II 

109TH CONGRESS 

1ST SESSION S. 1519 

To provide for an economic analysis of the impact on small business concerns 

and small governmental jurisdictions of agency and other decisions that 

result in a net loss of at least 1,000 jobs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 27, 2005 

Ms. SNOWE (for herself, Mr. LIEBERMAN, and Mr. THUNE) introduced the following bill; which was read twice and referred to the Committee on Small 

Business and Entrepreneurship 

A BILL

To provide for an economic analysis of the impact on small 

business concerns and small governmental jurisdictions 

of agency and other decisions that result in a net loss 

of at least 1,000 jobs, 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. 

4 This Act may be cited as the ‘‘Small Business Eco5 nomic Impact Analysis Act of 2005’’. 
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1 SEC. 2. AGENCY RESTRUCTURING OR TERMINATION OF 

2 USE OF FACILITY. 

3 (a) IN GENERAL.—The Small Business Act (15 

4 U.S.C. 631 et seq.) is amended— 

5 (1) by redesignating section 37 as section 38; 

6 and 

7 (2) by inserting after section 36 the following: 

8 ‘‘SEC. 37. AGENCY RESTRUCTURING OR TERMINATION OF 

9 USE OF FACILITY. 

10 ‘‘(a) DEFINITIONS.—As used in this section, the fol11 lowing definitions apply: 

12 ‘‘(1) AGENCY.—The term ‘agency’ has the 

13 meaning given the term in section 551(1) of title 5, 

14 United States Code. 

15 ‘‘(2) QUALIFYING TERMINATION OR RESTRUC16 TURING.—The term ‘qualifying termination or re17 structuring’ means any termination of the use of a 

18 facility or restructuring that will result in the net 

19 loss of at least 1,000 governmental and nongovern20 mental jobs in any State. 

21 ‘‘(3) RESTRUCTURING.—The term ‘restruc22 turing’ means any action by an agency that both re23 duces and relocates functions and personnel, but 

24 does not include a reduction in personnel resulting 

25 from workload adjustments, reduced funding levels, 

26 or skill imbalances. 
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1 ‘‘(4) SMALL GOVERNMENTAL JURISDICTION.—

2 The term ‘small governmental jurisdiction’ has the 

3 meaning given the term in section 601(5) of title 5, 

4 United States Code. 

5 ‘‘(5) STATE.—The term ‘State’ means each of 

6 the several States of the United States, the District 

7 of Columbia, and the Commonwealth of Puerto Rico. 

8 ‘‘(b) GENERAL REQUIREMENT.— 

9 ‘‘(1) AGENCIES.—An agency may not make a 

10 qualified termination or restructuring until after 

11 complying with the requirements of subsections (c) 

12 through (e). 

13 ‘‘(2) OTHER ENTITIES.—An entity that is 

14 statutorily authorized to recommend a qualified ter15 mination or restructuring may not finalize its rec16 ommendation until after complying with the require17 ments of subsections (c) through (e). 

18 ‘‘(c) ECONOMIC ANALYSIS.— 

19 ‘‘(1) ECONOMIC ANALYSIS REQUIRED.— 

20 ‘‘(A) AGENCIES.—Prior to making any 

21 qualifying termination or restructuring, an 

22 agency shall conduct a detailed analysis of the 

23 impact on small business concerns and small 

24 governmental jurisdictions of the proposed ter25 mination or restructuring. 
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1 ‘‘(B) OTHER ENTITIES.—Prior to recom2 mending a qualifying termination or restruc3 turing, any entity statutorily authorized to 

4 make such recommendations shall conduct a de5 tailed analysis of the impact on small business 

6 concerns and small governmental jurisdictions 

7 of the proposed termination or restructuring. 

8 ‘‘(2) SCOPE OF ECONOMIC ANALYSIS.—The 

9 analysis required under paragraph (1) shall in10 clude— 

11 ‘‘(A) a description of the small business 

12 concerns and small governmental jurisdictions 

13 that will be affected by the proposed termi14 nation or restructuring and an estimate of the 

15 number of such small business concerns and 

16 small governmental jurisdictions; 

17 ‘‘(B) a description of the efforts by the 

18 agency or entity to minimize the significant ad19 verse economic impact on small business con20 cerns and small governmental jurisdictions of 

21 the proposed termination or restructuring; and 

22 ‘‘(C) a description of any alternative termi23 nation or restructuring that would reduce the 

24 overall impact of the proposed termination or 

25 restructuring on small business concerns, to-
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1 gether with an explanation of the reasons for 

2 not proposing such alternative termination or 

3 restructuring. 

4 ‘‘(3) COST-BENEFIT ANALYSIS OF IMPACT ON

5 CERTAIN STATES.— 

6 ‘‘(A) IN GENERAL.—In conducting the 

7 analysis required under paragraph (1), the 

8 agency or entity shall also conduct, consistent 

9 with the principles stated in Office of Manage10 ment and Budget Circular A–4 (September 17, 

11 2003), a quantitative cost-benefit analysis of 

12 the economic impact upon small business con13 cerns and small governmental jurisdictions of 

14 the proposed termination or restructuring in 

15 any State where the agency or entity deter16 mines the economic impact of such termination 

17 or restructuring would exceed $100,000,000. 

18 ‘‘(B) SCOPE OF COST-BENEFIT ANAL19 YSIS.—In conducting a cost-benefit analysis 

20 under subparagraph (A), the agency or entity 

21 shall— 

22 ‘‘(i) evaluate and compare the costs 

23 and benefits to small business concerns 

24 and small governmental jurisdictions of the 

25 proposed termination or restructuring, 
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1 quantifying and expressing in monetized 

2 values to the maximum extent possible 

3 such costs and benefits; 

4 ‘‘(ii) provide clearly stated alternatives 

5 to the proposed termination or restruc6 turing; and 

7 ‘‘(iii) prepare a summary report of the 

8 costs and benefits to small business con9 cerns and small governmental jurisdictions 

10 of the termination or restructuring pro11 posed under each such set of alternate pro12 posals. 

13 ‘‘(C) TRANSPARENCY OF COST-BENEFIT

14 ANALYSIS.— 

15 ‘‘(i) IN GENERAL.—In conducting a 

16 cost-benefit analysis under subparagraph 

17 (A) or preparing a summary report under 

18 subparagraph (B)(iii), the agency or entity 

19 shall take measures to ensure the trans20 parency of such actions, including the 

21 bases for making estimates and forming 

22 conclusions for purposes of such analysis 

23 or report. 
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1 ‘‘(ii) REQUIRED MEASURES.—The 

2 measures an agency or entity takes to en3 sure transparency shall include— 

4 ‘‘(I) incorporating an executive 

5 summary; 

6 ‘‘(II) detailing the assumptions 

7 that were used in the analysis and the 

8 discount rates applied to future costs 

9 and benefits; 

10 ‘‘(III) specifically referencing all 

11 sources of data; 

12 ‘‘(IV) providing appendices with 

13 documentation of any models used; 

14 and 

15 ‘‘(V) including the results of for16 mal sensitivity and other uncertainty 

17 analyses. 

18 ‘‘(d) PUBLICATION OF ECONOMIC ANALYSIS.— 

19 ‘‘(1) DRAFT ECONOMIC ANALYSIS.—Not later 

20 than 180 days before taking final action on a quali21 fying termination or restructuring, an agency or en22 tity shall— 

23 ‘‘(A) publish a draft of its economic anal24 ysis under subsection (c) on its website; and 
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1 ‘‘(B) provide notice of the draft economic 

2 analysis in the Federal Register with at least a 

3 60-day period for public comment. 

4 ‘‘(2) FINAL ECONOMIC ANALYSIS.—After due 

5 consideration of any comments, the agency or entity 

6 shall publish— 

7 ‘‘(A) a final economic analysis on its web 

8 site; and 

9 ‘‘(B) a notice regarding the final economic 

10 analysis in the Federal Register. 

11 ‘‘(e) GAO REVIEW.— 

12 ‘‘(1) IN GENERAL.—After publishing the final 

13 economic analysis under subsection (d), an agency or 

14 entity shall submit its final economic analysis to the 

15 Comptroller General of the United States for review 

16 of the analysis. 

17 ‘‘(2) DEADLINE.—Not later than 90 days after 

18 receiving a final economic analysis under paragraph 

19 (1), the Comptroller General of the United States 

20 shall complete an analysis of the submission and 

21 publish a report regarding the sufficiency of the 

22 analysis. 

23 ‘‘(3) REVISED ECONOMIC ANALYSIS REQUIRED

24 UPON DETERMINATION OF INSUFFICIENT ANAL25 YSIS.—If the Comptroller General of the United 
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1 States determines that the final economic analysis is 

2 insufficient, the agency or entity shall repeat the 

3 procedures required under subsections (c) and (d) 

4 and paragraph (1). 

5 ‘‘(f) FINAL ACTION.—An agency or entity may not 

6 take final action on a qualifying termination or restruc7 turing until after receiving a satisfactory review from the 

8 Comptroller General of the United States under sub9 section (e). 

10 ‘‘(g) JUDICIAL REVIEW.— 

11 ‘‘(1) IN GENERAL.—Not later than 90 days 

12 after the notice regarding the final economic anal13 ysis is published in the Federal Register under sub14 section (d)(2)(B), any small business concern or 

15 small governmental jurisdiction adversely affected or 

16 aggrieved by the qualifying termination or restruc17 turing may file a petition for judicial review of the 

18 qualifying termination or restructuring with the 

19 United States Court of Appeals for the circuit in 

20 which the small business concern or small govern21 mental jurisdiction is located. 

22 ‘‘(2) EXPEDITED REVIEW.—The Court of Ap23 peals shall provide for expedited review of a petition 

24 under paragraph (1). 
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1 ‘‘(3) SCOPE OF REVIEW.—Any review under 

2 paragraph (1) shall be limited to determining wheth3 er— 

4 ‘‘(A) the qualifying termination or restruc5 turing constitutes an agency action that is arbi6 trary, capricious, an abuse of discretion, or oth7 erwise not in accordance with law; and 

8 ‘‘(B) the economic analysis under sub9 section (c) was insufficient.’’. 

10 (b) APPLICABILITY.—The requirements of section 37 

11 of the Small Business Act, as added by subsection (a), 

12 shall apply to any qualifying termination or restructuring 

13 (as that term is defined in subsection (a) of such section) 

14 for which final action has not occurred as of the date of 

15 the enactment of this Act.

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