I 
119TH CONGRESS 
1ST SESSION 
H. R. 421 
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 15, 2025 
Mr. CLINE (for himself, Ms. HAGEMAN, Mr. ELLZEY, Mr. BRECHEEN, and 
Mr. FITZGERALD) introduced the following bill; which was referred to the 
Committee on the Judiciary, and in addition to the Committees on Small 
Business, and Oversight and Government Reform, for a period to be sub-
sequently 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 (com-
monly known as the ‘‘Regulatory Flexibility Act’’), to 
ensure complete analysis of potential impacts on small 
entities of rules, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Regu-
latory Flexibility Improvements Act’’. 
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SEC. 2. CLARIFICATION AND EXPANSION OF RULES COV-
ERED BY THE REGULATORY FLEXIBILITY 
ACT. 
(a) IN GENERAL.—Section 601(2) of title 5, United 
States Code, is amended to read as follows: 
‘‘(2) RULE.—The term ‘rule’— 
‘‘(A) has the meaning given the term in 
section 551(4); and 
‘‘(B) does not include— 
‘‘(i) a rule pertaining to the protection 
of the rights of and benefits for veterans 
or part 232 of title 32, Code of Federal 
Regulations (as in effect on July 1, 2014), 
or any successor provisions thereto; or 
‘‘(ii) a rule of particular (and not gen-
eral) applicability relating to rates, wages, 
corporate or financial structures or reorga-
nizations thereof, prices, facilities, appli-
ances, services, or allowances therefor or to 
valuations, costs or accounting, or prac-
tices relating to such rates, wages, struc-
tures, prices, appliances, services, or allow-
ances.’’. 
(b) INCLUSION
OF RULES WITH INDIRECT EF-
FECTS.—Section 601 of title 5, United States Code, is 
amended by adding at the end the following: 
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‘‘(9) ECONOMIC IMPACT.—The term ‘economic 
impact’ means, with respect to a proposed or final 
rule— 
‘‘(A) any direct economic effect on small 
entities of such rule; and 
‘‘(B) any indirect economic effect (includ-
ing compliance costs and effects on revenue) on 
small entities which is reasonably foreseeable 
and results from such rule (without regard to 
whether small entities will be directly regulated 
by the rule).’’. 
(c) INCLUSION OF RULES WITH BENEFICIAL EF-
FECTS.— 
(1) INITIAL REGULATORY FLEXIBILITY ANAL-
YSIS.—Section 603(c) of title 5, United States Code, 
is amended by striking the first sentence and insert-
ing ‘‘Each initial regulatory flexibility analysis shall 
also contain a detailed description of alternatives to 
the proposed rule which minimize any adverse sig-
nificant economic impact or maximize any beneficial 
significant economic impact on small entities.’’. 
(2) FINAL
REGULATORY
FLEXIBILITY
ANAL-
YSIS.—Section 604(a) of title 5, United States Code, 
is amended— 
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(A) by redesignating the second paragraph 
designated as paragraph (6) (relating to cov-
ered agencies) as paragraph (7); and 
(B) in paragraph (6), by striking ‘‘mini-
mize the significant economic impact’’ and in-
serting ‘‘minimize the adverse significant eco-
nomic impact or maximize the beneficial signifi-
cant economic impact’’. 
(d) INCLUSION OF RULES AFFECTING TRIBAL ORGA-
NIZATIONS.—Section 601(5) of title 5, United States 
Code, is amended by inserting ‘‘and tribal organizations 
(as defined in section 4(l) of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 5304(l))),’’ 
after ‘‘special districts,’’. 
(e) INCLUSION OF LAND MANAGEMENT PLANS AND 
FORMAL RULE MAKING.— 
(1) INITIAL REGULATORY FLEXIBILITY ANAL-
YSIS.—Section 603(a) of title 5, United States Code, 
is amended in the first sentence— 
(A) by striking ‘‘or’’ after ‘‘proposed 
rule,’’; and 
(B) by inserting ‘‘or publishes a revision or 
amendment to a land management plan,’’ after 
‘‘United States,’’. 
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(2) FINAL
REGULATORY
FLEXIBILITY
ANAL-
YSIS.—Section 604(a) of title 5, United States Code, 
is amended in the first sentence— 
(A) by striking ‘‘or’’ after ‘‘proposed rule-
making,’’; and 
(B) by inserting ‘‘or adopts a revision or 
amendment to a land management plan,’’ after 
‘‘section 603(a),’’. 
(3) LAND MANAGEMENT PLAN DEFINED.—Sec-
tion 601 of title 5, United States Code, as amended 
by subsection (b), is amended by adding at the end 
the following: 
‘‘(10) LAND MANAGEMENT PLAN.— 
‘‘(A) IN GENERAL.—The term ‘land man-
agement plan’ means— 
‘‘(i) any plan developed by the Sec-
retary of Agriculture under section 6 of 
the Forest and Rangeland Renewable Re-
sources Planning Act of 1974 (16 U.S.C. 
1604); and 
‘‘(ii) any plan developed by the Sec-
retary of the Interior under section 202 of 
the Federal Land Policy and Management 
Act of 1976 (43 U.S.C. 1712). 
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‘‘(B) 
REVISION.—The 
term 
‘revision’ 
means any change to a land management plan 
which— 
‘‘(i) in the case of a plan described in 
subparagraph (A)(i), is made under section 
6(f)(5) of the Forest and Rangeland Re-
newable Resources Planning Act of 1974 
(16 U.S.C. 1604(f)(5)); or 
‘‘(ii) in the case of a plan described in 
subparagraph (A)(ii), is made under sec-
tion 1610.5–6 of title 43, Code of Federal 
Regulations (or any successor regulation). 
‘‘(C) AMENDMENT.—The term ‘amend-
ment’ means any change to a land management 
plan which— 
‘‘(i) in the case of a plan described in 
subparagraph (A)(i), is made under section 
6(f)(4) of the Forest and Rangeland Re-
newable Resources Planning Act of 1974 
(16 U.S.C. 1604(f)(4)) and with respect to 
which the Secretary of Agriculture pre-
pares a statement described in section 
102(2)(C) of the National Environmental 
Policy 
Act 
of 
1969 
(42 
U.S.C. 
4332(2)(C)); or 
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‘‘(ii) in the case of a plan described in 
subparagraph (A)(ii), is made under sec-
tion 1610.5–5 of title 43, Code of Federal 
Regulations (or any successor regulation), 
and with respect to which the Secretary of 
the Interior prepares a statement described 
in section 102(2)(C) of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)).’’. 
(f) INCLUSION OF CERTAIN INTERPRETIVE RULES 
INVOLVING THE INTERNAL REVENUE LAWS.— 
(1) IN GENERAL.—Section 603(a) of title 5, 
United States Code, is amended by striking the pe-
riod at the end and inserting ‘‘or a recordkeeping re-
quirement, and without regard to whether such rec-
ordkeeping requirement is imposed by statute or reg-
ulation.’’. 
(2) COLLECTION
OF
INFORMATION.—Section 
601(7) of title 5, United States Code, is amended to 
read as follows: 
‘‘(7) COLLECTION OF INFORMATION.—The term 
‘collection of information’ has the meaning given the 
term in section 3502 of title 44.’’. 
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(3) RECORDKEEPING
REQUIREMENT.—Section 
601(8) of title 5, United States Code, is amended to 
read as follows: 
‘‘(8) 
RECORDKEEPING
REQUIREMENT.—The 
term ‘recordkeeping requirement’ has the meaning 
given the term in section 3502 of title 44.’’. 
(g) DEFINITION OF SMALL ORGANIZATION.—Section 
601(4) of title 5, United States Code, is amended to read 
as follows: 
‘‘(4) SMALL ORGANIZATION.— 
‘‘(A) IN GENERAL.—The term ‘small orga-
nization’ means any nonprofit enterprise which, 
as of the issuance of a notice of proposed rule-
making— 
‘‘(i) in the case of an enterprise which 
is described by a classification code of the 
North American Industrial Classification 
System, does not exceed the size standard 
established by the Administrator of the 
Small Business Administration pursuant to 
section 3 of the Small Business Act (15 
U.S.C. 632) for small business concerns 
described by such classification code; and 
‘‘(ii) in the case of any other enter-
prise, has a net worth that does not exceed 
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$7,000,000 and has not more than 500 
employees. 
‘‘(B) LOCAL LABOR ORGANIZATIONS.—In 
the case of any local labor organization, sub-
paragraph (A) shall be applied without regard 
to any national or international organization of 
which such local labor organization is a part. 
‘‘(C) 
AGENCY
DEFINITIONS.—Subpara-
graphs (A) and (B) shall not apply to the ex-
tent that an agency, after consultation with the 
Office of Advocacy of the Small Business Ad-
ministration and after opportunity for public 
comment, establishes one or more definitions 
for such term which are appropriate to the ac-
tivities of the agency and publishes such defini-
tions in the Federal Register.’’. 
SEC. 3. EXPANSION OF REPORT OF REGULATORY AGENDA. 
Section 602 of title 5, United States Code, is amend-
ed— 
(1) in subsection (a)— 
(A) in paragraph (2), by striking ‘‘, and’’ 
at the end and inserting a semicolon; 
(B) by redesignating paragraph (3) as 
paragraph (4); and 
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(C) by inserting after paragraph (2) the 
following: 
‘‘(3) a brief description of the sector of the 
North American Industrial Classification System 
that is primarily affected by any rule which the 
agency expects to propose or promulgate which is 
likely to have a significant economic impact on a 
substantial number of small entities; and’’; and 
(2) in subsection (c), to read as follows: 
‘‘(c)(1) Not later than 3 days after the date on which 
an agency publishes a regulatory flexibility agenda in the 
Federal Register under subsection (a), the agency shall 
prominently display on the website of the agency a plain 
language summary of the information contained in the 
regulatory flexibility agenda. 
‘‘(2) The Office of Advocacy of the Small Business 
Administration shall compile, by agency, and prominently 
display on the website of the Small Business Administra-
tion a plain language summary of each regulatory flexi-
bility agenda published under subsection (a) not later than 
3 days after the date of publication in the Federal Reg-
ister.’’. 
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SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED 
ANALYSES. 
(a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.— 
Section 603(b) of title 5, United States Code, is amended 
to read as follows: 
‘‘(b) Each initial regulatory flexibility analysis re-
quired under this section shall contain a detailed state-
ment— 
‘‘(1) describing the reasons why action by the 
agency is being considered; 
‘‘(2) describing the objectives of, and legal basis 
for, the proposed rule; 
‘‘(3) estimating the number and type of small 
entities to which the proposed rule will apply; 
‘‘(4) describing the projected reporting, record-
keeping, and other compliance requirements of the 
proposed rule, including an estimate of the classes of 
small entities which will be subject to the require-
ment and the type of professional skills necessary 
for preparation of the report and record; 
‘‘(5) describing all relevant Federal rules which 
may duplicate, overlap, or conflict with the proposed 
rule, or the reasons why such a description could not 
be provided; 
‘‘(6) estimating the additional cumulative eco-
nomic impact of the proposed rule on small entities 
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beyond that already imposed on the class of small 
entities by the agency or why such an estimate is 
not available; 
‘‘(7) describing any disproportionate economic 
impact on small entities or a specific class of small 
entities; and 
‘‘(8) describing any impairment of the ability of 
small entities to have access to credit.’’. 
(b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 
(1) IN GENERAL.—Section 604(a) of title 5, 
United States Code, is amended— 
(A) in paragraph (4)— 
(i) by inserting ‘‘detailed’’ before ‘‘de-
scription’’; and 
(ii) by striking ‘‘an explanation’’ and 
inserting ‘‘a detailed explanation’’; 
(B) in paragraph (5), by inserting ‘‘de-
tailed’’ before ‘‘description’’; 
(C) in paragraph (6)— 
(i) by inserting ‘‘detailed’’ before ‘‘de-
scription’’; and 
(ii) by striking ‘‘and’’ at the end; 
(D) in paragraph (7), as so redesignated, 
by striking the period at the end and inserting 
‘‘; and’’; and 
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(E) by adding at the end the following: 
‘‘(8) a detailed description of any dispropor-
tionate economic impact on small entities or a spe-
cific class of small entities.’’. 
(2) INCLUSION OF RESPONSE TO COMMENTS ON 
CERTIFICATION
OF
PROPOSED
RULE.—Section 
604(a)(2) of title 5, United States Code, is amended 
by inserting ‘‘(or certification of the proposed rule 
under section 605(b))’’ after ‘‘initial regulatory flexi-
bility analysis’’. 
(3) PUBLICATION OF ANALYSIS ON WEBSITE.— 
Section 604(b) of title 5, United States Code, is 
amended to read as follows: 
‘‘(b) The agency shall make copies of the final regu-
latory flexibility analysis available to the public, including 
placement of the entire analysis on the website of the 
agency, and shall publish in the Federal Register the final 
regulatory flexibility analysis, or a summary thereof which 
includes the telephone number, mailing address, and link 
to the website where the complete analysis may be ob-
tained.’’. 
(c) CROSS-REFERENCES
TO OTHER ANALYSES.— 
Section 605(a) of title 5, United States Code, is amended 
to read as follows: 
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‘‘(a) A Federal agency shall be treated as satisfying 
any requirement regarding the content of a regulatory 
flexibility agenda or regulatory flexibility analysis under 
section 602, 603, or 604 if the Federal agency provides 
in the agenda or analysis a cross-reference to the specific 
portion of another agenda or analysis which is required 
by any other law and which satisfies the requirement.’’. 
(d) CERTIFICATIONS.—Section 605(b) of title 5, 
United States Code, is amended by striking ‘‘statement 
providing the factual basis for such certification.’’ and in-
serting ‘‘detailed statement providing the factual and legal 
basis for such certification. The detailed statement shall 
include an economic assessment or a summary thereof 
that is sufficiently detailed to support the certification of 
the agency.’’. 
(e) QUANTIFICATION REQUIREMENTS.—Section 607 
of title 5, United States Code, is amended to read as fol-
lows: 
‘‘§ 607. Quantification requirements 
‘‘In complying with sections 603 and 604, an agency 
shall provide— 
‘‘(1) a quantifiable or numerical description of 
the effects of the proposed or final rule and alter-
natives to the proposed or final rule; or 
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‘‘(2) a more general descriptive statement and 
a detailed statement explaining why quantification is 
not practicable or reliable.’’. 
SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDI-
TIONAL POWERS OF THE CHIEF COUNSEL 
FOR ADVOCACY. 
(a) IN GENERAL.—Section 608 of title 5, United 
States Code, is amended to read as follows: 
‘‘§ 608. Additional powers of Chief Counsel for Advo-
cacy 
‘‘(a)(1) Not later than 270 days after the date of en-
actment of the Small Business Regulatory Flexibility Im-
provements Act, the Chief Counsel for Advocacy of the 
Small Business Administration shall, after opportunity for 
notice and comment under section 553, issue rules gov-
erning agency compliance with this chapter. The Chief 
Counsel may modify or amend such rules after notice and 
comment under section 553. This chapter (other than this 
subsection) shall not apply with respect to the issuance, 
modification, and amendment of rules under this para-
graph. 
‘‘(2) An agency shall not issue rules which supple-
ment the rules issued under paragraph (1) unless such 
agency has first consulted with the Chief Counsel for Ad-
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vocacy to ensure that the supplemental rules comply with 
this chapter and the rules issued under paragraph (1). 
‘‘(b) Notwithstanding any other law, the Chief Coun-
sel for Advocacy of the Small Business Administration 
may intervene in any agency adjudication (unless such 
agency is authorized to impose a fine or penalty under 
such adjudication) and may inform the agency of the im-
pact that any decision on the record may have on small 
entities. The Chief Counsel shall not initiate an appeal 
with respect to any adjudication in which the Chief Coun-
sel intervenes under this subsection. 
‘‘(c) The Chief Counsel for Advocacy may file com-
ments in response to any agency notice requesting com-
ment, regardless of whether the agency is required to file 
a general notice of proposed rule making under section 
553.’’. 
(b) CONFORMING AMENDMENTS.—Section 611(a) of 
title 5, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘608(b),’’; 
(2) in paragraph (2), by striking ‘‘608(b),’’; 
and 
(3) in paragraph (3)— 
(A) by striking subparagraph (B); and 
(B) by striking ‘‘(3)(A) A small entity’’ 
and inserting the following: 
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‘‘(3) A small entity’’. 
SEC. 6. PROCEDURES FOR GATHERING COMMENTS. 
Section 609 of title 5, United States Code, is amend-
ed by striking subsections (b) through (e) and inserting 
the following: 
‘‘(b)(1) Prior to publication of any proposed rule de-
scribed in subsection (e), an agency making the rule shall 
notify the Chief Counsel for Advocacy of the Small Busi-
ness Administration and provide the Chief Counsel with— 
‘‘(A) all materials prepared or utilized by the 
agency in making the proposed rule, including the 
draft of the proposed rule; and 
‘‘(B) information on the potential adverse and 
beneficial economic impacts of the proposed rule on 
small entities and the type of small entities that 
might be affected. 
‘‘(2) An agency shall not be required under para-
graph (1) to provide the exact language of any draft if 
the rule— 
‘‘(A) relates to the internal revenue laws of the 
United States; or 
‘‘(B) is proposed by an independent regulatory 
agency. 
‘‘(c) Not later than 15 days after the receipt of the 
materials and information under subsection (b), the Chief 
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Counsel for Advocacy of the Small Business Administra-
tion shall— 
‘‘(1) identify small entities or representatives of 
small entities or a combination of both for the pur-
pose of obtaining advice, input, and recommenda-
tions from those persons about the potential eco-
nomic impacts of the proposed rule and the compli-
ance of the agency with section 603; and 
‘‘(2) convene a review panel consisting of an 
employee from the Office of Advocacy of the Small 
Business Administration, an employee from the 
agency making the rule, and, in the case of an agen-
cy other than an independent regulatory agency, an 
employee from the Office of Information and Regu-
latory Affairs of the Office of Management and 
Budget to review the materials and information pro-
vided to the Chief Counsel under subsection (b). 
‘‘(d)(1) Not later than 60 days after the review panel 
described in subsection (c)(2) is convened, the Chief Coun-
sel for Advocacy of the Small Business Administration 
shall, after consultation with the members of the panel, 
submit a report to the agency and, in the case of an agen-
cy other than an independent regulatory agency, the Office 
of Information and Regulatory Affairs of the Office of 
Management and Budget. 
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‘‘(2) Each report described in paragraph (1) shall in-
clude an assessment of the economic impact of the pro-
posed rule on small entities, including— 
‘‘(A) an assessment of the impact of the pro-
posed rule on the cost that small entities pay for en-
ergy; 
‘‘(B) an assessment of the impact of the pro-
posed rule on startup costs for small entities; and 
‘‘(C) a discussion of any alternatives that will 
minimize adverse significant economic impacts or 
maximize beneficial significant economic impacts on 
small entities. 
‘‘(3) Each report described in paragraph (1) shall be-
come part of the rulemaking record. In the publication of 
the proposed rule, the agency shall explain what actions, 
if any, the agency took in response to the report. 
‘‘(e) A proposed rule is described by this subsection 
if the Administrator of the Office of Information and Reg-
ulatory Affairs of the Office of Management and Budget, 
the head of the agency (or the delegatee of the head of 
the agency), or an independent regulatory agency deter-
mines that the proposed rule is likely to result in— 
‘‘(1) an annual effect on the economy of 
$100,000,000 or more; 
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‘‘(2) a major increase in costs or prices for con-
sumers, individual industries, the Federal Govern-
ment, State or local governments, tribal organiza-
tions, or geographic regions; 
‘‘(3) significant adverse effects on competition, 
employment, investment, productivity, innovation, or 
the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic 
and export markets; or 
‘‘(4) a significant economic impact on a sub-
stantial number of small entities. 
‘‘(f) Upon application by the agency, the Chief Coun-
sel for Advocacy of the Small Business Administration 
may waive the requirements of subsections (b) through (e) 
if the Chief Counsel determines that compliance with the 
requirements of such subsections is impracticable, unnec-
essary, or contrary to the public interest. 
‘‘(g) A small entity or a representative of a small enti-
ty may submit a request that the agency provide a copy 
of the report prepared under subsection (d) and all mate-
rials and information provided to the Chief Counsel for 
Advocacy of the Small Business Administration under 
subsection (b). The agency receiving such request shall 
provide the report, materials, and information to the re-
questing small entity or representative of a small entity 
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not later than 10 business days after receiving such re-
quest, except that the agency shall not disclose any infor-
mation that is prohibited from disclosure to the public 
pursuant to section 552(b) of this title. 
‘‘(h) In this section, the term ‘independent regulatory 
agency’ has the meaning given the term in section 3502 
of title 44.’’. 
SEC. 7. PERIODIC REVIEW OF RULES. 
Section 610 of title 5, United States Code, is amend-
ed to read as follows: 
‘‘§ 610. Periodic review of rules 
‘‘(a) Not later than 180 days after the date of enact-
ment of the Small Business Regulatory Flexibility Im-
provements Act, each agency shall publish in the Federal 
Register and place on the website of the agency a plan 
for the periodic review of rules issued by the agency which 
the head of the agency determines have a significant eco-
nomic impact on a substantial number of small entities. 
Such determination shall be made without regard to 
whether the agency performed an analysis under section 
604. The purpose of the review shall be to determine 
whether such rules should be continued without change, 
or should be amended or rescinded, consistent with the 
stated objectives of applicable statutes, to minimize any 
adverse significant economic impacts or maximize any 
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beneficial significant economic impacts on a substantial 
number of small entities. Such plan may be amended by 
the agency at any time by publishing the revision in the 
Federal Register and subsequently placing the amended 
plan on the website of the agency. 
‘‘(b) The plan shall provide for the review of all such 
agency rules existing on the date of enactment of the 
Small Business Regulatory Flexibility Improvements Act 
within 10 years of the date of publication of the plan in 
the Federal Register and for review of rules adopted after 
the date of enactment of the Small Business Regulatory 
Flexibility Improvements Act within 10 years after the 
publication of the final rule in the Federal Register. If 
the head of the agency determines that completion of the 
review of existing rules is not feasible by the established 
date, the head of the agency shall so certify in a statement 
published in the Federal Register and may extend the re-
view for not longer than 2 years after publication of notice 
of extension in the Federal Register. Such certification 
and notice shall be sent to the Chief Counsel for Advocacy 
of the Small Business Administration and Congress. 
‘‘(c) The plan shall include a section that details how 
an agency will conduct outreach to and meaningfully in-
clude small businesses (including small business concerns 
owned and controlled by women, small business concerns 
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owned and controlled by veterans, and small business con-
cerns owned and controlled by socially and economically 
disadvantaged individuals (as such terms are defined in 
section 3 and section 8(d)(3)(C) of the Small Business Act 
(15 U.S.C. 632, 637(d)(3)(C)))) for the purposes of car-
rying out this section. The agency shall include in this sec-
tion a plan for how the agency will contact small busi-
nesses and gather their input on existing agency rules. 
‘‘(d) Each agency shall annually submit a report re-
garding the results of its review pursuant to such plan 
to Congress, the Chief Counsel for Advocacy of the Small 
Business Administration, and, in the case of agencies 
other than independent regulatory agencies (as defined in 
section 3502 of title 44), to the Administrator of the Of-
fice of Information and Regulatory Affairs of the Office 
of Management and Budget. Such report shall include the 
identification of any rule with respect to which the head 
of the agency made a determination described in para-
graph (5) or (6) of subsection (e) and a detailed expla-
nation of the reasons for such determination. 
‘‘(e) In reviewing a rule pursuant to subsections (a) 
through (d), the agency shall amend or rescind the rule 
to minimize any adverse significant economic impact on 
a substantial number of small entities or disproportionate 
economic impact on a specific class of small entities, or 
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maximize any beneficial significant economic impact of the 
rule on a substantial number of small entities to the great-
est extent possible, consistent with the stated objectives 
of applicable statutes. In amending or rescinding the rule, 
the agency shall consider the following factors: 
‘‘(1) The continued need for the rule. 
‘‘(2) The nature of complaints received by the 
agency from small entities concerning the rule. 
‘‘(3) Comments by the Regulatory Enforcement 
Ombudsman and the Chief Counsel for Advocacy of 
the Small Business Administration. 
‘‘(4) The complexity of the rule. 
‘‘(5) The extent to which the rule overlaps, du-
plicates, or conflicts with other Federal rules and, 
unless the head of the agency determines it to be in-
feasible, State, territorial, and local rules. 
‘‘(6) The contribution of the rule to the cumu-
lative economic impact of all Federal rules on the 
class of small entities affected by the rule, unless the 
head of the agency determines that such calculations 
cannot be made and reports that determination in 
the annual report required under subsection (d). 
‘‘(7) The length of time since the rule has been 
evaluated or the degree to which technology, eco-
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nomic conditions, or other factors have changed in 
the area affected by the rule. 
‘‘(f) Each year, each agency shall publish in the Fed-
eral Register and on its website a list of rules to be re-
viewed pursuant to such plan. The agency shall include 
in the publication a solicitation of public comments on any 
further inclusions or exclusions of rules from the list and 
shall respond to such comments. Such publication shall 
include a brief description of the rule, state the reason 
why the agency determined that it has a significant eco-
nomic impact on a substantial number of small entities 
(without regard to whether it had prepared a final regu-
latory flexibility analysis for the rule), and request com-
ments from the public, the Chief Counsel for Advocacy of 
the Small Business Administration, and the Regulatory 
Enforcement Ombudsman concerning the enforcement of 
the rule.’’. 
SEC. 8. JUDICIAL REVIEW OF COMPLIANCE WITH THE RE-
QUIREMENTS OF THE REGULATORY FLEXI-
BILITY ACT AVAILABLE AFTER PUBLICATION 
OF THE FINAL RULE. 
(a) IN GENERAL.—Section 611(a) of title 5, United 
States Code, is amended— 
(1) in paragraph (1), by striking ‘‘final agency 
action’’ and inserting ‘‘such rule’’; 
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(3) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) all final rules under section 608(a) of title 
5.’’. 
(b) CONFORMING AMENDMENTS.—Section 2341(3) 
of title 28, United States Code, is amended— 
(1) in subparagraph (D), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (E), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(F) the Office of Advocacy of the Small 
Business Administration, when the final rule is 
under section 608(a) of title 5.’’. 
(c) AUTHORIZATION TO INTERVENE AND COMMENT 
ON AGENCY COMPLIANCE WITH ADMINISTRATIVE PROCE-
DURE.—Section 612(b) of title 5, United States Code, is 
amended by inserting ‘‘chapter 5, and chapter 7,’’ after 
‘‘this chapter,’’. 
SEC. 10. ESTABLISHMENT AND APPROVAL OF SMALL BUSI-
NESS CONCERN SIZE STANDARDS BY CHIEF 
COUNSEL FOR ADVOCACY. 
(a) IN GENERAL.—Section 3(a)(2)(A) of the Small 
Business Act (15 U.S.C. 632(a)(2)(A)) is amended to read 
as follows: 
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(2) By striking the item relating to section 607 
and inserting the following new item: 
‘‘607. Quantification requirements.’’. 
(3) By striking the item relating to section 608 
and inserting the following: 
‘‘608. Additional powers of Chief Counsel for Advocacy.’’. 
(d) OTHER CLERICAL AMENDMENTS TO CHAPTER 
6.—Chapter 6 of title 5, United States Code, is amend-
ed— 
(1) in section 603(d)— 
(A) by striking paragraph (2); 
(B) by striking ‘‘(1) For a covered agency, 
as defined in section 609(d)(2), each initial reg-
ulatory flexibility analysis’’ and inserting ‘‘Each 
initial regulatory flexibility analysis by an agen-
cy’’; 
(C) by striking ‘‘(A) any’’ and inserting 
‘‘(1) any’’; 
(D) by striking ‘‘(B) any significant’’ and 
inserting ‘‘(2) any significant’’; and 
(E) by striking ‘‘(C) advice’’ and inserting 
‘‘(3) advice’’; and 
(2) in paragraph (7) of section 604(a), as so re-
designated by section 2(c)(2)(A) of this Act, by 
striking ‘‘for a covered agency, as defined in section 
609(d)(2),’’. 
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SEC. 12. AGENCY PREPARATION OF GUIDES. 
Section 212(a)(5) the Small Business Regulatory En-
forcement Fairness Act of 1996 (5 U.S.C. 601 note) is 
amended to read as follows: 
‘‘(5) AGENCY PREPARATION OF GUIDES.—The 
agency shall, in its sole discretion, taking into ac-
count the subject matter of the rule and the lan-
guage of relevant statutes, ensure that the guide is 
written using sufficiently plain language likely to be 
understood by affected small entities. Agencies may 
prepare separate guides covering groups or classes of 
similarly affected small entities and may cooperate 
with associations of small entities to distribute such 
guides. In developing guides, agencies shall solicit 
input from affected small entities or associations of 
affected small entities. An agency may prepare 
guides and apply this section with respect to a rule 
or a group of related rules.’’. 
SEC. 13. COMPTROLLER GENERAL REPORT. 
Not later than 90 days after the date of enactment 
of this Act, the Comptroller General of the United States 
shall complete and publish a study that examines whether 
the Chief Counsel for Advocacy of the Small Business Ad-
ministration has the capacity and resources to carry out 
the duties of the Chief Counsel under this Act and the 
amendments made by this Act. 
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SEC. 14. WAIVER OF FINES FOR FIRST-TIME PAPERWORK 
VIOLATIONS BY SMALL BUSINESSES. 
Section 3506 of title 44, United States Code (com-
monly referred to as the ‘‘Paperwork Reduction Act’’), is 
amended by adding at the end the following: 
‘‘(j) SMALL BUSINESSES.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) FIRST-TIME
VIOLATION.—The term 
‘first-time violation’ means a violation by a 
small business concern of a requirement regard-
ing collection of information by an agency, 
where the small business concern has not pre-
viously violated any similar requirement regard-
ing collection of information by that same agen-
cy during the 5-year period preceding the viola-
tion. 
‘‘(B) SMALL
BUSINESS
CONCERN.—The 
term ‘small business concern’ has the meaning 
given the term in section 3 of the Small Busi-
ness Act (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 re-
quirement regarding the collection of informa-
tion by an agency, the head of the agency shall 
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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 ac-
count any violation by the small business con-
cern of a requirement regarding collection of in-
formation by another agency. 
‘‘(C) EXCEPTION.—An agency may impose 
a civil fine on a small business concern for a 
first-time violation if the head of the agency de-
termines that— 
‘‘(i) the violation has the potential to 
cause serious harm to the public interest; 
‘‘(ii) failure to impose a civil fine 
would impede or interfere with the detec-
tion of criminal activity; 
‘‘(iii) 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; 
‘‘(iv) the violation was not corrected 
on or before the date that is 6 months 
after the date on which the small business 
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concern receives notification of the viola-
tion in writing from the agency; or 
‘‘(v) except as provided in paragraph 
(3), the violation presents a danger to the 
public health or safety. 
‘‘(3) DANGER TO PUBLIC HEALTH OR SAFE-
TY.— 
‘‘(A) IN GENERAL.—In any case in which 
the head of an agency determines under para-
graph (2)(C)(v) that a violation presents a dan-
ger to the public health or safety, the head of 
the agency may determine not to impose a civil 
fine on the small business concern if the viola-
tion is corrected not later than 24 hours after 
receipt by the owner of the small business con-
cern of notification of the violation in writing. 
‘‘(B) CONSIDERATIONS.—In determining 
whether to allow a small business concern 24 
hours to correct a violation under subparagraph 
(A), the head of an agency shall take into ac-
count all of the facts and circumstances regard-
ing the violation, including— 
‘‘(i) the nature and seriousness of the 
violation, including whether the violation is 
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technical or inadvertent or involves willful 
or criminal conduct; 
‘‘(ii) whether the small business con-
cern had made a good faith effort to com-
ply with applicable laws and to remedy the 
violation within the shortest practicable pe-
riod of time; and 
‘‘(iii) whether the small business con-
cern has obtained a significant economic 
benefit from the violation. 
‘‘(C) NOTICE TO CONGRESS.—In any case 
in which the head of an agency imposes a civil 
fine on a small business concern for a violation 
that presents a danger to the public health or 
safety and does not allow the small business 
concern 24 hours to correct the violation under 
subparagraph (A), the head of the agency shall 
notify Congress regarding the determination 
not later than 60 days after the date on which 
the civil fine is imposed by the agency.’’. 
Æ 
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