The role of an economic impact analysis vis a vis the proposed FDA regs, has engendered much confusion (I know it's bedeviled me since I started to explore the issue and post on this thread). So, for whatever it's worth, here goes ...
While I don't know
what the FDA can legally do regarding the "alternatives," after some research I do have a better understanding
why they included the alternatives in the first place, i.e., they are legally required to do so.
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Prior to publishing a new regulation, an agency must submit its draft to OIRA for review as required by Executive Order 12866:
"Executive Order 12866 describes OIRAs role in the rulemaking process. In it, the President directs agencies, to the extent permitted by law, to follow certain principles in rulemaking. These principles
include consideration of alternatives to the rulemaking and analysis of the rules effects on society, both its benefits and costs. As the Executive Order directs, OIRA reviews agency draft regulations before publication to ensure agency compliance with this Executive Order."
taken from:
Office of Information and Regulatory Affairs (OIRA) Q&A’s | The White House
This is apparently the results of the OIRA review of FDA's proposed regs. Note the section entitled "
alternatives."
View Rule
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In addition to the review under Executive Order 12866, an agency must also comply with the Regulatory Flexibility Act:
"The Regulatory Flexibility Act (RFA), enacted in September 1980, requires agencies to consider the impact of their regulatory proposals on small entities, to analyze effective alternatives that minimize small entity impacts, and to make their analyses available for public comment."
"In essence, the RFA asks agencies to be aware of the economic structure of the entities they regulate and the effect their regulations may have on small entities. It requires agencies to analyze the economic impact of proposed regulations when there is likely to be a significant economic impact on a substantial number of small entities, and
to consider regulatory alternatives that will achieve the agencys goal while minimizing the burden on small entities."
"During the preparation of a proposed rule, an agency must prepare an
initial regulatory flexibility analysis (IRFA) if it determines that a proposal may impose a significant economic impact on a substantial number of small entities. The RFA requires agencies to publish the IRFA, or a summary, in the Federal Register at the same time it publishes the proposed rulemaking."
taken from:
http://www.sba.gov/sites/default/files/RFA_in_a_Nutshell2010.pdf
Included in the below is the IRFA for FDA's proposed regs:
http://www.fda.gov/downloads/AboutFDA/ReportsManualsForms/Reports/EconomicAnalyses/UCM394933.pdf
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If you've read up to here, you can skip the rest unless you're curious ...
Are these similar processes? Yes, that's why OIRA and the SBA signed a memorandum of understanding in 2002 to work together on these analyses:
"The Office of Advocacy of the U.S. Small Business Administration (Advocacy) and the
Office of Information and Regulatory Affairs of the Office of Management and Budget
(OIRA) recognize that small entities (including small businesses, non-profit organizations
and small governmental jurisdictions), as defined in 5 U.S.C. § 601, often face a
disproportionate share of the Federal regulatory burden compared with their larger
counterparts. Advocacy and OIRA further recognize that the best way to prevent
unnecessary regulatory burden is to participate in the rulemaking process at the earliest
stage possible and to coordinate both offices to identify draft regulations that likely will
impact small entities."
"Inasmuch as Advocacy and OIRA share similar goals, the two agencies intend to enhance
their working relationship by establishing certain protocols for sharing information and
providing training for regulatory agencies on compliance with the Regulatory Flexibility
Act (RFA) and various other statutes and Executive orders that require an economic
analysis of proposed regulations."
taken from:
http://www.sba.gov/sites/default/files/MOU_OIRA.pdf