II 

114TH CONGRESS 

1ST SESSION S. 1536 

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

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

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

IN THE SENATE OF THE UNITED STATES 

JUNE 10, 2015 

Mr. VITTER (for himself, Mr. RISCH, Mr. ENZI, Mr. RUBIO, Mrs. ERNST, and 

Mr. GARDNER) introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

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

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Regu5 latory Flexibility Improvements Act of 2015’’. 


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1 SEC. 2. CLARIFICATION AND EXPANSION OF RULES COV2 ERED BY THE REGULATORY FLEXIBILITY 

3 ACT. 

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

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

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

7 given such term in section 551(4) of this title, ex8 cept that such term does not include a rule per9 taining to the protection of the rights of and benefits 

10 for veterans or a rule of particular (and not general) 

11 applicability relating to rates, wages, corporate or fi12 nancial structures or reorganizations thereof, prices, 

13 facilities, appliances, services, or allowances therefor 

14 or to valuations, costs or accounting, or practices re15 lating to such rates, wages, structures, prices, facili16 ties, appliances, services, or allowances.’’. 

17 (b) INCLUSION OF RULES WITH INDIRECT EF18 FECTS.—Section 601 of title 5, United States Code, is 

19 amended by adding at the end the following new para20 graph: 

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

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

23 rule— 

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

25 entities of such rule; and 


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1 ‘‘(B) any indirect economic effect (includ2 ing compliance costs and effects on revenue) on 

3 small entities which is reasonably foreseeable 

4 and results from such rule (without regard to 

5 whether small entities will be directly regulated 

6 by the rule).’’. 

7 (c) INCLUSION OF RULES WITH BENEFICIAL EF8 FECTS.— 

9 (1) INITIAL REGULATORY FLEXIBILITY ANAL10 YSIS.—Subsection (c) of section 603 of title 5, 

11 United States Code, is amended by striking the first 

12 sentence and inserting ‘‘Each initial regulatory flexi13 bility analysis shall also contain a detailed descrip14 tion of alternatives to the proposed rule which mini15 mize any adverse significant economic impact or 

16 maximize any beneficial significant economic impact 

17 on small entities.’’. 

18 (2) FINAL REGULATORY FLEXIBILITY ANAL19 YSIS.—The first paragraph designated as paragraph 

20 (6) of section 604(a) of title 5, United States Code, 

21 (relating to minimization of significant economic im22 pacts) is amended by striking ‘‘minimize the signifi23 cant economic impact’’ and inserting ‘‘minimize the 

24 adverse significant economic impact or maximize the 

25 beneficial significant economic impact’’. 


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1 (d) INCLUSION OF RULES AFFECTING TRIBAL ORGA2 NIZATIONS.—Paragraph (5) of section 601 of title 5, 

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

4 organizations (as defined in section 4(l) of the Indian Self5 Determination and Education Assistance Act (25 U.S.C. 

6 450b(l))),’’ after ‘‘special districts,’’. 

7 (e) INCLUSION OF LAND MANAGEMENT PLANS AND

8 FORMAL RULEMAKING.— 

9 (1) INITIAL REGULATORY FLEXIBILITY ANAL10 YSIS.—Subsection (a) of section 603 of title 5, 

11 United States Code, is amended in the first sen12 tence— 

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

14 rule,’’; and 

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

16 amendment to a land management plan,’’ after 

17 ‘‘United States,’’. 

18 (2) FINAL REGULATORY FLEXIBILITY ANAL19 YSIS.—Subsection (a) of section 604 of title 5, 

20 United States Code, is amended in the first sen21 tence— 

22 (A) by striking ‘‘or’’ after ‘‘proposed rule23 making,’’; and 


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

2 amendment to a land management plan,’’ after 

3 ‘‘section 603(a),’’. 

4 (3) LAND MANAGEMENT PLAN DEFINED.—Sec5 tion 601 of title 5, United States Code, as amended 

6 by subsection (b), is amended by adding at the end 

7 the following new paragraph: 

8 ‘‘(10) LAND MANAGEMENT PLAN.— 

9 ‘‘(A) IN GENERAL.—The term ‘land man10 agement plan’ means— 

11 ‘‘(i) any plan developed by the Sec12 retary of Agriculture under section 6 of 

13 the Forest and Rangeland Renewable Re14 sources Planning Act of 1974 (16 U.S.C. 

15 1604); and 

16 ‘‘(ii) any plan developed by the Sec17 retary of the Interior under section 202 of 

18 the Federal Land Policy and Management 

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

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

21 means any change to a land management plan 

22 which— 

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

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

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1 newable Resources Planning Act of 1974 

2 (16 U.S.C. 1604(f)(5)); or 

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

4 subparagraph (A)(ii), is made under sec5 tion 1610.5–6 of title 43, Code of Federal 

6 Regulations (or any successor regulation). 

7 ‘‘(C) AMENDMENT.—The term ‘amend8 ment’ means any change to a land management 

9 plan which— 

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

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

12 6(f)(4) of the Forest and Rangeland Re13 newable Resources Planning Act of 1974 

14 (16 U.S.C. 1604(f)(4)) and with respect to 

15 which the Secretary of Agriculture pre16 pares a statement described in section 

17 102(2)(C) of the National Environmental 

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

19 4332(2)(C)); or 

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

21 subparagraph (A)(ii), is made under sec22 tion 1610.5–5 of title 43, Code of Federal 

23 Regulations (or any successor regulation) 

24 and with respect to which the Secretary of 

25 the Interior prepares a statement described 


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1 in section 102(2)(C) of the National Envi2 ronmental Policy Act of 1969 (42 U.S.C. 

3 4332(2)(C)).’’. 

4 (f) INCLUSION OF CERTAIN INTERPRETIVE RULES

5 INVOLVING THE INTERNAL REVENUE LAWS.— 

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

7 603 of title 5, United States Code, is amended by 

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

9 recordkeeping requirement, and without regard to 

10 whether such requirement is imposed by statute or 

11 regulation.’’. 

12 (2) COLLECTION OF INFORMATION.—Paragraph 

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

14 amended to read as follows: 

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

16 ‘collection of information’ has the meaning given 

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

18 (3) RECORDKEEPING REQUIREMENT.—Para19 graph (8) of section 601 of title 5, United States 

20 Code, is amended to read as follows: 

21 ‘‘(8) RECORDKEEPING REQUIREMENT.—The 

22 term ‘recordkeeping requirement’ has the meaning 

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


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1 (g) DEFINITION OF SMALL ORGANIZATION.—Para2 graph (4) of section 601 of title 5, United States Code, 

3 is amended to read as follows: 

4 ‘‘(4) SMALL ORGANIZATION.— 

5 ‘‘(A) IN GENERAL.—The term ‘small orga6 nization’ means any nonprofit enterprise which, 

7 as of the issuance of the notice of proposed 

8 rulemaking— 

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

10 is described by a classification code of the 

11 North American Industrial Classification 

12 System, does not exceed the size standard 

13 established by the Administrator of the 

14 Small Business Administration pursuant to 

15 section 3 of the Small Business Act (15 

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

17 described by such classification code; and 

18 ‘‘(ii) in the case of any other enter19 prise, has a net worth that does not exceed 

20 $7,000,000 and has not more than 500 

21 employees. 

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

23 the case of any local labor organization, sub24 paragraph (A) shall be applied without regard 


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1 to any national or international organization of 

2 which such local labor organization is a part. 

3 ‘‘(C) AGENCY DEFINITIONS.—Subpara4 graphs (A) and (B) shall not apply to the ex5 tent that an agency, after consultation with the 

6 Office of Advocacy of the Small Business Ad7 ministration and after opportunity for public 

8 comment, establishes one or more definitions 

9 for such term which are appropriate to the ac10 tivities of the agency and publishes such defini11 tions in the Federal Register.’’. 

12 (h) DEFINITION OF SMALL GOVERNMENTAL JURIS13 DICTION.—Paragraph (5) of section 601 of title 5, United 

14 States Code, is amended to read as follows: 

15 ‘‘(5) SMALL GOVERNMENTAL JURISDICTION.— 

16 ‘‘(A) IN GENERAL.—The term ‘small gov17 ernmental jurisdiction’ means the government 

18 of a city, county, town, township, village, school 

19 district, or special district with a population of 

20 less than 50,000. 

21 ‘‘(B) SUBDIVISIONS AND DEPARTMENTS.— 

22 Notwithstanding subparagraph (A), a subdivi23 sion, department, agency, district, or authority 

24 of a State, city, county, town, township, village, 

25 school district, or special district described by a 


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1 classification code of the North American In2 dustrial Classification System shall be consid3 ered to be a small governmental jurisdiction if 

4 that subdivision, department, agency, district, 

5 or authority, by itself, does not exceed the size 

6 standard established by the Administrator of 

7 the Small Business Administration pursuant to 

8 section 3 of the Small Business Act (15 U.S.C. 

9 632) for small business concerns described by 

10 such classification code. 

11 ‘‘(C) AGENCY DEFINITIONS.—Subpara12 graphs (A) and (B) shall not apply to the ex13 tent that an agency, after consultation with the 

14 Office of Advocacy of the Small Business Ad15 ministration and after opportunity for public 

16 comment, establishes one or more definitions 

17 for such term which are appropriate to the ac18 tivities of the agency and publishes such defini19 tions in the Federal Register.’’. 

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

21 Section 602 of title 5, United States Code, is amend22 ed— 

23 (1) in subsection (a)— 

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

25 at the end and inserting ‘‘;’’; 


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1 (B) by redesignating paragraph (3) as 

2 paragraph (4); and 

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

4 following: 

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

6 North American Industrial Classification System 

7 that is primarily affected by any rule which the 

8 agency expects to propose or promulgate which is 

9 likely to have a significant economic impact on a 

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

11 (2) by striking subsection (c) and inserting the 

12 following: 

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

14 language summary of the information contained in the 

15 regulatory flexibility agenda published under subsection 

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

17 Federal Register. The Office of Advocacy of the Small 

18 Business Administration shall compile and prominently 

19 display a plain language summary of the regulatory agen20 das referenced in subsection (a) for each agency on its 

21 website within 3 days of their publication in the Federal 

22 Register.’’. 


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1 SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED 

2 ANALYSES. 

3 (a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

5 Code, is amended to read as follows: 

6 ‘‘(b) Each initial regulatory flexibility analysis re7 quired under this section shall contain a detailed state8 ment— 

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

10 agency is being considered; 

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

12 for, the proposed rule; 

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

14 entities to which the proposed rule will apply; 

15 ‘‘(4) describing the projected reporting, record16 keeping, and other compliance requirements of the 

17 proposed rule, including an estimate of the classes of 

18 small entities which will be subject to the require19 ment and the type of professional skills necessary 

20 for preparation of the report and record; 

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

22 may duplicate, overlap, or conflict with the proposed 

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

24 be provided; 

25 ‘‘(6) estimating the additional cumulative eco26 nomic impact of the proposed rule on small entities 


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1 beyond that already imposed on the class of small 

2 entities by the agency or why such an estimate is 

3 not available; 

4 ‘‘(7) describing any disproportionate economic 

5 impact on small entities or a specific class of small 

6 entities; and 

7 ‘‘(8) describing any impairment of the ability of 

8 small entities to have access to credit.’’. 

9 (b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

11 United States Code, is amended— 

12 (A) in paragraph (4), by striking ‘‘an ex13 planation’’ and inserting ‘‘a detailed expla14 nation’’; 

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

16 first paragraph designated as paragraph (6) 

17 (relating to minimization of significant eco18 nomic impacts), by inserting ‘‘detailed’’ before 

19 ‘‘description’’; 

20 (C) in the first paragraph designated as 

21 paragraph (6) (relating to minimization of sig22 nificant economic impacts), by striking ‘‘and’’ 

23 at the end; 


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1 (D) in the second paragraph designated as 

2 paragraph (6) (relating to covered agencies), by 

3 striking the period and inserting ‘‘; and’’; 

4 (E) by redesignating the second paragraph 

5 designated as paragraph (6) as paragraph (7); 

6 and 

7 (F) by adding at the end the following: 

8 ‘‘(8) a detailed description of any dispropor9 tionate economic impact on small entities or a spe10 cific class of small entities.’’. 

11 (2) INCLUSION OF RESPONSE TO COMMENTS ON

12 CERTIFICATION OF PROPOSED RULE.—Paragraph 

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

14 is amended by inserting ‘‘(or certification of the pro15 posed rule under section 605(b))’’ after ‘‘initial reg16 ulatory flexibility analysis’’. 

17 (3) PUBLICATION OF ANALYSIS ON WEBSITE.— 

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

19 States Code, is amended to read as follows: 

20 ‘‘(b) The agency shall make copies of the final regu21 latory flexibility analysis available to the public, including 

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

23 and shall publish in the Federal Register the final regu24 latory flexibility analysis, or a summary thereof which in25 cludes the telephone number, mailing address, and link to 


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1 the website where the complete analysis may be ob2 tained.’’. 

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

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

5 Code, is amended to read as follows: 

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

7 any requirement regarding the content of an agenda or 

8 regulatory flexibility analysis under section 602, 603, or 

9 604, if such agency provides in such agenda or analysis 

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

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

12 satisfies such requirement.’’. 

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

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

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

16 the first place it appears; and 

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

18 (e) QUANTIFICATION REQUIREMENTS.—Section 607 

19 of title 5, United States Code, is amended to read as fol20 lows: 

21 ‘‘§ 607. Quantification requirements 

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

23 shall provide— 


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

2 the effects of the proposed or final rule and alter3 natives to the proposed or final rule; or 

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

5 a detailed statement explaining why quantification is 

6 not practicable or reliable.’’. 

7 SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDI8 TIONAL POWERS OF THE CHIEF COUNSEL 

9 FOR ADVOCACY. 

10 (a) IN GENERAL.—Section 608 of title 5, United 

11 States Code, is amended to read as follows: 

12 ‘‘§ 608. Additional powers of Chief Counsel for Advo13 cacy 

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

15 enactment of the Small Business Regulatory Flexibility 

16 Improvements Act of 2015, the Chief Counsel for Advo17 cacy of the Small Business Administration shall, after op18 portunity for notice and comment under section 553, issue 

19 rules governing agency compliance with this chapter. The 

20 Chief Counsel may modify or amend such rules after no21 tice and comment under section 553. This chapter (other 

22 than this subsection) shall not apply with respect to the 

23 issuance, modification, and amendment of rules under this 

24 paragraph. 


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1 ‘‘(2) An agency shall not issue rules which supple2 ment the rules issued under paragraph (1) unless such 

3 agency has first consulted with the Chief Counsel for Ad4 vocacy to ensure that such supplemental rules comply with 

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

6 ‘‘(b) Notwithstanding any other law, the Chief Coun7 sel for Advocacy of the Small Business Administration 

8 may intervene in any agency adjudication (unless such 

9 agency is authorized to impose a fine or penalty under 

10 such adjudication), and may inform the agency of the im11 pact that any decision on the record may have on small 

12 entities. The Chief Counsel shall not initiate an appeal 

13 with respect to any adjudication in which the Chief Coun14 sel intervenes under this subsection. 

15 ‘‘(c) The Chief Counsel for Advocacy may file com16 ments in response to any agency notice requesting com17 ment, regardless of whether the agency is required to file 

18 a general notice of proposed rulemaking under section 

19 553.’’. 

20 (b) ADDITIONAL DUTIES OF OFFICE OF ADVO21 CACY.—Section 203 of Public Law 94–305 (15 U.S.C. 

22 634c) is amended— 

23 (1) in paragraph (5), by striking ‘‘and’’ at the 

24 end; 


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1 (2) in paragraph (6), by striking the period at 

2 the end and inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(7) at the discretion of the Chief Counsel for 

5 Advocacy, comment on regulatory action by an agen6 cy that affects small businesses, without regard to 

7 whether the agency is required to file a notice of 

8 proposed rulemaking under section 553 of title 5, 

9 United States Code, with respect to the action.’’. 

10 (c) CONFORMING AMENDMENTS.— 

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

12 by striking ‘‘608(b),’’. 

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

14 by striking ‘‘608(b),’’. 

15 (3) Section 611(a)(3) of such title is amend16 ed— 

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

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

19 and inserting the following: 

20 ‘‘(3) A small entity’’. 

21 SEC. 6. PROCEDURES FOR GATHERING COMMENTS. 

22 Section 609 of title 5, United States Code, is amend23 ed— 

24 (1) in subsection (b), by striking ‘‘covered agen25 cy’’ each place it appears and inserting ‘‘agency’’; 


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1 (2) by striking subsection (d); 

2 (3) by redesignating subsection (e) as sub3 section (d); and 

4 (4) in paragraph (1) of subsection (d), as so re5 designated, by striking ‘‘covered agency’’ and insert6 ing ‘‘agency’’. 

7 SEC. 7. PERIODIC REVIEW OF RULES. 

8 Section 610 of title 5, United States Code, is amend9 ed to read as follows: 

10 ‘‘§ 610. Periodic review of rules 

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

12 this section, each agency shall publish in the Federal Reg13 ister and place on its website a plan for the periodic review 

14 of rules issued by the agency which the head of the agency 

15 determines have a significant economic impact on a sub16 stantial number of small entities. Such determination shall 

17 be made without regard to whether the agency performed 

18 an analysis under section 604. The purpose of the review 

19 shall be to determine whether such rules should be contin20 ued without change, or should be amended or rescinded, 

21 consistent with the stated objectives of applicable statutes, 

22 to minimize any adverse significant economic impacts or 

23 maximize any beneficial significant economic impacts on 

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

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1 sion in the Federal Register and subsequently placing the 

2 amended plan on the agency’s website. 

3 ‘‘(b) The plan shall provide for— 

4 ‘‘(1) the review of all such agency rules de5 scribed in subsection (a) existing on the date of the 

6 enactment of this section— 

7 ‘‘(A) within 10 years of the date of publi8 cation of the plan in the Federal Register; and 

9 ‘‘(B) every 10 years thereafter; and 

10 ‘‘(2) the review of all such agency rules de11 scribed in subsection (a) adopted after the date of 

12 enactment of this section— 

13 ‘‘(A) within 10 years after the publication 

14 of the final rule in the Federal Register; and 

15 ‘‘(B) every 10 years thereafter. 

16 ‘‘(c) If the head of the agency determines that com17 pletion of the review of existing rules is not feasible by 

18 the established date, the head of the agency shall so certify 

19 in a statement published in the Federal Register and may 

20 extend the review for not longer than 2 years after publi21 cation of notice of extension in the Federal Register. Such 

22 certification and notice shall be sent to the Chief Counsel 

23 for Advocacy of the Small Business Administration and 

24 the Congress. 


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1 ‘‘(d) The plan shall include a section that details how 

2 an agency will conduct outreach to and meaningfully in3 clude small businesses (including small business concerns 

4 owned and controlled by women, small business concerns 

5 owned and controlled by veterans, and small business con6 cerns owned and controlled by socially and economically 

7 disadvantaged individuals (as such terms are defined in 

8 the Small Business Act)) for the purposes of carrying out 

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

10 for how the agency will contact small businesses and gath11 er their input on existing agency rules. 

12 ‘‘(e) Each agency shall annually submit a report re13 garding the results of its review pursuant to such plan 

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

15 Small Business Administration, and in the case of agen16 cies other than independent regulatory agencies (as de17 fined in section 3502(5) of title 44) to the Administrator 

18 of the Office of Information and Regulatory Affairs of the 

19 Office of Management and Budget. Such report shall in20 clude the identification of any rule with respect to which 

21 the head of the agency made a determination described 

22 in paragraph (5) or (6) of subsection (f) and a detailed 

23 explanation of the reasons for such determination. 

24 ‘‘(f) In reviewing a rule pursuant to subsections (a) 

25 through (e), the agency shall amend or rescind the rule 


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1 to minimize any adverse significant economic impact on 

2 a substantial number of small entities or disproportionate 

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

4 maximize any beneficial significant economic impact of the 

5 rule on a substantial number of small entities to the great6 est extent possible, consistent with the stated objectives 

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

8 the agency shall consider— 

9 ‘‘(1) the continued need for the rule; 

10 ‘‘(2) the nature of complaints received by the 

11 agency from small entities concerning the rule; 

12 ‘‘(3) comments by the Regulatory Enforcement 

13 Ombudsman and the Chief Counsel for Advocacy of 

14 the Small Business Administration; 

15 ‘‘(4) the complexity of the rule; 

16 ‘‘(5) the extent to which the rule overlaps, du17 plicates, or conflicts with other Federal rules and, 

18 unless the head of the agency determines it to be in19 feasible, State, territorial, and local rules; 

20 ‘‘(6) the contribution of the rule to the cumu21 lative economic impact of all Federal rules on the 

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

23 head of the agency determines that such calculations 

24 cannot be made and reports that determination in 

25 the annual report required under subsection (e); 


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

2 evaluated or the degree to which technology, eco3 nomic conditions, or other factors have changed in 

4 the area affected by the rule; and 

5 ‘‘(8) the economic impact of the rule, includ6 ing— 

7 ‘‘(A) the estimated number of small enti8 ties to which the rule will apply; 

9 ‘‘(B) the estimated number of small entity 

10 jobs that will be lost or created due to the rule; 

11 and 

12 ‘‘(C) the projected reporting, record13 keeping, and other compliance requirements of 

14 the proposed rule, including— 

15 ‘‘(i) an estimate of the classes of small 

16 entities that will be subject to the require17 ment; and 

18 ‘‘(ii) the type of professional skills 

19 necessary for preparation of the report or 

20 record. 

21 ‘‘(g) Each year, each agency shall publish in the Fed22 eral Register and on its website a list of rules to be re23 viewed pursuant to such plan. The agency shall include 

24 in the publication a solicitation of public comments on any 

25 further inclusions or exclusions of rules from the list, and 


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1 shall respond to such comments. Such publication shall 

2 include a brief description of the rule, the reason why the 

3 agency determined that it has a significant economic im4 pact on a substantial number of small entities (without 

5 regard to whether it had prepared a final regulatory flexi6 bility analysis for the rule), and request comments from 

7 the public, the Chief Counsel for Advocacy of the Small 

8 Business Administration, and the Regulatory Enforce9 ment Ombudsman concerning the enforcement of the rule. 

10 ‘‘(h)(1) Not later than 6 months after each date de11 scribed in subsection (b), the Inspector General for each 

12 agency shall— 

13 ‘‘(A) determine whether the agency has con14 ducted the review required under subsection (b) ap15 propriately; and 

16 ‘‘(B) notify the head of the agency of— 

17 ‘‘(i) the results of the determination under 

18 subparagraph (A); and 

19 ‘‘(ii) any issues preventing the Inspector 

20 General from determining that the agency has 

21 conducted the review under subsection (b) ap22 propriately. 

23 ‘‘(2)(A) Not later than 6 months after the date on 

24 which the head of an agency receives a notice under para25 graph (1)(B) that the agency has not conducted the review 


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1 under subsection (b) appropriately, the agency shall ad2 dress the issues identified in the notice. 

3 ‘‘(B) Not later than 30 days after the last day of the 

4 6-month period described in subparagraph (A), the In5 spector General for an agency that receives a notice de6 scribed in subparagraph (A) shall— 

7 ‘‘(i) determine whether the agency has ad8 dressed the issues identified in the notice; and 

9 ‘‘(ii) notify Congress if the Inspector General 

10 determines that the agency has not addressed the 

11 issues identified in the notice.’’. 

12 SEC. 8. JUDICIAL REVIEW TO ALLOW SMALL ENTITIES TO 

13 CHALLENGE PROPOSED REGULATIONS. 

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

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

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

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

18 amended by inserting ‘‘(or which would have such jurisdic19 tion if publication of the final rule constituted final agency 

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

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

22 such section, as amended by section 5(c)(3) of this Act, 

23 is amended— 


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1 (1) by striking ‘‘such review during the period 

2 beginning on the date of final agency action’’ and in3 serting the following: ‘‘such review— 

4 ‘‘(A) in the case of noncompliance with section 

5 605(b), before the close of the public comment pe6 riod; and 

7 ‘‘(B) in any other case, during the period begin8 ning on the date of publication of the final rule’’; 

9 and 

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

11 which the date of final agency action is the same 

12 date as the publication of the final rule,’’ after ‘‘ex13 cept that’’. 

14 (d) INTERVENTION BY CHIEF COUNSEL FOR ADVO15 CACY.—Subsection (b) of section 612 of title 5, United 

16 States Code, is amended by inserting before the first pe17 riod ‘‘or agency compliance with section 601, 604, 605(b), 

18 609, or 610’’. 

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

20 IMPLEMENTING THE REGULATORY FLEXI21 BILITY ACT. 

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

23 States Code, is amended— 

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

25 end; 


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

2 the end and inserting ‘‘; and’’; and 

3 (3) by inserting after paragraph (7) the fol4 lowing new paragraph: 

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

6 5.’’. 

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

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

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

10 the end; 

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

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

13 (3) by adding at the end the following new sub14 paragraph: 

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

16 Business Administration, when the final rule is 

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

18 (c) AUTHORIZATION TO INTERVENE AND COMMENT

19 ON AGENCY COMPLIANCE WITH ADMINISTRATIVE PROCE20 DURE.—Subsection (b) of section 612 of title 5, United 

21 States Code, is amended in the second sentence by insert22 ing ‘‘chapter 5, and chapter 7,’’ after ‘‘this chapter,’’. 


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1 SEC. 10. ESTABLISHMENT AND APPROVAL OF SMALL BUSI2 NESS CONCERN SIZE STANDARDS BY CHIEF 

3 COUNSEL FOR ADVOCACY. 

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

5 3(a)(2) of the Small Business Act (15 U.S.C. 

6 632(a)(2)(A)) is amended to read as follows: 

7 ‘‘(A) IN GENERAL.—In addition to the cri8 teria specified in paragraph (1)— 

9 ‘‘(i) the Administrator may specify de10 tailed definitions or standards by which a 

11 business concern may be determined to be 

12 a small business concern for purposes of 

13 this Act or the Small Business Investment 

14 Act of 1958; and 

15 ‘‘(ii) the Chief Counsel for Advocacy 

16 may specify such definitions or standards 

17 for purposes of any other Act.’’. 

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

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

20 632(a)(2)(C)(iii)) is amended to read as follows: 

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

22 standard prescribed by the Administrator, 

23 is approved by the Chief Counsel for Advo24 cacy.’’. 


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

2 3(a) of the Small Business Act (15 U.S.C. 632(a)(3)) is 

3 amended— 

4 (1) by inserting ‘‘or Chief Counsel for Advo5 cacy, as appropriate,’’ before ‘‘shall ensure’’; and 

6 (2) by inserting ‘‘or Chief Counsel for Advo7 cacy’’ before the period at the end. 

8 (d) JUDICIAL REVIEW OF SIZE STANDARDS AP9 PROVED BY CHIEF COUNSEL.—Section 3(a) of the Small 

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

11 at the end the following new paragraph: 

12 ‘‘(9) JUDICIAL REVIEW OF STANDARDS AP13 PROVED BY CHIEF COUNSEL.—In the case of an ac14 tion for judicial review of a rule which includes a 

15 definition or standard approved by the Chief Counsel 

16 for Advocacy under this subsection, the party seek17 ing such review shall be entitled to join the Chief 

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

19 SEC. 11. CLERICAL AMENDMENTS. 

20 (a) DEFINITIONS.—Section 601 of title 5, United 

21 States Code, is amended— 

22 (1) in the matter preceding paragraph (1), by 

23 striking ‘‘this chapter—’’ and inserting ‘‘this chap24 ter:’’; 

25 (2) in paragraph (1)— 


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1 (A) by striking the semicolon at the end 

2 and inserting a period; and 

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

5 ‘‘(1) AGENCY.—The term’’; 

6 (3) in paragraph (3)— 

7 (A) by striking the semicolon at the end 

8 and inserting a period; and 

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

11 ‘‘(3) SMALL BUSINESS.—The term’’; 

12 (4) in paragraph (5)— 

13 (A) by striking the semicolon at the end 

14 and inserting a period; and 

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

17 ‘‘(5) SMALL GOVERNMENTAL JURISDICTION.— 

18 The term’’; and 

19 (5) in paragraph (6)— 

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

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

24 ‘‘(6) SMALL ENTITY.—The term’’. 


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1 (b) INCORPORATIONS BY REFERENCE AND CERTIFI2 CATIONS.—The heading of section 605 of title 5, United 

3 States Code, is amended to read as follows: 

4 ‘‘§ 605. Incorporations by reference and certifi5 cations’’. 

6 (c) TABLE OF SECTIONS.—The table of sections for 

7 chapter 6 of title 5, United States Code, is amended as 

8 follows: 

9 (1) By striking the item relating to section 605 

10 and inserting the following new item: 

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

11 (2) By striking the item relating to section 607 

12 and inserting the following new item: 

‘‘607. Quantification requirements.’’. 

13 (3) By striking the item relating to section 608 

14 and inserting the following: 

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

15 (d) OTHER CLERICAL AMENDMENTS TO CHAPTER

16 6.—Chapter 6 of title 5, United States Code, is amend17 ed— 

18 (1) in section 603(d)— 

19 (A) by striking paragraph (2); 

20 (B) by striking ‘‘(1) For a covered agency, 

21 as defined in section 609(d)(2), each initial reg22 ulatory flexibility analysis’’ and inserting ‘‘Each 


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1 initial regulatory flexibility analysis by an agen2 cy’’; 

3 (C) by striking ‘‘(A) any’’ and inserting 

4 ‘‘(1) any’’; 

5 (D) by striking ‘‘(B) any’’ and inserting 

6 ‘‘(2) any’’; and 

7 (E) by striking ‘‘(C) advice’’ and inserting 

8 ‘‘(3) advice’’; and 

9 (2) in paragraph (7) of section 604(a), as so re10 designated by section 4(b)(1)(D) of this Act, by 

11 striking ‘‘for a covered agency, as defined in section 

12 609(d)(2),’’. 

13 SEC. 12. AGENCY PREPARATION OF GUIDES. 

14 Section 212(a)(5) the Small Business Regulatory En15 forcement Fairness Act of 1996 (5 U.S.C. 601 note) is 

16 amended to read as follows: 

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

18 agency shall, in its sole discretion, taking into ac19 count the subject matter of the rule and the lan20 guage of relevant statutes, ensure that the guide is 

21 written using sufficiently plain language likely to be 

22 understood by affected small entities. Agencies may 

23 prepare separate guides covering groups or classes of 

24 similarly affected small entities and may cooperate 

25 with associations of small entities to distribute such 


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1 guides. In developing guides, agencies shall solicit 

2 input from affected small entities or associations of 

3 affected small entities. An agency may prepare 

4 guides and apply this section with respect to a rule 

5 or a group of related rules.’’. 

6 SEC. 13. REPORTING ON ENFORCEMENT ACTIONS RELAT7 ING TO SMALL ENTITIES. 

8 Section 223 of the Small Business Regulatory En9 forcement Fairness Act of 1996 (5 U.S.C. 601 note) is 

10 amended— 

11 (1) in subsection (a)— 

12 (A) by striking ‘‘Each agency’’ and insert13 ing the following: 

14 ‘‘(1) ESTABLISHMENT OF POLICY OR PRO15 GRAM.—Each agency’’; and 

16 (B) by adding at the end the following: 

17 ‘‘(2) REVIEW OF CIVIL PENALTIES.—Not later 

18 than 2 years after the date of enactment of the 

19 Small Business Regulatory Flexibility Improvements 

20 Act of 2015, and every 2 years thereafter, each 

21 agency regulating the activities of small entities shall 

22 review the civil penalties imposed by the agency for 

23 violations of a statutory or regulatory requirement 

24 by a small entity to determine whether a reduction 

25 or waiver of the civil penalties is appropriate.’’; and 


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1 (2) in subsection (c)— 

2 (A) by striking ‘‘Agencies shall report’’ 

3 and all that follows through ‘‘the scope’’ and in4 serting ‘‘Not later than 2 years after the date 

5 of enactment of the Small Business Regulatory 

6 Flexibility Improvements Act of 2015, and 

7 every 2 years thereafter, each agency shall sub8 mit to the Committee on Small Business and 

9 Entrepreneurship and the Committee on Home10 land Security and Governmental Affairs of the 

11 Senate and the Committee on Small Business 

12 and the Committee on the Judiciary of the 

13 House of Representatives a report discussing 

14 the scope’’; and 

15 (B) by striking ‘‘and the total amount of 

16 penalty reductions and waivers’’ and inserting 

17 ‘‘the total amount of penalty reductions and 

18 waivers, and the results of the most recent re19 view under subsection (a)(2)’’. 

20 SEC. 14. SUSPENSION OF FINES FOR FIRST-TIME PAPER21 WORK VIOLATIONS BY SMALL BUSINESS CON22 CERNS. 

23 Section 3506 of title 44, United States Code (com24 monly referred to as the ‘‘Paperwork Reduction Act’’), is 

25 amended by adding at the end the following: 


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1 ‘‘(j) SMALL BUSINESSES.— 

2 ‘‘(1) SMALL BUSINESS CONCERN.—In this sub3 section, the term ‘small business concern’ has the 

4 meaning given that term under section 3 of the 

5 Small Business Act (15 U.S.C. 632). 

6 ‘‘(2) IN GENERAL.—In the case of a first-time 

7 violation by a small business concern of a require8 ment regarding the collection of information by an 

9 agency, the head of the agency shall not impose a 

10 civil fine on the small business concern unless the 

11 head of the agency determines that— 

12 ‘‘(A) the violation has the potential to 

13 cause serious harm to the public interest; 

14 ‘‘(B) failure to impose a civil fine would 

15 impede or interfere with the detection of crimi16 nal activity; 

17 ‘‘(C) the violation is a violation of an inter18 nal revenue law or a law concerning the assess19 ment or collection of any tax, debt, revenue, or 

20 receipt; 

21 ‘‘(D) the violation was not corrected on or 

22 before the date that is 6 months after the date 

23 on which the small business concern receives 

24 notification of the violation in writing from the 

25 agency; or 


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1 ‘‘(E) except as provided in paragraph (3), 

2 the violation presents a danger to the public 

3 health or safety. 

4 ‘‘(3) DANGER TO PUBLIC HEALTH OR SAFE5 TY.— 

6 ‘‘(A) IN GENERAL.—In any case in which 

7 the head of an agency determines under para8 graph (2)(E) that a violation presents a danger 

9 to the public health or safety, the head of the 

10 agency may, notwithstanding paragraph (2)(E), 

11 determine not to impose a civil fine on the 

12 small business concern if the violation is cor13 rected not later than 24 hours after receipt by 

14 the owner of the small business concern of noti15 fication of the violation in writing. 

16 ‘‘(B) CONSIDERATIONS.—In determining 

17 whether to allow a small business concern 24 

18 hours to correct a violation under subparagraph 

19 (A), the head of an agency shall take into ac20 count all of the facts and circumstances regard21 ing the violation, including— 

22 ‘‘(i) the nature and seriousness of the 

23 violation, including whether the violation is 

24 technical or inadvertent or involves willful 

25 or criminal conduct; 


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1 ‘‘(ii) whether the small business con2 cern has made a good faith effort to com3 ply with applicable laws and to remedy the 

4 violation within the shortest practicable pe5 riod of time; and 

6 ‘‘(iii) whether the small business con7 cern has obtained a significant economic 

8 benefit from the violation. 

9 ‘‘(C) NOTICE TO CONGRESS.—In any case 

10 in which the head of an agency imposes a civil 

11 fine on a small business concern for a violation 

12 that presents a danger to the public health or 

13 safety and does not allow the small business 

14 concern 24 hours to correct the violation under 

15 subparagraph (A), the head of the agency shall 

16 notify Congress regarding the determination 

17 not later than 60 days after the date on which 

18 the civil fine is imposed by the agency. 

19 ‘‘(4) LIMITED TO FIRST-TIME VIOLATIONS.— 

20 ‘‘(A) IN GENERAL.—This subsection shall 

21 not apply to any violation by a small business 

22 concern of a requirement regarding collection of 

23 information by an agency if the small business 

24 concern previously violated any requirement re25 garding collection of information by the agency. 


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1 ‘‘(B) OTHER AGENCIES.—For purposes of 

2 making a determination under subparagraph 

3 (A), the head of an agency shall not take into 

4 account any violation of a requirement regard5 ing collection of information by another agen6 cy.’’. 

7 SEC. 15. ENSURING THAT AGENCIES CONSIDER SMALL EN8 TITY IMPACT DURING THE RULEMAKING 

9 PROCESS. 

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

11 amended— 

12 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 

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

14 ‘‘(2) If, after publication of the certification re15 quired under paragraph (1), the head of the agency 

16 determines that there will be a significant economic 

17 impact on a substantial number of small entities, the 

18 agency shall comply with the requirements of section 

19 603 before the publication of the final rule, by— 

20 ‘‘(A) publishing an initial regulatory flexi21 bility analysis for public comment; or 

22 ‘‘(B) re-proposing the rule with an initial 

23 regulatory flexibility analysis. 


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1 ‘‘(3) The head of an agency may not make a 

2 certification relating to a rule under this subsection, 

3 unless the head of the agency has determined— 

4 ‘‘(A) the average cost of the rule for small 

5 entities affected or reasonably presumed to be 

6 affected by the rule; 

7 ‘‘(B) the number of small entities affected 

8 or reasonably presumed to be affected by the 

9 rule; and 

10 ‘‘(C) the number of affected small entities 

11 for which that cost will be significant. 

12 ‘‘(4) Before publishing a certification and a 

13 statement providing the factual basis for the certifi14 cation under paragraph (1), the head of an agency 

15 shall— 

16 ‘‘(A) transmit a copy of the certification 

17 and statement to the Chief Counsel for Advo18 cacy of the Small Business Administration; and 

19 ‘‘(B) consult with the Chief Counsel for 

20 Advocacy of the Small Business Administration 

21 on the accuracy of the certification and state22 ment.’’. 

23 SEC. 16. COMPTROLLER GENERAL REPORT. 

24 Not later than 90 days after the date of enactment 

25 of this Act, the Comptroller General of the United States 


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1 shall complete and publish a study that examines whether 

2 the Chief Counsel for Advocacy of the Small Business Ad3 ministration has the capacity and resources to carry out 

4 the duties of the Chief Counsel under this Act and the 

5 amendments made by this Act. 

Æ 


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