[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1536 Introduced in Senate (IS)]
114th CONGRESS
1st Session
S. 1536
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 SENATE OF THE UNITED STATES
June 10, 2015
Mr. Vitter (for himself, Mr. Risch, Mr. Enzi, Mr. Rubio, Mrs. Ernst,
and Mr. Gardner) introduced the following bill; which was read twice
and referred to the Committee on Homeland Security and Governmental
Affairs
_______________________________________________________________________
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.
This Act may be cited as the ``Small Business Regulatory
Flexibility Improvements Act of 2015''.
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 pertaining to the protection of the
rights of and benefits for veterans or 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, facilities,
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 (including
compliance costs and effects on revenue) 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 designated as paragraph (6) of section 604(a) of
title 5, United States Code, (relating to minimization of
significant economic impacts) 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, as amended by subsection (b), 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 nonprofit 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.''.
(h) Definition of Small Governmental Jurisdiction.--Paragraph (5)
of section 601 of title 5, United States Code, is amended to read as
follows:
``(5) Small governmental jurisdiction.--
``(A) In general.--The term `small governmental
jurisdiction' means the government of a city, county,
town, township, village, school district, or special
district with a population of less than 50,000.
``(B) Subdivisions and departments.--
Notwithstanding subparagraph (A), a subdivision,
department, agency, district, or authority of a State,
city, county, town, township, village, school district,
or special district described by a classification code
of the North American Industrial Classification System
shall be considered to be a small governmental
jurisdiction if that subdivision, department, agency,
district, or authority, by itself, 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.
``(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) by striking subsection (c) and inserting the following:
``(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;
``(7) describing any disproportionate economic impact on
small entities or a specific class of small entities; and
``(8) describing any impairment of the ability of small
entities to have access to credit.''.
(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 designated as paragraph (6) (relating to
minimization of significant economic impacts), by
inserting ``detailed'' before ``description'';
(C) in the first paragraph designated as paragraph
(6) (relating to minimization of significant economic
impacts), by striking ``and'' at the end;
(D) in the second paragraph designated as paragraph
(6) (relating to covered agencies), by striking the
period and inserting ``; and'';
(E) by redesignating the second paragraph
designated as paragraph (6) as paragraph (7); and
(F) by adding at the end the following:
``(8) a detailed description of 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 of title 5, United States Code, 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 Small Business Regulatory Flexibility Improvements Act of 2015, 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 paragraph (1) 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) Additional Duties of Office of Advocacy.--Section 203 of Public
Law 94-305 (15 U.S.C. 634c) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) at the discretion of the Chief Counsel for Advocacy,
comment on regulatory action by an agency that affects small
businesses, without regard to whether the agency is required to
file a notice of proposed rulemaking under section 553 of title
5, United States Code, with respect to the action.''.
(c) 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--
(1) in subsection (b), by striking ``covered agency'' each
place it appears and inserting ``agency'';
(2) by striking subsection (d);
(3) by redesignating subsection (e) as subsection (d); and
(4) in paragraph (1) of subsection (d), as so redesignated,
by striking ``covered agency'' and inserting ``agency''.
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 this section,
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--
``(1) the review of all such agency rules described in
subsection (a) existing on the date of the enactment of this
section--
``(A) within 10 years of the date of publication of
the plan in the Federal Register; and
``(B) every 10 years thereafter; and
``(2) the review of all such agency rules described in
subsection (a) adopted after the date of enactment of this
section--
``(A) within 10 years after the publication of the
final rule in the Federal Register; and
``(B) every 10 years thereafter.
``(c) 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.
``(d) The plan shall include a section that details how an agency
will conduct outreach to and meaningfully include small businesses
(including small business concerns owned and controlled by women, small
business concerns owned and controlled by veterans, and small business
concerns owned and controlled by socially and economically
disadvantaged individuals (as such terms are defined in the Small
Business Act)) 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.
``(e) 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 (f) and a detailed explanation of
the reasons for such determination.
``(f) In reviewing a rule pursuant to subsections (a) through (e),
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--
``(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 (e);
``(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;
and
``(8) the economic impact of the rule, including--
``(A) the estimated number of small entities to
which the rule will apply;
``(B) the estimated number of small entity jobs
that will be lost or created due to the rule; and
``(C) the projected reporting, recordkeeping, and
other compliance requirements of the proposed rule,
including--
``(i) an estimate of the classes of small
entities that will be subject to the
requirement; and
``(ii) the type of professional skills
necessary for preparation of the report or
record.
``(g) Each year, each agency shall publish in the Federal Register
and on its website a list of rules to be reviewed pursuant to such
plan. The agency shall include in the publication a solicitation of
public comments on any further inclusions or exclusions of rules from
the list, and shall respond to such comments. 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.
``(h)(1) Not later than 6 months after each date described in
subsection (b), the Inspector General for each agency shall--
``(A) determine whether the agency has conducted the review
required under subsection (b) appropriately; and
``(B) notify the head of the agency of--
``(i) the results of the determination under
subparagraph (A); and
``(ii) any issues preventing the Inspector General
from determining that the agency has conducted the
review under subsection (b) appropriately.
``(2)(A) Not later than 6 months after the date on which the head
of an agency receives a notice under paragraph (1)(B) that the agency
has not conducted the review under subsection (b) appropriately, the
agency shall address the issues identified in the notice.
``(B) Not later than 30 days after the last day of the 6-month
period described in subparagraph (A), the Inspector General for an
agency that receives a notice described in subparagraph (A) shall--
``(i) determine whether the agency has addressed the issues
identified in the notice; and
``(ii) notify Congress if the Inspector General determines
that the agency has not addressed the issues identified in the
notice.''.
SEC. 8. JUDICIAL REVIEW TO ALLOW SMALL ENTITIES TO CHALLENGE PROPOSED
REGULATIONS.
(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, as
amended by section 5(c)(3) of this Act, is amended--
(1) by striking ``such review during the period beginning
on the date of final agency action'' and inserting the
following: ``such review--
``(A) in the case of noncompliance with section 605(b),
before the close of the public comment period; and
``(B) in any other case, during the period beginning on the
date of 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, 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 in the second sentence 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:
``(9) 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) Definitions.--Section 601 of title 5, United States Code, is
amended--
(1) in the matter preceding paragraph (1), by striking
``this chapter--'' and inserting ``this chapter:'';
(2) 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'';
(3) 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'';
(4) 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
(5) 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) Incorporations by Reference and Certifications.--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) Table of Sections.--The table of sections for chapter 6 of
title 5, United States Code, is amended as follows:
(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.''.
(3) By striking the item relating to section 608 and
inserting the following:
``608. Additional powers of Chief Counsel for Advocacy.''.
(d) Other Clerical Amendments to Chapter 6.--Chapter 6 of title 5,
United States Code, is amended--
(1) in section 603(d)--
(A) by striking paragraph (2);
(B) by striking ``(1) For a covered agency, as
defined in section 609(d)(2), each initial regulatory
flexibility analysis'' and inserting ``Each initial
regulatory flexibility analysis by an agency'';
(C) by striking ``(A) any'' and inserting ``(1)
any'';
(D) by striking ``(B) any'' and inserting ``(2)
any''; and
(E) by striking ``(C) advice'' and inserting ``(3)
advice''; and
(2) in paragraph (7) of section 604(a), as so redesignated
by section 4(b)(1)(D) of this Act, by striking ``for a covered
agency, as defined in section 609(d)(2),''.
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.''.
SEC. 13. REPORTING ON ENFORCEMENT ACTIONS RELATING TO SMALL ENTITIES.
Section 223 of the Small Business Regulatory Enforcement Fairness
Act of 1996 (5 U.S.C. 601 note) is amended--
(1) in subsection (a)--
(A) by striking ``Each agency'' and inserting the
following:
``(1) Establishment of policy or program.--Each agency'';
and
(B) by adding at the end the following:
``(2) Review of civil penalties.--Not later than 2 years
after the date of enactment of the Small Business Regulatory
Flexibility Improvements Act of 2015, and every 2 years
thereafter, each agency regulating the activities of small
entities shall review the civil penalties imposed by the agency
for violations of a statutory or regulatory requirement by a
small entity to determine whether a reduction or waiver of the
civil penalties is appropriate.''; and
(2) in subsection (c)--
(A) by striking ``Agencies shall report'' and all
that follows through ``the scope'' and inserting ``Not
later than 2 years after the date of enactment of the
Small Business Regulatory Flexibility Improvements Act
of 2015, and every 2 years thereafter, each agency
shall submit to the Committee on Small Business and
Entrepreneurship and the Committee on Homeland Security
and Governmental Affairs of the Senate and the
Committee on Small Business and the Committee on the
Judiciary of the House of Representatives a report
discussing the scope''; and
(B) by striking ``and the total amount of penalty
reductions and waivers'' and inserting ``the total
amount of penalty reductions and waivers, and the
results of the most recent review under subsection
(a)(2)''.
SEC. 14. SUSPENSION OF FINES FOR FIRST-TIME PAPERWORK VIOLATIONS BY
SMALL BUSINESS CONCERNS.
Section 3506 of title 44, United States Code (commonly referred to
as the ``Paperwork Reduction Act''), is amended by adding at the end
the following:
``(j) Small Businesses.--
``(1) Small business concern.--In this subsection, the term
`small business concern' has the meaning given that term under
section 3 of the Small Business Act (15 U.S.C. 632).
``(2) In general.--In the case of a first-time violation by
a small business concern of a requirement regarding the
collection of information by an agency, the head of the agency
shall not impose a civil fine on the small business concern
unless the head of the agency determines that--
``(A) the violation has the potential to cause
serious harm to the public interest;
``(B) failure to impose a civil fine would impede
or interfere with the detection of criminal activity;
``(C) the violation is a violation of an internal
revenue law or a law concerning the assessment or
collection of any tax, debt, revenue, or receipt;
``(D) the violation was not corrected on or before
the date that is 6 months after the date on which the
small business concern receives notification of the
violation in writing from the agency; or
``(E) except as provided in paragraph (3), the
violation presents a danger to the public health or
safety.
``(3) Danger to public health or safety.--
``(A) In general.--In any case in which the head of
an agency determines under paragraph (2)(E) that a
violation presents a danger to the public health or
safety, the head of the agency may, notwithstanding
paragraph (2)(E), determine not to impose a civil fine
on the small business concern if the violation is
corrected not later than 24 hours after receipt by the
owner of the small business concern of notification of
the violation in writing.
``(B) Considerations.--In determining whether to
allow a small business concern 24 hours to correct a
violation under subparagraph (A), the head of an agency
shall take into account all of the facts and
circumstances regarding the violation, including--
``(i) the nature and seriousness of the
violation, including whether the violation is
technical or inadvertent or involves willful or
criminal conduct;
``(ii) whether the small business concern
has made a good faith effort to comply with
applicable laws and to remedy the violation
within the shortest practicable period of time;
and
``(iii) whether the small business concern
has obtained a significant economic benefit
from the violation.
``(C) Notice to congress.--In any case in which the
head of an agency imposes a civil fine on a small
business concern for a violation that presents a danger
to the public health or safety and does not allow the
small business concern 24 hours to correct the
violation under subparagraph (A), the head of the
agency shall notify Congress regarding the
determination not later than 60 days after the date on
which the civil fine is imposed by the agency.
``(4) Limited to first-time violations.--
``(A) In general.--This subsection shall not apply
to any violation by a small business concern of a
requirement regarding collection of information by an
agency if the small business concern previously
violated any requirement regarding collection of
information by the agency.
``(B) Other agencies.--For purposes of making a
determination under subparagraph (A), the head of an
agency shall not take into account any violation of a
requirement regarding collection of information by
another agency.''.
SEC. 15. ENSURING THAT AGENCIES CONSIDER SMALL ENTITY IMPACT DURING THE
RULEMAKING PROCESS.
Section 605(b) of title 5, United States Code, is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following:
``(2) If, after publication of the certification required
under paragraph (1), the head of the agency determines that
there will be a significant economic impact on a substantial
number of small entities, the agency shall comply with the
requirements of section 603 before the publication of the final
rule, by--
``(A) publishing an initial regulatory flexibility
analysis for public comment; or
``(B) re-proposing the rule with an initial
regulatory flexibility analysis.
``(3) The head of an agency may not make a certification
relating to a rule under this subsection, unless the head of
the agency has determined--
``(A) the average cost of the rule for small
entities affected or reasonably presumed to be affected
by the rule;
``(B) the number of small entities affected or
reasonably presumed to be affected by the rule; and
``(C) the number of affected small entities for
which that cost will be significant.
``(4) Before publishing a certification and a statement
providing the factual basis for the certification under
paragraph (1), the head of an agency shall--
``(A) transmit a copy of the certification and
statement to the Chief Counsel for Advocacy of the
Small Business Administration; and
``(B) consult with the Chief Counsel for Advocacy
of the Small Business Administration on the accuracy of
the certification and statement.''.
SEC. 16. COMPTROLLER GENERAL REPORT.
Not later than 90 days after the date of enactment of this Act, the
Comptroller General of the United States shall complete and publish a
study that examines whether the Chief Counsel for Advocacy of the Small
Business Administration has the capacity and resources to carry out the
duties of the Chief Counsel under this Act and the amendments made by
this Act.
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