SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Regulatory Flexibility Amendments 
Act of 1996''.

SEC. 2. JUDICIAL REVIEW.

    (a) Amendment.--Section 611 of title 5, United States Code, is 
amended to read as follows:
``Sec. 611. Judicial review
    ``(a)(1) Not later than one year, notwithstanding any other 
provision of law, after the effective date of a final rule with respect 
to which an agency--
            ``(A) certified, pursuant to section 605(b), that such rule 
        would not have a significant economic impact on a substantial 
        number of small entities; or
            ``(B) prepared a final regulatory flexibility analysis 
        pursuant to section 604,
an affected small entity may petition for the judicial review of such 
certification or analysis in accordance with the terms of this 
subsection. A court having jurisdiction to review such rule for 
compliance with the provisions of section 553 or under any other 
provision of law shall have jurisdiction to review such certification 
or analysis. In the case where an agency delays the issuance of a final 
regulatory flexibility analysis pursuant to section 608(b), a petition 
for judicial review under this subsection shall be filed not later than 
one year, notwithstanding any other provision of law, after the date 
the analysis is made available to the public.
    ``(2) For purposes of this subsection, the term `affected small 
entity' means a small entity that is or will be adversely affected by 
the final rule.
    ``(3) Nothing in this subsection shall be construed to affect the 
authority of any court to stay the effective date of any rule or 
provision thereof under any other provision of law.
    ``(4)(A) In the case where the agency certified that such rule 
would not have a significant economic impact on a substantial number of 
small entities, the court may order the agency to prepare a final 
regulatory flexibility analysis pursuant to section 604 if the court 
determines, on the basis of the rulemaking record, that the 
certification was arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law.
    ``(B) In the case where the agency prepared a final regulatory 
flexibility analysis, the court may order the agency to take corrective 
action consistent with the requirements of section 604 if the court 
determines, on the basis of the rulemaking record, that the final 
regulatory flexibility analysis was prepared by the agency without 
observance of procedure required by section 604.
    ``(5) If, by the end of the 90-day period beginning on the date of 
the order of the court pursuant to paragraph (4) (or such longer period 
as the court may provide), the agency fails, as appropriate--
            ``(A) to prepare the analysis required by section 604; or
            ``(B) to take corrective action consistent with the 
        requirements of section 604,
the court may stay the rule or grant such other relief as it deems 
appropriate.
    ``(6) In making any determination or granting any relief authorized 
by this subsection, the court shall take due account of the rule of 
prejudicial error.
    ``(b) In an action for the judicial review of a rule, any 
regulatory flexibility analysis for such rule (including an analysis 
prepared or corrected pursuant to subsection (a)(4)) shall constitute 
part of the whole record of agency action in connection with such 
review.
    ``(c) Nothing in this section bars judicial review of any other 
impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply only to final agency rules issued after the date of enactment of 
this Act.

SEC. 3. RULES COMMENTED ON BY SBA CHIEF COUNSEL FOR ADVOCACY.

    (a) In General.--Section 612 of title 5, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Action by the SBA Chief Counsel for Advocacy.--
            ``(1) Transmittal of proposed rules and initial regulatory 
        flexibility analysis to sba chief counsel for advocacy.--On or 
        before the 30th day preceding the date of publication by an 
        agency of general notice of proposed rulemaking for a rule, the 
        agency shall transmit to the Chief Counsel for Advocacy of the 
        Small Business Administration--
                    ``(A) a copy of the proposed rule; and
                    ``(B)(i) a copy of the initial regulatory 
                flexibility analysis for the rule if required under 
                section 603; or
                    ``(ii) a determination by the agency that an 
                initial regulatory flexibility analysis is not required 
                for the proposed rule under section 603 and an 
                explanation for the determination.
            ``(2) Statement of effect.--On or before the 15th day 
        following receipt of a proposed rule and initial regulatory 
        flexibility analysis from an agency under paragraph (1), the 
        Chief Counsel for Advocacy may transmit to the agency a written 
        statement of the effect of the proposed rule on small entities.
            ``(3) Response.--If the Chief Counsel for Advocacy 
        transmits to an agency a statement of effect on a proposed rule 
        in accordance with paragraph (2), the agency shall publish the 
        statement, together with the response of the agency to the 
        statement, in the Federal Register at the time of publication 
        of general notice of proposed rulemaking for the rule.
            ``(4) Special rule.--Any proposed rules issued by an 
        appropriate Federal banking agency (as that term is defined in 
        section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(q)), the National Credit Union Administration, or the 
        Office of Federal Housing Enterprise Oversight, in connection 
        with the implementation of monetary policy or to ensure the 
        safety and soundness of federally insured depository 
        institutions, any affiliate of such an institution, credit 
        unions, or government sponsored housing enterprises or to 
        protect the Federal deposit insurance funds shall not be 
        subject to the requirements of this subsection.''.
    (b) Conforming Amendment.--Section 603(a) of title 5, United States 
Code, is amended by inserting ``in accordance with section 612(d)'' 
before the period at the end of the last sentence.

SEC. 4. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR ADVOCACY.

    It is the sense of Congress that the Chief Counsel for Advocacy of 
the Small Business Administration should be permitted to appear as 
amicus curiae in any action or case brought in a court of the United 
States for the purpose of reviewing a rule.
Regulatory Flexibility Amendments Act of 1996 - Permits an affected small business, within one year after the effective date of a final rule, to petition for judicial review of an agency's:  (1) certification that such rule would not have a significant economic impact on a substantial number of small businesses; or (2) final regulatory flexibility analysis for such rule.  Authorizes the court to:  (1) order an agency to prepare a final regulatory analysis for a rule for which such a certification was arbitrary, capricious, or an abuse of discretion; (2) order an agency to take appropriate corrective action for a final regulatory flexibility analysis that was prepared without observance of the proper procedure; and (3) stay the rule or grant other appropriate relief if the agency fails to take such action within 90 days. 
Requires an agency, on or before the 30th day preceding the date of publication of a general notice of proposed rulemaking, to transmit to the Chief Counsel for Advocacy of the Small Business Administration:  (1) a copy of the proposed rule; and (2) a copy of the initial regulatory flexibility analysis for the rule or a determination that such an analysis is not required.  Directs the Chief Counsel, within 15 days thereafter, to transmit to such agency a written statement of the effect of the proposed rule on small entities. Requires publication of such response in the Federal Register. Provides a special rule with respect to proposed rules of certain Federal banking agencies. 
Expresses the sense of the Congress that the Chief Counsel should be permitted to appear as amicus curiae in any action brought for the purpose of reviewing a rule.
Regulatory Flexibility Amendments Act of 1996