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In 2015, the public spent an estimated 9.78 billion hours responding to Federal information collections. While some of this information was required as disclosures, others were for eligibility in programs or applying for loans.  Whatever the reason, for businesses, preparing these documents requires staff, time, and money. 

This is felt most acutely by small businesses who frequently lack the legal support and resources their larger competitors have to assist with compliance. The Paperwork Reduction Act -- or PRA -- was created in 1980, and amended in 1995, with the intent of reducing the growth of paperwork. The results have been mixed, at best.  

One question I hope today’s hearing can answer is whether current law provides agencies with the appropriate tools to address the escalation of paperwork -- or if changes must be made to the PRA to improve its effectiveness.  

Additionally, it will be of great value to hear how agencies strive to keep small businesses’ needs in mind when crafting regulations. As they say, the “devil is in the details”. When it comes to complying with many federal reporting requirements, small adjustments can make a big difference in reducing the burden on small firms.  

While agencies face a difficult task, small businesses deserve to know exactly why their paperwork burden continues to grow.  However, we must also remember that data collections exist for a reason. 

Agencies rely on data to make informed decisions achieving important policy outcomes. These goals include ensuring worker safety, preserving clean air and water, and safeguarding taxpayer dollars against fraud.

Yet, the PRA should not serve to discourage agencies from conducting proper regulatory flexibility analyses.  All too often we see agencies implementing regulations that ignore or understate economic impacts on small businesses.  

Ensuring that agencies are considering the economic impact of their regulations and paperwork requirements on small firms is critical. Congress needs to know what steps are needed to help agencies achieve this goal. 

Whether it is embracing technology, working to synchronize and coordinate at all levels of government, or improving communication – it is an important discussion we must have.  

I look forward to the insights this panel will provide on those topics.  I once again thank the witnesses for being here.