PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 847

Public Law 104–121

104th Congress

An Act

To provide for enactment of the Senior Citizens’ Right to Work Act of 1996, the

Line Item Veto Act, and the Small Business Growth and Fairness Act of 1996,

and to provide for a permanent increase in the public debt limit.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Contract with America Advancement Act of 1996’’.

TITLE I—SOCIAL SECURITY EARNINGS

LIMITATION AMENDMENTS

SEC. 101. SHORT TITLE OF TITLE.

This title may be cited as the ‘‘Senior Citizens’ Right to Work

Act of 1996’’.

SEC. 102. INCREASES IN MONTHLY EXEMPT AMOUNT FOR PURPOSES

OF THE SOCIAL SECURITY EARNINGS LIMIT.

(a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR INDIVIDUALS

WHO HAVE ATTAINED RETIREMENT AGE.—Section 203(f)(8)(D) of

the Social Security Act (42 U.S.C. 403(f)(8)(D)) is amended to read

as follows:

‘‘(D) Notwithstanding any other provision of this subsection,

the exempt amount which is applicable to an individual who

has attained retirement age (as defined in section 216(l)) before

the close of the taxable year involved shall be—

‘‘(i) for each month of any taxable year ending after

1995 and before 1997, $1,041.662⁄3,

‘‘(ii) for each month of any taxable year ending after

1996 and before 1998, $1,125.00,

‘‘(iii) for each month of any taxable year ending after

1997 and before 1999, $1,208.331⁄3,

‘‘(iv) for each month of any taxable year ending after

1998 and before 2000, $1,291.662⁄3,

‘‘(v) for each month of any taxable year ending after

1999 and before 2001, $1,416.662⁄3,

‘‘(vi) for each month of any taxable year ending after

2000 and before 2002, $2,083.331⁄3, and

‘‘(vii) for each month of any taxable year ending after

2001 and before 2003, $2,500.00.’’.

(b) CONFORMING AMENDMENTS.—

42 USC 1305

note.

Senior Citizens’

Right to Work

Act of 1996.

5 USC 601 note.

Contract with

America

Advancement Act

of 1996.

Mar. 29, 1996

[H.R. 3136]

110 STAT. 848 PUBLIC LAW 104–121—MAR. 29, 1996

(1) Section 203(f)(8)(B)(ii) of such Act (42 U.S.C.

403(f)(8)(B)(ii)) is amended—

(A) by striking ‘‘the taxable year ending after 1993

and before 1995’’ and inserting ‘‘the taxable year ending

after 2001 and before 2003 (with respect to individuals

described in subparagraph (D)) or the taxable year ending

after 1993 and before 1995 (with respect to other individuals)’’; and

(B) in subclause (II), by striking ‘‘for 1992’’ and inserting ‘‘for 2000 (with respect to individuals described in

subparagraph (D)) or 1992 (with respect to other individuals)’’.

(2) The second sentence of section 223(d)(4)(A) of such

Act (42 U.S.C. 423(d)(4)(A)) is amended by striking ‘‘the exempt

amount under section 203(f)(8) which is applicable to individuals described in subparagraph (D) thereof’’ and inserting the

following: ‘‘an amount equal to the exempt amount which would

be applicable under section 203(f)(8), to individuals described

in subparagraph (D) thereof, if section 102 of the Senior Citizens’ Right to Work Act of 1996 had not been enacted’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to taxable years ending after 1995.

SEC. 103. CONTINUING DISABILITY REVIEWS.

(a) AUTHORIZATION FOR APPROPRIATIONS FOR CONTINUING

DISABILITY REVIEWS.—Section 201(g)(1)(A) of the Social Security

Act (42 U.S.C. 401(g)(1)(A)) is amended by adding at the end the

following: ‘‘Of the amounts authorized to be made available out

of the Federal Old-Age and Survivors Insurance Trust Fund and

the Federal Disability Insurance Trust Fund under the preceding

sentence, there are hereby authorized to be made available from

either or both of such Trust Funds for continuing disability

reviews—

‘‘(i) for fiscal year 1996, $260,000,000;

‘‘(ii) for fiscal year 1997, $360,000,000;

‘‘(iii) for fiscal year 1998, $570,000,000;

‘‘(iv) for fiscal year 1999, $720,000,000;

‘‘(v) for fiscal year 2000, $720,000,000;

‘‘(vi) for fiscal year 2001, $720,000,000; and

‘‘(viii) for fiscal year 2002, $720,000,000.

For purposes of this subparagraph, the term ‘continuing disability

review’ means a review conducted pursuant to section 221(i) and

a review or disability eligibility redetermination conducted to determine the continuing disability and eligibility of a recipient of benefits under the supplemental security income program under title

XVI, including any review or redetermination conducted pursuant

to section 207 or 208 of the Social Security Independence and

Program Improvements Act of 1994 (Public Law 103–296).’’.

(b) ADJUSTMENT TO DISCRETIONARY SPENDING LIMITS.—Section

251(b)(2) of the Balanced Budget and Emergency Deficit Control

Act of 1985 is amended by adding the following new subparagraph:

‘‘(H) CONTINUING DISABILITY REVIEWS.—(i) Whenever

a bill or joint resolution making appropriations for fiscal

year 1996, 1997, 1998, 1999, 2000, 2001, or 2002 is enacted

that specifies an amount for continuing disability reviews

under the heading ‘Limitation on Administrative Expenses’

for the Social Security Administration, the adjustments

2 USC 901.

42 USC 403 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 849

for that fiscal year shall be the additional new budget

authority provided in that Act for such reviews for that

fiscal year and the additional outlays flowing from such

amounts, but shall not exceed—

‘‘(I) for fiscal year 1996, $15,000,000 in additional

new budget authority and $60,000,000 in additional

outlays;

‘‘(II) for fiscal year 1997, $25,000,000 in additional

new budget authority and $160,000,000 in additional

outlays;

‘‘(III) for fiscal year 1998, $145,000,000 in additional new budget authority and $370,000,000 in additional outlays;

‘‘(IV) for fiscal year 1999, $280,000,000 in additional new budget authority and $520,000,000 in additional outlays;

‘‘(V) for fiscal year 2000, $317,500,000 in additional

new budget authority and $520,000,000 in additional

outlays;

‘‘(VI) for fiscal year 2001, $317,500,000 in additional new budget authority and $520,000,000 in additional outlays; and

‘‘(VII) for fiscal year 2002, $317,500,000 in additional new budget authority and $520,000,000 in additional outlays.

‘‘(ii) As used in this subparagraph—

‘‘(I) the term ‘continuing disability reviews’ has

the meaning given such term by section 201(g)(1)(A)

of the Social Security Act;

‘‘(II) the term ‘additional new budget authority’

means new budget authority provided for a fiscal year,

in excess of $100,000,000, for the Supplemental Security Income program and specified to pay for the costs

of continuing disability reviews attributable to the

Supplemental Security Income program; and

‘‘(III) the term ‘additional outlays’ means outlays,

in excess of $200,000,000 in a fiscal year, flowing from

the amounts specified for continuing disability reviews

under the heading ‘Limitation on Administrative

Expenses’ for the Social Security Administration,

including outlays in that fiscal year flowing from

amounts specified in Acts enacted for prior fiscal years

(but not before 1996).’’.

(c) BUDGET ALLOCATION ADJUSTMENT BY BUDGET COMMITTEE.—

Section 606 of the Congressional Budget and Impoundment Control

Act of 1974 is amended by adding the following new subsection:

‘‘(e) CONTINUING DISABILITY REVIEW ADJUSTMENT.—

‘‘(1) IN GENERAL.—(A) For fiscal year 1996, upon the enactment of the Contract with America Advancement Act of 1996,

the Chairmen of the Committees on the Budget of the Senate

and House of Representatives shall make the adjustments

referred to in subparagraph (C) to reflect $15,000,000 in additional new budget authority and $60,000,000 in additional outlays for continuing disability reviews (as defined in section

201(g)(1)(A) of the Social Security Act).

‘‘(B) When the Committee on Appropriations reports an

appropriations measure for fiscal year 1997, 1998, 1999, 2000,

2 USC 665e.

110 STAT. 850 PUBLIC LAW 104–121—MAR. 29, 1996

2001, or 2002 that specifies an amount for continuing disability

reviews under the heading ‘Limitation on Administrative

Expenses’ for the Social Security Administration, or when a

conference committee submits a conference report thereon, the

Chairman of the Committee on the Budget of the Senate or

House of Representatives (whichever is appropriate) shall make

the adjustments referred to in subparagraph (C) to reflect the

additional new budget authority for continuing disability

reviews provided in that measure or conference report and

the additional outlays flowing from such amounts for continuing

disability reviews.

‘‘(C) The adjustments referred to in this subparagraph consist of adjustments to—

‘‘(i) the discretionary spending limits for that fiscal

year as set forth in the most recently adopted concurrent

resolution on the budget;

‘‘(ii) the allocations to the Committees on Appropriations of the Senate and the House of Representatives for

that fiscal year under sections 302(a) and 602(a); and

‘‘(iii) the appropriate budgetary aggregates for that

fiscal year in the most recently adopted concurrent resolution on the budget.

‘‘(D) The adjustments under this paragraph for any fiscal

year shall not exceed the levels set forth in section 251(b)(2)(H)

of the Balanced Budget and Emergency Deficit Control Act

of 1985 for that fiscal year. The adjusted discretionary spending

limits, allocations, and aggregates under this paragraph shall

be considered the appropriate limits, allocations, and aggregates

for purposes of congressional enforcement of this Act and

concurrent budget resolutions under this Act.

‘‘(2) REPORTING REVISED SUBALLOCATIONS.—Following the

adjustments made under paragraph (1), the Committees on

Appropriations of the Senate and the House of Representatives

may report appropriately revised suballocations pursuant to

sections 302(b) and 602(b) of this Act to carry out this subsection.

‘‘(3) DEFINITIONS.—As used in this section, the terms

‘continuing disability reviews’, ‘additional new budget authority’, and ‘additional outlays’ shall have the same meanings

as provided in section 251(b)(2)(H)(ii) of the Balanced Budget

and Emergency Deficit Control Act of 1985.’’.

(d) USE OF FUNDS AND REPORTS.—

(1) IN GENERAL.—The Commissioner of Social Security shall

ensure that funds made available for continuing disability

reviews (as defined in section 201(g)(1)(A) of the Social Security

Act) are used, to the greatest extent practicable, to maximize

the combined savings in the old-age, survivors, and disability

insurance, supplemental security income, Medicare, and medicaid programs.

(2) REPORT.—The Commissioner of Social Security shall

provide annually (at the conclusion of each of the fiscal years

1996 through 2002) to the Congress a report on continuing

disability reviews which includes—

(A) the amount spent on continuing disability reviews

in the fiscal year covered by the report, and the number

of reviews conducted, by category of review;

42 USC 401 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 851

(B) the results of the continuing disability reviews

in terms of cessations of benefits or determinations of

continuing eligibility, by program; and (C) the estimated savings over the short-, medium-, and long-term to the old-age, survivors, and disability

insurance, supplemental security income, Medicare, and

medicaid programs from continuing disability reviews

which result in cessations of benefits and the estimated

present value of such savings.

(e) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SECURITY

ADMINISTRATION.—

(1) IN GENERAL.—Section 702 of the Social Security Act

(42 U.S.C. 902) is amended—

(A) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and

(B) by inserting after subsection (b) the following new

subsection:

‘‘CHIEF ACTUARY

‘‘(c)(1) There shall be in the Administration a Chief Actuary,

who shall be appointed by, and in direct line of authority to,

the Commissioner. The Chief Actuary shall be appointed from

individuals who have demonstrated, by their education and experience, superior expertise in the actuarial sciences. The Chief Actuary

shall serve as the chief actuarial officer of the Administration,

and shall exercise such duties as are appropriate for the office

of the Chief Actuary and in accordance with professional standards

of actuarial independence. The Chief Actuary may be removed

only for cause.

‘‘(2) The Chief Actuary shall be compensated at the highest

rate of basic pay for the Senior Executive Service under section

5382(b) of title 5, United States Code.’’.

(2) EFFECTIVE DATE OF SUBSECTION.—The amendments

made by this subsection shall take effect on the date of the

enactment of this Act.

SEC. 104. ENTITLEMENT OF STEPCHILDREN TO CHILD’S INSURANCE

BENEFITS BASED ON ACTUAL DEPENDENCY ON STEPPARENT SUPPORT.

(a) REQUIREMENT OF ACTUAL DEPENDENCY FOR FUTURE

ENTITLEMENTS.—

(1) IN GENERAL.—Section 202(d)(4) of the Social Security

Act (42 U.S.C. 402(d)(4)) is amended by striking ‘‘was living

with or’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply with respect to benefits of individuals who

become entitled to such benefits for months after the third

month following the month in which this Act is enacted.

(b) TERMINATION OF CHILD’S INSURANCE BENEFITS BASED ON

WORK RECORD OF STEPPARENT UPON NATURAL PARENT’S DIVORCE

FROM STEPPARENT.—

(1) IN GENERAL.—Section 202(d)(1) of the Social Security

Act (42 U.S.C. 402(d)(1)) is amended—

(A) by striking ‘‘or’’ at the end of subparagraph (F);

(B) by striking the period at the end of subparagraph

(G) and inserting ‘‘; or’’; and

42 USC 402 note.

42 USC 902 note.

110 STAT. 852 PUBLIC LAW 104–121—MAR. 29, 1996

(C) by inserting after subparagraph (G) the following

new subparagraph:

‘‘(H) if the benefits under this subsection are based on

the wages and self-employment income of a stepparent who

is subsequently divorced from such child’s natural parent, the

month after the month in which such divorce becomes final.’’.

(2) NOTIFICATION.—Section 202(d) of such Act (42 U.S.C.

402(d)) is amended by adding the following new paragraph:

‘‘(10) For purposes of paragraph (1)(H)—

‘‘(A) each stepparent shall notify the Commissioner of Social

Security of any divorce upon such divorce becoming final; and

‘‘(B) the Commissioner shall annually notify any stepparent

of the rule for termination described in paragraph (1)(H) and

of the requirement described in subparagraph (A).’’.

(3) EFFECTIVE DATES.—

(A) The amendments made by paragraph (1) shall

apply with respect to final divorces occurring after the

third month following the month in which this Act is

enacted.

(B) The amendment made by paragraph (2) shall take

effect on the date of the enactment of this Act.

SEC. 105. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND

ALCOHOLICS.

(a) AMENDMENTS RELATING TO TITLE II DISABILITY BENEFITS.—

(1) IN GENERAL.—Section 223(d)(2) of the Social Security

Act (42 U.S.C. 423(d)(2)) is amended by adding at the end

the following:

‘‘(C) An individual shall not be considered to be disabled

for purposes of this title if alcoholism or drug addiction would

(but for this subparagraph) be a contributing factor material

to the Commissioner’s determination that the individual is

disabled.’’.

(2) REPRESENTATIVE PAYEE REQUIREMENTS.—

(A) Section 205(j)(1)(B) of such Act (42 U.S.C.

405(j)(1)(B)) is amended to read as follows:

‘‘(B) In the case of an individual entitled to benefits based

on disability, the payment of such benefits shall be made to a

representative payee if the Commissioner of Social Security determines that such payment would serve the interest of the individual

because the individual also has an alcoholism or drug addiction

condition (as determined by the Commissioner) and the individual

is incapable of managing such benefits.’’.

(B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C.

405(j)(2)(C)(v)) is amended by striking ‘‘entitled to benefits’’

and all that follows through ‘‘under a disability’’ and inserting ‘‘described in paragraph (1)(B)’’.

(C) Section 205(j)(2)(D)(ii)(II) of such Act (42 U.S.C.

405(j)(2)(D)(ii)(II)) is amended by striking all that follows

‘‘15 years, or’’ and inserting ‘‘described in paragraph

(1)(B).’’.

(D) Section 205(j)(4)(A)(i)(II) of such Act (42 U.S.C.

405(j)(4)(A)(ii)(II)) is amended by striking ‘‘entitled to benefits’’ and all that follows through ‘‘under a disability’’ and

inserting ‘‘described in paragraph (1)(B)’’.

(3) TREATMENT REFERRALS FOR INDIVIDUALS WITH AN

ALCOHOLISM OR DRUG ADDICTION CONDITION.—Section 222 of

42 USC 402 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 853

such Act (42 U.S.C. 422) is amended by adding at the end

the following new subsection:

‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN ALCOHOLISM OR

DRUG ADDICTION CONDITION

‘‘(e) In the case of any individual whose benefits under this title are paid to a representative payee pursuant to section

205(j)(1)(B), the Commissioner of Social Security shall refer such

individual to the appropriate State agency administering the State

plan for substance abuse treatment services approved under subpart

II of part B of title XIX of the Public Health Service Act (42

U.S.C. 300x–21 et seq.).’’. (4) CONFORMING AMENDMENT.—Subsection (c) of section 225

of such Act (42 U.S.C. 425(c)) is repealed. (5) EFFECTIVE DATES.— (A) The amendments made by paragraphs (1) and (4) shall apply to any individual who applies for, or whose

claim is finally adjudicated by the Commissioner of Social

Security with respect to, benefits under title II of the

Social Security Act based on disability on or after the

date of the enactment of this Act, and, in the case of

any individual who has applied for, and whose claim has

been finally adjudicated by the Commissioner with respect

to, such benefits before such date of enactment, such

amendments shall apply only with respect to such benefits

for months beginning on or after January 1, 1997. (B) The amendments made by paragraphs (2) and (3) shall apply with respect to benefits for which applications

are filed after the third month following the month in

which this Act is enacted.

(C) Within 90 days after the date of the enactment of this Act, the Commissioner of Social Security shall notify

each individual who is entitled to monthly insurance benefits under title II of the Social Security Act based on

disability for the month in which this Act is enacted and

whose entitlement to such benefits would terminate by

reason of the amendments made by this subsection. If

such an individual reapplies for benefits under title II

of such Act (as amended by this Act) based on disability

within 120 days after the date of the enactment of this

Act, the Commissioner of Social Security shall, not later

than January 1, 1997, complete the entitlement redetermination (including a new medical determination) with

respect to such individual pursuant to the procedures of

such title.

(b) AMENDMENTS RELATING TO SSI BENEFITS.— (1) IN GENERAL.—Section 1614(a)(3) of the Social Security Act (42 U.S.C. 1382c(a)(3)) is amended by adding at the end

the following:

‘‘(I) Notwithstanding subparagraph (A), an individual shall not be considered to be disabled for purposes of this title if alcoholism

or drug addiction would (but for this subparagraph) be a contributing factor material to the Commissioner’s determination that the

individual is disabled.’’.

(2) REPRESENTATIVE PAYEE REQUIREMENTS.—

(A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 U.S.C.

1383(a)(2)(A)(ii)(II)) is amended to read as follows:

42 USC 405 note.

110 STAT. 854 PUBLIC LAW 104–121—MAR. 29, 1996

‘‘(II) In the case of an individual eligible for benefits under

this title by reason of disability, the payment of such benefits

shall be made to a representative payee if the Commissioner of

Social Security determines that such payment would serve the

interest of the individual because the individual also has an alcoholism or drug addiction condition (as determined by the Commissioner) and the individual is incapable of managing such benefits.’’.

(B) Section 1631(a)(2)(B)(vii) of such Act (42 U.S.C.

1383(a)(2)(B)(vii)) is amended by striking ‘‘eligible for benefits’’ and all that follows through ‘‘is disabled’’ and inserting

‘‘described in subparagraph (A)(ii)(II)’’. (C) Section 1631(a)(2)(B)(ix)(II) of such Act (42 U.S.C.

1383(a)(2)(B)(ix)(II)) is amended by striking all that follows

‘‘15 years, or’’ and inserting ‘‘described in subparagraph

(A)(ii)(II).’’.

(D) Section 1631(a)(2)(D)(i)(II) of such Act (42 U.S.C.

1383(a)(2)(D)(i)(II)) is amended by striking ‘‘eligible for

benefits’’ and all that follows through ‘‘is disabled’’ and

inserting ‘‘described in subparagraph (A)(ii)(II)’’.

(3) TREATMENT REFERRALS FOR INDIVIDUALS WITH AN

ALCOHOLISM OR DRUG ADDICTION CONDITION.—Title XVI of such

Act (42 U.S.C. 1381 et seq.) is amended by adding at the

end the following new section:

‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN ALCOHOLISM OR

DRUG ADDICTION CONDITION

‘‘SEC. 1636. In the case of any individual whose benefits under

this title are paid to a representative payee pursuant to section

1631(a)(2)(A)(ii)(II), the Commissioner of Social Security shall refer

such individual to the appropriate State agency administering the

State plan for substance abuse treatment services approved under

subpart II of part B of title XIX of the Public Health Service

Act (42 U.S.C. 300x–21 et seq.).’’.

(4) CONFORMING AMENDMENTS.—

(A) Section 1611(e) of such Act (42 U.S.C. 1382(e))

is amended by striking paragraph (3).

(B) Section 1634 of such Act (42 U.S.C. 1383c) is

amended by striking subsection (e).

(5) EFFECTIVE DATES.—

(A) The amendments made by paragraphs (1) and (4)

shall apply to any individual who applies for, or whose

claim is finally adjudicated by the Commissioner of Social

Security with respect to, supplemental security income

benefits under title XVI of the Social Security Act based

on disability on or after the date of the enactment of

this Act, and, in the case of any individual who has applied

for, and whose claim has been finally adjudicated by the

Commissioner with respect to, such benefits before such

date of enactment, such amendments shall apply only with

respect to such benefits for months beginning on or after

January 1, 1997.

(B) The amendments made by paragraphs (2) and (3)

shall apply with respect to supplemental security income

benefits under title XVI of the Social Security Act for

which applications are filed after the third month following

the month in which this Act is enacted.

42 USC 1382

note.

42 USC 1383e.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 855

(C) Within 90 days after the date of the enactment

of this Act, the Commissioner of Social Security shall notify

each individual who is eligible for supplemental security

income benefits under title XVI of the Social Security Act

for the month in which this Act is enacted and whose

eligibility for such benefits would terminate by reason of

the amendments made by this subsection. If such an

individual reapplies for supplemental security income benefits under title XVI of such Act (as amended by this Act)

within 120 days after the date of the enactment of this

Act, the Commissioner of Social Security shall, not later

than January 1, 1997, complete the eligibility redetermination (including a new medical determination) with respect

to such individual pursuant to the procedures of such title.

(D) For purposes of this paragraph, the phrase ‘‘supplemental security income benefits under title XVI of the

Social Security Act’’ includes supplementary payments

pursuant to an agreement for Federal administration under

section 1616(a) of the Social Security Act and payments

pursuant to an agreement entered into under section 212(b)

of Public Law 93–66.

(c) CONFORMING AMENDMENT.—Section 201(c) of the Social

Security Independence and Program Improvements Act of 1994

(42 U.S.C. 425 note) is repealed.

(d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND SUBSTANCE

ABUSE TREATMENT PROGRAMS.—

(1) IN GENERAL.—Out of any money in the Treasury not

otherwise appropriated, there are hereby appropriated to

supplement State and Tribal programs funded under section

1933 of the Public Health Service Act (42 U.S.C. 300x–33),

$50,000,000 for each of the fiscal years 1997 and 1998.

(2) ADDITIONAL FUNDS.—Amounts appropriated under paragraph (1) shall be in addition to any funds otherwise appropriated for allotments under section 1933 of the Public Health

Service Act (42 U.S.C. 300x–33) and shall be allocated pursuant

to such section 1933.

(3) USE OF FUNDS.—A State or Tribal government receiving

an allotment under this subsection shall consider as priorities,

for purposes of expending funds allotted under this subsection,

activities relating to the treatment of the abuse of alcohol

and other drugs.

SEC. 106. PILOT STUDY OF EFFICACY OF PROVIDING INDIVIDUALIZED

INFORMATION TO RECIPIENTS OF OLD-AGE AND SURVIVORS INSURANCE BENEFITS.

(a) IN GENERAL.—During a 2-year period beginning as soon

as practicable in 1996, the Commissioner of Social Security shall

conduct a pilot study of the efficacy of providing certain individualized information to recipients of monthly insurance benefits under

section 202 of the Social Security Act, designed to promote better

understanding of their contributions and benefits under the social

security system. The study shall involve solely beneficiaries whose

entitlement to such benefits first occurred in or after 1984 and

who have remained entitled to such benefits for a continuous period

of not less than 5 years. The number of such recipients involved

in the study shall be of sufficient size to generate a statistically

42 USC 402 note.

110 STAT. 856 PUBLIC LAW 104–121—MAR. 29, 1996

valid sample for purposes of the study, but shall not exceed 600,000

beneficiaries.

(b) ANNUALIZED STATEMENTS.—During the course of the study, the Commissioner shall provide to each of the beneficiaries involved

in the study one annualized statement, setting forth the following

information:

(1) an estimate of the aggregate wages and self-employment income earned by the individual on whose wages and selfemployment income the benefit is based, as shown on the

records of the Commissioner as of the end of the last calendar

year ending prior to the beneficiary’s first month of entitlement; (2) an estimate of the aggregate of the employee and self- employment contributions, and the aggregate of the employer

contributions (separately identified), made with respect to the

wages and self-employment income on which the benefit is

based, as shown on the records of the Commissioner as of

the end of the calendar year preceding the beneficiary’s first

month of entitlement; and

(3) an estimate of the total amount paid as benefits under

section 202 of the Social Security Act based on such wages

and self-employment income, as shown on the records of the

Commissioner as of the end of the last calendar year preceding

the issuance of the statement for which complete information

is available.

(c) INCLUSION WITH MATTER OTHERWISE DISTRIBUTED TO BENEFICIARIES.—The Commissioner shall ensure that reports provided

pursuant to this section are, to the maximum extent practicable,

included with other reports currently provided to beneficiaries on

an annual basis.

(d) REPORT TO THE CONGRESS.—The Commissioner shall report

to each House of the Congress regarding the results of the pilot

study conducted pursuant to this section not later than 60 days

after the completion of such study.

SEC. 107. PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST

FUNDS.

(a) IN GENERAL.—Part A of title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is amended by adding at the end

the following new section:

‘‘PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST FUNDS

‘‘SEC. 1145. (a) IN GENERAL.—No officer or employee of the

United States shall—

‘‘(1) delay the deposit of any amount into (or delay the credit of any amount to) any Federal fund or otherwise vary

from the normal terms, procedures, or timing for making such

deposits or credits,

‘‘(2) refrain from the investment in public debt obligations

of amounts in any Federal fund, or ‘‘(3) redeem prior to maturity amounts in any Federal

fund which are invested in public debt obligations for any

purpose other than the payment of benefits or administrative

expenses from such Federal fund.

‘‘(b) PUBLIC DEBT OBLIGATION.—For purposes of this section,

the term ‘public debt obligation’ means any obligation subject to

the public debt limit established under section 3101 of title 31,

United States Code.

42 USC

1320b–15.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 857

‘‘(c) FEDERAL FUND.—For purposes of this section, the term

‘Federal fund’ means—

‘‘(1) the Federal Old-Age and Survivors Insurance Trust

Fund;

‘‘(2) the Federal Disability Insurance Trust Fund;

‘‘(3) the Federal Hospital Insurance Trust Fund; and

‘‘(4) the Federal Supplementary Medical Insurance Trust

Fund.’’.

(b) EFFECTIVE DATE.—The amendment made by this section

shall take effect on the date of the enactment of this Act.

SEC. 108. PROFESSIONAL STAFF FOR THE SOCIAL SECURITY ADVISORY

BOARD.

Section 703(i) of the Social Security Act (42 U.S.C. 903(i))

is amended in the first sentence by inserting after ‘‘Staff Director’’

the following: ‘‘, and three professional staff members one of whom

shall be appointed from among individuals approved by the members of the Board who are not members of the political party

represented by the majority of the Board,’’.

TITLE II—SMALL BUSINESS

REGULATORY FAIRNESS

SEC. 201. SHORT TITLE.

This title may be cited as the ‘‘Small Business Regulatory

Enforcement Fairness Act of 1996’’.

SEC. 202. FINDINGS.

Congress finds that—

(1) a vibrant and growing small business sector is critical

to creating jobs in a dynamic economy;

(2) small businesses bear a disproportionate share of regulatory costs and burdens;

(3) fundamental changes that are needed in the regulatory

and enforcement culture of Federal agencies to make agencies

more responsive to small business can be made without compromising the statutory missions of the agencies;

(4) three of the top recommendations of the 1995 White

House Conference on Small Business involve reforms to the

way government regulations are developed and enforced, and

reductions in government paperwork requirements;

(5) the requirements of chapter 6 of title 5, United States

Code, have too often been ignored by government agencies,

resulting in greater regulatory burdens on small entities than

necessitated by statute; and

(6) small entities should be given the opportunity to seek

judicial review of agency actions required by chapter 6 of title

5, United States Code.

SEC. 203. PURPOSES.

The purposes of this title are—

(1) to implement certain recommendations of the 1995

White House Conference on Small Business regarding the development and enforcement of Federal regulations;

(2) to provide for judicial review of chapter 6 of title 5,

United States Code;

5 USC 601 note.

5 USC 601 note.

5 USC 601 note.

Small Business

Regulatory

Enforcement

Fairness Act of

1996.

42 USC

1320b–15 note.

110 STAT. 858 PUBLIC LAW 104–121—MAR. 29, 1996

(3) to encourage the effective participation of small

businesses in the Federal regulatory process; (4) to simplify the language of Federal regulations affecting

small businesses;

(5) to develop more accessible sources of information on

regulatory and reporting requirements for small businesses;

(6) to create a more cooperative regulatory environment

among agencies and small businesses that is less punitive

and more solution-oriented; and

(7) to make Federal regulators more accountable for their

enforcement actions by providing small entities with a meaningful opportunity for redress of excessive enforcement activities.

Subtitle A—Regulatory Compliance

Simplification

SEC. 211. DEFINITIONS.

For purposes of this subtitle—

(1) the terms ‘‘rule’’ and ‘‘small entity’’ have the same

meanings as in section 601 of title 5, United States Code;

(2) the term ‘‘agency’’ has the same meaning as in section

551 of title 5, United States Code; and

(3) the term ‘‘small entity compliance guide’’ means a document designated as such by an agency.

SEC. 212. COMPLIANCE GUIDES.

(a) COMPLIANCE GUIDE.—For each rule or group of related

rules for which an agency is required to prepare a final regulatory

flexibility analysis under section 604 of title 5, United States Code,

the agency shall publish one or more guides to assist small entities

in complying with the rule, and shall designate such publications

as ‘‘small entity compliance guides’’. The guides shall explain the

actions a small entity is required to take to comply with a rule

or group of rules. The agency shall, in its sole discretion, taking

into account the subject matter of the rule and the language of

relevant statutes, ensure that the guide is written using sufficiently

plain language likely to be understood by affected small entities.

Agencies may prepare separate guides covering groups or classes

of similarly affected small entities, and may cooperate with associations of small entities to develop and distribute such guides.

(b) COMPREHENSIVE SOURCE OF INFORMATION.—Agencies shall

cooperate to make available to small entities through comprehensive

sources of information, the small entity compliance guides and

all other available information on statutory and regulatory requirements affecting small entities.

(c) LIMITATION ON JUDICIAL REVIEW.—An agency’s small entity

compliance guide shall not be subject to judicial review, except

that in any civil or administrative action against a small entity

for a violation occurring after the effective date of this section,

the content of the small entity compliance guide may be considered

as evidence of the reasonableness or appropriateness of any proposed fines, penalties or damages.

SEC. 213. INFORMAL SMALL ENTITY GUIDANCE.

(a) GENERAL.—Whenever appropriate in the interest of administering statutes and regulations within the jurisdiction of an agency

5 USC 601 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 859

which regulates small entities, it shall be the practice of the agency

to answer inquiries by small entities concerning information on,

and advice about, compliance with such statutes and regulations,

interpreting and applying the law to specific sets of facts supplied

by the small entity. In any civil or administrative action against

a small entity, guidance given by an agency applying the law

to facts provided by the small entity may be considered as evidence

of the reasonableness or appropriateness of any proposed fines,

penalties or damages sought against such small entity.

(b) PROGRAM.—Each agency regulating the activities of small

entities shall establish a program for responding to such inquiries

no later than 1 year after enactment of this section, utilizing existing functions and personnel of the agency to the extent practicable.

(c) REPORTING.—Each agency regulating the activities of small

business shall report to the Committee on Small Business and

Committee on Governmental Affairs of the Senate and the Committee on Small Business and Committee on the Judiciary of the

House of Representatives no later than 2 years after the date

of the enactment of this section on the scope of the agency’s program, the number of small entities using the program, and the

achievements of the program to assist small entity compliance

with agency regulations.

SEC. 214. SERVICES OF SMALL BUSINESS DEVELOPMENT CENTERS.

(a) Section 21(c)(3) of the Small Business Act (15 U.S.C.

648(c)(3)) is amended—

(1) in subparagraph (O), by striking ‘‘and’’ at the end;

(2) in subparagraph (P), by striking the period at the end

and inserting a semicolon; and

(3) by inserting after subparagraph (P) the following new

subparagraphs:

‘‘(Q) providing information to small business concerns

regarding compliance with regulatory requirements; and

‘‘(R) developing informational publications, establishing

resource centers of reference materials, and distributing

compliance guides published under section 312(a) of the

Small Business Regulatory Enforcement Fairness Act of

1996.’’.

(b) Nothing in this Act in any way affects or limits the ability

of other technical assistance or extension programs to perform

or continue to perform services related to compliance assistance.

SEC. 215. COOPERATION ON GUIDANCE.

Agencies may, to the extent resources are available and where

appropriate, in cooperation with the States, develop guides that

fully integrate requirements of both Federal and State regulations

where regulations within an agency’s area of interest at the Federal

and State levels impact small entities. Where regulations vary

among the States, separate guides may be created for separate

States in cooperation with State agencies.

SEC. 216. EFFECTIVE DATE.

This subtitle and the amendments made by this subtitle shall

take effect on the expiration of 90 days after the date of enactment

of this subtitle.

110 STAT. 860 PUBLIC LAW 104–121—MAR. 29, 1996

Subtitle B—Regulatory Enforcement

Reforms

SEC. 221. DEFINITIONS.

For purposes of this subtitle—

(1) the terms ‘‘rule’’ and ‘‘small entity’’ have the same

meanings as in section 601 of title 5, United States Code; (2) the term ‘‘agency’’ has the same meaning as in section

551 of title 5, United States Code; and

(3) the term ‘‘small entity compliance guide’’ means a document designated as such by an agency.

SEC. 222. SMALL BUSINESS AND AGRICULTURE ENFORCEMENT

OMBUDSMAN.

The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(1) by redesignating section 30 as section 31; and

(2) by inserting after section 29 the following new section:

‘‘SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.

‘‘(a) DEFINITIONS.—For purposes of this section, the term—

‘‘(1) ‘Board’ means a Regional Small Business Regulatory

Fairness Board established under subsection (c); and

‘‘(2) ‘Ombudsman’ means the Small Business and Agriculture Regulatory Enforcement Ombudsman designated under

subsection (b).

‘‘(b) SBA ENFORCEMENT OMBUDSMAN.—

‘‘(1) Not later than 180 days after the date of enactment

of this section, the Administrator shall designate a Small Business and Agriculture Regulatory Enforcement Ombudsman,

who shall report directly to the Administrator, utilizing personnel of the Small Business Administration to the extent practicable. Other agencies shall assist the Ombudsman and take

actions as necessary to ensure compliance with the requirements of this section. Nothing in this section is intended to

replace or diminish the activities of any Ombudsman or similar

office in any other agency.

‘‘(2) The Ombudsman shall—

‘‘(A) work with each agency with regulatory authority

over small businesses to ensure that small business concerns that receive or are subject to an audit, on-site inspection, compliance assistance effort, or other enforcement

related communication or contact by agency personnel are

provided with a means to comment on the enforcement

activity conducted by such personnel;

‘‘(B) establish means to receive comments from small

business concerns regarding actions by agency employees

conducting compliance or enforcement activities with

respect to the small business concern, means to refer comments to the Inspector General of the affected agency in

the appropriate circumstances, and otherwise seek to maintain the identity of the person and small business concern

making such comments on a confidential basis to the same

extent as employee identities are protected under section

7 of the Inspector General Act of 1978 (5 U.S.C. App.);

‘‘(C) based on substantiated comments received from

small business concerns and the Boards, annually report

15 USC 657.

15 USC 631 note.

5 USC 601 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 861

to Congress and affected agencies evaluating the enforcement activities of agency personnel including a rating of

the responsiveness to small business of the various regional

and program offices of each agency;

‘‘(D) coordinate and report annually on the activities,

findings and recommendations of the Boards to the

Administrator and to the heads of affected agencies; and

‘‘(E) provide the affected agency with an opportunity

to comment on draft reports prepared under subparagraph

(C), and include a section of the final report in which

the affected agency may make such comments as are not

addressed by the Ombudsman in revisions to the draft.

‘‘(c) REGIONAL SMALL BUSINESS REGULATORY FAIRNESS

BOARDS.—

‘‘(1) Not later than 180 days after the date of enactment

of this section, the Administrator shall establish a Small Business Regulatory Fairness Board in each regional office of the

Small Business Administration.

‘‘(2) Each Board established under paragraph (1) shall—

‘‘(A) meet at least annually to advise the Ombudsman

on matters of concern to small businesses relating to the

enforcement activities of agencies;

‘‘(B) report to the Ombudsman on substantiated

instances of excessive enforcement actions of agencies

against small business concerns including any findings or

recommendations of the Board as to agency enforcement

policy or practice; and

‘‘(C) prior to publication, provide comment on the

annual report of the Ombudsman prepared under subsection (b).

‘‘(3) Each Board shall consist of five members, who are

owners, operators, or officers of small business concerns,

appointed by the Administrator, after receiving the recommendations of the chair and ranking minority member of

the Committees on Small Business of the House of Representatives and the Senate. Not more than three of the Board members shall be of the same political party. No member shall

be an officer or employee of the Federal Government, in either

the executive branch or the Congress.

‘‘(4) Members of the Board shall serve at the pleasure

of the Administrator for terms of three years or less.

‘‘(5) The Administrator shall select a chair from among

the members of the Board who shall serve at the pleasure

of the Administrator for not more than 1 year as chair.

‘‘(6) A majority of the members of the Board shall constitute

a quorum for the conduct of business, but a lesser number

may hold hearings.

‘‘(d) POWERS OF THE BOARDS.

‘‘(1) The Board may hold such hearings and collect such

information as appropriate for carrying out this section.

‘‘(2) The Board may use the United States mails in the

same manner and under the same conditions as other departments and agencies of the Federal Government.

‘‘(3) The Board may accept donations of services necessary

to conduct its business, provided that the donations and their

sources are disclosed by the Board.

Establishment.

110 STAT. 862 PUBLIC LAW 104–121—MAR. 29, 1996

‘‘(4) Members of the Board shall serve without compensation, provided that, members of the Board shall be allowed

travel expenses, including per diem in lieu of subsistence, at

rates authorized for employees of agencies under subchapter

I of chapter 57 of title 5, United States Code, while away

from their homes or regular places of business in the performance of services for the Board.’’.

SEC. 223. RIGHTS OF SMALL ENTITIES IN ENFORCEMENT ACTIONS.

(a) IN GENERAL.—Each agency regulating the activities of small

entities shall establish a policy or program within 1 year of enactment of this section to provide for the reduction, and under appropriate circumstances for the waiver, of civil penalties for violations

of a statutory or regulatory requirement by a small entity. Under

appropriate circumstances, an agency may consider ability to pay

in determining penalty assessments on small entities.

(b) CONDITIONS AND EXCLUSIONS.—Subject to the requirements

or limitations of other statutes, policies or programs established

under this section shall contain conditions or exclusions which

may include, but shall not be limited to—

(1) requiring the small entity to correct the violation within

a reasonable correction period;

(2) limiting the applicability to violations discovered

through participation by the small entity in a compliance assistance or audit program operated or supported by the agency

or a State;

(3) excluding small entities that have been subject to multiple enforcement actions by the agency;

(4) excluding violations involving willful or criminal conduct;

(5) excluding violations that pose serious health, safety

or environmental threats; and

(6) requiring a good faith effort to comply with the law.

(c) REPORTING.—Agencies shall report to the Committee on

Small Business and Committee on Governmental Affairs of the

Senate and the Committee on Small Business and Committee on

Judiciary of the House of Representatives no later than 2 years

after the date of enactment of this section on the scope of their

program or policy, the number of enforcement actions against small

entities that qualified or failed to qualify for the program or policy,

and the total amount of penalty reductions and waivers.

SEC. 224. EFFECTIVE DATE.

This subtitle and the amendments made by this subtitle shall

take effect on the expiration of 90 days after the date of enactment

of this subtitle.

Subtitle C—Equal Access to Justice Act

Amendments

SEC. 231. ADMINISTRATIVE PROCEEDINGS.

(a) Section 504(a) of title 5, United States Code, is amended

by adding at the end the following new paragraph:

‘‘(4) If, in an adversary adjudication arising from an agency

action to enforce a party’s compliance with a statutory or regulatory

requirement, the demand by the agency is substantially in excess

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 863

of the decision of the adjudicative officer and is unreasonable when

compared with such decision, under the facts and circumstances

of the case, the adjudicative officer shall award to the party the

fees and other expenses related to defending against the excessive

demand, unless the party has committed a willful violation of

law or otherwise acted in bad faith, or special circumstances make

an award unjust. Fees and expenses awarded under this paragraph

shall be paid only as a consequence of appropriations provided

in advance.’’.

(b) Section 504(b) of title 5, United States Code, is amended—

(1) in paragraph (1)(A), by striking ‘‘$75’’ and inserting

‘‘$125’’;

(2) at the end of paragraph (1)(B), by inserting before

the semicolon ‘‘or for purposes of subsection (a)(4), a small

entity as defined in section 601’’;

(3) at the end of paragraph (1)(D), by striking ‘‘and’’;

(4) at the end of paragraph (1)(E), by striking the period

and inserting ‘‘; and’’; and

(5) at the end of paragraph (1), by adding the following

new subparagraph:

‘‘(F) ‘demand’ means the express demand of the agency

which led to the adversary adjudication, but does not include

a recitation by the agency of the maximum statutory penalty

(i) in the administrative complaint, or (ii) elsewhere when

accompanied by an express demand for a lesser amount.’’.

SEC. 232. JUDICIAL PROCEEDINGS.

(a) Section 2412(d)(1) of title 28, United States Code, is

amended by adding at the end the following new subparagraph:

‘‘(D) If, in a civil action brought by the United States or a

proceeding for judicial review of an adversary adjudication described

in section 504(a)(4) of title 5, the demand by the United States

is substantially in excess of the judgment finally obtained by the

United States and is unreasonable when compared with such judgment, under the facts and circumstances of the case, the court

shall award to the party the fees and other expenses related to

defending against the excessive demand, unless the party has

committed a willful violation of law or otherwise acted in bad

faith, or special circumstances make an award unjust. Fees and

expenses awarded under this subparagraph shall be paid only as

a consequence of appropriations provided in advance.’’.

(b) Section 2412(d) of title 28, United States Code, is amended—

(1) in paragraph (2)(A), by striking ‘‘$75’’ and inserting

‘‘$125’’;

(2) at the end of paragraph (2)(B), by inserting before

the semicolon ‘‘or for purposes of subsection (d)(1)(D), a small

entity as defined in section 601 of title 5’’;

(3) at the end of paragraph (2)(G), by striking ‘‘and’’;

(4) at the end of paragraph (2)(H), by striking the period

and inserting ‘‘; and’’; and

(5) at the end of paragraph (2), by adding the following

new subparagraph:

‘‘(I) ‘demand’ means the express demand of the United

States which led to the adversary adjudication, but shall not

include a recitation of the maximum statutory penalty (i) in

the complaint, or (ii) elsewhere when accompanied by an

express demand for a lesser amount.’’.

110 STAT. 864 PUBLIC LAW 104–121—MAR. 29, 1996

SEC. 233. EFFECTIVE DATE.

The amendments made by sections 331 and 332 shall apply

to civil actions and adversary adjudications commenced on or after

the date of the enactment of this subtitle.

Subtitle D—Regulatory Flexibility Act

Amendments

SEC. 241. REGULATORY FLEXIBILITY ANALYSES.

(a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.—

(1) SECTION 603.—Section 603(a) of title 5, United States

Code, is amended—

(A) by inserting after ‘‘proposed rule’’, the phrase ‘‘,

or publishes a notice of proposed rulemaking for an

interpretative rule involving the internal revenue laws of

the United States’’; and

(B) by inserting at the end of the subsection, the following new sentence: ‘‘In the case of an interpretative rule

involving the internal revenue laws of the United States,

this chapter applies to interpretative rules published in

the Federal Register for codification in the Code of Federal

Regulations, but only to the extent that such interpretative

rules impose on small entities a collection of information

requirement.’’.

(2) SECTION 601.—Section 601 of title 5, United States Code,

is amended by striking ‘‘and’’ at the end of paragraph (5),

by striking the period at the end of paragraph (6) and inserting

‘‘; and’’, and by adding at the end the following:

‘‘(7) the term ‘collection of information’—

‘‘(A) means the obtaining, causing to be obtained, soliciting, or requiring the disclosure to third parties or the

public, of facts or opinions by or for an agency, regardless

of form or format, calling for either—

‘‘(i) answers to identical questions posed to, or

identical reporting or recordkeeping requirements

imposed on, 10 or more persons, other than agencies,

instrumentalities, or employees of the United States;

or

‘‘(ii) answers to questions posed to agencies,

instrumentalities, or employees of the United States

which are to be used for general statistical purposes;

and

‘‘(B) shall not include a collection of information

described under section 3518(c)(1) of title 44, United States

Code.

‘‘(8) RECORDKEEPING REQUIREMENT.—The term ‘recordkeeping requirement’ means a requirement imposed by an

agency on persons to maintain specified records.’’.

(b) FINAL REGULATORY FLEXIBILITY ANALYSIS.—Section 604 of

title 5, United States Code, is amended—

(1) in subsection (a) to read as follows:

‘‘(a) When an agency promulgates a final rule under section

553 of this title, after being required by that section or any other

law to publish a general notice of proposed rulemaking, or promulgates a final interpretative rule involving the internal revenue

5 USC 504 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 865

laws of the United States as described in section 603(a), the agency

shall prepare a final regulatory flexibility analysis. Each final regulatory flexibility analysis shall contain—

‘‘(1) a succinct statement of the need for, and objectives

of, the rule;

‘‘(2) a summary of the significant issues raised by the

public comments in response to the initial regulatory flexibility

analysis, a summary of the assessment of the agency of such

issues, and a statement of any changes made in the proposed

rule as a result of such comments;

‘‘(3) a description of and an estimate of the number of

small entities to which the rule will apply or an explanation

of why no such estimate is available;

‘‘(4) a description of the projected reporting, recordkeeping

and other compliance requirements of the 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 or record; and

‘‘(5) a description of the steps the agency has taken to

minimize the significant economic impact on small entities

consistent with the stated objectives of applicable statutes,

including a statement of the factual, policy, and legal reasons

for selecting the alternative adopted in the final rule and why

each one of the other significant alternatives to the rule considered by the agency which affect the impact on small entities

was rejected.’’; and

(2) in subsection (b), by striking ‘‘at the time’’ and all

that follows and inserting ‘‘such analysis or a summary

thereof.’’.

SEC. 242. JUDICIAL REVIEW.

Section 611 of title 5, United States Code, is amended to

read as follows:

‘‘§ 611. Judicial review

‘‘(a)(1) For any rule subject to this chapter, a small entity

that is adversely affected or aggrieved by final agency action is

entitled to judicial review of agency compliance with the requirements of sections 601, 604, 605(b), 608(b), and 610 in accordance

with chapter 7. Agency compliance with sections 607 and 609(a)

shall be judicially reviewable in connection with judicial review

of section 604.

‘‘(2) Each court having jurisdiction to review such rule for

compliance with section 553, or under any other provision of law,

shall have jurisdiction to review any claims of noncompliance with

sections 601, 604, 605(b), 608(b), and 610 in accordance with chapter

7. Agency compliance with sections 607 and 609(a) shall be judicially

reviewable in connection with judicial review of section 604.

‘‘(3)(A) A small entity may seek such review during the period

beginning on the date of final agency action and ending one year

later, except that where a provision of law requires that an action

challenging a final agency action be commenced before the expiration of one year, such lesser period shall apply to an action for

judicial review under this section.

‘‘(B) In the case where an agency delays the issuance of a

final regulatory flexibility analysis pursuant to section 608(b) of

110 STAT. 866 PUBLIC LAW 104–121—MAR. 29, 1996

this chapter, an action for judicial review under this section shall

be filed not later than—

‘‘(i) one year after the date the analysis is made available

to the public, or

‘‘(ii) where a provision of law requires that an action challenging a final agency regulation be commenced before the

expiration of the 1-year period, the number of days specified

in such provision of law that is after the date the analysis

is made available to the public.

‘‘(4) In granting any relief in an action under this section,

the court shall order the agency to take corrective action consistent

with this chapter and chapter 7, including, but not limited to—

‘‘(A) remanding the rule to the agency, and

‘‘(B) deferring the enforcement of the rule against small

entities unless the court finds that continued enforcement of

the rule is in the public interest.

‘‘(5) Nothing in this subsection shall be construed to limit

the authority of any court to stay the effective date of any rule

or provision thereof under any other provision of law or to grant

any other relief in addition to the requirements of this section.

‘‘(b) In an action for the judicial review of a rule, the regulatory

flexibility analysis for such rule, including an analysis prepared

or corrected pursuant to paragraph (a)(4), shall constitute part

of the entire record of agency action in connection with such review.

‘‘(c) Compliance or noncompliance by an agency with the provisions of this chapter shall be subject to judicial review only in

accordance with this section.

‘‘(d) 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 permitted by law.’’.

SEC. 243. TECHNICAL AND CONFORMING AMENDMENTS.

(a) Section 605(b) of title 5, United States Code, is amended

to read as follows:

‘‘(b) Sections 603 and 604 of this title shall not apply to any

proposed or final rule if the head of the agency certifies that

the rule will not, if promulgated, have a significant economic impact

on a substantial number of small entities. If the head of the agency

makes a certification under the preceding sentence, the agency

shall publish such certification in the Federal Register at the time

of publication of general notice of proposed rulemaking for the

rule or at the time of publication of the final rule, along with

a statement providing the factual basis for such certification. The

agency shall provide such certification and statement to the Chief

Counsel for Advocacy of the Small Business Administration.’’.

(b) Section 612 of title 5, United States Code, is amended—

(1) in subsection (a), by striking ‘‘the committees on the

Judiciary of the Senate and the House of Representatives,

the Select Committee on Small Business of the Senate, and

the Committee on Small Business of the House of Representatives’’ and inserting ‘‘the Committees on the Judiciary and

Small Business of the Senate and House of Representatives’’.

(2) in subsection (b), by striking ‘‘his views with respect

to the’’ and inserting in lieu thereof, ‘‘his or her views with

respect to compliance with this chapter, the adequacy of the

rulemaking record with respect to small entities and the’’.

Federal Register,

publication.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 867

SEC. 244. SMALL BUSINESS ADVOCACY REVIEW PANELS.

(a) SMALL BUSINESS OUTREACH AND INTERAGENCY COORDINA- TION.— Section 609 of title 5, United States Code, is amended—

(1) before ‘‘techniques,’’ by inserting ‘‘the reasonable use of’’;

(2) in paragraph (4), after ‘‘entities’’ by inserting ‘‘including soliciting and receiving comments over computer networks’’; (3) by designating the current text as subsection (a); and

(4) by adding the following: ‘‘(b) Prior to publication of an initial regulatory flexibility analy- sis which a covered agency is required to conduct by this chapter— ‘‘(1) a covered agency shall notify the Chief Counsel for Advocacy of the Small Business Administration and provide

the Chief Counsel with information on the potential impacts

of the proposed rule on small entities and the type of small

entities that might be affected; ‘‘(2) not later than 15 days after the date of receipt of the materials described in paragraph (1), the Chief Counsel

shall identify individuals representative of affected small entities for the purpose of obtaining advice and recommendations

from those individuals about the potential impacts of the proposed rule;

‘‘(3) the agency shall convene a review panel for such

rule consisting wholly of full time Federal employees of the

office within the agency responsible for carrying out the proposed rule, the Office of Information and Regulatory Affairs

within the Office of Management and Budget, and the Chief

Counsel;

‘‘(4) the panel shall review any material the agency has

prepared in connection with this chapter, including any draft

proposed rule, collect advice and recommendations of each

individual small entity representative identified by the agency

after consultation with the Chief Counsel, on issues related

to subsections 603(b), paragraphs (3), (4) and (5) and 603(c); ‘‘(5) not later than 60 days after the date a covered agency

convenes a review panel pursuant to paragraph (3), the review

panel shall report on the comments of the small entity representatives and its findings as to issues related to subsections

603(b), paragraphs (3), (4) and (5) and 603(c), provided that

such report shall be made public as part of the rulemaking

record; and

‘‘(6) where appropriate, the agency shall modify the proposed rule, the initial regulatory flexibility analysis or the

decision on whether an initial regulatory flexibility analysis

is required.

‘‘(c) An agency may in its discretion apply subsection (b) to

rules that the agency intends to certify under subsection 605(b),

but the agency believes may have a greater than de minimis impact

on a substantial number of small entities.

‘‘(d) For purposes of this section, the term ‘covered agency’

means the Environmental Protection Agency and the Occupational

Safety and Health Administration of the Department of Labor.

‘‘(e) The Chief Counsel for Advocacy, in consultation with the

individuals identified in subsection (b)(2), and with the Administrator of the Office of Information and Regulatory Affairs within

the Office of Management and Budget, may waive the requirements

of subsections (b)(3), (b)(4), and (b)(5) by including in the rulemaking

110 STAT. 868 PUBLIC LAW 104–121—MAR. 29, 1996

record a written finding, with reasons therefor, that those requirements would not advance the effective participation of small entities

in the rulemaking process. For purposes of this subsection, the

factors to be considered in making such a finding are as follows:

‘‘(1) In developing a proposed rule, the extent to which

the covered agency consulted with individuals representative

of affected small entities with respect to the potential impacts

of the rule and took such concerns into consideration.

‘‘(2) Special circumstances requiring prompt issuance of

the rule.

‘‘(3) Whether the requirements of subsection (b) would provide the individuals identified in subsection (b)(2) with a

competitive advantage relative to other small entities.’’.

(b) SMALL BUSINESS ADVOCACY CHAIRPERSONS.—Not later than

30 days after the date of enactment of this Act, the head of each

covered agency that has conducted a final regulatory flexibility

analysis shall designate a small business advocacy chairperson

using existing personnel to the extent possible, to be responsible

for implementing this section and to act as permanent chair of

the agency’s review panels established pursuant to this section.

SEC. 245. EFFECTIVE DATE.

This subtitle shall become effective on the expiration of 90

days after the date of enactment of this subtitle, except that such

amendments shall not apply to interpretative rules for which a

notice of proposed rulemaking was published prior to the date

of enactment.

Subtitle E—Congressional Review

SEC. 251. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.

Title 5, United States Code, is amended by inserting immediately after chapter 7 the following new chapter:

‘‘CHAPTER 8—CONGRESSIONAL REVIEW OF AGENCY

RULEMAKING

‘‘Sec.

‘‘801. Congressional review.

‘‘802. Congressional disapproval procedure.

‘‘803. Special rule on statutory, regulatory, and judicial deadlines.

‘‘804. Definitions.

‘‘805. Judicial review.

‘‘806. Applicability; severability.

‘‘807. Exemption for monetary policy.

‘‘808. Effective date of certain rules.

‘‘§ 801. Congressional review

‘‘(a)(1)(A) Before a rule can take effect, the Federal agency

promulgating such rule shall submit to each House of the Congress

and to the Comptroller General a report containing—

‘‘(i) a copy of the rule;

‘‘(ii) a concise general statement relating to the rule, including whether it is a major rule; and

‘‘(iii) the proposed effective date of the rule.

‘‘(B) On the date of the submission of the report under subparagraph (A), the Federal agency promulgating the rule shall submit

to the Comptroller General and make available to each House

of Congress—

Reports.

5 USC 601 note.

5 USC 609 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 869

‘‘(i) a complete copy of the cost-benefit analysis of the

rule, if any; ‘‘(ii) the agency’s actions relevant to sections 603, 604,

605, 607, and 609;

‘‘(iii) the agency’s actions relevant to sections 202, 203,

204, and 205 of the Unfunded Mandates Reform Act of 1995;

and

‘‘(iv) any other relevant information or requirements under

any other Act and any relevant Executive orders.

‘‘(C) Upon receipt of a report submitted under subparagraph

(A), each House shall provide copies of the report to the chairman

and ranking member of each standing committee with jurisdiction

under the rules of the House of Representatives or the Senate

to report a bill to amend the provision of law under which the

rule is issued.

‘‘(2)(A) The Comptroller General shall provide a report on each

major rule to the committees of jurisdiction in each House of the

Congress by the end of 15 calendar days after the submission

or publication date as provided in section 802(b)(2). The report

of the Comptroller General shall include an assessment of the

agency’s compliance with procedural steps required by paragraph

(1)(B).

‘‘(B) Federal agencies shall cooperate with the Comptroller General by providing information relevant to the Comptroller General’s

report under subparagraph (A).

‘‘(3) A major rule relating to a report submitted under paragraph (1) shall take effect on the latest of—

‘‘(A) the later of the date occurring 60 days after the date

on which—

‘‘(i) the Congress receives the report submitted under

paragraph (1); or

‘‘(ii) the rule is published in the Federal Register, if

so published;

‘‘(B) if the Congress passes a joint resolution of disapproval

described in section 802 relating to the rule, and the President

signs a veto of such resolution, the earlier date—

‘‘(i) on which either House of Congress votes and fails

to override the veto of the President; or

‘‘(ii) occurring 30 session days after the date on which

the Congress received the veto and objections of the President; or

‘‘(C) the date the rule would have otherwise taken effect,

if not for this section (unless a joint resolution of disapproval

under section 802 is enacted).

‘‘(4) Except for a major rule, a rule shall take effect as otherwise

provided by law after submission to Congress under paragraph

(1).

‘‘(5) Notwithstanding paragraph (3), the effective date of a

rule shall not be delayed by operation of this chapter beyond the

date on which either House of Congress votes to reject a joint

resolution of disapproval under section 802.

‘‘(b)(1) A rule shall not take effect (or continue), if the Congress

enacts a joint resolution of disapproval, described under section

802, of the rule.

‘‘(2) A rule that does not take effect (or does not continue)

under paragraph (1) may not be reissued in substantially the same

form, and a new rule that is substantially the same as such a

Effective dates.

Effective date.

Federal Register,

publication.

Effective dates.

Reports.

110 STAT. 870 PUBLIC LAW 104–121—MAR. 29, 1996

rule may not be issued, unless the reissued or new rule is specifically authorized by a law enacted after the date of the joint resolution disapproving the original rule.

‘‘(c)(1) Notwithstanding any other provision of this section

(except subject to paragraph (3)), a rule that would not take effect

by reason of subsection (a)(3) may take effect, if the President

makes a determination under paragraph (2) and submits written

notice of such determination to the Congress.

‘‘(2) Paragraph (1) applies to a determination made by the

President by Executive order that the rule should take effect

because such rule is—

‘‘(A) necessary because of an imminent threat to health

or safety or other emergency;

‘‘(B) necessary for the enforcement of criminal laws;

‘‘(C) necessary for national security; or

‘‘(D) issued pursuant to any statute implementing an international trade agreement.

‘‘(3) An exercise by the President of the authority under this

subsection shall have no effect on the procedures under section

802 or the effect of a joint resolution of disapproval under this

section.

‘‘(d)(1) In addition to the opportunity for review otherwise provided under this chapter, in the case of any rule for which a

report was submitted in accordance with subsection (a)(1)(A) during

the period beginning on the date occurring—

‘‘(A) in the case of the Senate, 60 session days, or

‘‘(B) in the case of the House of Representatives, 60 legislative days,

before the date the Congress adjourns a session of Congress through

the date on which the same or succeeding Congress first convenes

its next session, section 802 shall apply to such rule in the succeeding session of Congress.

‘‘(2)(A) In applying section 802 for purposes of such additional

review, a rule described under paragraph (1) shall be treated as

though—

‘‘(i) such rule were published in the Federal Register (as

a rule that shall take effect) on—

‘‘(I) in the case of the Senate, the 15th session day,

or

‘‘(II) in the case of the House of Representatives, the

15th legislative day,

after the succeeding session of Congress first convenes; and

‘‘(ii) a report on such rule were submitted to Congress

under subsection (a)(1) on such date.

‘‘(B) Nothing in this paragraph shall be construed to affect

the requirement under subsection (a)(1) that a report shall be

submitted to Congress before a rule can take effect.

‘‘(3) A rule described under paragraph (1) shall take effect

as otherwise provided by law (including other subsections of this

section).

‘‘(e)(1) For purposes of this subsection, section 802 shall also

apply to any major rule promulgated between March 1, 1996, and

the date of the enactment of this chapter.

‘‘(2) In applying section 802 for purposes of Congressional

review, a rule described under paragraph (1) shall be treated as

though—

Effective date.

Federal Register,

publication.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 871

‘‘(A) such rule were published in the Federal Register on

the date of enactment of this chapter; and

‘‘(B) a report on such rule were submitted to Congress

under subsection (a)(1) on such date.

‘‘(3) The effectiveness of a rule described under paragraph (1)

shall be as otherwise provided by law, unless the rule is made

of no force or effect under section 802.

‘‘(f) Any rule that takes effect and later is made of no force

or effect by enactment of a joint resolution under section 802 shall

be treated as though such rule had never taken effect.

‘‘(g) If the Congress does not enact a joint resolution of disapproval under section 802 respecting a rule, no court or agency

may infer any intent of the Congress from any action or inaction

of the Congress with regard to such rule, related statute, or joint

resolution of disapproval.

‘‘§ 802. Congressional disapproval procedure

‘‘(a) For purposes of this section, the term ‘joint resolution’

means only a joint resolution introduced in the period beginning

on the date on which the report referred to in section 801(a)(1)(A)

is received by Congress and ending 60 days thereafter (excluding

days either House of Congress is adjourned for more than 3 days

during a session of Congress), the matter after the resolving clause

of which is as follows: ‘That Congress disapproves the rule submitted by the ll relating to ll, and such rule shall have no

force or effect.’ (The blank spaces being appropriately filled in).

‘‘(b)(1) A joint resolution described in subsection (a) shall be

referred to the committees in each House of Congress with jurisdiction.

‘‘(2) For purposes of this section, the term ‘submission or

publication date’ means the later of the date on which—

‘‘(A) the Congress receives the report submitted under section 801(a)(1); or

‘‘(B) the rule is published in the Federal Register, if so

published.

‘‘(c) In the Senate, if the committee to which is referred a

joint resolution described in subsection (a) has not reported such

joint resolution (or an identical joint resolution) at the end of

20 calendar days after the submission or publication date defined

under subsection (b)(2), such committee may be discharged from

further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint

resolution shall be placed on the calendar.

‘‘(d)(1) In the Senate, when the committee to which a joint

resolution is referred has reported, or when a committee is discharged (under subsection (c)) from further consideration of a joint

resolution described in subsection (a), it is at any time thereafter

in order (even though a previous motion to the same effect has

been disagreed to) for a motion to proceed to the consideration

of the joint resolution, and all points of order against the joint

resolution (and against consideration of the joint resolution) are

waived. The motion is not subject to amendment, or to a motion

to postpone, or to a motion to proceed to the consideration of

other business. A motion to reconsider the vote by which the motion

is agreed to or disagreed to shall not be in order. If a motion

to proceed to the consideration of the joint resolution is agreed

Federal Register,

publication.

Federal Register,

publication.

110 STAT. 872 PUBLIC LAW 104–121—MAR. 29, 1996

to, the joint resolution shall remain the unfinished business of

the Senate until disposed of.

‘‘(2) In the Senate, debate on the joint resolution, and on all

debatable motions and appeals in connection therewith, shall be

limited to not more than 10 hours, which shall be divided equally

between those favoring and those opposing the joint resolution.

A motion further to limit debate is in order and not debatable.

An amendment to, or a motion to postpone, or a motion to proceed

to the consideration of other business, or a motion to recommit

the joint resolution is not in order.

‘‘(3) In the Senate, immediately following the conclusion of

the debate on a joint resolution described in subsection (a), and

a single quorum call at the conclusion of the debate if requested

in accordance with the rules of the Senate, the vote on final passage

of the joint resolution shall occur.

‘‘(4) Appeals from the decisions of the Chair relating to the

application of the rules of the Senate to the procedure relating

to a joint resolution described in subsection (a) shall be decided

without debate.

‘‘(e) In the Senate the procedure specified in subsection (c)

or (d) shall not apply to the consideration of a joint resolution

respecting a rule—

‘‘(1) after the expiration of the 60 session days beginning

with the applicable submission or publication date, or

‘‘(2) if the report under section 801(a)(1)(A) was submitted

during the period referred to in section 801(d)(1), after the

expiration of the 60 session days beginning on the 15th session

day after the succeeding session of Congress first convenes.

‘‘(f) If, before the passage by one House of a joint resolution

of that House described in subsection (a), that House receives

from the other House a joint resolution described in subsection

(a), then the following procedures shall apply:

‘‘(1) The joint resolution of the other House shall not be

referred to a committee.

‘‘(2) With respect to a joint resolution described in subsection (a) of the House receiving the joint resolution—

‘‘(A) the procedure in that House shall be the same

as if no joint resolution had been received from the other

House; but

‘‘(B) the vote on final passage shall be on the joint

resolution of the other House.

‘‘(g) This section is enacted by Congress—

‘‘(1) as an exercise of the rulemaking power of the Senate

and House of Representatives, respectively, and as such it

is deemed a part of the rules of each House, respectively,

but applicable only with respect to the procedure to be followed

in that House in the case of a joint resolution described in

subsection (a), and it supersedes other rules only to the extent

that it is inconsistent with such rules; and

‘‘(2) with full recognition of the constitutional right of either

House to change the rules (so far as relating to the procedure

of that House) at any time, in the same manner, and to the

same extent as in the case of any other rule of that House.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 873

‘‘§ 803. Special rule on statutory, regulatory, and judicial deadlines

‘‘(a) In the case of any deadline for, relating to, or involving any rule which does not take effect (or the effectiveness of which

is terminated) because of enactment of a joint resolution under

section 802, that deadline is extended until the date 1 year after

the date of enactment of the joint resolution. Nothing in this subsection shall be construed to affect a deadline merely by reason

of the postponement of a rule’s effective date under section 801(a). ‘‘(b) The term ‘deadline’ means any date certain for fulfilling any obligation or exercising any authority established by or under

any Federal statute or regulation, or by or under any court order

implementing any Federal statute or regulation.

‘‘§ 804. Definitions

‘‘For purposes of this chapter— ‘‘(1) The term ‘Federal agency’ means any agency as that term is defined in section 551(1).

‘‘(2) The term ‘major rule’ means any rule that the Administrator of the Office of Information and Regulatory Affairs of

the Office of Management and Budget finds has resulted in

or is likely to result in—

‘‘(A) an annual effect on the economy of $100,000,000

or more;

‘‘(B) a major increase in costs or prices for consumers,

individual industries, Federal, State, or local government

agencies, or geographic regions; or

‘‘(C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability

of United States-based enterprises to compete with foreignbased enterprises in domestic and export markets.

The term does not include any rule promulgated under the

Telecommunications Act of 1996 and the amendments made

by that Act.

‘‘(3) The term ‘rule’ has the meaning given such term

in section 551, except that such term does not include—

‘‘(A) any rule of particular applicability, including a

rule that approves or prescribes for the future rates, wages,

prices, services, or allowances therefor, corporate or financial structures, reorganizations, mergers, or acquisitions

thereof, or accounting practices or disclosures bearing on

any of the foregoing;

‘‘(B) any rule relating to agency management or personnel; or

‘‘(C) any rule of agency organization, procedure, or

practice that does not substantially affect the rights or

obligations of non-agency parties.

‘‘§ 805. Judicial review

‘‘No determination, finding, action, or omission under this chapter shall be subject to judicial review.

‘‘§ 806. Applicability; severability

‘‘(a) This chapter shall apply notwithstanding any other provision of law.

‘‘(b) If any provision of this chapter or the application of any

provision of this chapter to any person or circumstance, is held

110 STAT. 874 PUBLIC LAW 104–121—MAR. 29, 1996

invalid, the application of such provision to other persons or circumstances, and the remainder of this chapter, shall not be affected

thereby.

‘‘§ 807. Exemption for monetary policy

‘‘Nothing in this chapter shall apply to rules that concern

monetary policy proposed or implemented by the Board of Governors

of the Federal Reserve System or the Federal Open Market Committee.

‘‘§ 808. Effective date of certain rules

‘‘Notwithstanding section 801—

‘‘(1) any rule that establishes, modifies, opens, closes, or

conducts a regulatory program for a commercial, recreational,

or subsistence activity related to hunting, fishing, or camping,

or

‘‘(2) any rule which an agency for good cause finds (and

incorporates the finding and a brief statement of reasons therefor in the rule issued) that notice and public procedure thereon

are impracticable, unnecessary, or contrary to the public

interest,

shall take effect at such time as the Federal agency promulgating

the rule determines.’’.

SEC. 252. EFFECTIVE DATE.

The amendment made by section 351 shall take effect on the

date of enactment of this Act.

SEC. 253. TECHNICAL AMENDMENT.

The table of chapters for part I of title 5, United States Code,

is amended by inserting immediately after the item relating to

chapter 7 the following:

‘‘8. Congressional Review of Agency Rulemaking ...................................... 801’’.

5 USC 801 note.

PUBLIC LAW 104–121—MAR. 29, 1996 110 STAT. 875

LEGISLATIVE HISTORY—H.R. 3136 (S. 942):

CONGRESSIONAL RECORD, Vol. 142 (1996):

Mar. 15, 19, S. 942 considered and passed Senate.

Mar. 28, H.R. 3136 considered and passed House and Senate.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):

Mar. 29, Presidential statement.

Æ

TITLE III—PUBLIC DEBT LIMIT

SEC. 301. INCREASE IN PUBLIC DEBT LIMIT.

Subsection (b) of section 3101 of title 31, United States Code,

is amended by striking the dollar limitation contained in such

subsection and inserting ‘‘$5,500,000,000,000’’.

Approved March 29, 1996.