I 

114TH CONGRESS 

1ST SESSION H. R. 527 

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 HOUSE OF REPRESENTATIVES 

JANUARY 26, 2015 

Mr. CHABOT (for himself, Mr. GOODLATTE, Mr. MARINO, Mr. COLLINS of 

Georgia, Mr. HANNA, Mr. LUETKEMEYER, Mr. SMITH of Texas, and Mr. 

KNIGHT) introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

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, appli16 ances, 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 (6) of section 604(a) of 

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

21 ‘‘minimize the significant economic impact’’ and in22 serting ‘‘minimize the adverse significant economic 

23 impact or maximize the beneficial significant eco24 nomic 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, is amended 

6 by adding at the end the following new paragraph: 

7 ‘‘(10) LAND MANAGEMENT PLAN.— 

8 ‘‘(A) IN GENERAL.—The term ‘land man9 agement plan’ means— 

10 ‘‘(i) any plan developed by the Sec11 retary of Agriculture under section 6 of 

12 the Forest and Rangeland Renewable Re13 sources Planning Act of 1974 (16 U.S.C. 

14 1604); and 

15 ‘‘(ii) any plan developed by the Sec16 retary of the Interior under section 202 of 

17 the Federal Land Policy and Management 

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

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

20 means any change to a land management plan 

21 which— 

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

23 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 not-for-profit enterprise 

7 which, as of the issuance of the notice of pro8 posed 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 SEC. 3. EXPANSION OF REPORT OF REGULATORY AGENDA. 

13 Section 602 of title 5, United States Code, is amend14 ed— 

15 (1) in subsection (a)— 

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

17 at the end and inserting ‘‘;’’; 

18 (B) by redesignating paragraph (3) as 

19 paragraph (4); and 

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

21 following: 

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

23 North American Industrial Classification System 

24 that is primarily affected by any rule which the 

25 agency expects to propose or promulgate which is 

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1 likely to have a significant economic impact on a 

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

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

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

5 language summary of the information contained in the 

6 regulatory flexibility agenda published under subsection 

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

8 Federal Register. The Office of Advocacy of the Small 

9 Business Administration shall compile and prominently 

10 display a plain language summary of the regulatory agen11 das referenced in subsection (a) for each agency on its 

12 website within 3 days of their publication in the Federal 

13 Register.’’. 

14 SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED 

15 ANALYSES. 

16 (a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

18 Code, is amended to read as follows: 

19 ‘‘(b) Each initial regulatory flexibility analysis re20 quired under this section shall contain a detailed state21 ment— 

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

23 agency is being considered; 

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

25 for, the proposed rule; 

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

2 entities to which the proposed rule will apply; 

3 ‘‘(4) describing the projected reporting, record4 keeping, and other compliance requirements of the 

5 proposed rule, including an estimate of the classes of 

6 small entities which will be subject to the require7 ment and the type of professional skills necessary 

8 for preparation of the report and record; 

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

10 may duplicate, overlap, or conflict with the proposed 

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

12 be provided; 

13 ‘‘(6) estimating the additional cumulative eco14 nomic impact of the proposed rule on small entities 

15 beyond that already imposed on the class of small 

16 entities by the agency or why such an estimate is 

17 not available; 

18 ‘‘(7) describing any disproportionate economic 

19 impact on small entities or a specific class of small 

20 entities; and 

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

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

23 (b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

25 United States Code, is amended— 

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1 (A) in paragraph (4), by striking ‘‘an ex2 planation’’ and inserting ‘‘a detailed expla3 nation’’; 

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

5 first paragraph (6), by inserting ‘‘detailed’’ be6 fore ‘‘description’’; 

7 (C) in the second paragraph (6), by strik8 ing the period and inserting ‘‘; and’’; 

9 (D) by redesignating the second paragraph 

10 (6) as paragraph (7); and 

11 (E) by adding at the end the following: 

12 ‘‘(8) a detailed description of any dispropor13 tionate economic impact on small entities or a spe14 cific class of small entities.’’. 

15 (2) INCLUSION OF RESPONSE TO COMMENTS ON

16 CERTIFICATION OF PROPOSED RULE.—Paragraph 

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

18 is amended by inserting ‘‘(or certification of the pro19 posed rule under section 605(b))’’ after ‘‘initial reg20 ulatory flexibility analysis’’. 

21 (3) PUBLICATION OF ANALYSIS ON WEBSITE.— 

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

23 States Code, is amended to read as follows: 

24 ‘‘(b) The agency shall make copies of the final regu25 latory flexibility analysis available to the public, including 

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

2 and shall publish in the Federal Register the final regu3 latory flexibility analysis, or a summary thereof which in4 cludes the telephone number, mailing address, and link to 

5 the website where the complete analysis may be ob6 tained.’’. 

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

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

9 Code, is amended to read as follows: 

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

11 any requirement regarding the content of an agenda or 

12 regulatory flexibility analysis under section 602, 603, or 

13 604, if such agency provides in such agenda or analysis 

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

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

16 satisfies such requirement.’’. 

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

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

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

20 the first place it appears; and 

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

22 (e) QUANTIFICATION REQUIREMENTS.—Section 607 

23 of title 5, United States Code, is amended to read as fol24 lows: 

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1 ‘‘§ 607. Quantification requirements 

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

3 shall provide— 

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

5 the effects of the proposed or final rule and alter6 natives to the proposed or final rule; or 

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

8 a detailed statement explaining why quantification is 

9 not practicable or reliable.’’. 

10 SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDI11 TIONAL POWERS OF THE CHIEF COUNSEL 

12 FOR ADVOCACY. 

13 (a) IN GENERAL.—Section 608 is amended to read 

14 as follows: 

15 ‘‘§ 608. Additional powers of Chief Counsel for Advo16 cacy 

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

18 enactment of this section, the Chief Counsel for Advocacy 

19 of the Small Business Administration shall, after oppor20 tunity for notice and comment under section 553, issue 

21 rules governing agency compliance with this chapter. The 

22 Chief Counsel may modify or amend such rules after no23 tice and comment under section 553. This chapter (other 

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

25 issuance, modification, and amendment of rules under this 

26 paragraph. 

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1 ‘‘(2) An agency shall not issue rules which supple2 ment the rules issued under subsection (a) 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) CONFORMING AMENDMENTS.— 

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

22 by striking ‘‘608(b),’’. 

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

24 by striking ‘‘608(b),’’. 

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1 (3) Section 611(a)(3) of such title is amend2 ed— 

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

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

5 and inserting the following: 

6 ‘‘(3) A small entity’’. 

7 SEC. 6. PROCEDURES FOR GATHERING COMMENTS. 

8 Section 609 of title 5, United States Code, is amend9 ed by striking subsection (b) and all that follows through 

10 the end of the section and inserting the following: 

11 ‘‘(b)(1) Prior to publication of any proposed rule de12 scribed in subsection (e), an agency making such rule shall 

13 notify the Chief Counsel for Advocacy of the Small Busi14 ness Administration and provide the Chief Counsel with— 

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

16 agency in making the proposed rule, including the 

17 draft of the proposed rule; and 

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

19 beneficial economic impacts of the proposed rule on 

20 small entities and the type of small entities that 

21 might be affected. 

22 ‘‘(2) An agency shall not be required under para23 graph (1) to provide the exact language of any draft if 

24 the rule— 

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

2 United States; or 

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

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

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

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

7 Counsel for Advocacy of the Small Business Administra8 tion shall— 

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

10 small entities or a combination of both for the pur11 pose of obtaining advice, input, and recommenda12 tions from those persons about the potential eco13 nomic impacts of the proposed rule and the compli14 ance of the agency with section 603; and 

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

16 employee from the Office of Advocacy of the Small 

17 Business Administration, an employee from the 

18 agency making the rule, and in the case of an agen19 cy other than an independent regulatory agency (as 

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

21 from the Office of Information and Regulatory Af22 fairs of the Office of Management and Budget to re23 view the materials and information provided to the 

24 Chief Counsel under subsection (b). 

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

2 described in subsection (c)(2) is convened, the Chief Coun3 sel for Advocacy of the Small Business Administration 

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

5 submit a report to the agency and, in the case of an agen6 cy other than an independent regulatory agency (as de7 fined in section 3502(5) of title 44), the Office of Informa8 tion and Regulatory Affairs of the Office of Management 

9 and Budget. 

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

11 economic impact of the proposed rule on small entities, 

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

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

14 of the proposed rule’s impact on start-up costs for small 

15 entities, and a discussion of any alternatives that will min16 imize adverse significant economic impacts or maximize 

17 beneficial significant economic impacts on small entities. 

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

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

20 shall explain what actions, if any, the agency took in re21 sponse to such report. 

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

23 if the Administrator of the Office of Information and Reg24 ulatory Affairs of the Office of Management and Budget, 

25 the head of the agency (or the delegatee of the head of 

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1 the agency), or an independent regulatory agency deter2 mines that the proposed rule is likely to result in— 

3 ‘‘(1) an annual effect on the economy of 

4 $100,000,000 or more; 

5 ‘‘(2) a major increase in costs or prices for con6 sumers, individual industries, Federal, State, or local 

7 governments, tribal organizations, or geographic re8 gions; 

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

10 employment, investment, productivity, innovation, or 

11 on the ability of United States-based enterprises to 

12 compete with foreign-based enterprises in domestic 

13 and export markets; or 

14 ‘‘(4) a significant economic impact on a sub15 stantial number of small entities. 

16 ‘‘(f) Upon application by the agency, the Chief Coun17 sel for Advocacy of the Small Business Administration 

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

19 if the Chief Counsel determines that compliance with the 

20 requirements of such subsections are impracticable, un21 necessary, or contrary to the public interest. 

22 ‘‘(g) A small entity or a representative of a small enti23 ty may submit a request that the agency provide a copy 

24 of the report prepared under subsection (d) and all mate25 rials and information provided to the Chief Counsel for 

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1 Advocacy of the Small Business Administration under 

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

3 provide the report, materials and information to the re4 questing small entity or representative of a small entity 

5 not later than 10 business days after receiving such re6 quest, except that the agency shall not disclose any infor7 mation that is prohibited from disclosure to the public 

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

9 SEC. 7. PERIODIC REVIEW OF RULES. 

10 Section 610 of title 5, United States Code, is amend11 ed to read as follows: 

12 ‘‘§ 610. Periodic review of rules 

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

14 this section, each agency shall publish in the Federal Reg15 ister and place on its website a plan for the periodic review 

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

17 determines have a significant economic impact on a sub18 stantial number of small entities. Such determination shall 

19 be made without regard to whether the agency performed 

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

21 shall be to determine whether such rules should be contin22 ued without change, or should be amended or rescinded, 

23 consistent with the stated objectives of applicable statutes, 

24 to minimize any adverse significant economic impacts or 

25 maximize any beneficial significant economic impacts on 

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

2 amended by the agency at any time by publishing the revi3 sion in the Federal Register and subsequently placing the 

4 amended plan on the agency’s website. 

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

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

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

8 plan in the Federal Register and for review of rules adopt9 ed after the date of enactment of this section within 10 

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

11 Register. If the head of the agency determines that com12 pletion of the review of existing rules is not feasible by 

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

14 in a statement published in the Federal Register and may 

15 extend the review for not longer than 2 years after publi16 cation of notice of extension in the Federal Register. Such 

17 certification and notice shall be sent to the Chief Counsel 

18 for Advocacy of the Small Business Administration and 

19 the Congress. 

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

21 an agency will conduct outreach to and meaningfully in22 clude small businesses (including small business concerns 

23 owned and controlled by women, small business concerns 

24 owned and controlled by veterans, and small business con25 cerns owned and controlled by socially and economically 

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1 disadvantaged individuals (as such terms are defined in 

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

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

4 for how the agency will contact small businesses and gath5 er their input on existing agency rules. 

6 ‘‘(d) Each agency shall annually submit a report re7 garding the results of its review pursuant to such plan 

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

9 Small Business Administration, and in the case of agen10 cies other than independent regulatory agencies (as de11 fined in section 3502(5) of title 44) to the Administrator 

12 of the Office of Information and Regulatory Affairs of the 

13 Office of Management and Budget. Such report shall in14 clude the identification of any rule with respect to which 

15 the head of the agency made a determination described 

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

17 explanation of the reasons for such determination. 

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

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

20 to minimize any adverse significant economic impact on 

21 a substantial number of small entities or disproportionate 

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

23 maximize any beneficial significant economic impact of the 

24 rule on a substantial number of small entities to the great25 est extent possible, consistent with the stated objectives 

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

2 the agency shall consider the following factors: 

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

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

5 agency from small entities concerning the rule. 

6 ‘‘(3) Comments by the Regulatory Enforcement 

7 Ombudsman and the Chief Counsel for Advocacy of 

8 the Small Business Administration. 

9 ‘‘(4) The complexity of the rule. 

10 ‘‘(5) The extent to which the rule overlaps, du11 plicates, or conflicts with other Federal rules and, 

12 unless the head of the agency determines it to be in13 feasible, State, territorial, and local rules. 

14 ‘‘(6) The contribution of the rule to the cumu15 lative economic impact of all Federal rules on the 

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

17 head of the agency determines that such calculations 

18 cannot be made and reports that determination in 

19 the annual report required under subsection (d). 

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

21 evaluated or the degree to which technology, eco22 nomic conditions, or other factors have changed in 

23 the area affected by the rule. 

24 ‘‘(f) Each year, each agency shall publish in the Fed25 eral Register and on its website a list of rules to be remstockstill on DSK4VPTVN1PROD with BILLS

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1 viewed pursuant to such plan. The agency shall include 

2 in the publication a solicitation of public comments on any 

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

4 shall respond to such comments. Such publication shall 

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

6 agency determined that it has a significant economic im7 pact on a substantial number of small entities (without 

8 regard to whether it had prepared a final regulatory flexi9 bility analysis for the rule), and request comments from 

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

11 Business Administration, and the Regulatory Enforce12 ment Ombudsman concerning the enforcement of the 

13 rule.’’. 

14 SEC. 8. JUDICIAL REVIEW OF COMPLIANCE WITH THE RE15 QUIREMENTS OF THE REGULATORY FLEXI16 BILITY ACT AVAILABLE AFTER PUBLICATION 

17 OF THE FINAL RULE. 

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

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

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

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

22 amended by inserting ‘‘(or which would have such jurisdic23 tion if publication of the final rule constituted final agency 

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

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

2 such section is amended— 

3 (1) by striking ‘‘final agency action’’ and insert4 ing ‘‘publication of the final rule’’; and 

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

6 which the date of final agency action is the same 

7 date as the publication of the final rule,’’ after ‘‘ex8 cept that’’. 

9 (d) INTERVENTION BY CHIEF COUNSEL FOR ADVO10 CACY.—Subsection (b) of section 612 of title 5, United 

11 States Code, is amended by inserting before the first pe12 riod ‘‘or agency compliance with section 601, 603, 604, 

13 605(b), 609, or 610’’. 

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

15 IMPLEMENTING THE REGULATORY FLEXI16 BILITY ACT. 

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

18 States Code, is amended— 

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

20 end; 

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

22 the end and inserting ‘‘; and’’; and 

23 (3) by inserting after paragraph (7) the fol24 lowing new paragraph: 

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

2 5.’’. 

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

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

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

6 the end; 

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

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

9 (3) by adding at the end the following new sub10 paragraph: 

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

12 Business Administration, when the final rule is 

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

14 (c) AUTHORIZATION TO INTERVENE AND COMMENT

15 ON AGENCY COMPLIANCE WITH ADMINISTRATIVE PROCE16 DURE.—Subsection (b) of section 612 of title 5, United 

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

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

19 SEC. 10. ESTABLISHMENT AND APPROVAL OF SMALL BUSI20 NESS CONCERN SIZE STANDARDS BY CHIEF 

21 COUNSEL FOR ADVOCACY. 

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

23 3(a)(2) of the Small Business Act (15 U.S.C. 

24 632(a)(2)(A)) is amended to read as follows: 

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1 ‘‘(A) IN GENERAL.—In addition to the cri2 teria specified in paragraph (1)— 

3 ‘‘(i) the Administrator may specify de4 tailed definitions or standards by which a 

5 business concern may be determined to be 

6 a small business concern for purposes of 

7 this Act or the Small Business Investment 

8 Act of 1958; and 

9 ‘‘(ii) the Chief Counsel for Advocacy 

10 may specify such definitions or standards 

11 for purposes of any other Act.’’. 

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

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

14 632(a)(2)(C)(iii)) is amended to read as follows: 

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

16 standard prescribed by the Administrator, 

17 is approved by the Chief Counsel for Advo18 cacy.’’. 

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

20 3(a) of the Small Business Act (15 U.S.C. 632(a)(3)) is 

21 amended— 

22 (1) by inserting ‘‘or Chief Counsel for Advo23 cacy, as appropriate’’ before ‘‘shall ensure’’; and 

24 (2) by inserting ‘‘or Chief Counsel for Advo25 cacy’’ before the period at the end. 

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1 (d) JUDICIAL REVIEW OF SIZE STANDARDS AP2 PROVED BY CHIEF COUNSEL.—Section 3(a) of the Small 

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

4 at the end the following new paragraph: 

5 ‘‘(9) JUDICIAL REVIEW OF STANDARDS AP6 PROVED BY CHIEF COUNSEL.—In the case of an ac7 tion for judicial review of a rule which includes a 

8 definition or standard approved by the Chief Counsel 

9 for Advocacy under this subsection, the party seek10 ing such review shall be entitled to join the Chief 

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

12 SEC. 11. CLERICAL AMENDMENTS. 

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

14 States Code, is amended— 

15 (1) in paragraph (1)— 

16 (A) by striking the semicolon at the end 

17 and inserting a period; and 

18 (B) by striking ‘‘(1) the term’’ and insert19 ing the following: 

20 ‘‘(1) AGENCY.—The term’’; 

21 (2) in paragraph (3)— 

22 (A) by striking the semicolon at the end 

23 and inserting a period; and 

24 (B) by striking ‘‘(3) the term’’ and insert25 ing the following: 

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1 ‘‘(3) SMALL BUSINESS.—The term’’; 

2 (3) in paragraph (5)— 

3 (A) by striking the semicolon at the end 

4 and inserting a period; and 

5 (B) by striking ‘‘(5) the term’’ and insert6 ing the following: 

7 ‘‘(5) SMALL GOVERNMENTAL JURISDICTION.— 

8 The term’’; and 

9 (4) in paragraph (6)— 

10 (A) by striking ‘‘; and’’ and inserting a pe11 riod; and 

12 (B) by striking ‘‘(6) the term’’ and insert13 ing the following: 

14 ‘‘(6) SMALL ENTITY.—The term’’. 

15 (b) INCORPORATIONS BY REFERENCE AND CERTIFI16 CATIONS.—The heading of section 605 of title 5, United 

17 States Code, is amended to read as follows: 

18 ‘‘§ 605. Incorporations by reference and certifi19 cations’’. 

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

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

22 follows: 

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

24 and inserting the following new item: 

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

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

2 and inserting the following new item: 

‘‘607. Quantification requirements.’’. 

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

4 and inserting the following: 

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

5 (d) OTHER CLERICAL AMENDMENTS TO CHAPTER

6 6.—Chapter 6 of title 5, United States Code, is amended 

7 in section 603(d)— 

8 (1) by striking paragraph (2); 

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

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

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

12 any’’; 

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

14 any’’; and 

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

16 advice’’. 

17 SEC. 12. AGENCY PREPARATION OF GUIDES. 

18 Section 212(a)(5) the Small Business Regulatory En19 forcement Fairness Act of 1996 (5 U.S.C. 601 note) is 

20 amended to read as follows: 

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

22 agency shall, in its sole discretion, taking into ac23 count the subject matter of the rule and the lan24 guage of relevant statutes, ensure that the guide is 

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1 written using sufficiently plain language likely to be 

2 understood by affected small entities. Agencies may 

3 prepare separate guides covering groups or classes of 

4 similarly affected small entities and may cooperate 

5 with associations of small entities to distribute such 

6 guides. In developing guides, agencies shall solicit 

7 input from affected small entities or associations of 

8 affected small entities. An agency may prepare 

9 guides and apply this section with respect to a rule 

10 or a group of related rules.’’. 

11 SEC. 13. COMPTROLLER GENERAL REPORT. 

12 Not later than 90 days after the date of enactment 

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

14 shall complete and publish a study that examines whether 

15 the Chief Counsel for Advocacy of the Small Business Ad16 ministration has the capacity and resources to carry out 

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

18 amendments made by this Act. 

Æ 

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