II 

111TH CONGRESS 

2D SESSION S. 3024 

To ensure that the creation of jobs by small businesses is considered during 

the Federal legislative and rulemaking process, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 23, 2010 

Ms. SNOWE (for herself and Mr. PRYOR) introduced the following bill; which 

was read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

A BILL 

To ensure that the creation of jobs by small businesses 

is considered during the Federal legislative and rulemaking process, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Job Impact Analysis Act of 2010’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Job impact statement for reported bills and joint resolutions. 


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Sec. 4. Clarification and expansion of rules covered by the Regulatory Flexibility Act. 

Sec. 5. Requirements providing for more detailed analyses. 

Sec. 6. Periodic review of rules. 

Sec. 7. Office of Advocacy. 

Sec. 8. Clerical amendments. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) A vibrant and growing small business sector 

4 is critical to the recovery of the economy of the 

5 United States. 

6 (2) Regulations designed for application to 

7 large-scale entities have been applied uniformly to 

8 small businesses and other small entities, sometimes 

9 inhibiting the ability of small entities to create new 

10 jobs. 

11 (3) Uniform Federal regulatory and reporting 

12 requirements in many instances have imposed on 

13 small businesses and other small entities unneces14 sary and disproportionately burdensome demands, 

15 including legal, accounting, and consulting costs, 

16 thereby threatening the viability of small entities 

17 and the ability of small entities to compete and cre18 ate new jobs in a global marketplace. 

19 (4) Since 1980, Federal agencies have been re20 quired to recognize and take account of the dif21 ferences in the scale and resources of regulated enti22 ties, but in many instances have failed to do so. 


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1 (5) In 2009, there were nearly 70,000 pages in 

2 the Federal Register, and, according to research by 

3 the Office of Advocacy of the Small Business Admin4 istration, the annual cost of Federal regulations to5 tals $1,100,000,000,000. Small firms bear a dis6 proportionate burden, paying approximately 45 per7 cent, or $7,647, more per employee than larger 

8 firms in annual regulatory compliance costs. 

9 (6) The Federal Government should fully con10 sider the costs, including indirect economic impacts 

11 and the potential for job creation and job loss, of 

12 proposed rules. 

13 (7) It is the intention of Congress to amend 

14 chapter 6 of title 5, United States Code, to ensure 

15 that all impacts, including foreseeable indirect ef16 fects, of proposed and final rules are considered by 

17 agencies during the rulemaking process and that the 

18 agencies assess a full range of alternatives that will 

19 limit adverse economic consequences, enhance eco20 nomic benefits, and fully address potential job cre21 ation or job loss. 

22 (8) To the maximum extent practicable, the Di23 rector of the Congressional Budget Office should, in 

24 certain estimates the Director prepares with respect 

25 to bills or joint resolutions reported by congressional 


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1 committees, estimate the potential job creation or 

2 job loss attributable to the bills or joint resolutions. 

3 SEC. 3. JOB IMPACT STATEMENT FOR REPORTED BILLS 

4 AND JOINT RESOLUTIONS. 

5 Section 424 of the Congressional Budget and Im6 poundment Control Act of 1974 (2 U.S.C. 658c) is amend7 ed— 

8 (1) in subsection (a)(2)— 

9 (A) in subparagraph (B), by striking 

10 ‘‘and’’ at the end; 

11 (B) in subparagraph (C), by striking the 

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

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

14 ‘‘(D) if the Director estimates that the 

15 total amount of direct costs of all Federal inter16 governmental mandates in the bill or joint reso17 lution will equal or exceed $5,000,000,000 (ad18 justed annually for inflation), to the extent 

19 practicable, the potential job creation or job loss 

20 in State, local, and tribal governments as a re21 sult of the mandates.’’; and 

22 (2) in subsection (b)(2)— 

23 (A) in subparagraph (A), by striking 

24 ‘‘and’’ at the end; 


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1 (B) in subparagraph (B), by striking the 

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

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

4 ‘‘(C) if the Director estimates that the 

5 total amount of direct costs of all Federal pri6 vate sector mandates in the bill or joint resolu7 tion will equal or exceed $5,000,000,000 (ad8 justed annually for inflation), to the extent 

9 practicable, the potential job creation or job loss 

10 in the private sector as a result of the man11 dates.’’. 

12 SEC. 4. CLARIFICATION AND EXPANSION OF RULES COV13 ERED BY THE REGULATORY FLEXIBILITY 

14 ACT. 

15 Section 601 of title 5, United States Code, is amend16 ed— 

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

18 end; 

19 (2) in paragraph (7)(B), by striking the period 

20 at the end and inserting a semicolon; 

21 (3) in paragraph (8)— 

22 (A) by striking ‘‘RECORDKEEPING RE23 QUIREMENT.—The’’ and inserting ‘‘the’’; and 

24 (B) by striking the period at the end and 

25 inserting ‘‘; and’’; and 


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1 (4) by adding at the end the following: 

2 ‘‘(9) the term ‘economic impact’ means, with 

3 respect to a proposed or final rule— 

4 ‘‘(A) any direct economic effect of the rule 

5 on small entities; and 

6 ‘‘(B) any indirect economic effect on small 

7 entities, including potential job creation or job 

8 loss, that is reasonably foreseeable and that re9 sults from the rule, without regard to whether 

10 small entities are directly regulated by the 

11 rule.’’. 

12 SEC. 5. REQUIREMENTS PROVIDING FOR MORE DETAILED 

13 ANALYSES. 

14 (a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 

15 Section 603 of title 5, United States Code, is amended— 

16 (1) by striking subsection (b) and inserting the 

17 following: 

18 ‘‘(b) Each initial regulatory flexibility analysis re19 quired under this section shall contain a detailed state20 ment— 

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

22 agency is being considered; 

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

24 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; and 

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

15 including job creation and employment by small enti16 ties, beyond that already imposed on the class of 

17 small entities by the agency, or the reasons why 

18 such an estimate is not available.’’; and 

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

20 ‘‘(d) An agency shall notify the Chief Counsel for Ad21 vocacy of the Small Business Administration of any draft 

22 rules that may have a significant economic impact on a 

23 substantial number of small entities either— 

24 ‘‘(1) when the agency submits a draft rule to 

25 the Office of Information and Regulatory Affairs at 


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1 the Office of Management and Budget under Execu2 tive Order 12866, if that order requires such sub3 mission; or 

4 ‘‘(2) if no submission to the Office of Informa5 tion and Regulatory Affairs is so required, at a rea6 sonable time prior to publication of the rule by the 

7 agency.’’. 

8 (b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 

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

10 United States Code, is amended— 

11 (A) by inserting ‘‘detailed’’ before ‘‘de12 scription’’ each place it appears; 

13 (B) in paragraph (1), by striking ‘‘suc14 cinct’’; 

15 (C) in paragraph (2)— 

16 (i) by striking ‘‘summary’’ each place 

17 it appears and inserting ‘‘statement’’; and 

18 (ii) by inserting ‘‘(or certification of 

19 the proposed rule under section 605(b))’’ 

20 after ‘‘initial regulatory flexibility anal21 ysis’’; 

22 (D) in paragraph (3), by striking ‘‘an ex23 planation’’ and inserting ‘‘a detailed expla24 nation’’; 


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1 (E) by redesignating paragraphs (3), (4), 

2 and (5) as paragraphs (4), (5), and (6), respec3 tively; and 

4 (F) by inserting after paragraph (2) the 

5 following: 

6 ‘‘(3) the response of the agency to any com7 ments filed by the Chief Counsel for Advocacy of the 

8 Small Business Administration in response to the 

9 proposed rule, and a detailed statement of any 

10 change made to the proposed rule in the final rule 

11 as a result of the comments;’’. 

12 (2) PUBLICATION OF ANALYSIS ON WEB SITE, 

13 ETC.—Section 604(b) of title 5, United States Code, 

14 is amended to read as follows: 

15 ‘‘(b) The agency shall— 

16 ‘‘(1) make copies of the final regulatory flexi17 bility analysis available to the public, including by 

18 publishing the entire final regulatory flexibility anal19 ysis on the Web site of the agency; and 

20 ‘‘(2) publish in the Federal Register the final 

21 regulatory flexibility analysis, or a summary of the 

22 analysis that includes the telephone number, mailing 

23 address, and address of the Web site where the com24 plete final regulatory flexibility analysis may be ob25 tained.’’. 


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

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

3 to read as follows: 

4 ‘‘(a) A Federal agency shall be deemed to have satis5 fied a requirement regarding the content of a regulatory 

6 flexibility agenda or regulatory flexibility analysis under 

7 section 602, 603, or 604, if the Federal agency provides 

8 in the agenda or regulatory flexibility analysis a cross-ref9 erence to the specific portion of an agenda or analysis that 

10 is required by another law and that satisfies the require11 ment.’’. 

12 (d) CERTIFICATIONS.—The second sentence of sec13 tion 605(b) of title 5, United States Code, is amended by 

14 striking ‘‘statement providing the factual’’ and inserting 

15 ‘‘detailed statement providing the factual and legal’’. 

16 (e) QUANTIFICATION REQUIREMENTS.—Section 607 

17 of title 5, United States Code, is amended to read as fol18 lows: 

19 ‘‘§ 607. Quantification requirements 

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

21 shall provide— 

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

23 the effects of the proposed or final rule, including an 

24 estimate of the potential for job creation or job loss, 

25 and alternatives to the proposed or final rule; or 


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

2 a detailed statement explaining why quantification is 

3 not practicable or reliable.’’. 

4 SEC. 6. PERIODIC REVIEW OF RULES. 

5 Section 610 of title 5, United States Code, is amend6 ed to read as follows: 

7 ‘‘§ 610. Periodic review of rules 

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

9 the Job Impact Analysis Act of 2010, each agency shall 

10 publish in the Federal Register and place on its Web site 

11 a plan for the periodic review of rules issued by the agency 

12 that the head of the agency determines has a significant 

13 economic impact on a substantial number of small entities. 

14 Such determination shall be made without regard to 

15 whether the agency performed an analysis under section 

16 604. The purpose of the review shall be to determine 

17 whether such rules should be continued without change, 

18 or should be amended or rescinded, consistent with the 

19 stated objectives of applicable statutes, to minimize any 

20 significant adverse economic impacts on a substantial 

21 number of small entities (including an estimate of any ad22 verse impacts on job creation and employment by small 

23 entities). Such plan may be amended by the agency at any 

24 time by publishing the revision in the Federal Register 


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1 and subsequently placing the amended plan on the Web 

2 site of the agency. 

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

4 agency rules existing on the date of the enactment of the 

5 Job Impact Analysis Act of 2010 within 10 years after 

6 the date of publication of the plan in the Federal Register 

7 and every 10 years thereafter and for review of rules 

8 adopted after the date of enactment of the Job Impact 

9 Analysis Act of 2010 within 10 years after the publication 

10 of the final rule in the Federal Register and every 10 years 

11 thereafter. 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 and Congress. 

19 ‘‘(c) Each agency shall annually submit a report re20 garding the results of its review pursuant to such plan 

21 to Congress and, in the case of agencies other than inde22 pendent regulatory agencies (as defined in section 3502(5) 

23 of title 44, United States Code), to the Administrator of 

24 the Office of Information and Regulatory Affairs of the 

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1 clude the identification of any rule with respect to which 

2 the head of the agency made a determination of infeasi3 bility under paragraph (5) or (6) of subsection (d) and 

4 a detailed explanation of the reasons for such determina5 tion. 

6 ‘‘(d) In reviewing rules under such plan, the agency 

7 shall consider— 

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

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

10 agency from small entities concerning the rule; 

11 ‘‘(3) comments by the Regulatory Enforcement 

12 Ombudsman and the Chief Counsel for Advocacy; 

13 ‘‘(4) the complexity of the rule; 

14 ‘‘(5) the extent to which the rule overlaps, du15 plicates, or conflicts with other Federal rules and, 

16 unless the head of the agency determines it to be in17 feasible, State and local rules; 

18 ‘‘(6) the contribution of the rule to the cumu19 lative economic impact of all Federal rules on the 

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

21 head of the agency determines that such calculations 

22 cannot be made and reports that determination in 

23 the annual report required under subsection (c); 

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

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1 nomic conditions, or other factors have changed in 

2 the area affected by the rule; and 

3 ‘‘(8) the current impact of the rule, including— 

4 ‘‘(A) the estimated number of small enti5 ties to which the rule will apply; 

6 ‘‘(B) the estimated number of small busi7 ness jobs that will be lost or created by the 

8 rule; and 

9 ‘‘(C) the projected reporting, recordkeeping 

10 and other compliance requirements of the pro11 posed rule, including— 

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

13 entities that will be subject to the require14 ment; and 

15 ‘‘(ii) the type of professional skills 

16 necessary for preparation of the report or 

17 record. 

18 ‘‘(e) The agency shall publish in the Federal Register 

19 and on the Web site of the agency a list of rules to be 

20 reviewed pursuant to such plan. Such publication shall in21 clude a brief description of the rule, the reason why the 

22 agency determined that it has a significant economic im23 pact on a substantial number of small entities (without 

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1 ments from the public, the Chief Counsel for Advocacy, 

2 and the Regulatory Enforcement Ombudsman concerning 

3 the enforcement of the rule.’’. 

4 SEC. 7. OFFICE OF ADVOCACY. 

5 (a) IN GENERAL.—Section 203 of Public Law 94– 

6 305 (15 U.S.C. 634c) is amended— 

7 (1) in paragraph (4), by striking ‘‘and’’ at the 

8 end; 

9 (2) in paragraph (5), by striking the period and 

10 inserting ‘‘; and’’; and 

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

12 ‘‘(6) carry out the responsibilities of the Office 

13 of Advocacy under chapter 6 of title 5, United 

14 States Code.’’. 

15 (b) BUDGETARY LINE ITEM AND AUTHORIZATION OF

16 APPROPRIATIONS.—Title II of Public Law 94–305 (15 

17 U.S.C. 634a et seq.) is amended by striking section 207 

18 and inserting the following: 

19 ‘‘SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 

20 APPROPRIATIONS. 

21 ‘‘(a) APPROPRIATION REQUESTS.—Each budget of 

22 the United States Government submitted by the President 

23 under section 1105 of title 31, United States Code, shall 

24 include a separate statement of the amount of appropria25 tions requested for the Office of Advocacy of the Small 


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1 Business Administration, which shall be designated in a 

2 separate account in the General Fund of the Treasury. 

3 ‘‘(b) ADMINISTRATIVE OPERATIONS.—The Adminis4 trator of the Small Business Administration shall provide 

5 the Office of Advocacy with appropriate and adequate of6 fice space at central and field office locations, together 

7 with such equipment, operating budget, and communica8 tions facilities and services as may be necessary, and shall 

9 provide necessary maintenance services for such offices 

10 and the equipment and facilities located in such offices. 

11 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated such sums as are nec13 essary to carry out this title. Any amount appropriated 

14 under this subsection shall remain available, without fiscal 

15 year limitation, until expended.’’. 

16 SEC. 8. CLERICAL AMENDMENTS. 

17 (a) HEADING.—The heading of section 605 of title 

18 5, United States Code, is amended to read as follows: 

19 ‘‘§ 605. Incorporations by reference and certifi20 cations’’. 

21 (b) TABLE OF SECTIONS.—The table of sections for 

22 chapter 6 of title 5, United States Code, is amended— 

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

24 and inserting the following: 

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

25 and 


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

2 and inserting the following: 

‘‘607. Quantification requirements.’’. 

Æ 


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