Harmless Error Lesser Penalty for Small Businesses Act

To waive the imposition of a civil fine for certain first-time paperwork violations by small business concerns. 1. Short title This Act may be cited as the Harmless Error Lesser Penalty for Small Businesses Act HELP for Small Businesses Act 2. Paperwork violations by small businesses (a) In general Section 3512 of title 44, United States Code, is amended by adding at the end the following: (c) Small businesses (1) Definitions In this subsection: (A) First-time violation The term first-time violation (B) Small business concern The term small business concern 15 U.S.C. 632 (2) First-time violation (A) In general Except as provided in subparagraph (C), in the case of a first-time violation by a small business concern of a requirement regarding the collection of information by an agency, the head of the agency shall not impose a civil fine on the small business concern. (B) Determination For purposes of determining whether to impose a civil fine on a small business concern under subparagraph (A), the head of an agency shall not take into account any violation by the small business concern of a requirement regarding collection of information by another agency. (C) Exception The head of an agency may impose a civil fine on a small business concern for a first-time violation if the head of the agency determines that— (i) the violation has the potential to impede or interfere with the detection of criminal activity; (ii) the violation is a violation of an internal revenue law or a law concerning the assessment or collection of any tax, debt, revenue, or receipt; (iii) the violation was not corrected on or before the date that is 180 days after the date on which the head of the agency provided the small business concern with actual notice of the violation in writing; or (iv) except as provided in paragraph (3), the violation— (I) presents a danger to the public health or safety; or (II) has the potential to cause serious harm to the public interest. (3) Danger to public health or safety or potential harm to public interest (A) In general In any case in which the head of an agency determines under paragraph (2)(C)(iv) that a violation presents a danger to the public health or safety or has the potential to cause serious harm to the public interest, the head of the agency may determine not to impose a civil fine on the small business concern if the violation is corrected not later than 24 hours after the head of the agency provides the owner of the small business concern with actual notice of the violation in writing. (B) Considerations In determining whether to impose a civil fine under subparagraph (A), the head of an agency shall take into account the nature and seriousness of the violation, including— (i) whether the violation is technical or inadvertent or involves willful or criminal conduct; and (ii) whether the small business concern had made a good faith effort to comply with applicable laws and to remedy the violation within the 24-hour time period described in that subparagraph. . (b) Technical and conforming amendment Section 3512(b) of title 44, United States Code, is amended by striking this section subsection (a) 1. Short title This Act may be cited as the Harmless Error Lesser Penalty for Small Businesses Act HELP for Small Businesses Act 2. Paperwork violations by small businesses (a) In general Section 3512 of title 44, United States Code, is amended by adding at the end the following: (c) Small businesses (1) Definitions In this subsection: (A) First-time violation The term first-time violation (B) Small business concern The term small business concern (2) First-time violation (A) In general Except as provided in subparagraph (C), in the case of a first-time violation by a small business concern of a requirement regarding the collection of information by an agency, the agency shall not impose a civil fine on the small business concern. (B) Determination For purposes of determining whether to impose a civil fine on a small business concern under subparagraph (A), an agency shall not take into account any violation by the small business concern of a requirement regarding collection of information by another agency. (C) Exception An agency may impose a civil fine on a small business concern for a first-time violation if the agency determines that— (i) the violation has the potential to impede or interfere with the detection of criminal activity; (ii) the violation is a violation of an internal revenue law or a law concerning the assessment or collection of any tax, debt, revenue, or receipt; (iii) the violation was not corrected on or before the date that is 30 days after the date on which the agency provided the small business concern with actual notice of the violation in writing; (iv) the violation presents, or has the potential to present— (I) a danger to public health; (II) a danger to safety; or (III) a danger, or risk of harm, to the environment; or (v) the violation has the potential to cause serious harm, injury, or death. (3) Agency tracking of first-time violations (A) In general The Director shall promulgate regulations requiring an agency to track each first-time violation of a requirement regarding the collection of information by the agency. (B) Requirements In promulgating regulations under subparagraph (A), the Director shall ensure that an agency— (i) does not make data compiled under the regulations available to the public; and (ii) maintains the data described in clause (i) in a format that is consistent across agencies. (4) Annual report Each year, any agency that waived a civil fine under paragraph (2)(A) of this subsection during the preceding year and any agency (as defined in section 221 of the Small Business Regulatory Enforcement Fairness Act of 1996 ( 5 U.S.C. 601 Public Law 104–121 (A) the specific requirement that was violated, including the provision of law that authorizes the agency to impose the civil fine or civil penalty for the violation; (B) the amount of the civil fine or civil penalty that the agency could have imposed; and (C) the industry in which the small business concern or small entity that committed the violation operates. (5) Relation to other laws In the event of a conflict between section 223 of the Small Business Regulatory Enforcement Fairness Act of 1996 ( 5 U.S.C. 601 Public Law 104–121 (6) Rule of construction Nothing in this subsection shall be construed to relieve a small business concern from the obligation to comply with all legal requirements. . (b) Technical and conforming amendments (1) Section 3512(b) of title 44, United States Code, is amended by striking this section subsection (a) (2) Section 223(c) of the Small Business Regulatory Enforcement Fairness Act of 1996 ( 5 U.S.C. 601 Public Law 104–121 (A) by striking Agencies shall (1) Initial report Agencies shall ; and (B) by adding at the end the following: (2) Annual report Agencies shall submit annual reports to Congress in accordance with section 3512(c)(4) of title 44, United States Code. . December 15, 2020 Reported with an amendment

Summary: Harmless Error Lesser Penalty for Small Businesses Act or the HELP for Small Businesses Act This bill prohibits an agency from imposing a civil fine on a small business for a first-time paperwork violation, with the exceptions that the agency may levy a fine for a violation that (1) interferes with the detection of criminal activity; (2) contravenes an internal revenue law; or (3) endangers public health, safety, or the environment. However, an agency must track each first-time violation and report each waiver or reduction of a civil penalty for the violation.