To amend title 44 of the United States Code, to provide for the suspension of fines under certain circumstances for first-time paperwork violations by small business concerns.

Summary: Small Business Paperwork Amnesty Act of 2006 - Amends the Paperwork Reduction Act to direct agency heads not to impose civil fines for first-time paperwork violations by small business concerns unless there is potential for serious harm to the public interest, the detection of criminal activity would be impaired, the violation is not corrected within six months, the violation is a violation of internal revenue law or a law concerning the assessment or collection of any tax, debt, revenue, or receipt, or the violation presents a danger to the public health or safety. Permits an agency to determine that a fine should not be imposed for a violation that presents a danger to public health or safety if the violation is corrected within 24 hours after receipt by the small business owner of notification of the violation in writing.

Makes this Act inapplicable to any violation by a small business of a requirement regarding the collection of information by an agency if the small business previously violated any requirement concerning the collection of information by that agency.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Paperwork Amnesty Act 
of 2006''.

SEC. 2. 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' means a business concern that meets 
        the requirements of section 3(a) of the Small Business Act (15 
        U.S.C. 632(a)) and the regulations promulgated under that 
        section.
            ``(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 such 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 of receipt by 
                the small business concern of 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 
                small business owner of notification of the violation 
                in writing.
                    ``(B) Considerations.--In determining whether to 
                provide a small business concern with 24 hours to 
                correct a violation under subparagraph (A), the head of 
                the 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 the 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 provide the 
                small business concern with 24 hours to correct the 
                violation under subparagraph (A), the head of the 
                agency shall notify Congress regarding such 
                determination not later than the date that is 60 days 
                after the date that 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 such small business concern previously 
                violated any requirement regarding collection of 
                information by that 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.''.