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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2345 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2345

 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 5, 2003

     Mr. Manzullo (for himself, Mr. Ose, Mr. Pence, and Mr. Terry) 
 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 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Clarification and expansion of rules covered by the Regulatory 
                            Flexibility Act.
Sec. 4. Requirements providing for more detailed analyses.
Sec. 5. Repeal of procedure for waiver and delay.
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. Establishment and approval of small business concern size 
                            standards by Chief Counsel for Advocacy.
Sec. 10. Additional powers of the Chief Counsel for Advocacy.
Sec. 11. Clerical amendments.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) A vibrant and growing small business sector is critical 
        to creating jobs in a dynamic economy.
            (2) Regulations designed for application to large-scale 
        entities have been applied uniformly to small businesses and 
        other small entities even though the problems sought to be 
        solved by such regulations are not usually caused by these 
        small businesses and other small entities.
            (3) Uniform Federal regulatory and reporting requirements 
        in many instances have imposed on small entities unnecessary 
        and disproportionately burdensome demands, including legal, 
        accounting, and consulting costs.
            (4) Since 1980 Federal agencies have been required to 
        recognize and take account of the differences in the scale and 
        resources of regulated entities but have failed to do so.
            (5) Alternative regulatory approaches that do not conflict 
        with the stated objectives of the statutes the regulations seek 
        to implement may be available and may minimize the significant 
        economic impact of regulations on small businesses and other 
        small entities.
            (6) Federal agencies have failed to analyze and uncover 
        less costly alternative regulatory approaches, despite the fact 
        that the chapter 6 of title 5, United States Code (commonly 
        known as the Regulatory Flexibility Act) requires them to do 
        so.
            (7) Federal agencies continue to interpret chapter 6 of 
        title 5, United States Code, in a manner that permits them to 
        avoid their analytical responsibilities.
            (8) The existing oversight of the compliance of Federal 
        agencies with the analytical requirements to assess regulatory 
        impacts on small businesses and other small entities and obtain 
        input from the Chief Counsel for Advocacy has not sufficiently 
        modified the Federal agency regulatory culture.
            (9) Significant changes are needed in the methods by which 
        Federal agencies develop and analyze regulations, receive input 
        from affected entities, and develop regulatory alternatives 
        that will lessen the burden or maximize the benefits of final 
        rules to small businesses and other small entities.
            (10) It is the intention of the Congress to amend chapter 6 
        of title 5, United States Code, to ensure that all impacts, 
        including foreseeable indirect effects, of proposed and final 
        rules are considered by agencies during the rulemaking process 
        and that the agencies assess a full range of alternatives that 
        will limit adverse economic consequences or enhance economic 
        benefits.
            (11) Federal agencies should be capable of assessing the 
        impact of proposed and final rules without delaying the 
        regulatory process or impinging on the ability of Federal 
        agencies to fulfill their statutory mandates.

SEC. 3. 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--
                    ``(A) such term includes any rule of general 
                applicability governing grants to State and local 
                governments for which the agency provides an 
                opportunity for notice and comment; and
                    ``(B) 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 significant adverse economic impact or maximize any 
        significant beneficial economic impact on small entities.''.
            (2) Final regulatory flexibility analysis.--Paragraph (5) 
        of section 604(a) of title 5, United States Code, is amended by 
        striking ``minimize the significant economic impact'' and 
        inserting ``minimize the significant adverse economic impact or 
        maximize the significant beneficial 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 ``publishes a revision or 
                amendment to a land management plan, or issues a 
                proposed rule made on the record after opportunity for 
                an agency hearing,'' 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 ``, adopts a revision or amendment 
                to a land management plan, or issues a final rule made 
                on the record after opportunity for an agency 
                hearing,'' after ``section 603(a),''.
            (3) Land management plan defined.--Section 601 of title 5, 
        United States Code (as amended by subsection (b)), is further 
        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 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 Which Impose Recordkeeping Requirements, Etc.--
            (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, United States Code.''.
            (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, United States Code.''.
    (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) Professional and trade associations.--In the 
                case of any professional or trade association, 
                subparagraph (A) shall be applied without regard to the 
                net worth or number of employees of any member of such 
                association.
                    ``(D) Agency definitions.--Subparagraphs (A), (B), 
                and (C) shall not apply to the extent that an agency 
                establishes, after opportunity for public comment, one 
                or more definitions for such term which are appropriate 
                to the activities of the agency and publishes such 
                definition(s) 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; and
            ``(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.''.
    (b) Final Regulatory Flexibility Analysis.--
            (1) In general.--
                    (A) Paragraph (1) of section 604(a) of title 5, 
                United States Code, is amended by striking 
                ``succinct''.
                    (B) Paragraph (2) of such section is amended by 
                striking ``summary'' each place it appears and 
                inserting ``statement''.
                    (C) Paragraph (3) of such section is amended by 
                striking ``an explanation'' and inserting ``a detailed 
                explanation''.
                    (D) Paragraphs (3), (4), and (5) of such section 
                are each amended by inserting ``detailed'' before 
                ``description''.
            (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) Inclusion of response to comments filed by Chief 
        Counsel for Advocacy.--Subsection (a) of section 604 of title 
        5, United States Code, is amended by redesignating paragraphs 
        (3), (4), and (5) as paragraphs (4), (5), and (6), 
        respectively, and inserting after paragraph (2) the following 
        new paragraph:
            ``(3) the agency's response to any comments filed by the 
        Chief Counsel for Advocacy in response to the proposed rule, 
        and a detailed statement of any changes made to the proposed 
        rule in the final rule as a result of such comments;''.
            (4) Publication of analysis on website, etc.--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 such section is amended--
            (1) by inserting ``detailed'' before ``statement''; 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 PROCEDURE FOR WAIVER AND DELAY.

    (a) In General.--Title 5, United States Code, is amended by 
striking section 608.
    (b) Conforming Amendments.--
            (1) Paragraphs (1) and (2) of section 611(a) of title 5, 
        United States Code, are each amended by striking ``608(b),''.
            (2) Paragraph (3) of such section 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 and inserting the following new 
subsections:
    ``(b)(1) Prior to publication of any proposed rule described in 
subsection (e), the agency making such rule shall notify the Chief 
Counsel for Advocacy 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 of a proposed rule relating to 
the internal revenue laws of the United States or implementing the 
Communications Act of 1934.
    ``(c) Not later than 15 days after the receipt of such information, 
the Chief Counsel for Advocacy 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 or section 605(b) of 
        this title; and
            ``(2) convene a review panel consisting of an employee from 
        the Office of Advocacy, an employee from the agency making the 
        rule, and an employee from the Office of Information and 
        Regulatory Affairs of the Office of Management and Budget to 
        review the 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 shall, 
after consultation with the members of such panel, submit a report to 
the agency and the Office of Information and Regulatory Affairs of the 
Office of Management and Budget.
    ``(2) Such report shall include an assessment of the impact of the 
proposed rule on small entities and a discussion of any alternatives 
that will minimize adverse economic impacts or maximize beneficial 
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 Administrator of the 
Environmental Protection Agency, the Assistant Secretary of the 
Occupational Safety and Health Administration, the Commissioner of the 
Internal Revenue Service, the Administrator of the Centers for Medicare 
& Medicaid Services, or the Federal Communications Commission 
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 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 2002, 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 has 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 
significant adverse economic impacts or maximize any significant 
beneficial 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 2002 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 2002 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 and the Congress.
    ``(c) Each agency shall annually submit a report regarding the 
results of its review pursuant to such plan to the Congress and, in the 
case of agencies other than independent regulatory agencies (as defined 
in section 3502(5) of title 44, United States Code) 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 
(d) and a detailed explanation of the reasons for such determination.
    ``(d) In reviewing rules under such plan, 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.
            ``(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 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 (c).
            ``(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.
    ``(e) 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, 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 (as 
amended by section 5(b)(2)) 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, 604, 
605(b), 609, or 610''.

SEC. 9. 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 ``and Chief Counsel for Advocacy'' 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:
    ``(4) 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. 10. ADDITIONAL POWERS OF THE CHIEF COUNSEL FOR ADVOCACY.

    (a) In General.--Chapter 6 of title 5, United States Code, is 
amended by adding at the end the following new section:
``Sec.  613. 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 2002, the Chief Counsel 
for Advocacy 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 and 
section 614) 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 
may intervene in any adjudication before any Federal agency (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) Jurisdiction of Court of Appeals Over Rules Implementing the 
Regulatory Flexibility Act.--
            (1) In general.--Section 2342 of title 28, United States 
        Code, is amended--
                    (A) in paragraph (6), by striking ``and'' at the 
                end;
                    (B) in paragraph (7), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(8) all final rules under section 613(a) of title 5, 
        United States Code.''.
            (2) Conforming amendments.--Paragraph (3) of section 2341 
        of title 28, United States Code, is amended--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) 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 
                613(a) of title 5, United States Code.''.
    (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. 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.'';
            (3) by striking the item relating to section 608; and
            (4) by inserting at the end the following new item:

``613. Additional powers of Chief Counsel for Advocacy.''.
                                 <all>
```