[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2542 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2542
To amend chapter 6 of title 5, United States Code (commonly known as
the Regulatory Flexibility Act), to ensure complete analysis of
potential impacts on small entities of rules, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2013
Mr. Bachus (for himself, Mr. Graves of Missouri, Mr. Barrow of Georgia,
Mr. Matheson, Mr. Smith of Texas, Mr. Coble, and Mr. Rokita) introduced
the following bill; which was referred to the Committee on the
Judiciary, and in addition to the Committee on Small Business, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend chapter 6 of title 5, United States Code (commonly known as
the Regulatory Flexibility Act), to ensure complete analysis of
potential impacts on small entities of rules, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Regulatory
Flexibility Improvements Act of 2013''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Clarification and expansion of rules covered by the Regulatory
Flexibility Act.
Sec. 3. Expansion of report of regulatory agenda.
Sec. 4. Requirements providing for more detailed analyses.
Sec. 5. Repeal of waiver and delay authority; additional powers of the
Chief Counsel for Advocacy.
Sec. 6. Procedures for gathering comments.
Sec. 7. Periodic review of rules.
Sec. 8. Judicial review of compliance with the requirements of the
Regulatory Flexibility Act available after
publication of the final rule.
Sec. 9. Jurisdiction of court of appeals over rules implementing the
Regulatory Flexibility Act.
Sec. 10. Establishment and approval of small business concern size
standards by chief counsel for advocacy.
Sec. 11. Clerical amendments.
Sec. 12. Agency preparation of guides.
SEC. 2. CLARIFICATION AND EXPANSION OF RULES COVERED BY THE REGULATORY
FLEXIBILITY ACT.
(a) In General.--Paragraph (2) of section 601 of title 5, United
States Code, is amended to read as follows:
``(2) Rule.--The term `rule' has the meaning given such
term in section 551(4) of this title, except that such term
does not include a rule of particular (and not general)
applicability relating to rates, wages, corporate or financial
structures or reorganizations thereof, prices, facilities,
appliances, services, or allowances therefor or to valuations,
costs or accounting, or practices relating to such rates,
wages, structures, prices, appliances, services, or
allowances.''.
(b) Inclusion of Rules With Indirect Effects.--Section 601 of title
5, United States Code, is amended by adding at the end the following
new paragraph:
``(9) Economic impact.--The term `economic impact' means,
with respect to a proposed or final rule--
``(A) any direct economic effect on small entities
of such rule; and
``(B) any indirect economic effect on small
entities which is reasonably foreseeable and results
from such rule (without regard to whether small
entities will be directly regulated by the rule).''.
(c) Inclusion of Rules With Beneficial Effects.--
(1) Initial regulatory flexibility analysis.--Subsection
(c) of section 603 of title 5, United States Code, is amended
by striking the first sentence and inserting ``Each initial
regulatory flexibility analysis shall also contain a detailed
description of alternatives to the proposed rule which minimize
any adverse significant economic impact or maximize any
beneficial significant economic impact on small entities.''.
(2) Final regulatory flexibility analysis.--The first
paragraph (6) of section 604(a) of title 5, United States Code,
is amended by striking ``minimize the significant economic
impact'' and inserting ``minimize the adverse significant
economic impact or maximize the beneficial significant economic
impact''.
(d) Inclusion of Rules Affecting Tribal Organizations.--Paragraph
(5) of section 601 of title 5, United States Code, is amended by
inserting ``and tribal organizations (as defined in section 4(l) of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b(l))),'' after ``special districts,''.
(e) Inclusion of Land Management Plans and Formal Rulemaking.--
(1) Initial regulatory flexibility analysis.--Subsection
(a) of section 603 of title 5, United States Code, is amended
in the first sentence--
(A) by striking ``or'' after ``proposed rule,'';
and
(B) by inserting ``or publishes a revision or
amendment to a land management plan,'' after ``United
States,''.
(2) Final regulatory flexibility analysis.--Subsection (a)
of section 604 of title 5, United States Code, is amended in
the first sentence--
(A) by striking ``or'' after ``proposed
rulemaking,''; and
(B) by inserting ``or adopts a revision or
amendment to a land management plan,'' after ``section
603(a),''.
(3) Land management plan defined.--Section 601 of title 5,
United States Code, is amended by adding at the end the
following new paragraph:
``(10) Land management plan.--
``(A) In general.--The term `land management plan'
means--
``(i) any plan developed by the Secretary
of Agriculture under section 6 of the Forest
and Rangeland Renewable Resources Planning Act
of 1974 (16 U.S.C. 1604); and
``(ii) any plan developed by the Secretary
of the Interior under section 202 of the
Federal Land Policy and Management Act of 1976
(43 U.S.C. 1712).
``(B) Revision.--The term `revision' means any
change to a land management plan which--
``(i) in the case of a plan described in
subparagraph (A)(i), is made under section
6(f)(5) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C.
1604(f)(5)); or
``(ii) in the case of a plan described in
subparagraph (A)(ii), is made under section
1610.5-6 of title 43, Code of Federal
Regulations (or any successor regulation).
``(C) Amendment.--The term `amendment' means any
change to a land management plan which--
``(i) in the case of a plan described in
subparagraph (A)(i), is made under section
6(f)(4) of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C.
1604(f)(4)) and with respect to which the
Secretary of Agriculture prepares a statement
described in section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)); or
``(ii) in the case of a plan described in
subparagraph (A)(ii), is made under section
1610.5-5 of title 43, Code of Federal
Regulations (or any successor regulation) and
with respect to which the Secretary of the
Interior prepares a statement described in
section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)).''.
(f) Inclusion of Certain Interpretive Rules Involving the Internal
Revenue Laws.--
(1) In general.--Subsection (a) of section 603 of title 5,
United States Code, is amended by striking the period at the
end and inserting ``or a recordkeeping requirement, and without
regard to whether such requirement is imposed by statute or
regulation.''.
(2) Collection of information.--Paragraph (7) of section
601 of title 5, United States Code, is amended to read as
follows:
``(7) Collection of information.--The term `collection of
information' has the meaning given such term in section 3502(3)
of title 44.''.
(3) Recordkeeping requirement.--Paragraph (8) of section
601 of title 5, United States Code, is amended to read as
follows:
``(8) Recordkeeping requirement.--The term `recordkeeping
requirement' has the meaning given such term in section
3502(13) of title 44.''.
(g) Definition of Small Organization.--Paragraph (4) of section 601
of title 5, United States Code, is amended to read as follows:
``(4) Small organization.--
``(A) In general.--The term `small organization'
means any not-for-profit enterprise which, as of the
issuance of the notice of proposed rulemaking--
``(i) in the case of an enterprise which is
described by a classification code of the North
American Industrial Classification System, does
not exceed the size standard established by the
Administrator of the Small Business
Administration pursuant to section 3 of the
Small Business Act (15 U.S.C. 632) for small
business concerns described by such
classification code; and
``(ii) in the case of any other enterprise,
has a net worth that does not exceed $7,000,000
and has not more than 500 employees.
``(B) Local labor organizations.--In the case of
any local labor organization, subparagraph (A) shall be
applied without regard to any national or international
organization of which such local labor organization is
a part.
``(C) Agency definitions.--Subparagraphs (A) and
(B) shall not apply to the extent that an agency, after
consultation with the Office of Advocacy of the Small
Business Administration and after opportunity for
public comment, establishes one or more definitions for
such term which are appropriate to the activities of
the agency and publishes such definitions in the
Federal Register.''.
SEC. 3. EXPANSION OF REPORT OF REGULATORY AGENDA.
Section 602 of title 5, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (2), by striking ``, and'' at the
end and inserting ``;'';
(B) by redesignating paragraph (3) as paragraph
(4); and
(C) by inserting after paragraph (2) the following:
``(3) a brief description of the sector of the North
American Industrial Classification System that is primarily
affected by any rule which the agency expects to propose or
promulgate which is likely to have a significant economic
impact on a substantial number of small entities; and''; and
(2) in subsection (c), to read as follows:
``(c) Each agency shall prominently display a plain language
summary of the information contained in the regulatory flexibility
agenda published under subsection (a) on its website within 3 days of
its publication in the Federal Register. The Office of Advocacy of the
Small Business Administration shall compile and prominently display a
plain language summary of the regulatory agendas referenced in
subsection (a) for each agency on its website within 3 days of their
publication in the Federal Register.''.
SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.
(a) Initial Regulatory Flexibility Analysis.--Subsection (b) of
section 603 of title 5, United States Code, is amended to read as
follows:
``(b) Each initial regulatory flexibility analysis required under
this section shall contain a detailed statement--
``(1) describing the reasons why action by the agency is
being considered;
``(2) describing the objectives of, and legal basis for,
the proposed rule;
``(3) estimating the number and type of small entities to
which the proposed rule will apply;
``(4) describing the projected reporting, recordkeeping,
and other compliance requirements of the proposed rule,
including an estimate of the classes of small entities which
will be subject to the requirement and the type of professional
skills necessary for preparation of the report and record;
``(5) describing all relevant Federal rules which may
duplicate, overlap, or conflict with the proposed rule, or the
reasons why such a description could not be provided;
``(6) estimating the additional cumulative economic impact
of the proposed rule on small entities beyond that already
imposed on the class of small entities by the agency or why
such an estimate is not available; and
``(7) describing any disproportionate economic impact on
small entities or a specific class of small entities.''.
(b) Final Regulatory Flexibility Analysis.--
(1) In general.--Section 604(a) of title 5, United States
Code, is amended--
(A) in paragraph (4), by striking ``an
explanation'' and inserting ``a detailed explanation'';
(B) in each of paragraphs (4), (5), and the first
paragraph (6), by inserting ``detailed'' before
``description''; and
(C) by adding at the end the following:
``(7) describing any disproportionate economic impact on
small entities or a specific class of small entities.''.
(2) Inclusion of response to comments on certification of
proposed rule.--Paragraph (2) of section 604(a) of title 5,
United States Code, is amended by inserting ``(or certification
of the proposed rule under section 605(b))'' after ``initial
regulatory flexibility analysis''.
(3) Publication of analysis on website.--Subsection (b) of
section 604 of title 5, United States Code, is amended to read
as follows:
``(b) The agency shall make copies of the final regulatory
flexibility analysis available to the public, including placement of
the entire analysis on the agency's website, and shall publish in the
Federal Register the final regulatory flexibility analysis, or a
summary thereof which includes the telephone number, mailing address,
and link to the website where the complete analysis may be obtained.''.
(c) Cross-References to Other Analyses.--Subsection (a) of section
605 of title 5, United States Code, is amended to read as follows:
``(a) A Federal agency shall be treated as satisfying any
requirement regarding the content of an agenda or regulatory
flexibility analysis under section 602, 603, or 604, if such agency
provides in such agenda or analysis a cross-reference to the specific
portion of another agenda or analysis which is required by any other
law and which satisfies such requirement.''.
(d) Certifications.--Subsection (b) of section 605 of title 5,
United States Code, is amended--
(1) by inserting ``detailed'' before ``statement'' the
first place it appears; and
(2) by inserting ``and legal'' after ``factual''.
(e) Quantification Requirements.--Section 607 of title 5, United
States Code, is amended to read as follows:
``Sec. 607. Quantification requirements
``In complying with sections 603 and 604, an agency shall provide--
``(1) a quantifiable or numerical description of the
effects of the proposed or final rule and alternatives to the
proposed or final rule; or
``(2) a more general descriptive statement and a detailed
statement explaining why quantification is not practicable or
reliable.''.
SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDITIONAL POWERS OF THE
CHIEF COUNSEL FOR ADVOCACY.
(a) In General.--Section 608 is amended to read as follows:
``Sec. 608. Additional powers of Chief Counsel for Advocacy
``(a)(1) Not later than 270 days after the date of the enactment of
the Regulatory Flexibility Improvements Act of 2013, the Chief Counsel
for Advocacy of the Small Business Administration shall, after
opportunity for notice and comment under section 553, issue rules
governing agency compliance with this chapter. The Chief Counsel may
modify or amend such rules after notice and comment under section 553.
This chapter (other than this subsection) shall not apply with respect
to the issuance, modification, and amendment of rules under this
paragraph.
``(2) An agency shall not issue rules which supplement the rules
issued under subsection (a) unless such agency has first consulted with
the Chief Counsel for Advocacy to ensure that such supplemental rules
comply with this chapter and the rules issued under paragraph (1).
``(b) Notwithstanding any other law, the Chief Counsel for Advocacy
of the Small Business Administration may intervene in any agency
adjudication (unless such agency is authorized to impose a fine or
penalty under such adjudication), and may inform the agency of the
impact that any decision on the record may have on small entities. The
Chief Counsel shall not initiate an appeal with respect to any
adjudication in which the Chief Counsel intervenes under this
subsection.
``(c) The Chief Counsel for Advocacy may file comments in response
to any agency notice requesting comment, regardless of whether the
agency is required to file a general notice of proposed rulemaking
under section 553.''.
(b) Conforming Amendments.--
(1) Section 611(a)(1) of such title is amended by striking
``608(b),''.
(2) Section 611(a)(2) of such title is amended by striking
``608(b),''.
(3) Section 611(a)(3) of such title is amended--
(A) by striking subparagraph (B); and
(B) by striking ``(3)(A) A small entity'' and
inserting the following:
``(3) A small entity''.
SEC. 6. PROCEDURES FOR GATHERING COMMENTS.
Section 609 of title 5, United States Code, is amended by striking
subsection (b) and all that follows through the end of the section and
inserting the following:
``(b)(1) Prior to publication of any proposed rule described in
subsection (e), an agency making such rule shall notify the Chief
Counsel for Advocacy of the Small Business Administration and provide
the Chief Counsel with--
``(A) all materials prepared or utilized by the agency in
making the proposed rule, including the draft of the proposed
rule; and
``(B) information on the potential adverse and beneficial
economic impacts of the proposed rule on small entities and the
type of small entities that might be affected.
``(2) An agency shall not be required under paragraph (1) to
provide the exact language of any draft if the rule--
``(A) relates to the internal revenue laws of the United
States; or
``(B) is proposed by an independent regulatory agency (as
defined in section 3502(5) of title 44).
``(c) Not later than 15 days after the receipt of such materials
and information under subsection (b), the Chief Counsel for Advocacy of
the Small Business Administration shall--
``(1) identify small entities or representatives of small
entities or a combination of both for the purpose of obtaining
advice, input, and recommendations from those persons about the
potential economic impacts of the proposed rule and the
compliance of the agency with section 603; and
``(2) convene a review panel consisting of an employee from
the Office of Advocacy of the Small Business Administration, an
employee from the agency making the rule, and in the case of an
agency other than an independent regulatory agency (as defined
in section 3502(5) of title 44), an employee from the Office of
Information and Regulatory Affairs of the Office of Management
and Budget to review the materials and information provided to
the Chief Counsel under subsection (b).
``(d)(1) Not later than 60 days after the review panel described in
subsection (c)(2) is convened, the Chief Counsel for Advocacy of the
Small Business Administration shall, after consultation with the
members of such panel, submit a report to the agency and, in the case
of an agency other than an independent regulatory agency (as defined in
section 3502(5) of title 44), the Office of Information and Regulatory
Affairs of the Office of Management and Budget.
``(2) Such report shall include an assessment of the economic
impact of the proposed rule on small entities, including an assessment
of the proposed rule's impact on the cost that small entities pay for
energy, and a discussion of any alternatives that will minimize adverse
significant economic impacts or maximize beneficial significant
economic impacts on small entities.
``(3) Such report shall become part of the rulemaking record. In
the publication of the proposed rule, the agency shall explain what
actions, if any, the agency took in response to such report.
``(e) A proposed rule is described by this subsection if the
Administrator of the Office of Information and Regulatory Affairs of
the Office of Management and Budget, the head of the agency (or the
delegatee of the head of the agency), or an independent regulatory
agency determines that the proposed rule is likely to result in--
``(1) an annual effect on the economy of $100,000,000 or
more;
``(2) a major increase in costs or prices for consumers,
individual industries, Federal, State, or local governments,
tribal organizations, or geographic regions;
``(3) significant adverse effects on competition,
employment, investment, productivity, innovation, or on the
ability of United States-based enterprises to compete with
foreign-based enterprises in domestic and export markets; or
``(4) a significant economic impact on a substantial number
of small entities.
``(f) Upon application by the agency, the Chief Counsel for
Advocacy of the Small Business Administration may waive the
requirements of subsections (b) through (e) if the Chief Counsel
determines that compliance with the requirements of such subsections
are impracticable, unnecessary, or contrary to the public interest.''.
SEC. 7. PERIODIC REVIEW OF RULES.
Section 610 of title 5, United States Code, is amended to read as
follows:
``Sec. 610. Periodic review of rules
``(a) Not later than 180 days after the enactment of the Regulatory
Flexibility Improvements Act of 2013, each agency shall publish in the
Federal Register and place on its website a plan for the periodic
review of rules issued by the agency which the head of the agency
determines have a significant economic impact on a substantial number
of small entities. Such determination shall be made without regard to
whether the agency performed an analysis under section 604. The purpose
of the review shall be to determine whether such rules should be
continued without change, or should be amended or rescinded, consistent
with the stated objectives of applicable statutes, to minimize any
adverse significant economic impacts or maximize any beneficial
significant economic impacts on a substantial number of small entities.
Such plan may be amended by the agency at any time by publishing the
revision in the Federal Register and subsequently placing the amended
plan on the agency's website.
``(b) The plan shall provide for the review of all such agency
rules existing on the date of the enactment of the Regulatory
Flexibility Improvements Act of 2013 within 10 years of the date of
publication of the plan in the Federal Register and for review of rules
adopted after the date of enactment of the Regulatory Flexibility
Improvements Act of 2013 within 10 years after the publication of the
final rule in the Federal Register. If the head of the agency
determines that completion of the review of existing rules is not
feasible by the established date, the head of the agency shall so
certify in a statement published in the Federal Register and may extend
the review for not longer than 2 years after publication of notice of
extension in the Federal Register. Such certification and notice shall
be sent to the Chief Counsel for Advocacy of the Small Business
Administration and the Congress.
``(c) The plan shall include a section that details how an agency
will conduct outreach to and meaningfully include small businesses for
the purposes of carrying out this section. The agency shall include in
this section a plan for how the agency will contact small businesses
and gather their input on existing agency rules.
``(d) Each agency shall annually submit a report regarding the
results of its review pursuant to such plan to the Congress, the Chief
Counsel for Advocacy of the Small Business Administration, and, in the
case of agencies other than independent regulatory agencies (as defined
in section 3502(5) of title 44) to the Administrator of the Office of
Information and Regulatory Affairs of the Office of Management and
Budget. Such report shall include the identification of any rule with
respect to which the head of the agency made a determination described
in paragraph (5) or (6) of subsection (e) and a detailed explanation of
the reasons for such determination.
``(e) In reviewing a rule pursuant to subsections (a) through (d),
the agency shall amend or rescind the rule to minimize any adverse
significant economic impact on a substantial number of small entities
or disproportionate economic impact on a specific class of small
entities, or maximize any beneficial significant economic impact of the
rule on a substantial number of small entities to the greatest extent
possible, consistent with the stated objectives of applicable statutes.
In amending or rescinding the rule, the agency shall consider the
following factors:
``(1) The continued need for the rule.
``(2) The nature of complaints received by the agency from
small entities concerning the rule.
``(3) Comments by the Regulatory Enforcement Ombudsman and
the Chief Counsel for Advocacy of the Small Business
Administration.
``(4) The complexity of the rule.
``(5) The extent to which the rule overlaps, duplicates, or
conflicts with other Federal rules and, unless the head of the
agency determines it to be infeasible, State, territorial, and
local rules.
``(6) The contribution of the rule to the cumulative
economic impact of all Federal rules on the class of small
entities affected by the rule, unless the head of the agency
determines that such calculations cannot be made and reports
that determination in the annual report required under
subsection (d).
``(7) The length of time since the rule has been evaluated
or the degree to which technology, economic conditions, or
other factors have changed in the area affected by the rule.
``(f) The agency shall publish in the Federal Register and on its
website a list of rules to be reviewed pursuant to such plan. Such
publication shall include a brief description of the rule, the reason
why the agency determined that it has a significant economic impact on
a substantial number of small entities (without regard to whether it
had prepared a final regulatory flexibility analysis for the rule), and
request comments from the public, the Chief Counsel for Advocacy of the
Small Business Administration, and the Regulatory Enforcement Ombudsman
concerning the enforcement of the rule.''.
SEC. 8. JUDICIAL REVIEW OF COMPLIANCE WITH THE REQUIREMENTS OF THE
REGULATORY FLEXIBILITY ACT AVAILABLE AFTER PUBLICATION OF
THE FINAL RULE.
(a) In General.--Paragraph (1) of section 611(a) of title 5, United
States Code, is amended by striking ``final agency action'' and
inserting ``such rule''.
(b) Jurisdiction.--Paragraph (2) of such section is amended by
inserting ``(or which would have such jurisdiction if publication of
the final rule constituted final agency action)'' after ``provision of
law,''.
(c) Time for Bringing Action.--Paragraph (3) of such section is
amended--
(1) by striking ``final agency action'' and inserting
``publication of the final rule''; and
(2) by inserting ``, in the case of a rule for which the
date of final agency action is the same date as the publication
of the final rule,'' after ``except that''.
(d) Intervention by Chief Counsel for Advocacy.--Subsection (b) of
section 612 of title 5, United States Code, is amended by inserting
before the first period ``or agency compliance with section 601, 603,
604, 605(b), 609, or 610''.
SEC. 9. JURISDICTION OF COURT OF APPEALS OVER RULES IMPLEMENTING THE
REGULATORY FLEXIBILITY ACT.
(a) In General.--Section 2342 of title 28, United States Code, is
amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) in paragraph (7), by striking the period at the end and
inserting ``; and''; and
(3) by inserting after paragraph (7) the following new
paragraph:
``(8) all final rules under section 608(a) of title 5.''.
(b) Conforming Amendments.--Paragraph (3) of section 2341 of title
28, United States Code, is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(F) the Office of Advocacy of the Small Business
Administration, when the final rule is under section
608(a) of title 5.''.
(c) Authorization To Intervene and Comment on Agency Compliance
With Administrative Procedure.--Subsection (b) of section 612 of title
5, United States Code, is amended by inserting ``chapter 5, and chapter
7,'' after ``this chapter,''.
SEC. 10. ESTABLISHMENT AND APPROVAL OF SMALL BUSINESS CONCERN SIZE
STANDARDS BY CHIEF COUNSEL FOR ADVOCACY.
(a) In General.--Subparagraph (A) of section 3(a)(2) of the Small
Business Act (15 U.S.C. 632(a)(2)(A)) is amended to read as follows:
``(A) In general.--In addition to the criteria
specified in paragraph (1)--
``(i) the Administrator may specify
detailed definitions or standards by which a
business concern may be determined to be a
small business concern for purposes of this Act
or the Small Business Investment Act of 1958;
and
``(ii) the Chief Counsel for Advocacy may
specify such definitions or standards for
purposes of any other Act.''.
(b) Approval by Chief Counsel.--Clause (iii) of section 3(a)(2)(C)
of the Small Business Act (15 U.S.C. 632(a)(2)(C)(iii)) is amended to
read as follows:
``(iii) except in the case of a size
standard prescribed by the Administrator, is
approved by the Chief Counsel for Advocacy.''.
(c) Industry Variation.--Paragraph (3) of section 3(a) of the Small
Business Act (15 U.S.C. 632(a)(3)) is amended--
(1) by inserting ``or Chief Counsel for Advocacy, as
appropriate'' before ``shall ensure''; and
(2) by inserting ``or Chief Counsel for Advocacy'' before
the period at the end.
(d) Judicial Review of Size Standards Approved by Chief Counsel.--
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended by
adding at the end the following new paragraph:
``(6) Judicial review of standards approved by chief
counsel.--In the case of an action for judicial review of a
rule which includes a definition or standard approved by the
Chief Counsel for Advocacy under this subsection, the party
seeking such review shall be entitled to join the Chief Counsel
as a party in such action.''.
SEC. 11. CLERICAL AMENDMENTS.
(a) Section 601 of title 5, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking the semicolon at the end and
inserting a period; and
(B) by striking ``(1) the term'' and inserting the
following:
``(1) Agency.--The term'';
(2) in paragraph (3)--
(A) by striking the semicolon at the end and
inserting a period; and
(B) by striking ``(3) the term'' and inserting the
following:
``(3) Small business.--The term'';
(3) in paragraph (5)--
(A) by striking the semicolon at the end and
inserting a period; and
(B) by striking ``(5) the term'' and inserting the
following:
``(5) Small governmental jurisdiction.--The term''; and
(4) in paragraph (6)--
(A) by striking ``; and'' and inserting a period;
and
(B) by striking ``(6) the term'' and inserting the
following:
``(6) Small entity.--The term''.
(b) The heading of section 605 of title 5, United States Code, is
amended to read as follows:
``Sec. 605. Incorporations by reference and certifications''.
(c) The table of sections for chapter 6 of title 5, United States
Code, is amended--
(1) by striking the item relating to section 605 and
inserting the following new item:
``605. Incorporations by reference and certifications.'';
(2) by striking the item relating to section 607 and
inserting the following new item:
``607. Quantification requirements.'';
and
(3) by striking the item relating to section 608 and
inserting the following:
``608. Additional powers of Chief Counsel for Advocacy.''.
(d) Chapter 6 of title 5, United States Code, is amended as
follows:
(1) In section 603, by striking subsection (d).
(2) In section 604(a) by striking the second paragraph (6).
SEC. 12. AGENCY PREPARATION OF GUIDES.
Section 212(a)(5) the Small Business Regulatory Enforcement
Fairness Act of 1996 (5 U.S.C. 601 note) is amended to read as follows:
``(5) Agency preparation of guides.--The agency shall, in
its sole discretion, taking into account the subject matter of
the rule and the language of relevant statutes, ensure that the
guide is written using sufficiently plain language likely to be
understood by affected small entities. Agencies may prepare
separate guides covering groups or classes of similarly
affected small entities and may cooperate with associations of
small entities to distribute such guides. In developing guides,
agencies shall solicit input from affected small entities or
associations of affected small entities. An agency may prepare
guides and apply this section with respect to a rule or a group
of related rules.''.
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