WASHINGTON, D.C. – A better regulatory environment is ahead for Tennessee’s 513,000 small businesses, thanks to a new law signed by Governor Phil Bredesen. Tennessee’s Regulatory Flexibility Act of 2007 will set the stage for a more transparent regulatory environment for small businesses in the state and encourage entrepreneurial success.

“Tennessee has taken an important step toward creating a regulatory climate in which small businesses can prosper,” said Chief Counsel for Advocacy Thomas M. Sullivan. “The new law will require agencies to take small firms into consideration as regulations are being developed.”

Senate Bill 0055 / House Bill 1276, cosponsored by Representative Susan Lynn and Senator Raymond Finney, requires state agencies to analyze the economic impact of a proposed rule on small businesses and to consider less burdensome alternatives that will accomplish the regulatory goal.

Key business groups supporting the legislation included the National Federation of Independent Business (NFIB) and the Tennessee Jobs Coalition, which includes a number of leading member organizations.

“Senator Finney’s and Representative Lynn’s successful efforts to codify and build upon Governor Bredesen’s Executive Order of last year to establish regulatory flexibility for small business owners will ensure entrepreneurs spend less time cutting red tape and more time creating jobs in Tennessee,” NFIB Tennessee State Director Gary Selvy said.

The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.

For more information, visit the Small Business Friendly Regulation, Model Legislation for States section of the Office of Advocacy website at www.sba.gov/advo/laws/law_modeleg.html.

The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit www.sba.gov/advo, or call (202) 205-6533.