I 

113TH CONGRESS 

1ST SESSION H. R. 2542 

To amend chapter 6 of title 5, United States Code (commonly known as 

the Regulatory Flexibility Act), to ensure complete analysis of potential 

impacts on small entities of rules, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 27, 2013 

Mr. BACHUS (for himself, Mr. GRAVES of Missouri, Mr. BARROW of Georgia, 

Mr. MATHESON, Mr. SMITH of Texas, Mr. COBLE, and Mr. ROKITA) introduced the following bill; which was referred to the Committee on the 

Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend chapter 6 of title 5, United States Code (commonly known as the Regulatory Flexibility Act), to ensure complete analysis of potential impacts on small entities of rules, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Regulatory Flexibility Improvements Act of 2013’’. 


tjames on DSK6SPTVN1PROD with BILLS
2 

•HR 2542 IH

1 (b) TABLE OF CONTENTS.—The table of contents of 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Clarification and expansion of rules covered by the Regulatory Flexibility Act. 

Sec. 3. Expansion of report of regulatory agenda. 

Sec. 4. Requirements providing for more detailed analyses. 

Sec. 5. Repeal of waiver and delay authority; additional powers of the Chief 

Counsel for Advocacy. 

Sec. 6. Procedures for gathering comments. 

Sec. 7. Periodic review of rules. 

Sec. 8. Judicial review of compliance with the requirements of the Regulatory 

Flexibility Act available after publication of the final rule. 

Sec. 9. Jurisdiction of court of appeals over rules implementing the Regulatory 

Flexibility Act. 

Sec. 10. Establishment and approval of small business concern size standards 

by chief counsel for advocacy. 

Sec. 11. Clerical amendments. 

Sec. 12. Agency preparation of guides. 

3 SEC. 2. CLARIFICATION AND EXPANSION OF RULES COV4 ERED BY THE REGULATORY FLEXIBILITY 

5 ACT. 

6 (a) IN GENERAL.—Paragraph (2) of section 601 of 

7 title 5, United States Code, is amended to read as follows: 

8 ‘‘(2) RULE.—The term ‘rule’ has the meaning 

9 given such term in section 551(4) of this title, ex10 cept that such term does not include a rule of par11 ticular (and not general) applicability relating to 

12 rates, wages, corporate or financial structures or re13 organizations thereof, prices, facilities, appliances, 

14 services, or allowances therefor or to valuations, 

15 costs or accounting, or practices relating to such 

16 rates, wages, structures, prices, appliances, services, 

17 or allowances.’’. 


tjames on DSK6SPTVN1PROD with BILLS
3 

•HR 2542 IH

1 (b) INCLUSION OF RULES WITH INDIRECT EF2 FECTS.—Section 601 of title 5, United States Code, is 

3 amended by adding at the end the following new para4 graph: 

5 ‘‘(9) ECONOMIC IMPACT.—The term ‘economic 

6 impact’ means, with respect to a proposed or final 

7 rule— 

8 ‘‘(A) any direct economic effect on small 

9 entities of such rule; and 

10 ‘‘(B) any indirect economic effect on small 

11 entities which is reasonably foreseeable and re12 sults from such rule (without regard to whether 

13 small entities will be directly regulated by the 

14 rule).’’. 

15 (c) INCLUSION OF RULES WITH BENEFICIAL EF16 FECTS.— 

17 (1) INITIAL REGULATORY FLEXIBILITY ANAL18 YSIS.—Subsection (c) of section 603 of title 5, 

19 United States Code, is amended by striking the first 

20 sentence and inserting ‘‘Each initial regulatory flexi21 bility analysis shall also contain a detailed descrip22 tion of alternatives to the proposed rule which mini23 mize any adverse significant economic impact or 

24 maximize any beneficial significant economic impact 

25 on small entities.’’. 


tjames on DSK6SPTVN1PROD with BILLS
4 

•HR 2542 IH

1 (2) FINAL REGULATORY FLEXIBILITY ANAL2 YSIS.—The first paragraph (6) of section 604(a) of 

3 title 5, United States Code, is amended by striking 

4 ‘‘minimize the significant economic impact’’ and in5 serting ‘‘minimize the adverse significant economic 

6 impact or maximize the beneficial significant eco7 nomic impact’’. 

8 (d) INCLUSION OF RULES AFFECTING TRIBAL ORGA9 NIZATIONS.—Paragraph (5) of section 601 of title 5, 

10 United States Code, is amended by inserting ‘‘and tribal 

11 organizations (as defined in section 4(l) of the Indian Self12 Determination and Education Assistance Act (25 U.S.C. 

13 450b(l))),’’ after ‘‘special districts,’’. 

14 (e) INCLUSION OF LAND MANAGEMENT PLANS AND

15 FORMAL RULEMAKING.— 

16 (1) INITIAL REGULATORY FLEXIBILITY ANAL17 YSIS.—Subsection (a) of section 603 of title 5, 

18 United States Code, is amended in the first sen19 tence— 

20 (A) by striking ‘‘or’’ after ‘‘proposed 

21 rule,’’; and 

22 (B) by inserting ‘‘or publishes a revision or 

23 amendment to a land management plan,’’ after 

24 ‘‘United States,’’. 


tjames on DSK6SPTVN1PROD with BILLS
5 

•HR 2542 IH

1 (2) FINAL REGULATORY FLEXIBILITY ANAL2 YSIS.—Subsection (a) of section 604 of title 5, 

3 United States Code, is amended in the first sen4 tence— 

5 (A) by striking ‘‘or’’ after ‘‘proposed rule6 making,’’; and 

7 (B) by inserting ‘‘or adopts a revision or 

8 amendment to a land management plan,’’ after 

9 ‘‘section 603(a),’’. 

10 (3) LAND MANAGEMENT PLAN DEFINED.—Sec11 tion 601 of title 5, United States Code, is amended 

12 by adding at the end the following new paragraph: 

13 ‘‘(10) LAND MANAGEMENT PLAN.— 

14 ‘‘(A) IN GENERAL.—The term ‘land man15 agement plan’ means— 

16 ‘‘(i) any plan developed by the Sec17 retary of Agriculture under section 6 of 

18 the Forest and Rangeland Renewable Re19 sources Planning Act of 1974 (16 U.S.C. 

20 1604); and 

21 ‘‘(ii) any plan developed by the Sec22 retary of the Interior under section 202 of 

23 the Federal Land Policy and Management 

24 Act of 1976 (43 U.S.C. 1712). 


tjames on DSK6SPTVN1PROD with BILLS
6 

•HR 2542 IH

1 ‘‘(B) REVISION.—The term ‘revision’ 

2 means any change to a land management plan 

3 which— 

4 ‘‘(i) in the case of a plan described in 

5 subparagraph (A)(i), is made under section 

6 6(f)(5) of the Forest and Rangeland Re7 newable Resources Planning Act of 1974 

8 (16 U.S.C. 1604(f)(5)); or 

9 ‘‘(ii) in the case of a plan described in 

10 subparagraph (A)(ii), is made under sec11 tion 1610.5–6 of title 43, Code of Federal 

12 Regulations (or any successor regulation). 

13 ‘‘(C) AMENDMENT.—The term ‘amend14 ment’ means any change to a land management 

15 plan which— 

16 ‘‘(i) in the case of a plan described in 

17 subparagraph (A)(i), is made under section 

18 6(f)(4) of the Forest and Rangeland Re19 newable Resources Planning Act of 1974 

20 (16 U.S.C. 1604(f)(4)) and with respect to 

21 which the Secretary of Agriculture pre22 pares a statement described in section 

23 102(2)(C) of the National Environmental 

24 Policy Act of 1969 (42 U.S.C. 

25 4332(2)(C)); or 


tjames on DSK6SPTVN1PROD with BILLS
7 

•HR 2542 IH

1 ‘‘(ii) in the case of a plan described in 

2 subparagraph (A)(ii), is made under sec3 tion 1610.5–5 of title 43, Code of Federal 

4 Regulations (or any successor regulation) 

5 and with respect to which the Secretary of 

6 the Interior prepares a statement described 

7 in section 102(2)(C) of the National Envi8 ronmental Policy Act of 1969 (42 U.S.C. 

9 4332(2)(C)).’’. 

10 (f) INCLUSION OF CERTAIN INTERPRETIVE RULES

11 INVOLVING THE INTERNAL REVENUE LAWS.— 

12 (1) IN GENERAL.—Subsection (a) of section 

13 603 of title 5, United States Code, is amended by 

14 striking the period at the end and inserting ‘‘or a 

15 recordkeeping requirement, and without regard to 

16 whether such requirement is imposed by statute or 

17 regulation.’’. 

18 (2) COLLECTION OF INFORMATION.—Paragraph 

19 (7) of section 601 of title 5, United States Code, is 

20 amended to read as follows: 

21 ‘‘(7) COLLECTION OF INFORMATION.—The term 

22 ‘collection of information’ has the meaning given 

23 such term in section 3502(3) of title 44.’’. 


tjames on DSK6SPTVN1PROD with BILLS
8 

•HR 2542 IH

1 (3) RECORDKEEPING REQUIREMENT.—Para2 graph (8) of section 601 of title 5, United States 

3 Code, is amended to read as follows: 

4 ‘‘(8) RECORDKEEPING REQUIREMENT.—The 

5 term ‘recordkeeping requirement’ has the meaning 

6 given such term in section 3502(13) of title 44.’’. 

7 (g) DEFINITION OF SMALL ORGANIZATION.—Para8 graph (4) of section 601 of title 5, United States Code, 

9 is amended to read as follows: 

10 ‘‘(4) SMALL ORGANIZATION.— 

11 ‘‘(A) IN GENERAL.—The term ‘small orga12 nization’ means any not-for-profit enterprise 

13 which, as of the issuance of the notice of pro14 posed rulemaking— 

15 ‘‘(i) in the case of an enterprise which 

16 is described by a classification code of the 

17 North American Industrial Classification 

18 System, does not exceed the size standard 

19 established by the Administrator of the 

20 Small Business Administration pursuant to 

21 section 3 of the Small Business Act (15 

22 U.S.C. 632) for small business concerns 

23 described by such classification code; and 

24 ‘‘(ii) in the case of any other enter25 prise, has a net worth that does not exceed 


tjames on DSK6SPTVN1PROD with BILLS
9 

•HR 2542 IH

1 $7,000,000 and has not more than 500 

2 employees. 

3 ‘‘(B) LOCAL LABOR ORGANIZATIONS.—In 

4 the case of any local labor organization, sub5 paragraph (A) shall be applied without regard 

6 to any national or international organization of 

7 which such local labor organization is a part. 

8 ‘‘(C) AGENCY DEFINITIONS.—Subpara9 graphs (A) and (B) shall not apply to the ex10 tent that an agency, after consultation with the 

11 Office of Advocacy of the Small Business Ad12 ministration and after opportunity for public 

13 comment, establishes one or more definitions 

14 for such term which are appropriate to the ac15 tivities of the agency and publishes such defini16 tions in the Federal Register.’’. 

17 SEC. 3. EXPANSION OF REPORT OF REGULATORY AGENDA. 

18 Section 602 of title 5, United States Code, is amend19 ed— 

20 (1) in subsection (a)— 

21 (A) in paragraph (2), by striking ‘‘, and’’ 

22 at the end and inserting ‘‘;’’; 

23 (B) by redesignating paragraph (3) as 

24 paragraph (4); and 


tjames on DSK6SPTVN1PROD with BILLS
10 

•HR 2542 IH

1 (C) by inserting after paragraph (2) the 

2 following: 

3 ‘‘(3) a brief description of the sector of the 

4 North American Industrial Classification System 

5 that is primarily affected by any rule which the 

6 agency expects to propose or promulgate which is 

7 likely to have a significant economic impact on a 

8 substantial number of small entities; and’’; and 

9 (2) in subsection (c), to read as follows: 

10 ‘‘(c) Each agency shall prominently display a plain 

11 language summary of the information contained in the 

12 regulatory flexibility agenda published under subsection 

13 (a) on its website within 3 days of its publication in the 

14 Federal Register. The Office of Advocacy of the Small 

15 Business Administration shall compile and prominently 

16 display a plain language summary of the regulatory agen17 das referenced in subsection (a) for each agency on its 

18 website within 3 days of their publication in the Federal 

19 Register.’’. 

20 SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED 

21 ANALYSES. 

22 (a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 

23 Subsection (b) of section 603 of title 5, United States 

24 Code, is amended to read as follows: 


tjames on DSK6SPTVN1PROD with BILLS
11 

•HR 2542 IH

1 ‘‘(b) Each initial regulatory flexibility analysis re2 quired under this section shall contain a detailed state3 ment— 

4 ‘‘(1) describing the reasons why action by the 

5 agency is being considered; 

6 ‘‘(2) describing the objectives of, and legal basis 

7 for, the proposed rule; 

8 ‘‘(3) estimating the number and type of small 

9 entities to which the proposed rule will apply; 

10 ‘‘(4) describing the projected reporting, record11 keeping, and other compliance requirements of the 

12 proposed rule, including an estimate of the classes of 

13 small entities which will be subject to the require14 ment and the type of professional skills necessary 

15 for preparation of the report and record; 

16 ‘‘(5) describing all relevant Federal rules which 

17 may duplicate, overlap, or conflict with the proposed 

18 rule, or the reasons why such a description could not 

19 be provided; 

20 ‘‘(6) estimating the additional cumulative eco21 nomic impact of the proposed rule on small entities 

22 beyond that already imposed on the class of small 

23 entities by the agency or why such an estimate is 

24 not available; and 


tjames on DSK6SPTVN1PROD with BILLS
12 

•HR 2542 IH

1 ‘‘(7) describing any disproportionate economic 

2 impact on small entities or a specific class of small 

3 entities.’’. 

4 (b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 

5 (1) IN GENERAL.—Section 604(a) of title 5, 

6 United States Code, is amended— 

7 (A) in paragraph (4), by striking ‘‘an ex8 planation’’ and inserting ‘‘a detailed expla9 nation’’; 

10 (B) in each of paragraphs (4), (5), and the 

11 first paragraph (6), by inserting ‘‘detailed’’ be12 fore ‘‘description’’; and 

13 (C) by adding at the end the following: 

14 ‘‘(7) describing any disproportionate economic 

15 impact on small entities or a specific class of small 

16 entities.’’. 

17 (2) INCLUSION OF RESPONSE TO COMMENTS ON

18 CERTIFICATION OF PROPOSED RULE.—Paragraph 

19 (2) of section 604(a) of title 5, United States Code, 

20 is amended by inserting ‘‘(or certification of the pro21 posed rule under section 605(b))’’ after ‘‘initial reg22 ulatory flexibility analysis’’. 

23 (3) PUBLICATION OF ANALYSIS ON WEBSITE.— 

24 Subsection (b) of section 604 of title 5, United 

25 States Code, is amended to read as follows: 


tjames on DSK6SPTVN1PROD with BILLS
13 

•HR 2542 IH

1 ‘‘(b) The agency shall make copies of the final regu2 latory flexibility analysis available to the public, including 

3 placement of the entire analysis on the agency’s website, 

4 and shall publish in the Federal Register the final regu5 latory flexibility analysis, or a summary thereof which in6 cludes the telephone number, mailing address, and link to 

7 the website where the complete analysis may be ob8 tained.’’. 

9 (c) CROSS-REFERENCES TO OTHER ANALYSES.— 

10 Subsection (a) of section 605 of title 5, United States 

11 Code, is amended to read as follows: 

12 ‘‘(a) A Federal agency shall be treated as satisfying 

13 any requirement regarding the content of an agenda or 

14 regulatory flexibility analysis under section 602, 603, or 

15 604, if such agency provides in such agenda or analysis 

16 a cross-reference to the specific portion of another agenda 

17 or analysis which is required by any other law and which 

18 satisfies such requirement.’’. 

19 (d) CERTIFICATIONS.—Subsection (b) of section 605 

20 of title 5, United States Code, is amended— 

21 (1) by inserting ‘‘detailed’’ before ‘‘statement’’ 

22 the first place it appears; and 

23 (2) by inserting ‘‘and legal’’ after ‘‘factual’’. 


tjames on DSK6SPTVN1PROD with BILLS
14 

•HR 2542 IH

1 (e) QUANTIFICATION REQUIREMENTS.—Section 607 

2 of title 5, United States Code, is amended to read as fol3 lows: 

4 ‘‘§ 607. Quantification requirements 

5 ‘‘In complying with sections 603 and 604, an agency 

6 shall provide— 

7 ‘‘(1) a quantifiable or numerical description of 

8 the effects of the proposed or final rule and alter9 natives to the proposed or final rule; or 

10 ‘‘(2) a more general descriptive statement and 

11 a detailed statement explaining why quantification is 

12 not practicable or reliable.’’. 

13 SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDI14 TIONAL POWERS OF THE CHIEF COUNSEL 

15 FOR ADVOCACY. 

16 (a) IN GENERAL.—Section 608 is amended to read 

17 as follows: 

18 ‘‘§ 608. Additional powers of Chief Counsel for Advo19 cacy 

20 ‘‘(a)(1) Not later than 270 days after the date of the 

21 enactment of the Regulatory Flexibility Improvements Act 

22 of 2013, the Chief Counsel for Advocacy of the Small 

23 Business Administration shall, after opportunity for notice 

24 and comment under section 553, issue rules governing 

25 agency compliance with this chapter. The Chief Counsel 


tjames on DSK6SPTVN1PROD with BILLS
15 

•HR 2542 IH

1 may modify or amend such rules after notice and comment 

2 under section 553. This chapter (other than this sub3 section) shall not apply with respect to the issuance, modi4 fication, and amendment of rules under this paragraph. 

5 ‘‘(2) An agency shall not issue rules which supple6 ment the rules issued under subsection (a) unless such 

7 agency has first consulted with the Chief Counsel for Ad8 vocacy to ensure that such supplemental rules comply with 

9 this chapter and the rules issued under paragraph (1). 

10 ‘‘(b) Notwithstanding any other law, the Chief Coun11 sel for Advocacy of the Small Business Administration 

12 may intervene in any agency adjudication (unless such 

13 agency is authorized to impose a fine or penalty under 

14 such adjudication), and may inform the agency of the im15 pact that any decision on the record may have on small 

16 entities. The Chief Counsel shall not initiate an appeal 

17 with respect to any adjudication in which the Chief Coun18 sel intervenes under this subsection. 

19 ‘‘(c) The Chief Counsel for Advocacy may file com20 ments in response to any agency notice requesting com21 ment, regardless of whether the agency is required to file 

22 a general notice of proposed rulemaking under section 

23 553.’’. 

24 (b) CONFORMING AMENDMENTS.— 


tjames on DSK6SPTVN1PROD with BILLS
16 

•HR 2542 IH

1 (1) Section 611(a)(1) of such title is amended 

2 by striking ‘‘608(b),’’. 

3 (2) Section 611(a)(2) of such title is amended 

4 by striking ‘‘608(b),’’. 

5 (3) Section 611(a)(3) of such title is amend6 ed— 

7 (A) by striking subparagraph (B); and 

8 (B) by striking ‘‘(3)(A) A small entity’’ 

9 and inserting the following: 

10 ‘‘(3) A small entity’’. 

11 SEC. 6. PROCEDURES FOR GATHERING COMMENTS. 

12 Section 609 of title 5, United States Code, is amend13 ed by striking subsection (b) and all that follows through 

14 the end of the section and inserting the following: 

15 ‘‘(b)(1) Prior to publication of any proposed rule de16 scribed in subsection (e), an agency making such rule shall 

17 notify the Chief Counsel for Advocacy of the Small Busi18 ness Administration and provide the Chief Counsel with— 

19 ‘‘(A) all materials prepared or utilized by the 

20 agency in making the proposed rule, including the 

21 draft of the proposed rule; and 

22 ‘‘(B) information on the potential adverse and 

23 beneficial economic impacts of the proposed rule on 

24 small entities and the type of small entities that 

25 might be affected. 


tjames on DSK6SPTVN1PROD with BILLS
17 

•HR 2542 IH

1 ‘‘(2) An agency shall not be required under para2 graph (1) to provide the exact language of any draft if 

3 the rule— 

4 ‘‘(A) relates to the internal revenue laws of the 

5 United States; or 

6 ‘‘(B) is proposed by an independent regulatory 

7 agency (as defined in section 3502(5) of title 44). 

8 ‘‘(c) Not later than 15 days after the receipt of such 

9 materials and information under subsection (b), the Chief 

10 Counsel for Advocacy of the Small Business Administra11 tion shall— 

12 ‘‘(1) identify small entities or representatives of 

13 small entities or a combination of both for the pur14 pose of obtaining advice, input, and recommenda15 tions from those persons about the potential eco16 nomic impacts of the proposed rule and the compli17 ance of the agency with section 603; and 

18 ‘‘(2) convene a review panel consisting of an 

19 employee from the Office of Advocacy of the Small 

20 Business Administration, an employee from the 

21 agency making the rule, and in the case of an agen22 cy other than an independent regulatory agency (as 

23 defined in section 3502(5) of title 44), an employee 

24 from the Office of Information and Regulatory Af25 fairs of the Office of Management and Budget to reVerDate Mar 15 2010 01:47 Jul 02, 2013 Jkt 029200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H2542.IH H2542

tjames on DSK6SPTVN1PROD with BILLS
18 

•HR 2542 IH

1 view the materials and information provided to the 

2 Chief Counsel under subsection (b). 

3 ‘‘(d)(1) Not later than 60 days after the review panel 

4 described in subsection (c)(2) is convened, the Chief Coun5 sel for Advocacy of the Small Business Administration 

6 shall, after consultation with the members of such panel, 

7 submit a report to the agency and, in the case of an agen8 cy other than an independent regulatory agency (as de9 fined in section 3502(5) of title 44), the Office of Informa10 tion and Regulatory Affairs of the Office of Management 

11 and Budget. 

12 ‘‘(2) Such report shall include an assessment of the 

13 economic impact of the proposed rule on small entities, 

14 including an assessment of the proposed rule’s impact on 

15 the cost that small entities pay for energy, and a discus16 sion of any alternatives that will minimize adverse signifi17 cant economic impacts or maximize beneficial significant 

18 economic impacts on small entities. 

19 ‘‘(3) Such report shall become part of the rulemaking 

20 record. In the publication of the proposed rule, the agency 

21 shall explain what actions, if any, the agency took in re22 sponse to such report. 

23 ‘‘(e) A proposed rule is described by this subsection 

24 if the Administrator of the Office of Information and Reg25 ulatory Affairs of the Office of Management and Budget, 


tjames on DSK6SPTVN1PROD with BILLS
19 

•HR 2542 IH

1 the head of the agency (or the delegatee of the head of 

2 the agency), or an independent regulatory agency deter3 mines that the proposed rule is likely to result in— 

4 ‘‘(1) an annual effect on the economy of 

5 $100,000,000 or more; 

6 ‘‘(2) a major increase in costs or prices for con7 sumers, individual industries, Federal, State, or local 

8 governments, tribal organizations, or geographic re9 gions; 

10 ‘‘(3) significant adverse effects on competition, 

11 employment, investment, productivity, innovation, or 

12 on the ability of United States-based enterprises to 

13 compete with foreign-based enterprises in domestic 

14 and export markets; or 

15 ‘‘(4) a significant economic impact on a sub16 stantial number of small entities. 

17 ‘‘(f) Upon application by the agency, the Chief Coun18 sel for Advocacy of the Small Business Administration 

19 may waive the requirements of subsections (b) through (e) 

20 if the Chief Counsel determines that compliance with the 

21 requirements of such subsections are impracticable, un22 necessary, or contrary to the public interest.’’. 

23 SEC. 7. PERIODIC REVIEW OF RULES. 

24 Section 610 of title 5, United States Code, is amend25 ed to read as follows: 


tjames on DSK6SPTVN1PROD with BILLS
20 

•HR 2542 IH

1 ‘‘§ 610. Periodic review of rules 

2 ‘‘(a) Not later than 180 days after the enactment of 

3 the Regulatory Flexibility Improvements Act of 2013, 

4 each agency shall publish in the Federal Register and 

5 place on its website a plan for the periodic review of rules 

6 issued by the agency which the head of the agency deter7 mines have a significant economic impact on a substantial 

8 number of small entities. Such determination shall be 

9 made without regard to whether the agency performed an 

10 analysis under section 604. The purpose of the review 

11 shall be to determine whether such rules should be contin12 ued without change, or should be amended or rescinded, 

13 consistent with the stated objectives of applicable statutes, 

14 to minimize any adverse significant economic impacts or 

15 maximize any beneficial significant economic impacts on 

16 a substantial number of small entities. Such plan may be 

17 amended by the agency at any time by publishing the revi18 sion in the Federal Register and subsequently placing the 

19 amended plan on the agency’s website. 

20 ‘‘(b) The plan shall provide for the review of all such 

21 agency rules existing on the date of the enactment of the 

22 Regulatory Flexibility Improvements Act of 2013 within 

23 10 years of the date of publication of the plan in the Fed24 eral Register and for review of rules adopted after the date 

25 of enactment of the Regulatory Flexibility Improvements 

26 Act of 2013 within 10 years after the publication of the 


tjames on DSK6SPTVN1PROD with BILLS
21 

•HR 2542 IH

1 final rule in the Federal Register. If the head of the agen2 cy determines that completion of the review of existing 

3 rules is not feasible by the established date, the head of 

4 the agency shall so certify in a statement published in the 

5 Federal Register and may extend the review for not longer 

6 than 2 years after publication of notice of extension in 

7 the Federal Register. Such certification and notice shall 

8 be sent to the Chief Counsel for Advocacy of the Small 

9 Business Administration and the Congress. 

10 ‘‘(c) The plan shall include a section that details how 

11 an agency will conduct outreach to and meaningfully in12 clude small businesses for the purposes of carrying out 

13 this section. The agency shall include in this section a plan 

14 for how the agency will contact small businesses and gath15 er their input on existing agency rules. 

16 ‘‘(d) Each agency shall annually submit a report re17 garding the results of its review pursuant to such plan 

18 to the Congress, the Chief Counsel for Advocacy of the 

19 Small Business Administration, and, in the case of agen20 cies other than independent regulatory agencies (as de21 fined in section 3502(5) of title 44) to the Administrator 

22 of the Office of Information and Regulatory Affairs of the 

23 Office of Management and Budget. Such report shall in24 clude the identification of any rule with respect to which 

25 the head of the agency made a determination described 


tjames on DSK6SPTVN1PROD with BILLS
22 

•HR 2542 IH

1 in paragraph (5) or (6) of subsection (e) and a detailed 

2 explanation of the reasons for such determination. 

3 ‘‘(e) In reviewing a rule pursuant to subsections (a) 

4 through (d), the agency shall amend or rescind the rule 

5 to minimize any adverse significant economic impact on 

6 a substantial number of small entities or disproportionate 

7 economic impact on a specific class of small entities, or 

8 maximize any beneficial significant economic impact of the 

9 rule on a substantial number of small entities to the great10 est extent possible, consistent with the stated objectives 

11 of applicable statutes. In amending or rescinding the rule, 

12 the agency shall consider the following factors: 

13 ‘‘(1) The continued need for the rule. 

14 ‘‘(2) The nature of complaints received by the 

15 agency from small entities concerning the rule. 

16 ‘‘(3) Comments by the Regulatory Enforcement 

17 Ombudsman and the Chief Counsel for Advocacy of 

18 the Small Business Administration. 

19 ‘‘(4) The complexity of the rule. 

20 ‘‘(5) The extent to which the rule overlaps, du21 plicates, or conflicts with other Federal rules and, 

22 unless the head of the agency determines it to be in23 feasible, State, territorial, and local rules. 

24 ‘‘(6) The contribution of the rule to the cumu25 lative economic impact of all Federal rules on the 


tjames on DSK6SPTVN1PROD with BILLS
23 

•HR 2542 IH

1 class of small entities affected by the rule, unless the 

2 head of the agency determines that such calculations 

3 cannot be made and reports that determination in 

4 the annual report required under subsection (d). 

5 ‘‘(7) The length of time since the rule has been 

6 evaluated or the degree to which technology, eco7 nomic conditions, or other factors have changed in 

8 the area affected by the rule. 

9 ‘‘(f) The agency shall publish in the Federal Register 

10 and on its website a list of rules to be reviewed pursuant 

11 to such plan. Such publication shall include a brief de12 scription of the rule, the reason why the agency deter13 mined that it has a significant economic impact on a sub14 stantial number of small entities (without regard to wheth15 er it had prepared a final regulatory flexibility analysis 

16 for the rule), and request comments from the public, the 

17 Chief Counsel for Advocacy of the Small Business Admin18 istration, and the Regulatory Enforcement Ombudsman 

19 concerning the enforcement of the rule.’’. 


tjames on DSK6SPTVN1PROD with BILLS
24 

•HR 2542 IH

1 SEC. 8. JUDICIAL REVIEW OF COMPLIANCE WITH THE RE2 QUIREMENTS OF THE REGULATORY FLEXI3 BILITY ACT AVAILABLE AFTER PUBLICATION 

4 OF THE FINAL RULE. 

5 (a) IN GENERAL.—Paragraph (1) of section 611(a) 

6 of title 5, United States Code, is amended by striking 

7 ‘‘final agency action’’ and inserting ‘‘such rule’’. 

8 (b) JURISDICTION.—Paragraph (2) of such section is 

9 amended by inserting ‘‘(or which would have such jurisdic10 tion if publication of the final rule constituted final agency 

11 action)’’ after ‘‘provision of law,’’. 

12 (c) TIME FOR BRINGING ACTION.—Paragraph (3) of 

13 such section is amended— 

14 (1) by striking ‘‘final agency action’’ and insert15 ing ‘‘publication of the final rule’’; and 

16 (2) by inserting ‘‘, in the case of a rule for 

17 which the date of final agency action is the same 

18 date as the publication of the final rule,’’ after ‘‘ex19 cept that’’. 

20 (d) INTERVENTION BY CHIEF COUNSEL FOR ADVO21 CACY.—Subsection (b) of section 612 of title 5, United 

22 States Code, is amended by inserting before the first pe23 riod ‘‘or agency compliance with section 601, 603, 604, 

24 605(b), 609, or 610’’. 


tjames on DSK6SPTVN1PROD with BILLS
25 

•HR 2542 IH

1 SEC. 9. JURISDICTION OF COURT OF APPEALS OVER RULES 

2 IMPLEMENTING THE REGULATORY FLEXI3 BILITY ACT. 

4 (a) IN GENERAL.—Section 2342 of title 28, United 

5 States Code, is amended— 

6 (1) in paragraph (6), by striking ‘‘and’’ at the 

7 end; 

8 (2) in paragraph (7), by striking the period at 

9 the end and inserting ‘‘; and’’; and 

10 (3) by inserting after paragraph (7) the fol11 lowing new paragraph: 

12 ‘‘(8) all final rules under section 608(a) of title 

13 5.’’. 

14 (b) CONFORMING AMENDMENTS.—Paragraph (3) of 

15 section 2341 of title 28, United States Code, is amended— 

16 (1) in subparagraph (D), by striking ‘‘and’’ at 

17 the end; 

18 (2) in subparagraph (E), by striking the period 

19 at the end and inserting ‘‘; and’’; and 

20 (3) by adding at the end the following new sub21 paragraph: 

22 ‘‘(F) the Office of Advocacy of the Small 

23 Business Administration, when the final rule is 

24 under section 608(a) of title 5.’’. 

25 (c) AUTHORIZATION TO INTERVENE AND COMMENT

26 ON AGENCY COMPLIANCE WITH ADMINISTRATIVE PROCEVerDate Mar 15 2010 01:47 Jul 02, 2013 Jkt 029200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H2542.IH H2542

tjames on DSK6SPTVN1PROD with BILLS
26 

•HR 2542 IH

1 DURE.—Subsection (b) of section 612 of title 5, United 

2 States Code, is amended by inserting ‘‘chapter 5, and 

3 chapter 7,’’ after ‘‘this chapter,’’. 

4 SEC. 10. ESTABLISHMENT AND APPROVAL OF SMALL BUSI5 NESS CONCERN SIZE STANDARDS BY CHIEF 

6 COUNSEL FOR ADVOCACY. 

7 (a) IN GENERAL.—Subparagraph (A) of section 

8 3(a)(2) of the Small Business Act (15 U.S.C. 

9 632(a)(2)(A)) is amended to read as follows: 

10 ‘‘(A) IN GENERAL.—In addition to the cri11 teria specified in paragraph (1)— 

12 ‘‘(i) the Administrator may specify de13 tailed definitions or standards by which a 

14 business concern may be determined to be 

15 a small business concern for purposes of 

16 this Act or the Small Business Investment 

17 Act of 1958; and 

18 ‘‘(ii) the Chief Counsel for Advocacy 

19 may specify such definitions or standards 

20 for purposes of any other Act.’’. 

21 (b) APPROVAL BY CHIEF COUNSEL.—Clause (iii) of 

22 section 3(a)(2)(C) of the Small Business Act (15 U.S.C. 

23 632(a)(2)(C)(iii)) is amended to read as follows: 

24 ‘‘(iii) except in the case of a size 

25 standard prescribed by the Administrator, 


tjames on DSK6SPTVN1PROD with BILLS
27 

•HR 2542 IH

1 is approved by the Chief Counsel for Advo2 cacy.’’. 

3 (c) INDUSTRY VARIATION.—Paragraph (3) of section 

4 3(a) of the Small Business Act (15 U.S.C. 632(a)(3)) is 

5 amended— 

6 (1) by inserting ‘‘or Chief Counsel for Advo7 cacy, as appropriate’’ before ‘‘shall ensure’’; and 

8 (2) by inserting ‘‘or Chief Counsel for Advo9 cacy’’ before the period at the end. 

10 (d) JUDICIAL REVIEW OF SIZE STANDARDS AP11 PROVED BY CHIEF COUNSEL.—Section 3(a) of the Small 

12 Business Act (15 U.S.C. 632(a)) is amended by adding 

13 at the end the following new paragraph: 

14 ‘‘(6) JUDICIAL REVIEW OF STANDARDS AP15 PROVED BY CHIEF COUNSEL.—In the case of an ac16 tion for judicial review of a rule which includes a 

17 definition or standard approved by the Chief Counsel 

18 for Advocacy under this subsection, the party seek19 ing such review shall be entitled to join the Chief 

20 Counsel as a party in such action.’’. 

21 SEC. 11. CLERICAL AMENDMENTS. 

22 (a) Section 601 of title 5, United States Code, is 

23 amended— 

24 (1) in paragraph (1)— 


tjames on DSK6SPTVN1PROD with BILLS
28 

•HR 2542 IH

1 (A) by striking the semicolon at the end 

2 and inserting a period; and 

3 (B) by striking ‘‘(1) the term’’ and insert4 ing the following: 

5 ‘‘(1) AGENCY.—The term’’; 

6 (2) in paragraph (3)— 

7 (A) by striking the semicolon at the end 

8 and inserting a period; and 

9 (B) by striking ‘‘(3) the term’’ and insert10 ing the following: 

11 ‘‘(3) SMALL BUSINESS.—The term’’; 

12 (3) in paragraph (5)— 

13 (A) by striking the semicolon at the end 

14 and inserting a period; and 

15 (B) by striking ‘‘(5) the term’’ and insert16 ing the following: 

17 ‘‘(5) SMALL GOVERNMENTAL JURISDICTION.— 

18 The term’’; and 

19 (4) in paragraph (6)— 

20 (A) by striking ‘‘; and’’ and inserting a pe21 riod; and 

22 (B) by striking ‘‘(6) the term’’ and insert23 ing the following: 

24 ‘‘(6) SMALL ENTITY.—The term’’. 


tjames on DSK6SPTVN1PROD with BILLS
29 

•HR 2542 IH

1 (b) The heading of section 605 of title 5, United 

2 States Code, is amended to read as follows: 

3 ‘‘§ 605. Incorporations by reference and certifi4 cations’’. 

5 (c) The table of sections for chapter 6 of title 5, 

6 United States Code, is amended— 

7 (1) by striking the item relating to section 605 

8 and inserting the following new item: 

‘‘605. Incorporations by reference and certifications.’’; 

9 (2) by striking the item relating to section 607 

10 and inserting the following new item: 

‘‘607. Quantification requirements.’’; 

11 and 

12 (3) by striking the item relating to section 608 

13 and inserting the following: 

‘‘608. Additional powers of Chief Counsel for Advocacy.’’. 

14 (d) Chapter 6 of title 5, United States Code, is 

15 amended as follows: 

16 (1) In section 603, by striking subsection (d). 

17 (2) In section 604(a) by striking the second 

18 paragraph (6). 

19 SEC. 12. AGENCY PREPARATION OF GUIDES. 

20 Section 212(a)(5) the Small Business Regulatory En21 forcement Fairness Act of 1996 (5 U.S.C. 601 note) is 

22 amended to read as follows: 


tjames on DSK6SPTVN1PROD with BILLS
30 

•HR 2542 IH

1 ‘‘(5) AGENCY PREPARATION OF GUIDES.—The 

2 agency shall, in its sole discretion, taking into ac3 count the subject matter of the rule and the lan4 guage of relevant statutes, ensure that the guide is 

5 written using sufficiently plain language likely to be 

6 understood by affected small entities. Agencies may 

7 prepare separate guides covering groups or classes of 

8 similarly affected small entities and may cooperate 

9 with associations of small entities to distribute such 

10 guides. In developing guides, agencies shall solicit 

11 input from affected small entities or associations of 

12 affected small entities. An agency may prepare 

13 guides and apply this section with respect to a rule 

14 or a group of related rules.’’. 

Æ 


tjames on DSK6SPTVN1PROD with BILLS