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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1730 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1730

 To reform the regulatory process to ensure that small businesses are 
  free to compete and to create jobs, to clear unnecessary regulatory 
                    burdens, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 19, 2013

  Ms. Collins introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
 To reform the regulatory process to ensure that small businesses are 
  free to compete and to create jobs, to clear unnecessary regulatory 
                    burdens, and for other purposes.

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

            TITLE I--CLEARING UNNECESSARY REGULATORY BURDENS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Clearing Unnecessary Regulatory 
Burdens Act of 2013'' or the ``CURB Act''.

SEC. 102. REGULATORY REFORM.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Office of Information and Regulatory Affairs in the Office 
        of Management and Budget;
            (2) the term ``agency'' has the same meaning as in section 
        3502(1) of title 44, United States Code;
            (3) the term ``economically significant guidance document'' 
        means a significant guidance document that may reasonably be 
        anticipated to lead to an annual effect on the economy of 
        $100,000,000 or more or adversely affect in a material way the 
        economy or a sector of the economy, except that economically 
        significant guidance documents do not include guidance 
        documents on Federal expenditures and receipts;
            (4) the term ``disseminated''--
                    (A) means prepared by an agency and distributed to 
                the public or regulated entities; and
                    (B) does not include--
                            (i) distribution limited to Federal 
                        Government employees;
                            (ii) intra- or interagency use or sharing 
                        of Federal Government information; and
                            (iii) responses to requests for agency 
                        records under section 552 of title 5, United 
                        States Code (commonly referred to as the 
                        ``Freedom of Information Act''), section 552a 
                        of title 5, United States Code, (commonly 
                        referred to as the ``Privacy Act''), the 
                        Federal Advisory Committee Act (5 U.S.C. App.), 
                        or other similar laws;
            (5) the term ``guidance document'' means an agency 
        statement of general applicability and future effect, other 
        than a regulatory action, that sets forth a policy on a 
        statutory, regulatory or technical issue or an interpretation 
        of a statutory or regulatory issue;
            (6) the term ``regulation'' means an agency statement of 
        general applicability and future effect, which the agency 
        intends to have the force and effect of law, that is designed 
        to implement, interpret, or prescribe law or policy or to 
        describe the procedure or practice requirements of an agency;
            (7) the term ``regulatory action'' means any substantive 
        action by an agency (normally published in the Federal 
        Register) that promulgates or is expected to lead to the 
        promulgation of a final regulation, including notices of 
        inquiry, advance notices of proposed rulemaking, and notices of 
        proposed rulemaking;
            (8) the term ``significant guidance document''--
                    (A) means a guidance document disseminated to 
                regulated entities or the general public that may 
                reasonably be anticipated to--
                            (i) lead to an annual effect on the economy 
                        of $100,000,000 or more or affect in a material 
                        way the economy, a sector of the economy, 
                        productivity, competition, jobs, the 
                        environment, public health or safety, or State, 
                        local, or tribal governments or communities;
                            (ii) create a serious inconsistency or 
                        otherwise interfere with an action taken or 
                        planned by another agency;
                            (iii) materially alter the budgetary impact 
                        of entitlements, grants, user fees, or loan 
                        programs or the rights and obligations of 
                        recipients thereof; or
                            (iv) raise novel legal or policy issues 
                        arising out of legal mandates and the 
                        priorities, principles, and provisions of this 
                        section; and
                    (B) does not include--
                            (i) legal advisory opinions for internal 
                        Executive Branch use and not for release (such 
                        as Department of Justice Office of Legal 
                        Counsel opinions);
                            (ii) briefs and other positions taken by 
                        agencies in investigations, pre-litigation, 
                        litigation, or other enforcement proceedings;
                            (iii) speeches;
                            (iv) editorials;
                            (v) media interviews;
                            (vi) press materials;
                            (vii) congressional correspondence;
                            (viii) guidance documents that pertain to a 
                        military or foreign affairs function of the 
                        United States (other than guidance on 
                        procurement or the import or export of non-
                        defense articles and services);
                            (ix) grant solicitations;
                            (x) warning letters;
                            (xi) case or investigatory letters 
                        responding to complaints involving fact-
                        specific determinations;
                            (xii) purely internal agency policies;
                            (xiii) guidance documents that pertain to 
                        the use, operation or control of a government 
                        facility;
                            (xiv) internal guidance documents directed 
                        solely to other agencies; and
                            (xv) any other category of significant 
                        guidance documents exempted by an agency head 
                        in consultation with the Administrator; and
            (9) the term ``significant regulatory action'' means any 
        regulatory action that is likely to result in a regulation that 
        may--
                    (A) have an annual effect on the economy of 
                $100,000,000 or more or adversely affect in a material 
                way the economy, a sector of the economy, productivity, 
                competition, jobs, the environment, public health or 
                safety, or State, local, or tribal governments or 
                communities;
                    (B) create a serious inconsistency or otherwise 
                interfere with an action taken or planned by another 
                agency;
                    (C) materially alter the budgetary impact of 
                entitlements, grants, user fees, or loan programs or 
                the rights and obligations of recipients thereof; or
                    (D) raise novel legal or policy issues arising out 
                of legal mandates and the priorities, principles, and 
                provisions of this section.
    (b) Agency Assessment of Significant Regulatory Actions.--For each 
significant regulatory action, each agency shall submit, at such times 
specified by the Administrator, a report to the Office of Information 
and Regulatory Affairs that includes--
            (1) an assessment, including the underlying analysis, of 
        benefits anticipated from the significant regulatory action, 
        such as--
                    (A) the promotion of the efficient functioning of 
                the economy and private markets;
                    (B) the enhancement of health and safety;
                    (C) the protection of the natural environment; and
                    (D) the elimination or reduction of discrimination 
                or bias;
            (2) to the extent feasible, a quantification of the 
        benefits assessed under paragraph (1);
            (3) an assessment, including the underlying analysis, of 
        costs anticipated from the regulatory action, such as--
                    (A) the direct cost both to the Federal Government 
                in administering the significant regulatory action and 
                to businesses, consumers, and others (including State, 
                local, and tribal officials) in complying with the 
                regulation; and
                    (B) any adverse effects on the efficient 
                functioning of the economy, private markets (including 
                productivity, employment, and competitiveness), health, 
                safety, the natural environment, job creation, the 
                prices of consumer goods, and energy costs;
            (4) to the extent feasible, a quantification of the costs 
        assessed under paragraph (3); and
            (5) an assessment, including the underlying analysis, of 
        costs and benefits of potentially effective and reasonably 
        feasible alternatives to the planned significant regulatory 
        action, identified by the agency or the public (including 
        improving the current regulation and reasonably viable 
        nonregulatory actions), and an explanation why the planned 
        regulatory action is preferable to the identified potential 
        alternatives.
    (c) Agency Good Guidance Practices.--
            (1) Agency standards for significant guidance documents.--
                    (A) Approval procedures.--
                            (i) In general.--Each agency shall develop 
                        or have written procedures for the approval of 
                        significant guidance documents, which shall 
                        ensure that the issuance of significant 
                        guidance documents is approved by appropriate 
                        senior agency officials.
                            (ii) Requirement.--Employees of an agency 
                        may not depart from significant guidance 
                        documents without appropriate justification and 
                        supervisory concurrence.
                    (B) Standard elements.--Each significant guidance 
                document--
                            (i) shall--
                                    (I) include the term ``guidance'' 
                                or its functional equivalent;
                                    (II) identify the agency or office 
                                issuing the document;
                                    (III) identify the activity to 
                                which and the persons to whom the 
                                significant guidance document applies;
                                    (IV) include the date of issuance;
                                    (V) note if the significant 
                                guidance document is a revision to a 
                                previously issued guidance document 
                                and, if so, identify the document that 
                                the significant guidance document 
                                replaces;
                                    (VI) provide the title of the 
                                document and a document identification 
                                number; and
                                    (VII) include the citation to the 
                                statutory provision or regulation (in 
                                Code of Federal Regulations format) 
                                which the significant guidance document 
                                applies to or interprets; and
                            (ii) shall not include mandatory terms such 
                        as ``shall'', ``must'', ``required'', or 
                        ``requirement'' unless--
                                    (I) the agency is using those terms 
                                to describe a statutory or regulatory 
                                requirement; or
                                    (II) the terminology is addressed 
                                to agency staff and will not foreclose 
                                agency consideration of positions 
                                advanced by affected private parties.
            (2) Public access and feedback for significant guidance 
        documents.--
                    (A) Internet access.--
                            (i) In general.--Each agency shall--
                                    (I) maintain on the Web site for 
                                the agency, or as a link on the Web 
                                site of the agency to the electronic 
                                list posted on a Web site of a 
                                component of the agency a list of the 
                                significant guidance documents in 
                                effect of the agency, including a link 
                                to the text of each significant 
                                guidance document that is in effect; 
                                and
                                    (II) not later than 30 days after 
                                the date on which a significant 
                                guidance document is issued, update the 
                                list described in clause (i).
                            (ii) List requirements.--The list described 
                        in subparagraph (A)(i) shall--
                                    (I) include the name of each--
                                            (aa) significant guidance 
                                        document;
                                            (bb) document 
                                        identification number; and
                                            (cc) issuance and revision 
                                        dates; and
                                    (II) identify significant guidance 
                                documents that have been added, 
                                revised, or withdrawn in the preceding 
                                year.
                    (B) Public feedback.--
                            (i) In general.--Each agency shall 
                        establish and clearly advertise on the Web site 
                        for the agency a means for the public to 
                        electronically submit--
                                    (I) comments on significant 
                                guidance documents; and
                                    (II) a request for issuance, 
                                reconsideration, modification, or 
                                rescission of significant guidance 
                                documents.
                            (ii) Agency response.--Any comments or 
                        requests submitted under subparagraph (A)--
                                    (I) are for the benefit of the 
                                agency; and
                                    (II) shall not require a formal 
                                response from the agency.
                            (iii) Office for public comments.--
                                    (I) In general.--Each agency shall 
                                designate an office to receive and 
                                address complaints from the public 
                                relating to--
                                            (aa) the failure of the 
                                        agency to follow the procedures 
                                        described in this section; or
                                            (bb) the failure to treat a 
                                        significant guidance document 
                                        as a binding requirement.
                                    (II) Web site.--The agency shall 
                                provide, on the Web site of the agency, 
                                the name and contact information for 
                                the office designated under clause (i).
            (3) Notice and public comment for economically significant 
        guidance documents.--
                    (A) In general.--Except as provided in paragraph 
                (2), in preparing a draft of an economically 
                significant guidance document, and before issuance of 
                the final significant guidance document, each agency 
                shall--
                            (i) publish a notice in the Federal 
                        Register announcing that the draft document is 
                        available;
                            (ii) post the draft document on the 
                        Internet and make a tangible copy of that 
                        document publicly available (or notify the 
                        public how the public can review the guidance 
                        document if the document is not in a format 
                        that permits such electronic posting with 
                        reasonable efforts);
                            (iii) invite public comment on the draft 
                        document; and
                            (iv) prepare and post on the Web site of 
                        the agency a document with responses of the 
                        agency to public comments.
                    (B) Exceptions.--In consultation with the 
                Administrator, an agency head may identify a particular 
                economically significant guidance document or category 
                of such documents for which the procedures of this 
                subsection are not feasible or appropriate.
            (4) Emergencies.--
                    (A) In general.--In emergency situations or when an 
                agency is obligated by law to act more quickly than 
                normal review procedures allow, the agency shall notify 
                the Administrator as soon as possible and, to the 
                extent practicable, comply with this subsection.
                    (B) Significant guidance documents subject to 
                statutory or court-imposed deadline.--For a significant 
                guidance document that is governed by a statutory or 
                court-imposed deadline, the agency shall, to the extent 
                practicable, schedule the proceedings of the agency to 
                permit sufficient time to comply with this subsection.
            (5) Effective date.--This section shall take effect 60 days 
        after the date of enactment of this Act.

SEC. 103. REDUCTION OR WAIVER OF CIVIL PENALTIES IMPOSED ON SMALL 
              ENTITIES.

    (a) In General.--Chapter 6 of title 5, United States Code, is 
amended by adding at the end the following:
``Sec. 613. Reduction or waiver of civil penalties imposed on small 
              entities
    ``(a) Upon notifying a small entity of a violation by the small 
entity of a collection of information or recordkeeping requirement, the 
agency shall provide the small entity with an opportunity to request 
that the agency reduce or waive any civil penalty imposed on the small 
entity as a result of the violation.
    ``(b) If a small entity requests a reduction or waiver under 
subsection (a), the agency that receives the request shall--
            ``(1) review the records of the agency; and
            ``(2) reduce or waive the civil penalty imposed on the 
        small entity if the agency determines that--
                    ``(A) the civil penalty was the result of a first-
                time violation by the small entity of a collection of 
                information or recordkeeping requirement; and
                    ``(B) the reduction or waiver is consistent with 
                the conditions and exclusions described in paragraphs 
                (1), (3), (4), (5), and (6) of section 223(b) of the 
                Small Business Regulatory Enforcement Fairness Act of 
                1996 (5 U.S.C. 601 note).
    ``(c) Not later than 60 days after the receipt of a request from a 
small entity under subsection (a), an agency shall send the small 
entity written notice of the determination of the agency with respect 
to the request and the reasons for the determination.
    ``(d) The Chief Counsel for Advocacy shall submit to Congress an 
annual report summarizing--
            ``(1) all requests received by the agencies under 
        subsection (a) during the previous year; and
            ``(2) the results of the requests described in paragraph 
        (1).''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 6 of title 5, United States Code, is amended by adding at the 
end the following:

``613. Reduction or waiver of civil penalties imposed on small 
                            entities.''.

              TITLE II--REGULATORY FLEXIBILITY IMPROVEMENT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Regulatory Flexibility Improvement 
Act of 2013''.

SEC. 202. FINDINGS.

    Congress finds the following:
            (1) A vibrant and growing small business sector is critical 
        to the recovery of the economy of the United States.
            (2) Regulations designed for application to large-scale 
        entities have been applied uniformly to small businesses and 
        other small entities, sometimes inhibiting the ability of small 
        entities to create new jobs.
            (3) Uniform Federal regulatory and reporting requirements 
        in many instances have imposed on small businesses and other 
        small entities unnecessary and disproportionately burdensome 
        demands, including legal, accounting, and consulting costs, 
        thereby threatening the viability of small entities and the 
        ability of small entities to compete and create new jobs in a 
        global marketplace.
            (4) Since 1980, Federal agencies have been required to 
        recognize and take account of the differences in the scale and 
        resources of regulated entities, but in many instances have 
        failed to do so.
            (5) In 2009, there were nearly 70,000 pages in the Federal 
        Register, and, according to research by the Office of Advocacy 
        of the Small Business Administration, the annual cost of 
        Federal regulations totals $1,750,000,000,000. Small firms bear 
        a disproportionate burden, paying approximately 36 percent more 
        per employee than larger firms in annual regulatory compliance 
        costs.
            (6) All agencies in the Federal Government should fully 
        consider the costs, including indirect economic impacts and the 
        potential for job loss, of proposed rules, periodically review 
        existing regulations to determine their impact on small 
        entities, and repeal regulations that are unnecessarily 
        duplicative or have outlived their stated purpose.
            (7) It is the intention of Congress to amend chapter 6 of 
        title 5, United States Code, to ensure that all impacts, 
        including foreseeable indirect effects, of proposed and final 
        rules are considered by agencies during the rulemaking process 
        and that the agencies assess a full range of alternatives that 
        will limit adverse economic consequences, enhance economic 
        benefits, and fully address potential job loss.

SEC. 203. INCLUDING INDIRECT ECONOMIC IMPACT IN SMALL ENTITY ANALYSES.

    Section 601 of title 5, United States Code, is amended by adding at 
the end the following:
            ``(9) the term `economic impact' means, with respect to a 
        proposed or final rule--
                    ``(A) the economic effects on small entities 
                directly regulated by the rule; and
                    ``(B) the reasonably foreseeable economic effects 
                of the rule on small entities that--
                            ``(i) purchase products or services from, 
                        sell products or services to, or otherwise 
                        conduct business with entities directly 
                        regulated by the rule;
                            ``(ii) are directly regulated by other 
                        governmental entities as a result of the rule; 
                        or
                            ``(iii) are not directly regulated by the 
                        agency as a result of the rule but are 
                        otherwise subject to other agency regulations 
                        as a result of the rule.''.

SEC. 204. JUDICIAL REVIEW TO ALLOW SMALL ENTITIES TO CHALLENGE PROPOSED 
              REGULATIONS.

    Section 611(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by inserting ``603,'' after ``601,'';
            (2) in paragraph (2), by inserting ``603,'' after ``601,'';
            (3) by striking paragraph (3) and inserting the following:
    ``(3) A small entity may seek such review during the 1-year period 
beginning on the date of final agency action, except that--
            ``(A) if a provision of law requires that an action 
        challenging a final agency action be commenced before the 
        expiration of 1 year, the lesser period shall apply to an 
        action for judicial review under this section; and
            ``(B) in the case of noncompliance with section 603 or 
        605(b), a small entity may seek judicial review of agency 
        compliance with such section before the close of the public 
        comment period.''; and
            (4) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``, and'' and 
                inserting a semicolon;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(C) issuing an injunction prohibiting an agency from 
        taking any agency action with respect to a rulemaking until 
        that agency is in compliance with the requirements of section 
        603 or 605.''.

SEC. 205. PERIODIC REVIEW.

    Section 610 of title 5, United States Code, is amended to read as 
follows:
``Sec. 610. Periodic review of rules
    ``(a)(1) Not later than 180 days after the date of enactment of the 
Regulatory Flexibility Improvement Act of 2013, each agency shall 
establish a plan for the periodic review of--
            ``(A) each rule issued by the agency that the head of the 
        agency determines has a significant economic impact on a 
        substantial number of small entities, without regard to whether 
        the agency performed an analysis under section 604 with respect 
        to the rule; and
            ``(B) any small entity compliance guide required to be 
        published by the agency under section 212 of the Small Business 
        Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 
        note).
    ``(2) In reviewing rules and small entity compliance guides under 
paragraph (1), the agency shall determine whether the rules and guides 
should--
            ``(A) be amended or rescinded, consistent with the stated 
        objectives of applicable statutes, to minimize any significant 
        adverse economic impacts on a substantial number of small 
        entities (including an estimate of any adverse impacts on job 
        creation and employment by small entities); or
            ``(B) continue in effect without change.
    ``(3) Each agency shall publish the plan established under 
paragraph (1) in the Federal Register and on the Web site of the 
agency.
    ``(4) An agency may amend the plan established under paragraph (1) 
at any time by publishing the amendment in the Federal Register and on 
the Web site of the agency.
    ``(b) Each plan established under subsection (a) shall provide 
for--
            ``(1) the review of each rule and small entity compliance 
        guide described in subsection (a)(1) in effect on the date of 
        enactment of the Regulatory Flexibility Improvement Act of 
        2013--
                    ``(A) not later than 9 years after the date of 
                publication of the plan in the Federal Register; and
                    ``(B) every 9 years thereafter; and
            ``(2) the review of each rule adopted and small entity 
        compliance guide described in subsection (a)(1) that is 
        published after the date of enactment of the Regulatory 
        Flexibility Improvement Act of 2013--
                    ``(A) not later than 9 years after the publication 
                of the final rule in the Federal Register; and
                    ``(B) every 9 years thereafter.
    ``(c) In reviewing rules under the plan required under subsection 
(a), the agency shall consider--
            ``(1) the continued need for the rule;
            ``(2) the nature of complaints received by the agency from 
        small entities concerning the rule;
            ``(3) comments by the Regulatory Enforcement Ombudsman and 
        the Chief Counsel for Advocacy of the Small Business 
        Administration;
            ``(4) the complexity of the rule;
            ``(5) the extent to which the rule overlaps, duplicates, or 
        conflicts with other Federal rules and, unless the head of the 
        agency determines it to be infeasible, State and local rules;
            ``(6) the contribution of the rule to the cumulative 
        economic impact of all Federal rules on the class of small 
        entities affected by the rule, unless the head of the agency 
        determines that such a calculation cannot be made;
            ``(7) the length of time since the rule has been evaluated, 
        or the degree to which technology, economic conditions, or 
        other factors have changed in the area affected by the rule; 
        and
            ``(8) the economic impact of the rule, including--
                    ``(A) the estimated number of small entities to 
                which the rule will apply;
                    ``(B) the estimated number of small entity jobs 
                that will be lost or created due to the rule; and
                    ``(C) the projected reporting, recordkeeping, and 
                other compliance requirements of the proposed rule, 
                including--
                            ``(i) an estimate of the classes of small 
                        entities that will be subject to the 
                        requirement; and
                            ``(ii) the type of professional skills 
                        necessary for preparation of the report or 
                        record.
    ``(d)(1) Each agency shall submit an annual report regarding the 
results of the review required under subsection (a) to--
            ``(A) Congress; and
            ``(B) in the case of an agency that is not an independent 
        regulatory agency (as defined in section 3502(5) of title 44), 
        the Administrator of the Office of Information and Regulatory 
        Affairs of the Office of Management and Budget.
    ``(2) Each report required under paragraph (1) shall include a 
description of any rule or guide with respect to which the agency made 
a determination of infeasibility under paragraph (5) or (6) of 
subsection (c), together with a detailed explanation of the reasons for 
the determination.
    ``(e) Each agency shall publish in the Federal Register and on the 
Web site of the agency a list of the rules and small entity compliance 
guides to be reviewed under the plan required under subsection (a) that 
includes--
            ``(1) a brief description of each rule or guide;
            ``(2) for each rule, the reason why the head of the agency 
        determined that the rule has a significant economic impact on a 
        substantial number of small entities (without regard to whether 
        the agency had prepared a final regulatory flexibility analysis 
        for the rule); and
            ``(3) a request for comments from the public, the Chief 
        Counsel for Advocacy of the Small Business Administration, and 
        the Regulatory Enforcement Ombudsman concerning the enforcement 
        of the rules or publication of the guides.
    ``(f)(1) Not later than 6 months after each date described in 
subsection (b)(1), the Inspector General for each agency shall--
            ``(A) determine whether the agency has conducted the review 
        required under subsection (b) appropriately; and
            ``(B) notify the head of the agency of--
                    ``(i) the results of the determination under 
                subparagraph (A); and
                    ``(ii) any issues preventing the Inspector General 
                from determining that the agency has conducted the 
                review under subsection (b) appropriately.
    ``(2)(A) Not later than 6 months after the date on which the head 
of an agency receives a notice under paragraph (1)(B) that the agency 
has not conducted the review under subsection (b) appropriately, the 
agency shall address the issues identified in the notice.
    ``(B) Not later than 30 days after the last day of the 6-month 
period described in subparagraph (A), the Inspector General for an 
agency that receives a notice described in subparagraph (A) shall--
            ``(i) determine whether the agency has addressed the issues 
        identified in the notice; and
            ``(ii) notify Congress if the Inspector General determines 
        that the agency has not addressed the issues identified in the 
        notice; and
    ``(C) Not later than 30 days after the date on which the Inspector 
General for an agency transmits a notice under subparagraph (B)(ii), an 
amount equal to 1 percent of the amount appropriated for the fiscal 
year to the appropriations account of the agency that is used to pay 
salaries shall be rescinded.
    ``(D) Nothing in this paragraph may be construed to prevent 
Congress from acting to prevent a rescission under subparagraph (C).''.

SEC. 206. REQUIRING SMALL BUSINESS REVIEW PANELS FOR ADDITIONAL 
              AGENCIES.

    (a) Agencies.--Section 609 of title 5, United States Code, is 
amended--
            (1) in subsection (b)--
                    (A) by striking ``a covered agency'' the first 
                place it appears and inserting ``an agency designated 
                under subsection (d)''; and
                    (B) by striking ``a covered agency'' each place it 
                appears and inserting ``the agency'';
            (2) by striking subsection (d), as amended by section 
        1100G(a) of Public Law 111-203 (124 Stat. 2112), and inserting 
        the following:
    ``(d)(1)(A) On and after the date of enactment of the Regulatory 
Flexibility Improvement Act of 2013, the Environmental Protection 
Agency and the Occupational Safety and Health Administration of the 
Department of Labor shall be--
            ``(i) agencies designated under this subsection; and
            ``(ii) subject to the requirements of subsection (b).
    ``(B) On and after the designated transfer date established under 
section 1062 of Public Law 111-203 (12 U.S.C. 5582), the Bureau of 
Consumer Financial Protection shall be--
            ``(i) an agency designated under this subsection; and
            ``(ii) subject to the requirements of subsection (b).
    ``(2) The Chief Counsel for Advocacy shall designate as agencies 
that shall be subject to the requirements of subsection (b) on and 
after the date of the designation--
            ``(A) 3 agencies for the first year after the date of 
        enactment of the Regulatory Flexibility Improvement Act of 
        2013;
            ``(B) in addition to the agencies designated under 
        subparagraph (A), 3 agencies for the second year after the date 
        of enactment of the Regulatory Flexibility Improvement Act of 
        2013; and
            ``(C) in addition to the agencies designated under 
        subparagraphs (A) and (B), 3 agencies for the third year after 
        the date of enactment of the Regulatory Flexibility Improvement 
        Act of 2013.
    ``(3) The Chief Counsel for Advocacy shall designate agencies under 
paragraph (2) based on the economic impact of the rules of the agency 
on small entities, beginning with agencies with the largest economic 
impact on small entities.''; and
            (3) in subsection (e)(1), by striking ``the covered 
        agency'' and inserting ``the agency''.
    (b) Technical and Conforming Amendments.--
            (1) Section 603.--Section 603(d) of title 5, United States 
        Code, as added by section 1100G(b) of Public Law 111-203 (124 
        Stat. 2112), is amended--
                    (A) in paragraph (1), by striking ``a covered 
                agency, as defined in section 609(d)(2)'' and inserting 
                ``the Bureau of Consumer Financial Protection''; and
                    (B) in paragraph (2), by striking ``A covered 
                agency, as defined in section 609(d)(2),'' and 
                inserting ``The Bureau of Consumer Financial 
                Protection''.
            (2) Section 604.--Section 604(a) of title 5, United States 
        Code, is amended--
                    (A) by redesignating the second paragraph 
                designated as paragraph (6) (relating to covered 
                agencies), as added by section 1100G(c)(3) of Public 
                Law 111-203 (124 Stat. 2113), as paragraph (7); and
                    (B) in paragraph (7), as so redesignated--
                            (i) by striking ``a covered agency, as 
                        defined in section 609(d)(2)'' and inserting 
                        ``the Bureau of Consumer Financial 
                        Protection''; and
                            (ii) by striking ``the agency'' and 
                        inserting ``the Bureau''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of enactment of this Act and 
        apply on and after the designated transfer date established 
        under section 1062 of Public Law 111-203 (12 U.S.C. 5582).

SEC. 207. EXPANDING THE REGULATORY FLEXIBILITY ACT TO AGENCY GUIDANCE 
              DOCUMENTS.

    Section 601(2) of title 5, United States Code, is amended by 
inserting after ``public comment'' the following: ``and any significant 
guidance document, as defined in the Office of Management and Budget 
Final Bulletin for Agency Good Guidance Procedures (72 Fed. Reg. 3432; 
January 25, 2007)''.

SEC. 208. REQUIRING THE INTERNAL REVENUE SERVICE TO CONSIDER SMALL 
              ENTITY IMPACT.

    (a) In General.--Section 603(a) of title 5, United States Code, is 
amended, in the fifth sentence, by striking ``but only'' and all that 
follows through the period at the end and inserting ``but only to the 
extent that such interpretative rules, or the statutes upon which such 
rules are based, impose on small entities a collection of information 
requirement or a recordkeeping requirement.''.
    (b) Definitions.--Section 601 of title 5, United States Code, as 
amended by section 103 of this title, is amended--
            (1) in paragraph (6), by striking ``and'' at the end; and
            (2) by striking paragraphs (7) and (8) and inserting the 
        following:
            ``(7) the term `collection of information' has the meaning 
        given that term in section 3502(3) of title 44;
            ``(8) the term `recordkeeping requirement' has the meaning 
        given that term in section 3502(13) of title 44; and''.

SEC. 209. REPORTING ON ENFORCEMENT ACTIONS RELATING TO SMALL ENTITIES.

    Section 223 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (5 U.S.C. 601 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Each agency'' and inserting the 
                following:
            ``(1) Establishment of policy or program.--Each agency''; 
        and
                    (B) by adding at the end the following:
            ``(2) Review of civil penalties.--Not later than 2 years 
        after the date of enactment of the Regulatory Flexibility 
        Improvement Act of 2013, and every 2 years thereafter, each 
        agency regulating the activities of small entities shall review 
        the civil penalties imposed by the agency for violations of a 
        statutory or regulatory requirement by a small entity to 
        determine whether a reduction or waiver of the civil penalties 
        is appropriate.''; and
            (2) in subsection (c)--
                    (A) by striking ``Agencies shall report'' and all 
                that follows through ``the scope'' and inserting ``Not 
                later than 2 years after the date of enactment of the 
                Regulatory Flexibility Improvement Act of 2013, and 
                every 2 years thereafter, each agency shall submit to 
                the Committee on Small Business and Entrepreneurship 
                and the Committee on Homeland Security and Governmental 
                Affairs of the Senate and the Committee on Small 
                Business and the Committee on the Judiciary of the 
                House of Representatives a report discussing the 
                scope''; and
                    (B) by striking ``and the total amount of penalty 
                reductions and waivers'' and inserting ``the total 
                amount of penalty reductions and waivers, and the 
                results of the most recent review under subsection 
                (a)(2)''.

SEC. 210. REQUIRING MORE DETAILED SMALL ENTITY ANALYSES.

    (a) Initial Regulatory Flexibility Analysis.--Section 603 of title 
5, United States Code, as amended by section 1100G(b) of Public Law 
111-203 (124 Stat. 2112), is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Each initial regulatory flexibility analysis required under 
this section shall contain a detailed statement--
            ``(1) describing the reasons why action by the agency is 
        being considered;
            ``(2) describing the objectives of, and legal basis for, 
        the proposed rule;
            ``(3) estimating the number and type of small entities to 
        which the proposed rule will apply;
            ``(4) describing the projected reporting, recordkeeping, 
        and other compliance requirements of the proposed rule, 
        including an estimate of the classes of small entities which 
        will be subject to the requirement and the type of professional 
        skills necessary for preparation of the report and record;
            ``(5) describing all relevant Federal rules which may 
        duplicate, overlap, or conflict with the proposed rule, or the 
        reasons why such a description could not be provided; and
            ``(6) estimating the additional cumulative economic impact 
        of the proposed rule on small entities, including job loss by 
        small entities, beyond that already imposed on the class of 
        small entities by the agency, or the reasons why such an 
        estimate is not available.''; and
            (2) by adding at the end the following:
    ``(e) An agency shall notify the Chief Counsel for Advocacy of the 
Small Business Administration of any draft rules that may have a 
significant economic impact on a substantial number of small entities--
            ``(1) when the agency submits a draft rule to the Office of 
        Information and Regulatory Affairs of the Office of Management 
        and Budget under Executive Order 12866, if that order requires 
        the submission; or
            ``(2) if no submission to the Office of Information and 
        Regulatory Affairs is required--
                    ``(A) a reasonable period before publication of the 
                rule by the agency; and
                    ``(B) in any event, not later than 3 months before 
                the date on which the agency publishes the rule.''.
    (b) Final Regulatory Flexibility Analysis.--
            (1) In general.--Section 604(a) of title 5, United States 
        Code, is amended--
                    (A) by inserting ``detailed'' before 
                ``description'' each place it appears;
                    (B) in paragraph (2)--
                            (i) by inserting ``detailed'' before 
                        ``statement'' each place it appears; and
                            (ii) by inserting ``(or certification of 
                        the proposed rule under section 605(b))'' after 
                        ``initial regulatory flexibility analysis'';
                    (C) in paragraph (4), by striking ``an 
                explanation'' and inserting ``a detailed explanation''; 
                and
                    (D) in paragraph (6) (relating to a description of 
                steps taken to minimize significant economic impact), 
                as added by section 1601 of the Small Business Jobs Act 
                of 2010 (Public Law 111-240; 124 Stat. 2251), by 
                inserting ``detailed'' before ``statement''.
            (2) Publication of analysis on web site, etc.--Section 
        604(b) of title 5, United States Code, is amended to read as 
        follows:
    ``(b) The agency shall--
            ``(1) make copies of the final regulatory flexibility 
        analysis available to the public, including by publishing the 
        entire final regulatory flexibility analysis on the Web site of 
        the agency; and
            ``(2) publish in the Federal Register the final regulatory 
        flexibility analysis, or a summary of the analysis that 
        includes the telephone number, mailing address, and address of 
        the Web site where the complete final regulatory flexibility 
        analysis may be obtained.''.
    (c) Cross-References to Other Analyses.--Section 605(a) of title 5, 
United States Code, is amended to read as follows:
    ``(a) A Federal agency shall be deemed to have satisfied a 
requirement regarding the content of a regulatory flexibility agenda or 
regulatory flexibility analysis under section 602, 603, or 604, if the 
Federal agency provides in the agenda or regulatory flexibility 
analysis a cross-reference to the specific portion of an agenda or 
analysis that is required by another law and that satisfies the 
requirement under section 602, 603, or 604.''.
    (d) Certifications.--Section 605(b) of title 5, United States Code, 
is amended, in the second sentence, by striking ``statement providing 
the factual'' and inserting ``detailed statement providing the factual 
and legal''.
    (e) Quantification Requirements.--Section 607 of title 5, United 
States Code, is amended to read as follows:
``Sec. 607. Quantification requirements
    ``In complying with sections 603 and 604, an agency shall provide--
            ``(1) a quantifiable or numerical description of the 
        effects of the proposed or final rule, including an estimate of 
        the potential for job loss, and alternatives to the proposed or 
        final rule; or
            ``(2) a more general descriptive statement regarding the 
        potential for job loss and a detailed statement explaining why 
        quantification under paragraph (1) is not practicable or 
        reliable.''.

SEC. 211. ENSURING THAT AGENCIES CONSIDER SMALL ENTITY IMPACT DURING 
              THE RULEMAKING PROCESS.

    Section 605(b) of title 5, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) If, after publication of the certification required under 
paragraph (1), the head of the agency determines that there will be a 
significant economic impact on a substantial number of small entities, 
the agency shall comply with the requirements of section 603 before the 
publication of the final rule, by--
            ``(A) publishing an initial regulatory flexibility analysis 
        for public comment; or
            ``(B) re-proposing the rule with an initial regulatory 
        flexibility analysis.
    ``(3) The head of an agency may not make a certification relating 
to a rule under this subsection, unless the head of the agency has 
determined--
            ``(A) the average cost of the rule for small entities 
        affected or reasonably presumed to be affected by the rule;
            ``(B) the number of small entities affected or reasonably 
        presumed to be affected by the rule; and
            ``(C) the number of affected small entities for which that 
        cost will be significant.
    ``(4) Before publishing a certification and a statement providing 
the factual basis for the certification under paragraph (1), the head 
of an agency shall--
            ``(A) transmit a copy of the certification and statement to 
        the Chief Counsel for Advocacy of the Small Business 
        Administration; and
            ``(B) consult with the Chief Counsel for Advocacy of the 
        Small Business Administration on the accuracy of the 
        certification and statement.''.

SEC. 212. ADDITIONAL POWERS OF THE OFFICE OF ADVOCACY.

    Section 203 of Public Law 94-305 (15 U.S.C. 634c) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (6) the following:
            ``(7) at the discretion of the Chief Counsel for Advocacy, 
        comment on regulatory action by an agency that affects small 
        businesses, without regard to whether the agency is required to 
        file a notice of proposed rulemaking under section 553 of title 
        5, United States Code, with respect to the action.''.

SEC. 213. FUNDING AND OFFSETS.

    (a) Authorization.--There are authorized to be appropriated to the 
Small Business Administration, for any costs of carrying out this title 
and the amendments made by this title (including the costs of hiring 
additional employees)--
            (1) $1,000,000 for fiscal year 2013;
            (2) $2,000,000 for fiscal year 2014; and
            (3) $3,000,000 for fiscal year 2015.
    (b) Repeals.--In order to offset the costs of carrying out this 
title and the amendments made by this title and to reduce the Federal 
deficit, the following provisions of law are repealed, effective on the 
date of enactment of this Act:
            (1) Section 21(n) of the Small Business Act (15 U.S.C. 
        648).
            (2) Section 27 of the Small Business Act (15 U.S.C. 654).
            (3) Section 1203(c) of the Energy Security and Efficiency 
        Act of 2007 (15 U.S.C. 657h(c)).

SEC. 214. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Heading.--Section 605 of title 5, United States Code, is 
amended in the section heading by striking ``Avoidance'' and all that 
follows and inserting the following: ``Incorporations by reference and 
certification.''.
    (b) Table of Sections.--The table of sections for chapter 6 of 
title 5, United States Code, is amended--
            (1) by striking the item relating to section 605 and 
        inserting the following:

``605. Incorporations by reference and certifications.'';
        and
            (2) by striking the item relating to section 607 and 
        inserting the following:

``607. Quantification requirements.''.
                                 <all>
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