IIB 

114TH CONGRESS 

1ST SESSION H. R. 527 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 9, 2015 

Received; read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Small Business Regu3 latory Flexibility Improvements Act of 2015’’. 

4 SEC. 2. CLARIFICATION AND EXPANSION OF RULES COV5 ERED BY THE REGULATORY FLEXIBILITY 

6 ACT. 

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

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

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

10 given such term in section 551(4) of this title, ex11 cept that such term does not include— 

12 ‘‘(A) a rule pertaining to the protection of 

13 the rights of and benefits for veterans or part 

14 232 of title 32 of the Code of Federal Regula15 tions (as in effect on July 1, 2014) or any suc16 cessor provisions thereto; or 

17 ‘‘(B) a rule of particular (and not general) 

18 applicability relating to rates, wages, corporate 

19 or financial structures or reorganizations there20 of, prices, facilities, appliances, services, or al21 lowances therefor or to valuations, costs or ac22 counting, or practices relating to such rates, 

23 wages, structures, prices, appliances, services, 

24 or allowances.’’. 

25 (b) INCLUSION OF RULES WITH INDIRECT EF26 FECTS.—Section 601 of title 5, United States Code, is 


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1 amended by adding at the end the following new para2 graph: 

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

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

5 rule— 

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

7 entities of such rule; and 

8 ‘‘(B) any indirect economic effect (includ9 ing compliance costs and effects on revenue) on 

10 small entities which is reasonably foreseeable 

11 and results from such rule (without regard to 

12 whether small entities will be directly regulated 

13 by the rule).’’. 

14 (c) INCLUSION OF RULES WITH BENEFICIAL EF15 FECTS.— 

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

18 United States Code, is amended by striking the first 

19 sentence and inserting ‘‘Each initial regulatory flexi20 bility analysis shall also contain a detailed descrip21 tion of alternatives to the proposed rule which mini22 mize any adverse significant economic impact or 

23 maximize any beneficial significant economic impact 

24 on small entities.’’. 


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

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

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

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

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

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

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

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

14 (e) INCLUSION OF LAND MANAGEMENT PLANS AND

15 FORMAL RULEMAKING.— 

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

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

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

21 rule,’’; and 

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

23 amendment to a land management plan,’’ after 

24 ‘‘United States,’’. 


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

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

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

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

8 amendment to a land management plan,’’ after 

9 ‘‘section 603(a),’’. 

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

12 by adding at the end the following new paragraph: 

13 ‘‘(10) LAND MANAGEMENT PLAN.— 

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

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

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

20 1604); and 

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

23 the Federal Land Policy and Management 

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


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

2 means any change to a land management plan 

3 which— 

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

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

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

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

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

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

12 Regulations (or any successor regulation). 

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

15 plan which— 

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

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

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

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

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

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

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

25 4332(2)(C)); or 


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

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

4 Regulations (or any successor regulation) 

5 and with respect to which the Secretary of 

6 the Interior prepares a statement described 

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

9 4332(2)(C)).’’. 

10 (f) INCLUSION OF CERTAIN INTERPRETIVE RULES

11 INVOLVING THE INTERNAL REVENUE LAWS.— 

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

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

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

15 recordkeeping requirement, and without regard to 

16 whether such requirement is imposed by statute or 

17 regulation.’’. 

18 (2) COLLECTION OF INFORMATION.—Paragraph 

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

20 amended to read as follows: 

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

22 ‘collection of information’ has the meaning given 

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


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

3 Code, is amended to read as follows: 

4 ‘‘(8) RECORDKEEPING REQUIREMENT.—The 

5 term ‘recordkeeping requirement’ has the meaning 

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

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

9 is amended to read as follows: 

10 ‘‘(4) SMALL ORGANIZATION.— 

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

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

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

16 is described by a classification code of the 

17 North American Industrial Classification 

18 System, does not exceed the size standard 

19 established by the Administrator of the 

20 Small Business Administration pursuant to 

21 section 3 of the Small Business Act (15 

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

23 described by such classification code; and 

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


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1 $7 million and has not more than 500 em2 ployees. 

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

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

6 to any national or international organization of 

7 which such local labor organization is a part. 

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

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

13 comment, establishes one or more definitions 

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

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

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

20 (1) in subsection (a)— 

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

22 at the end and inserting ‘‘;’’; 

23 (B) by redesignating paragraph (3) as 

24 paragraph (4); and 


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

2 following: 

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

4 North American Industrial Classification System 

5 that is primarily affected by any rule which the 

6 agency expects to propose or promulgate which is 

7 likely to have a significant economic impact on a 

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

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

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

11 language summary of the information contained in the 

12 regulatory flexibility agenda published under subsection 

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

14 Federal Register. The Office of Advocacy of the Small 

15 Business Administration shall compile and prominently 

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

18 website within 3 days of their publication in the Federal 

19 Register.’’. 

20 SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED 

21 ANALYSES. 

22 (a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

24 Code, is amended to read as follows: 


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

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

5 agency is being considered; 

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

7 for, the proposed rule; 

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

9 entities to which the proposed rule will apply; 

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

12 proposed rule, including an estimate of the classes of 

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

15 for preparation of the report and record; 

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

17 may duplicate, overlap, or conflict with the proposed 

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

19 be provided; 

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

22 beyond that already imposed on the class of small 

23 entities by the agency or why such an estimate is 

24 not available; 


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1 ‘‘(7) describing any disproportionate economic 

2 impact on small entities or a specific class of small 

3 entities; and 

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

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

6 (b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

8 United States Code, is amended— 

9 (A) in paragraph (4), by striking ‘‘an ex10 planation’’ and inserting ‘‘a detailed expla11 nation’’; 

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

13 first paragraph (6), by inserting ‘‘detailed’’ be14 fore ‘‘description’’; 

15 (C) in the first paragraph (6), by striking 

16 ‘‘; and’’ at the end; 

17 (D) in the second paragraph (6), by strik18 ing the period and inserting ‘‘; and’’; 

19 (E) by redesignating the second paragraph 

20 (6) as paragraph (7); and 

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

22 ‘‘(8) a detailed description of any dispropor23 tionate economic impact on small entities or a spe24 cific class of small entities.’’. 


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1 (2) INCLUSION OF RESPONSE TO COMMENTS ON

2 CERTIFICATION OF PROPOSED RULE.—Paragraph 

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

4 is amended by inserting ‘‘(or certification of the pro5 posed rule under section 605(b))’’ after ‘‘initial reg6 ulatory flexibility analysis’’. 

7 (3) PUBLICATION OF ANALYSIS ON WEBSITE.— 

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

9 States Code, is amended to read as follows: 

10 ‘‘(b) The agency shall make copies of the final regu11 latory flexibility analysis available to the public, including 

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

13 and shall publish in the Federal Register the final regu14 latory flexibility analysis, or a summary thereof which in15 cludes the telephone number, mailing address, and link to 

16 the website where the complete analysis may be ob17 tained.’’. 

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

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

20 Code, is amended to read as follows: 

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

22 any requirement regarding the content of an agenda or 

23 regulatory flexibility analysis under section 602, 603, or 

24 604, if such agency provides in such agenda or analysis 

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


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

2 satisfies such requirement.’’. 

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

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

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

6 the first place it appears; and 

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

8 (e) QUANTIFICATION REQUIREMENTS.—Section 607 

9 of title 5, United States Code, is amended to read as fol10 lows: 

11 ‘‘§ 607. Quantification requirements 

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

13 shall provide— 

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

15 the effects of the proposed or final rule and alter16 natives to the proposed or final rule; or 

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

18 a detailed statement explaining why quantification is 

19 not practicable or reliable.’’. 

20 SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDI21 TIONAL POWERS OF THE CHIEF COUNSEL 

22 FOR ADVOCACY. 

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

24 States Code, is amended to read as follows: 


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1 ‘‘§ 608. Additional powers of Chief Counsel for Advo2 cacy 

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

4 enactment of this section, the Chief Counsel for Advocacy 

5 of the Small Business Administration shall, after oppor6 tunity for notice and comment under section 553, issue 

7 rules governing agency compliance with this chapter. The 

8 Chief Counsel may modify or amend such rules after no9 tice and comment under section 553. This chapter (other 

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

11 issuance, modification, and amendment of rules under this 

12 paragraph. 

13 ‘‘(2) An agency shall not issue rules which supple14 ment the rules issued under subsection (a) unless such 

15 agency has first consulted with the Chief Counsel for Ad16 vocacy to ensure that such supplemental rules comply with 

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

18 ‘‘(b) Notwithstanding any other law, the Chief Coun19 sel for Advocacy of the Small Business Administration 

20 may intervene in any agency adjudication (unless such 

21 agency is authorized to impose a fine or penalty under 

22 such adjudication), and may inform the agency of the im23 pact that any decision on the record may have on small 

24 entities. The Chief Counsel shall not initiate an appeal 

25 with respect to any adjudication in which the Chief Coun26 sel intervenes under this subsection. 


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1 ‘‘(c) The Chief Counsel for Advocacy may file com2 ments in response to any agency notice requesting com3 ment, regardless of whether the agency is required to file 

4 a general notice of proposed rulemaking under section 

5 553.’’. 

6 (b) CONFORMING AMENDMENTS.— 

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

8 by striking ‘‘608(b),’’. 

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

10 by striking ‘‘608(b),’’. 

11 (3) Section 611(a)(3) of such title is amend12 ed— 

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

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

15 and inserting the following: 

16 ‘‘(3) A small entity’’. 

17 SEC. 6. PROCEDURES FOR GATHERING COMMENTS. 

18 Section 609 of title 5, United States Code, is amend19 ed by striking subsection (b) and all that follows through 

20 the end of the section and inserting the following: 

21 ‘‘(b)(1) Prior to publication of any proposed rule de22 scribed in subsection (e), an agency making such rule shall 

23 notify the Chief Counsel for Advocacy of the Small Busi24 ness Administration and provide the Chief Counsel with— 


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

2 agency in making the proposed rule, including the 

3 draft of the proposed rule; and 

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

5 beneficial economic impacts of the proposed rule on 

6 small entities and the type of small entities that 

7 might be affected. 

8 ‘‘(2) An agency shall not be required under para9 graph (1) to provide the exact language of any draft if 

10 the rule— 

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

12 United States; or 

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

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

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

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

17 Counsel for Advocacy of the Small Business Administra18 tion shall— 

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

20 small entities or a combination of both for the pur21 pose of obtaining advice, input, and recommenda22 tions from those persons about the potential eco23 nomic impacts of the proposed rule and the compli24 ance of the agency with section 603; and 


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

2 employee from the Office of Advocacy of the Small 

3 Business Administration, an employee from the 

4 agency making the rule, and in the case of an agen5 cy other than an independent regulatory agency (as 

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

7 from the Office of Information and Regulatory Af8 fairs of the Office of Management and Budget to re9 view the materials and information provided to the 

10 Chief Counsel under subsection (b). 

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

12 described in subsection (c)(2) is convened, the Chief Coun13 sel for Advocacy of the Small Business Administration 

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

15 submit a report to the agency and, in the case of an agen16 cy other than an independent regulatory agency (as de17 fined in section 3502(5) of title 44), the Office of Informa18 tion and Regulatory Affairs of the Office of Management 

19 and Budget. 

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

21 economic impact of the proposed rule on small entities, 

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

23 the cost that small entities pay for energy, an assessment 

24 of the proposed rule’s impact on startup costs for small 

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1 imize adverse significant economic impacts or maximize 

2 beneficial significant economic impacts on small entities. 

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

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

5 shall explain what actions, if any, the agency took in re6 sponse to such report. 

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

8 if the Administrator of the Office of Information and Reg9 ulatory Affairs of the Office of Management and Budget, 

10 the head of the agency (or the delegatee of the head of 

11 the agency), or an independent regulatory agency deter12 mines that the proposed rule is likely to result in— 

13 ‘‘(1) an annual effect on the economy of $100 

14 million or more; 

15 ‘‘(2) a major increase in costs or prices for con16 sumers, individual industries, Federal, State, or local 

17 governments, tribal organizations, or geographic re18 gions; 

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

20 employment, investment, productivity, innovation, or 

21 on the ability of United States-based enterprises to 

22 compete with foreign-based enterprises in domestic 

23 and export markets; or 

24 ‘‘(4) a significant economic impact on a sub25 stantial number of small entities. 


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1 ‘‘(f) Upon application by the agency, the Chief Coun2 sel for Advocacy of the Small Business Administration 

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

4 if the Chief Counsel determines that compliance with the 

5 requirements of such subsections are impracticable, un6 necessary, or contrary to the public interest. 

7 ‘‘(g) A small entity or a representative of a small enti8 ty may submit a request that the agency provide a copy 

9 of the report prepared under subsection (d) and all mate10 rials and information provided to the Chief Counsel for 

11 Advocacy of the Small Business Administration under 

12 subsection (b). The agency receiving such request shall 

13 provide the report, materials and information to the re14 questing small entity or representative of a small entity 

15 not later than 10 business days after receiving such re16 quest, except that the agency shall not disclose any infor17 mation that is prohibited from disclosure to the public 

18 pursuant to section 552(b) of this title.’’. 

19 SEC. 7. PERIODIC REVIEW OF RULES. 

20 Section 610 of title 5, United States Code, is amend21 ed to read as follows: 

22 ‘‘§ 610. Periodic review of rules 

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

24 this section, each agency shall publish in the Federal Reg25 ister and place on its website a plan for the periodic review 


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

2 determines have a significant economic impact on a sub3 stantial number of small entities. Such determination shall 

4 be made without regard to whether the agency performed 

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

6 shall be to determine whether such rules should be contin7 ued without change, or should be amended or rescinded, 

8 consistent with the stated objectives of applicable statutes, 

9 to minimize any adverse significant economic impacts or 

10 maximize any beneficial significant economic impacts on 

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

12 amended by the agency at any time by publishing the revi13 sion in the Federal Register and subsequently placing the 

14 amended plan on the agency’s website. 

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

16 agency rules existing on the date of the enactment of this 

17 section within 10 years of the date of publication of the 

18 plan in the Federal Register and for review of rules adopt19 ed after the date of enactment of this section within 10 

20 years after the publication of the final rule in the Federal 

21 Register. If the head of the agency determines that com22 pletion of the review of existing rules is not feasible by 

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

24 in a statement published in the Federal Register and may 

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1 cation of notice of extension in the Federal Register. Such 

2 certification and notice shall be sent to the Chief Counsel 

3 for Advocacy of the Small Business Administration and 

4 the Congress. 

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

6 an agency will conduct outreach to and meaningfully in7 clude small businesses (including small business concerns 

8 owned and controlled by women, small business concerns 

9 owned and controlled by veterans, and small business con10 cerns owned and controlled by socially and economically 

11 disadvantaged individuals (as such terms are defined in 

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

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

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

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

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

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

22 of the Office of Information and Regulatory Affairs of the 

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

25 the head of the agency made a determination described 


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

2 explanation of the reasons for such determination. 

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

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

5 to minimize any adverse significant economic impact on 

6 a substantial number of small entities or disproportionate 

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

8 maximize any beneficial significant economic impact of the 

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

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

12 the agency shall consider the following factors: 

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

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

15 agency from small entities concerning the rule. 

16 ‘‘(3) Comments by the Regulatory Enforcement 

17 Ombudsman and the Chief Counsel for Advocacy of 

18 the Small Business Administration. 

19 ‘‘(4) The complexity of the rule. 

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

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

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


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

2 head of the agency determines that such calculations 

3 cannot be made and reports that determination in 

4 the annual report required under subsection (d). 

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

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

8 the area affected by the rule. 

9 ‘‘(f) Each year, each agency shall publish in the Fed10 eral Register and on its website a list of rules to be re11 viewed pursuant to such plan. The agency shall include 

12 in the publication a solicitation of public comments on any 

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

14 shall respond to such comments. Such publication shall 

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

16 agency determined that it has a significant economic im17 pact on a substantial number of small entities (without 

18 regard to whether it had prepared a final regulatory flexi19 bility analysis for the rule), and request comments from 

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

21 Business Administration, and the Regulatory Enforce22 ment Ombudsman concerning the enforcement of the 

23 rule.’’. 


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

4 OF THE FINAL RULE. 

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

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

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

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

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

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

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

13 such section is amended— 

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

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

17 which the date of final agency action is the same 

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

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

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

24 605(b), 609, or 610’’. 


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

2 IMPLEMENTING THE REGULATORY FLEXI3 BILITY ACT. 

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

5 States Code, is amended— 

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

7 end; 

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

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

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

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

13 5.’’. 

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

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

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

17 the end; 

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

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

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

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

23 Business Administration, when the final rule is 

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

25 (c) AUTHORIZATION TO INTERVENE AND COMMENT

26 ON AGENCY COMPLIANCE WITH ADMINISTRATIVE PROCEVerDate Sep 11 2014 23:17 Feb 09, 2015 Jkt 049200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H527.RFS H527

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

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

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

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

6 COUNSEL FOR ADVOCACY. 

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

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

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

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

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

14 business concern may be determined to be 

15 a small business concern for purposes of 

16 this Act or the Small Business Investment 

17 Act of 1958; and 

18 ‘‘(ii) the Chief Counsel for Advocacy 

19 may specify such definitions or standards 

20 for purposes of any other Act.’’. 

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

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

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

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

25 standard prescribed by the Administrator, 


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

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

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

5 amended— 

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

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

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

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

13 at the end the following new paragraph: 

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

17 definition or standard approved by the Chief Counsel 

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

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

21 SEC. 11. CLERICAL AMENDMENTS. 

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

23 States Code, is amended— 

24 (1) 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 (2) in paragraph (3)— 

7 (A) by striking the semicolon at the end 

8 and inserting a period; and 

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

11 ‘‘(3) SMALL BUSINESS.—The term’’; 

12 (3) in paragraph (5)— 

13 (A) by striking the semicolon at the end 

14 and inserting a period; and 

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

17 ‘‘(5) SMALL GOVERNMENTAL JURISDICTION.— 

18 The term’’; and 

19 (4) in paragraph (6)— 

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

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

24 ‘‘(6) SMALL ENTITY.—The term’’. 


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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 amended 

17 in section 603(d)— 

18 (1) by striking paragraph (2); 

19 (2) by striking ‘‘(1) For a covered agency,’’ and 

20 inserting ‘‘For a covered agency,’’; 

21 (3) by striking ‘‘(A) any’’ and inserting ‘‘(1) 

22 any’’; 


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1 (4) by striking ‘‘(B) any’’ and inserting ‘‘(2) 

2 any’’; and 

3 (5) by striking ‘‘(C) advice’’ and inserting ‘‘(3) 

4 advice’’. 

5 SEC. 12. AGENCY PREPARATION OF GUIDES. 

6 Section 212(a)(5) the Small Business Regulatory En7 forcement Fairness Act of 1996 (5 U.S.C. 601 note) is 

8 amended to read as follows: 

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

10 agency shall, in its sole discretion, taking into ac11 count the subject matter of the rule and the lan12 guage of relevant statutes, ensure that the guide is 

13 written using sufficiently plain language likely to be 

14 understood by affected small entities. Agencies may 

15 prepare separate guides covering groups or classes of 

16 similarly affected small entities and may cooperate 

17 with associations of small entities to distribute such 

18 guides. In developing guides, agencies shall solicit 

19 input from affected small entities or associations of 

20 affected small entities. An agency may prepare 

21 guides and apply this section with respect to a rule 

22 or a group of related rules.’’. 

23 SEC. 13. 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. 

Passed the House of Representatives February 5, 

2015. 

Attest: KAREN L. HAAS, 

Clerk. 


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