The RFA now also applies to previously exempt interpretative rulemakings promulgated by the Internal Revenue Service that have information collection requirements. When an EPA or OSHA proposal is expected to have a significant impact on a substantial number of small entities, the agency must convene a panel of employees from the agency, the Office of Advocacy, and the Office of Management and Budget to review a copy of the draft proposed rule and related agency analyses under the Regulatory Flexibility Act. The panel also will collect advice from small business representatives and submit a report to the agency within 60 days of convening of the panel. The agency will then review the report, make any appropriate revisions to the rule, and publish the proposed rule with the panel report as part of the record. Before any rule goes into effect, agencies are required to forward the rule to Congress for review.
Congressional review is subject to a presidential veto.
Congress may take up to 60 session days for review and use a variety of mechanisms to delay implementation. The agencies must publish compliance guides for all rules with a significant small business impact. These guides must explain in plain language how the firms can comply with the regulations. If a small business is cited for a violation of a regulation, the court review may include the content of the small business compliance guide in assessing the reasonableness of the proposed penalty. Compliance Inquiries Agencies also are required to establish a system for addressing compliance inquiries from small business.