such as higher environmental quality, greater travel safety, better workplace conditions, and increased family financial security.

    Currently states offer a patchwork of laws that protect small business owners and their employees from excessive regulatory mandates. Some states offer protections similar to the RFA and enforcement mechanisms that mirror the role of the Office of Advocacy of the U.S. Small Business Administration (SBA). Other states offer little or no protection from the one-size-fits-all regulatory mentality.

    “Creating a healthy business environment is the fundamental purpose of the model bill,” said Duane Parde, executive director of the American Legislative Exchange Council. “Small businesses account for a majority of today's workforce and relieving the regulatory burden of businesses will stimulate job creation, innovation, and the growth and success of small businesses,” he said.

    For more information and the text of the model legislation, visit the Office of Advocacy website at archive.sba.gov/advo.


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    Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsel’s efforts. For more information on the Office of Advocacy, visit archive.sba.gov/advo, or call (202) 205-6533.