As directed by the Regulatory Flexibility Act of 1980, as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), as well as Executive Order 13,272, the Department is required to consider the potential impact of its proposed regulations on small entities, including small businesses, small nonprofit organizations and small governmental jurisdictions. This process helps to determine whether to certify a rule for regulatory flexibility purposes for those entities that are more likely to be adversely impacted by the proposed standards. This analysis of impacts is intended to support appropriate regulatory alternatives that minimize economic burden for small businesses.
Number of Facilities by Group: Small Entity Facilities Versus Facilities of All Sizes
First, to estimate the cost impact relative to sales to small businesses and small nonprofit organizations [hereinafter referred to as "small private entities"], the total number of small entities and the total sales receipts of these entities are estimated for each facility group.[1] These figures are calculated using publicly-available data from the Office of Advocacy of the Small Business Administration (SBA) which, in turn, is based on data collected in the 2002 US Economic Census. SBA data for 2002 is estimated forward to 2007 using rates of new construction based on the May 2007 Dodge Construction Potentials Bulletin. See Appendix 5.
For a few facility groups, however, some additional assumptions were required to estimate the number of facilities and sales by small private entities. Data for several facility groups was estimated in the main Regulatory Impact Analysis using information gathered from sources other than the 2002 US Economic Census; analytical consistency required the use of these same data sources for this handful of facility groups in the small business impact analysis, adjusted by data from SBA.[2] In addition, estimates of the total number of inns, hotels and motels came from a US Economic Census report on numbers of guestrooms for all types of accommodation. The data in this report presents the number of inns (defined as having less than 75 guestrooms), hotels (more than 150 rooms), and motels (between 75 and 150 rooms). Since these details are outside the SBA definitions of a small business, an assumption is made that 98% of all inns and motels are small businesses. The remaining number of small private entities in the Accommodation category, as tabulated by SBA, is used to estimate the number of hotels that are small entities.
Second, to estimate the cost impact relative to sales on small governmental jurisdictions (defined as governments of counties, cities, and towns with populations less than 50,000) [hereinafter "small governments"], it was necessary to use data from the 2002 Census of Governments on county and municipal governments to estimate the number of public facilities in these jurisdictions, since government entities are not covered by the US Economic Census.[3] This Census of Governments also includes data on expenditures by broad category (education, hospitals, parks, etc.) broken down by size of jurisdiction. This Census of Government data is used in this analysis in place of sales data (as used for small private entities). However, in one area -- outlays for educational expenditures -- data from the Census of Governments was not sufficiently broken down to permit allocation among specific facility groups (i.e., elementary schools, secondary schools, etc.). Thus, with respect to educational expenditures, funds are allocated equally to elementary and secondary facilities (since elementary schools are likely to be greater in number but smaller in size than secondary schools). Data from the Census of Governments for 2002 is brought forward to 2007 using rates of new construction estimated from the May 2007 Dodge Construction Potentials Bulletin.
Table 17 summarizes the data on the number of small entities and estimated sales (or expenditures) for small private entities and small governments, as compared to the "typical" facility in each group. Table 17 also includes data concerning the percentage of total facilities of each type that are owned or operated by small private entities or are under small governmental jurisdictions; the average sales of small private entities and small governments by facility group; and average sales for small facilities as a percent of sales for facilities of all sizes in that group. In Table 17, data for facilities owned or operated by small private entities is listed first; data for small governments follows thereafter in the second half of the table.[4]
17A. Private Facilities (Owned or Operated by Small Businesses or Small Nonprofit Organizations)
| Facility Group | Total Number of Facilities (2007) | Number of Small Entity Facilities (2007) | % of Total Facilities that are Small Entity Facilities | Sales (or Expenditures) per Typical Facility (All sizes) ($) |
Estimated Sales (or Expenditures) per Small Entity Facility 2007 ($) | Average Sales (or Expenditures) per Small Entity as Percent of Average Sales for All Sizes |
|---|---|---|---|---|---|---|
| Inns | 16,865 |
16,528 |
98% |
$174,229 |
$174,229 |
100% |
| Hotels | 14,941 |
4,023 |
27% |
$9,070,260 |
$966,319 |
11% |
| Motels | 21,047 |
20,626 |
98% |
$317,586 |
$317,586 |
100% |
| Restaurants | 508,800 |
396,530 |
78% |
$708,184 |
$245,187 |
35% |
| Motion Picture House | 5,233 |
2,383 |
46% |
$2,298,721 |
$304,075 |
13% |
| Theatre / Concert Hall | 9,778 |
9,411 |
96% |
$1,245,637 |
$295,104 |
24% |
| Auditoriums | 1,786 |
1,314 |
74% |
$3,337,107 |
$357,682 |
11% |
| Single level stores | 863,964 |
587,708 |
68% |
$3,187,539 |
$307,436 |
10% |
| Shopping malls[5] | 9,368 |
8,244 |
88% |
$1,970,212 |
$1,970,212 |
100% |
| Indoor Service Establishments | 3,330,412 |
1,261,961 |
38% |
$1,436,740 |
$331,585 |
23% |
| Offices of health care providers | 499,088 |
438,734 |
88% |
$1,097,588 |
$335,931 |
31% |
| Hospitals | 4,432 |
1,193 |
27% |
$126,517,640 |
$1,227,697 |
1% |
| Nursing homes | 15,080 |
6,358 |
42% |
$9,450,156 |
$1,160,413 |
12% |
| Museums, historical sites & libraries | 4,812 |
4,388 |
91% |
$1,376,516 |
$285,429 |
21% |
| Parks or zoos | 1,189 |
995 |
84% |
$1,721,325 |
$346,502 |
20% |
| Amusement parks | 467 |
375 |
80% |
$19,637,837 |
$1,615,544 |
8% |
| Nursery schools - Daycare | 72,653 |
62,301 |
86% |
$335,961 |
$130,773 |
39% |
| Elementary private schools | 18,257 |
15,073 |
83% |
$1,563,323 |
$453,000 |
29% |
| Secondary Private Schools | 2,826 |
2,333 |
83% |
$2,925,513 |
$847,719 |
29% |
| Ski facilities | 407 |
312 |
77% |
$4,964,767 |
$521,604 |
11% |
| Homeless Shelter | 7,867 |
7,015 |
89% |
$1,553,137 |
$329,147 |
21% |
| Food banks | 4,075 |
2,990 |
73% |
$854,756 |
$209,885 |
25% |
| Social service establishments | 61,110 |
44,924 |
74% |
$1,021,435 |
$287,140 |
28% |
| Exercise facilities | 26,580 |
24,247 |
91% |
$632,156 |
$200,715 |
32% |
| Aquatic centers / swimming pools | 9,559 |
9,233 |
97% |
$291,944 |
$131,829 |
45% |
| Bowling alleys | 5,175 |
4,548 |
88% |
$666,093 |
$284,255 |
43% |
| Golf courses (private public access) | 9,391 |
8,346 |
89% |
$1,405,054 |
$515,973 |
37% |
| Golf courses (private only) | 4,599 |
4,088 |
89% |
$1,405,054 |
$515,973 |
37% |
| Miniature golf courses | 8,750 |
8,428 |
96% |
$130,944 |
$50,061 |
38% |
| Recreational boating facilities | 5,095 |
4,908 |
96% |
$737,471 |
$632,178 |
86% |
| Shooting facilities | 3,096 |
2,982 |
96% |
$370,039 |
$317,207 |
86% |
| Parking garages | 12,640 |
2,887 |
23% |
$612,717 |
$240,457 |
39% |
| Self service storage facilities | 9,846 |
7,408 |
75% |
$418,472 |
$394,369 |
94% |
17B: Public Facilities (Owned or Operated by Small Governmental Jurisdictions)
| Facility Group | Total Number of Facilities (2007) | Number of Small Entity Facilities (2007) | % of Total Facilities that are Small Entity Facilities | Sales (or Expenditures) per Typical Facility (All sizes) ($) |
Estimated Sales (or Expenditures) per Small Entity Facility 2007 ($) | Average Sales (or Expenditures) per Small Entity as Percent of Average Sales for All Sizes |
|---|---|---|---|---|---|---|
| Elementary public schools | 68,416 |
19,668 |
29% |
$2,777,138 |
$333,758 |
12% |
| Secondary public schools | 23,264 |
6,556 |
28% |
$10,746,237 |
$1,001,274 |
9% |
| Public housing | 27,492 |
7,262 |
26% |
$522,437 |
$427,464 |
82% |
| State and local judicial facilities (courthouses) | 36,810 |
10,010 |
27% |
$511,410 |
$259,573 |
51% |
| State and local correctional facilities (prisons) | 1,761 |
467 |
27% |
$11,772,094 |
$4,626,310 |
39% |
| Hospitals (public) | 1,130 |
305 |
27% |
$32,835,980 |
$32,835,980 |
100% |
| Parks or zoos (public) | 112,128 |
30,216 |
27% |
$211,375 |
$202,100 |
96% |
| Office buildings (public) | 78,057 |
20,113 |
26% |
$108,804 |
$108,804 |
100% |
Net Costs Per Facility Group: Small Entity Facilities Versus "Typical" Facilities
Once the number of facilities and their receipts had been estimated, net costs for small entities were then calculated. As with the cost model used in the "main" regulatory impact analysis, net costs in the small business analysis are based (with one exception as described below) on unit cost estimates (Appendix 3-H), the number and mix of elements in facilities of each type (Appendix 3-E), the likelihoods for change (Appendices 3-F & 3-G), and other applicable cost considerations (such as operation & maintenance costs, productive space costs, and assumptions concerning years before replacement of particular required element or equipment) (Appendices 3-I through 3-L). In addition, as with the "main" regulatory analysis, this small business analysis also generally took into account, as applicable. exemptions and exceptions proposed by the Department that are specifically directed at smaller facilities or entities, including: exemptions for certain existing small recreational facilities (i.e., play areas, swimming pools, and saunas or steam rooms) under Titles II and III; and reduced scoping for certain other recreational facilities (i.e., play areas over 1,000 square feet and swimming pools with over 300 linear feet of pool wall) operated by either Title II or Title III entities. [6] Lastly, overall calculations of the net cost impact of the proposed regulations on small entities (versus "typical" facilities) were modeled in the same manner as in the "main" regulatory impact analysis, using a 7% discount rate and the following scenario: a safe harbor provision applying to elements in existing facilities that comply with the 1991 Standards (SH); barrier removal readily achievable for 50% of elements (RA50); and a baseline of the 1991 Standards (B1991).
In only one respect did the underlying "main" cost model need to be modified for purposes of this small business analysis. Since smaller facilities (in which small entities are frequently located) often have a different number and/or mix of elements as compared to larger facilities, adjustments were made to element counts in certain facilities to account for this differentiating consideration between facilities of different sizes. Specifically, for purposes of the small business analysis, it was assumed that if an element occurs twice or less within a typical facility, then that element also would occur with the same frequency in a facility owned or operated by a small entity. Such elements include: entrances; sales and service counters; and some bathrooms. By contrast, if an element occurs more than twice in a typical facility, then it is assumed for facilities owned or operated by small entities that that element occurs at a rate equal to the ratio of sales per small facility to sales per typical facility (as shown above in Table 17). It is assumed that this ratio cannot be greater than 1; for public hospitals and office buildings, this ratio is fixed at 1. Elements which vary between small and typical-sized facilities include: side reach; bathroom elements in dwelling facilities; stairs; and handrails. A complete listing of the frequency of occurrence for elements in typical facilities, as used for these calculations, can be found in Appendix 3-E.
Table 18, which follows below, provides a comparative analysis of the net costs of the proposed regulations to small entities (i.e., small businesses, small nonprofit organizations, and small governments) versus typical facilities for each facility group. Note that costs are actually positive -- as in cost savings to facilities -- for a few facilities for which the benefits resulting from less stringent requirements outweigh the costs of the more stringent requirements for that facility type and size. Cost savings may vary with size, i.e. small entities may have cost savings, while typical facilities do not, due to the differing composition of the number and type of elements. Net costs are presented both for all facilities and per facility, for each facility group.
Table 18: Net Cost Comparison: Small vs. Facilities of All Sizes, by Facility Group
18A. Private Facilities(Owned or Operated by Small Businesses or Small Nonprofit Organizations)
| Facility Group | Total Net Costs (Millions $)Typical Facilities (All Sizes) | Total Net Costs (Millions $)Small Entity Facilities |
Net Costs Per Facility ($)Typical Facilities (All Sizes) | Net Costs Per Facility ($)Small Entity Facilities | Net Costs Per Facility ($)Ratio of Net Cost per Small Entity Facility to Typical Facility[7] |
|---|---|---|---|---|---|
| Inns | $7.80 |
$7.64 |
$462.32 |
$462.31 |
1.00 |
| Hotels | $170.57 |
$28.63 |
$11,416.18 |
$7,116.58 |
0.62 |
| Motels | $136.20 |
$133.48 |
$6,471.37 |
$6,471.43 |
1.00 |
| Restaurants | $441.85 |
$330.24 |
$868.42 |
$832.83 |
0.96 |
| Motion Picture House | $140.75 |
$11.35 |
$26,896.64 |
$4,763.61 |
0.18 |
| Theatre/Concert Hall | $196.74 |
$102.89 |
$20,121.70 |
$10,933.42 |
0.54 |
| Auditoriums | $13.43 |
$4.65 |
$7,521.73 |
$3,540.81 |
0.47 |
| Single level stores | $388.55 |
$261.05 |
$449.73 |
$444.18 |
0.99 |
| Shopping malls | $33.72 |
$29.67 |
$3,599.13 |
$3,599.04 |
1.00 |
| Indoor Service Establishments | $1,634.33 |
$513.60 |
$490.73 |
$406.99 |
0.83 |
| Offices of health care providers | $339.58 |
$127.66 |
$680.40 |
$290.98 |
0.43 |
| Hospitals | $19.29 |
$2.54 |
$4,353.18 |
$2,132.34 |
- |
| Nursing homes | $114.70 |
$4.16 |
$7,606.11 |
$654.13 |
- |
| Museums, historical sites & libraries | $6.97 |
$0.69 |
$1,447.74 |
$157.89 |
- |
| Parks or zoos | $2.77 |
$2.28 |
$2,330.23 |
$2,293.63 |
0.98 |
| Amusement parks | $71.36 |
$6.48 |
$152,912.63 |
$17,255.77 |
0.11 |
| Nursery schools - Daycare | $107.30 |
$82.34 |
$1,476.86 |
$1,321.73 |
0.89 |
| Elementary private schools | $113.71 |
$77.48 |
$6,228.19 |
$5,140.27 |
0.83 |
| Secondary Private Schools | $20.40 |
$5.73 |
$7,221.32 |
$2,456.85 |
0.34 |
| Ski facilities | $0.09 |
$0.06 |
$223.84 |
$194.38 |
0.87 |
| Homeless Shelter | $85.51 |
$76.25 |
$10,868.91 |
$10,869.61 |
1.00 |
| Food banks | $1.11 |
$0.65 |
$271.80 |
$217.03 |
0.80 |
| Social service establishments | $31.18 |
$19.99 |
$510.16 |
$444.94 |
0.87 |
| Exercise facilities | $524.18 |
$270.40 |
$19,720.68 |
$11,151.90 |
0.57 |
| Aquatic centers/swimming pools | $820.51 |
$788.43 |
$85,836.62 |
$85,391.69 |
0.99 |
| Bowling alleys | $1.57 |
$1.06 |
$303.46 |
$232.65 |
0.77 |
| Golf courses (private public access) | $271.12 |
$238.75 |
$28,870.54 |
$28,606.60 |
0.99 |
| Golf courses (private only) | $135.04 |
$116.47 |
$29,360.96 |
$28,492.15 |
0.97 |
| Miniature golf courses | $83.30 |
$79.89 |
$9,519.66 |
$9,479.75 |
1.00 |
| Recreational boating facilities | $15.31 |
$13.32 |
$3,004.80 |
$2,713.13 |
0.90 |
| Shooting facilities | ($0.30) |
($0.29) |
($97.46) |
($97.45) |
1.00 |
| Parking garages | $4.83 |
$0.49 |
$381.74 |
$168.10 |
0.44 |
| Self service storage facilities | $4.39 |
$3.13 |
$445.82 |
$423.16 |
0.95 |
18B. Public Facilities Owned or Operated by Small Governments)
| Facility Group | Total Net Costs (Millions $)Typical Facilities (All Sizes) | Total Net Costs (Millions $)Small Entity Facilities |
Net Costs Per Facility ($)Typical Facilities (All Sizes) | Net Costs Per Facility ($)Small Entity Facilities | Net Costs Per Facility ($)Ratio of Net Cost per Small Entity Facility to Typical Facility[7] |
|---|---|---|---|---|---|
| Elementary public schools | $278.82 |
$53.65 |
$4,075.40 |
$2,727.71 |
0.67 |
| Secondary public schools | $135.67 |
$2.54 |
$5,831.73 |
$387.78 |
0.07 |
| Public housing | $169.01 |
$40.06 |
$6,147.63 |
$5,516.11 |
0.90 |
| State and local judicial facilities (courthouses) | $517.80 |
$78.29 |
$14,066.91 |
$7,821.71 |
0.56 |
| State and local correctional facilities (prisons) | $4.42 |
$0.41 |
$2,512.40 |
$878.78 |
0.35 |
| Hospitals (public) | $0.66 |
$0.18 |
$583.43 |
$584.37 |
1.00 |
| Parks or zoos (public) | $151.61 |
$40.80 |
$1,352.12 |
$1,350.15 |
1.00 |
| Office buildings (public) | $105.56 |
$27.20 |
$1,352.39 |
$1,352.38 |
1.00 |
The final table below (Table 19) presents estimates of annual costs and annual costs as a percent of sales for both typical and small facilities. For facilities owned or operated by small private entities, annual costs are less than 1% of sales for all but two types of facilities: aquatic centers/swimming pools (4.9%) and miniature golf courses (1.4%).[8] Annual costs are between 0.20% and 1.0% for five facility types: exercise facilities (0.42%); golf courses (private with public access) (0.42%); golf courses (private only) (0.41%); and theatre / concert halls (0.28%). For the rest of the facility groups, annual costs for small entities are less than 0.20% of sales.
For small governmental jurisdictions, Table 19 shows that annual costs are less than 0.5% of expenditures for all facility types. Indeed, with the exception of a single facility group (state and local judicial facilities (courthouses) (0.23%)), annual costs are below 0.1% for all facilities owned or operated by small governments.
Another measure of comparison between typical facilities and facilities owned or operated by small entities is the ratio of annual costs as a percentage of sales. The higher the ratio, the larger the cost burden relative to sales or expenditures for small entities in comparison to facilities of all sizes. For small private entity facilities, this ratio is largest for single level stores (10.24), ski facilities (8.27), and hotels (5.85) because of the significant difference in sales for typical and small facilities of these types, which was much greater than the difference in costs. This ratio is the lowest, 1.0, for inns and motels, which are typically owned or operated almost entirely by small businesses.
For small governments, the ratio of annual costs as a percentage of expenditures for typical facilities versus small facilities is largest for elementary public schools (5.57), public housing (1.10), and state and local judicial facilities (courthouses) (1.10).
Table 19: Annual Cost Comparison: Small vs. Facilities of All Sizes, by Facility Group
19A. Private Facilities(Owned or Operated by Small Businesses or Small Nonprofit Organizations)
| Facility Group | Total Net Costs (Millions $)Typical Facilities (All Sizes) |
Total Net Costs (Millions $)Small Entity |
Net Costs Per Facility ($)Typical Facilities (All Sizes) |
Net Costs Per Facility ($)Small Entity Facilities |
Net Costs Per Facility ($)Ratio of Net Cost per Small Entity Facility to Typical Facility[9] |
|---|---|---|---|---|---|
| Inns | $7.80 |
$7.64 |
$462.32 |
$462.31 |
1.00 |
| Hotels | $170.57 |
$28.63 |
$11,416.18 |
$7,116.58 |
0.62 |
| Motels | $136.20 |
$133.48 |
$6,471.37 |
$6,471.43 |
1.00 |
| Restaurants | $441.85 |
$330.24 |
$868.42 |
$832.83 |
0.96 |
| Motion Picture House | $140.75 |
$11.35 |
$26,896.64 |
$4,763.61 |
0.18 |
| Theatre/Concert Hall | $196.74 |
$102.89 |
$20,121.70 |
$10,933.42 |
0.54 |
| Auditoriums | $13.43 |
$4.65 |
$7,521.73 |
$3,540.81 |
0.47 |
| Single level stores | $388.55 |
$261.05 |
$449.73 |
$444.18 |
0.99 |
| Shopping malls | $33.72 |
$29.67 |
$3,599.13 |
$3,599.04 |
1.00 |
| Indoor Service Establishments | $1,634.33 |
$513.60 |
$490.73 |
$406.99 |
0.83 |
| Offices of health care providers | $339.58 |
$127.66 |
$680.40 |
$290.98 |
0.43 |
| Hospitals | $19.29 |
$2.54 |
$4,353.18 |
$2,132.34 |
- |
| Nursing homes | $114.70 |
$4.16 |
$7,606.11 |
$654.13 |
- |
| Museums, historical sites & libraries | $6.97 |
$0.69 |
$1,447.74 |
$157.89 |
- |
| Parks or zoos | $2.77 |
$2.28 |
$2,330.23 |
$2,293.63 |
0.98 |
| Amusement parks | $71.36 |
$6.48 |
$152,912.63 |
$17,255.77 |
0.11 |
| Nursery schools - Daycare | $107.30 |
$82.34 |
$1,476.86 |
$1,321.73 |
0.89 |
| Elementary private schools | $113.71 |
$77.48 |
$6,228.19 |
$5,140.27 |
0.83 |
| Secondary Private Schools | $20.40 |
$5.73 |
$7,221.32 |
$2,456.85 |
0.34 |
| Ski facilities | $0.09 |
$0.06 |
$223.84 |
$194.38 |
0.87 |
| Homeless Shelter | $85.51 |
$76.25 |
$10,868.91 |
$10,869.61 |
1.00 |
| Food banks | $1.11 |
$0.65 |
$271.80 |
$217.03 |
0.80 |
| Social service establishments | $31.18 |
$19.99 |
$510.16 |
$444.94 |
0.87 |
| Exercise facilities | $524.18 |
$270.40 |
$19,720.68 |
$11,151.90 |
0.57 |
| Aquatic centers/swimming pools | $820.51 |
$788.43 |
$85,836.62 |
$85,391.69 |
0.99 |
| Bowling alleys | $1.57 |
$1.06 |
$303.46 |
$232.65 |
0.77 |
| Golf courses (private public access) | $271.12 |
$238.75 |
$28,870.54 |
$28,606.60 |
0.99 |
| Golf courses (private only) | $135.04 |
$116.47 |
$29,360.96 |
$28,492.15 |
0.97 |
| Miniature golf courses | $83.30 |
$79.89 |
$9,519.66 |
$9,479.75 |
1.00 |
| Recreational boating facilities | $15.31 |
$13.32 |
$3,004.80 |
$2,713.13 |
0.90 |
| Shooting facilities | ($0.30) |
($0.29) |
($97.46) |
($97.45) |
1.00 |
| Parking garages | $4.83 |
$0.49 |
$381.74 |
$168.10 |
0.44 |
| Self service storage facilities | $4.39 |
$3.13 |
$445.82 |
$423.16 |
0.95 |
19B. Private Facilities(Owned or Operated by Small Businesses or Small Nonprofit Organizations)
| Facility Group | Total Net Costs (Millions $)Typical Facilities (All Sizes) | Total Net Costs (Millions $)Small Entity Facilities |
Net Costs Per Facility ($)Typical Facilities (All Sizes) | Net Costs Per Facility ($)Small Entity Facilities | Net Costs Per Facility ($)Ratio of Net Cost per Small Entity Facility to Typical Facility[9] | Elementary public schools | $278.82 |
$53.65 |
$4,075.40 |
$2,727.71 |
0.67 |
|---|---|---|---|---|---|
| Secondary public schools | $135.67 |
$2.54 |
$5,831.73 |
$387.78 |
0.07 |
| Public housing | $169.01 |
$40.06 |
$6,147.63 |
$5,516.11 |
0.90 |
| State and local judicial facilities (courthouses) | $517.80 |
$78.29 |
$14,066.91 |
$7,821.71 |
0.56 |
| State and local correctional facilities (prisons) | $4.42 |
$0.41 |
$2,512.40 |
$878.78 |
0.35 |
| Hospitals (public) | $0.66 |
$0.18 |
$583.43 |
$584.37 |
1.00 |
| Parks or zoos (public) | $151.61 |
$40.80 |
$1,352.12 |
$1,350.15 |
1.00 |
| Office buildings (public) | $105.56 |
$27.20 |
$1,352.39 |
$1,352.38 |
1.00 |
The foregoing analysis indicates that the proposed regulations would not have a significant economic impact on a substantial number of small entities. For small government jurisdictions, annualized costs are not expected to be greater than 0.5% of sales for any type of facility. Similarly, for all but a handful of small private entities, annualized costs are not expected to be greater than 0.5% of sales. (Only with respect to two types of facilities owned or operated by small private entities -- aquatic centers / swimming pools and miniature golf -- are annualized costs estimated to exceed 0.5% of sales.)
[1]The data sources used in this small business impact analysis (i.e., data from the Small Business Administration and the US Economic Census) provided "rolled up" figures for small entities that included both small businesses and small non-profit organizations. Due to these data limitations, it was not possible to calculate the cost impact of the proposed regulations separately for these two types of small entities. Thus, this small business impact analysis provides "rolled up" figures that collectively calculate the cost impact of the proposed regulations on small businesses and small non-profit organizations. Additionally, the following facility types were not included in this analysis due to lack of adequate publicly available data: Stadiums; Convention centers; Terminal (private airports); Depot; Undergraduate and postgraduate private schools; Fishing piers and platforms; Office buildings; Undergraduate; Postgraduate public schools; State and local detention facilities (jails); Theatre / Concert Halls (public); Stadiums (public); Auditoriums (public); Convention centers (public); Offices of Health Care Providers (public); Nursing homes (public); Homeless Shelter (public); Exercise facilities (public); Social service establishments (public); Swimming pools (Aquatic Centers - public);Miniature golf courses (public); Recreational boating facilities (public); Fishing piers and platforms (public); Parking garages (public); Golf courses (public); Restaurants (public); and, Amusement parks (public).
[2] Specifically, the total number of golf courses, miniature golf courses, and elementary and secondary private schools was estimated from sources outside the Economic Census. To determine the number of small private businesses in these facility groups, the percentage of small business establishments (and sales receipts) of the most similar SBA category was taken from the SBA data and then applied to the totals for facilities of all sizes for that group which was collected from the outside source.
[3] See Appendix 5 for data from the 2002 Census of Governments used for calculations on small governments and their expenditures.
[4] For ease of reference, the column headings in Table 17 collectively refer to small businesses, small nonprofit organizations, and small governmental jurisdictions as "small entities."
[5] For the shopping malls facility group, average sales/receipts for small facilities (as calculated from SBA data) was estimated to be greater than average sales/receipts for larger facilities (as calculated from the 2002 Economic Census). Thus, for purposes of this analysis, the conservative assumption was made that average sales/receipts were equivalent for the two sizes of facilities.
[6] The net cost calculations in this small business analysis do not, however, incorporate the Department's barrier removal exemption for "qualified small businesses" (i.e., an exemption capping annual barrier removal obligations if, in preceding tax year, a small entity spent at least 1% of gross revenue on barrier removal compliance measures).
[7] Several facility types have cost savings (in which the benefits due to less stringent requirements outweigh the costs of more stringent requirements) for either small or typical facilities, or both. For these facility groups, a ratio is not calculated.
[8] As discussed previously, these cost calculations do not incorporate the Department's proposed monetary limit (i.e., 1% of gross revenue) on barrier removal obligations for "qualified small businesses." Application of this monetary limit on barrier removal costs would potentially afford small businesses that owned or operated miniature golf facilities or Aquatic Centers -- the only two types of facilities for which net costs are estimated to exceed 1% of sales -- exemptions from readily achievable barrier removal obligations for some years. Thus, in any given year, the estimated costs per small facility of 10% (miniature golf facilities) and 5% (Aquatic Centers) of sales would not occur if that small facility had otherwise satisfied the requirements for this barrier removal exemption. Note that application of this exemption would also lead to a parallel reduction in the net benefits for any postponed barrier removal measures.
[9] Several facility types have cost savings (in which the benefits due to less stringent requirements outweigh the costs of more stringent requirements) for either small or typical facilities, or both. For these facility groups, a ratio is not calculated.
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last updated December 9, 2010