Regulation of Small Businesses and Organizations Announcement on the President's Directive to Executive Departments and Agencies

The President has directed executive departments and agencies to ensure that their regulatory programs, while achieving their goals, do not place unnecessary burdens on small businesses and organizations. This action followed his decision on October 31 to add the Small Business Administration to the Regulatory Council in order to strengthen that Council's capacity to meet the concerns of small business.

The President expressed his appreciation to Senators John Culver and Gaylord Nelson and Congressmen Andy Ireland, Marty Russo, and Neal Smith, sponsors of specific small business legislation now before Congress, for their leadership in helping America's small business men and women.

The President's memorandum to department and agency heads today directs them to take the following steps:

?Ensure that new regulations take into account the size and nature of the regulated businesses while achieving intended social and economic goals of regulations.

?Determine where existing regulatory and reporting requirements can be tailored to fit the size and nature of the businesses and organizations subject to them.

?Identify those rules and regulations in the semiannual agenda required by Executive Order 12044 and in the Regulatory Council's Calendar of Federal Regulations for which flexible alternatives are being considered.

?Report the results of this process to the Office of Advocacy of the Small Business Administration by December 15.

The review of existing rules and development of implementation plans will be undertaken with the assistance of the Regulatory Council and the Office of Management and Budget. All actions under the directive must be consistent with the laws under which the agencies operate.

The President also sent a letter to the heads of independent agencies today requesting that they consider a similar review of existing and new regulations within their agencies.