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Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980 (referred to here as the Act), Public Law No. 96-354, was signed by President Jimmy Carter on September 19, 1980. The Act had a major impact on the rule-making activities of government agencies as it attempted to minimize any disproportionate effect of federal regulations on small entities. This Act was part of a stream of legislation and executive acts, beginning in the 1970s, that sought to increase the flexibility and effectiveness of federal regulation. A number of new regulatory tools were implemented, sometimes across regulatory issue areas. The Act reflected a newly proposed regulatory design often referred to as “tiering,” in which the burdens of regulation were adjusted for the size of the complying organization, so that the burdens ...

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