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 ‘‘Contract with America
Advancement Act of 1996’’.
TITLE 
I—SOCIAL 
SECURITY
EARNINGS 
LIMITATION
AMENDMENTS
SEC. 101. SHORT TITLE OF TITLE.
This title may be cited as the ‘‘Senior Citizens’ Right
to Work Act of 1996’’.
SEC. 102. INCREASES IN MONTHLY EXEMPT AMOUNT FOR
PURPOSES OF THE SOCIAL SECURITY EARN-
INGS LIMIT.
(a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR
INDIVIDUALS
WHO
HAVE
ATTAINED
RETIREMENT
AGE.—Section 203(f)(8)(D) of the Social Security Act (42
U.S.C. 403(f)(8)(D)) is amended to read as follows:
‘‘(D) Notwithstanding any other provision of
this subsection, the exempt amount which is applica-
ble to an individual who has attained retirement age
(as defined in section 216(l)) before the close of the
taxable year involved shall be—
‘‘(i) for each month of any taxable year
ending 
after 
1995 
and 
before 
1997,
$1,041.662⁄3,
‘‘(ii) for each month of any taxable year
ending after 1996 and before 1998, $1,125.00,
‘‘(iii) for each month of any taxable year
ending 
after 
1997 
and 
before 
1999,
$1,208.331⁄3,
‘‘(iv) for each month of any taxable year
ending 
after 
1998 
and 
before 
2000,
$1,291.662⁄3,
‘‘(v) for each month of any taxable year
ending 
after 
1999 
and 
before 
2001,
$1,416.662⁄3,
‘‘(vi) for each month of any taxable year
ending 
after 
2000 
and 
before 
2002,
$2,083.331⁄3, and
‘‘(vii) for each month of any taxable year
ending 
after 
2001 
and 
before 
2003,
$2,500.00.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 203(f)(8)(B)(ii) of such Act (42
U.S.C. 403(f)(8)(B)(ii)) is amended—
(A) by striking ‘‘the taxable year ending
after 1993 and before 1995’’ and inserting ‘‘the
taxable year ending after 2001 and before 2003
(with respect to individuals described in sub-
paragraph (D)) or the taxable year ending after
1993 and before 1995 (with respect to other in-
dividuals)’’; and
(B) in subclause (II), by striking ‘‘for
1992’’ and inserting ‘‘for 2000 (with respect to
individuals described in subparagraph (D)) or
1992 (with respect to other individuals)’’.
(2) The second sentence of section 223(d)(4)(A)
of such Act (42 U.S.C. 423(d)(4)(A)) is amended by
striking ‘‘the exempt amount under section 203(f)(8)
which is applicable to individuals described in sub-
paragraph (D) thereof’’ and inserting the following:
‘‘an amount equal to the exempt amount which
would be applicable under section 203(f)(8), to indi-
viduals described in subparagraph (D) thereof, if
section 102 of the Senior Citizens’ Right to Work
Act of 1996 had not been enacted’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to taxable years end-
ing after 1995.
SEC. 103. CONTINUING DISABILITY REVIEWS.
(a) AUTHORIZATION FOR APPROPRIATIONS FOR CON-
TINUING DISABILITY REVIEWS.—Section 201(g)(1)(A) of
the Social Security Act (42 U.S.C. 401(g)(1)(A)) is
amended by adding at the end the following: ‘‘Of the
amounts authorized to be made available out of the Fed-
eral Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund under the pre-
ceding sentence, there are hereby authorized to be made
available from either or both of such Trust Funds for con-
tinuing disability reviews—
‘‘(i) for fiscal year 1996, $260,000,000;
‘‘(ii) for fiscal year 1997, $360,000,000;
‘‘(iii) for fiscal year 1998, $570,000,000;
‘‘(iv) for fiscal year 1999, $720,000,000;
‘‘(v) for fiscal year 2000, $720,000,000;
‘‘(vi) for fiscal year 2001, $720,000,000; and
‘‘(viii) for fiscal year 2002, $720,000,000.
For purposes of this subparagraph, the term ‘continuing
disability review’ means a review conducted pursuant to
section 221(i) and a review or disability eligibility redeter-
mination conducted to determine the continuing disability
and eligibility of a recipient of benefits under the supple-
mental security income program under title XVI, including
any review or redetermination conducted pursuant to sec-
tion 207 or 208 of the Social Security Independence and
Program Improvements Act of 1994 (Public Law 103-
296).’’.
(b) ADJUSTMENT
TO DISCRETIONARY SPENDING
LIMITS.—Section 251(b)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by
adding the following new subparagraph:
‘‘(H) CONTINUING DISABILITY REVIEWS.—
(i) Whenever a bill or joint resolution making
appropriations for fiscal year 1996, 1997, 1998,
1999, 2000, 2001, or 2002 is enacted that
specifies an amount for continuing disability re-
views under the heading ‘Limitation on Admin-
istrative Expenses’ for the Social Security Ad-
ministration, the adjustments for that fiscal
year shall be the additional new budget author-
ity provided in that Act for such reviews for
that fiscal year and the additional outlays flow-
ing from such amounts, but shall not exceed—
‘‘(I) for fiscal year 1996, $15,000,000
in additional new budget authority and
$60,000,000 in additional outlays;
‘‘(II) 
for 
fiscal 
year 
1997,
$25,000,000 in additional new budget au-
thority and $160,000,000 in additional
outlays;
‘‘(III) 
for 
fiscal 
year 
1998,
$145,000,000 in additional new budget au-
thority and $370,000,000 in additional
outlays;
‘‘(IV) 
for 
fiscal 
year 
1999,
$280,000,000 in additional new budget au-
thority and $520,000,000 in additional
outlays;
‘‘(V) 
for 
fiscal 
year 
2000,
$317,500,000 in additional new budget au-
thority and $520,000,000 in additional
outlays;
‘‘(VI) 
for 
fiscal 
year 
2001,
$317,500,000 in additional new budget au-
thority and $520,000,000 in additional
outlays; and
‘‘(VII) 
for 
fiscal 
year 
2002,
$317,500,000 in additional new budget au-
thority and $520,000,000 in additional
outlays.
‘‘(ii) As used in this subparagraph—
‘‘(I) the term ‘continuing disability re-
views’ has the meaning given such term by
section 201(g)(1)(A) of the Social Security
Act;
‘‘(II) the term ‘additional new budget
authority’ means new budget authority
provided for a fiscal year, in excess of
$100,000,000, for the Supplemental Secu-
rity Income program and specified to pay
for the costs of continuing disability re-
views attributable to the Supplemental Se-
curity Income program; and
‘‘(III) the term ‘additional outlays’
means outlays, in excess of $200,000,000
in a fiscal year, flowing from the amounts
specified for continuing disability reviews
under the heading ‘Limitation on Adminis-
trative Expenses’ for the Social Security
Administration, including outlays in that
fiscal year flowing from amounts specified
in Acts enacted for prior fiscal years (but
not before 1996).’’.
(c) BUDGET ALLOCATION ADJUSTMENT BY BUDGET
COMMITTEE.—Section 606 of the Congressional Budget
and Impoundment Control Act of 1974 is amended by
adding the following new subsection:
‘‘(e) CONTINUING
DISABILITY
REVIEW
ADJUST-
MENT.—
‘‘(1) IN GENERAL.—(A) For fiscal year 1996,
upon the enactment of the Contract with America
Advancement Act of 1996, the Chairmen of the
302(b) and 602(b) of this Act to carry out this sub-
section.
‘‘(3) DEFINITIONS.—As used in this section,
the terms ‘continuing disability reviews’, ‘additional
new budget authority’, and ‘additional outlays’ shall
have the same meanings as provided in section
251(b)(2)(H)(ii) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985.’’.
(d) USE OF FUNDS AND REPORTS.—
(1) IN GENERAL.—The Commissioner of Social
Security shall ensure that funds made available for
continuing disability reviews (as defined in section
201(g)(1)(A) of the Social Security Act) are used, to
the greatest extent practicable, to maximize the com-
bined savings in the old-age, survivors, and disability
insurance, supplemental security income, medicare,
and medicaid programs.
(2) REPORT.—The Commissioner of Social Se-
curity shall provide annually (at the conclusion of
each of the fiscal years 1996 through 2002) to the
Congress a report on continuing disability reviews
which includes—
(A) the amount spent on continuing dis-
ability reviews in the fiscal year covered by the
report, and the number of reviews conducted,
by category of review;
(B) the results of the continuing disability
reviews in terms of cessations of benefits or de-
terminations of continuing eligibility, by pro-
gram; and
(C) the estimated savings over the short-,
medium-, and long-term to the old-age, survi-
vors, and disability insurance, supplemental se-
curity income, medicare, and medicaid pro-
grams from continuing disability reviews which
result in cessations of benefits and the esti-
mated present value of such savings.
(e) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SE-
CURITY ADMINISTRATION.—
(1) IN GENERAL.—Section 702 of the Social
Security Act (42 U.S.C. 902) is amended—
(A) by redesignating subsections (c) and
(d) as subsections (d) and (e), respectively; and
(B) by inserting after subsection (b) the
following new subsection:
‘‘Chief Actuary
‘‘(c)(1) There shall be in the Administration a Chief
Actuary, who shall be appointed by, and in direct line of
authority to, the Commissioner. The Chief Actuary shall
be appointed from individuals who have demonstrated, by
their education and experience, superior expertise in the
actuarial sciences. The Chief Actuary shall serve as the
chief actuarial officer of the Administration, and shall ex-
ercise such duties as are appropriate for the office of the
Chief Actuary and in accordance with professional stand-
ards of actuarial independence. The Chief Actuary may
be removed only for cause.
‘‘(2) The Chief Actuary shall be compensated at the
highest rate of basic pay for the Senior Executive Service
under section 5382(b) of title 5, United States Code.’’.
(2) EFFECTIVE
DATE
OF
SUBSECTION.—The
amendments made by this subsection shall take ef-
fect on the date of the enactment of this Act.
SEC. 104. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN-
SURANCE BENEFITS BASED ON ACTUAL DE-
PENDENCY ON STEPPARENT SUPPORT.
(a) REQUIREMENT OF ACTUAL DEPENDENCY FOR
FUTURE ENTITLEMENTS.—
(1) IN GENERAL.—Section 202(d)(4) of the So-
cial Security Act (42 U.S.C. 402(d)(4)) is amended
by striking ‘‘was living with or’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply with respect to benefits
of individuals who become entitled to such benefits
for months after the third month following the
month in which this Act is enacted.
(b) TERMINATION OF CHILD’S INSURANCE BENE-
FITS BASED ON WORK RECORD OF STEPPARENT UPON
NATURAL PARENT’S DIVORCE FROM STEPPARENT.—
(1) IN GENERAL.—Section 202(d)(1) of the So-
cial Security Act (42 U.S.C. 402(d)(1)) is amend-
ed—
(A) by striking ‘‘or’’ at the end of subpara-
graph (F);
(B) by striking the period at the end of
subparagraph (G) and inserting ‘‘; or’’; and
(C) by inserting after subparagraph (G)
the following new subparagraph:
‘‘(H) if the benefits under this subsection are
based on the wages and self-employment income of
a stepparent who is subsequently divorced from such
child’s natural parent, the month after the month in
which such divorce becomes final.’’.
(2) NOTIFICATION.—Section 202(d) of such Act
(42 U.S.C. 402(d)) is amended by adding the follow-
ing new paragraph:
‘‘(10) For purposes of paragraph (1)(H)—
‘‘(A) each stepparent shall notify the Commis-
sioner of Social Security of any divorce upon such
divorce becoming final; and
‘‘(B) the Commissioner shall annually notify
any stepparent of the rule for termination described
in paragraph (1)(H) and of the requirement de-
scribed in subparagraph (A).’’.
(3) EFFECTIVE DATES.—
(A) The amendments made by paragraph
(1) shall apply with respect to final divorces oc-
curring after the third month following the
month in which this Act is enacted.
(B) The amendment made by paragraph
(2) shall take effect on the date of the enact-
ment of this Act.
SEC. 105. DENIAL OF DISABILITY BENEFITS TO DRUG AD-
DICTS AND ALCOHOLICS.
(a) AMENDMENTS RELATING TO TITLE II DISABIL-
ITY BENEFITS.—
(1) IN GENERAL.—Section 223(d)(2) of the So-
cial Security Act (42 U.S.C. 423(d)(2)) is amended
by adding at the end the following:
‘‘(C) An individual shall not be considered to be
disabled for purposes of this title if alcoholism or
drug addiction would (but for this subparagraph) be
a contributing factor material to the Commissioner’s
determination that the individual is disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 205(j)(1)(B) of such Act (42
U.S.C. 405(j)(1)(B)) is amended to read as fol-
lows:
‘‘(B) In the case of an individual entitled to benefits
based on disability, the payment of such benefits shall be
made to a representative payee if the Commissioner of So-
cial Security determines that such payment would serve
the interest of the individual because the individual also
has an alcoholism or drug addiction condition (as deter-
mined by the Commissioner) and the individual is incapa-
ble of managing such benefits.’’.
(B) Section 205(j)(2)(C)(v) of such Act
(42 U.S.C. 405(j)(2)(C)(v)) is amended by
striking ‘‘entitled to benefits’’ and all that fol-
lows through ‘‘under a disability’’ and inserting
‘‘described in paragraph (1)(B)’’.
(C) Section 205(j)(2)(D)(ii)(II) of such
Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended
by striking all that follows ‘‘15 years, or’’ and
inserting ‘‘described in paragraph (1)(B).’’.
(D) Section 205(j)(4)(A)(i)(II) of such Act
(42 U.S.C. 405(j)(4)(A)(ii)(II)) is amended by
striking ‘‘entitled to benefits’’ and all that fol-
lows through ‘‘under a disability’’ and inserting
‘‘described in paragraph (1)(B)’’.
(3) TREATMENT REFERRALS FOR INDIVIDUALS
WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI-
TION.—Section 222 of such Act (42 U.S.C. 422) is
amended by adding at the end the following new
subsection:
‘‘Treatment Referrals for Individuals with an Alcoholism
or Drug Addiction Condition
‘‘(e) In the case of any individual whose benefits
under this title are paid to a representative payee pursu-
ant to section 205(j)(1)(B), the Commissioner of Social
Security shall refer such individual to the appropriate
State agency administering the State plan for substance
abuse treatment services approved under subpart II of
part B of title XIX of the Public Health Service Act (42
U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENT.—Subsection (c)
of section 225 of such Act (42 U.S.C. 425(c)) is re-
pealed.
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply to any individual who
applies for, or whose claim is finally adjudicated
by the Commissioner of Social Security with re-
spect to, benefits under title II of the Social Se-
curity Act based on disability on or after the
date of the enactment of this Act, and, in the
case of any individual who has applied for, and
whose claim has been finally adjudicated by the
Commissioner with respect to, such benefits be-
fore such date of enactment, such amendments
shall apply only with respect to such benefits
for months beginning on or after January 1,
1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to benefits
for which applications are filed after the third
month following the month in which this Act is
enacted.
(C) Within 90 days after the date of the
enactment of this Act, the Commissioner of So-
cial Security shall notify each individual who is
entitled to monthly insurance benefits under
title II of the Social Security Act based on dis-
ability for the month in which this Act is en-
acted and whose entitlement to such benefits
would terminate by reason of the amendments
made by this subsection. If such an individual
reapplies for benefits under title II of such Act
(as amended by this Act) based on disability
within 120 days after the date of the enactment
of this Act, the Commissioner of Social Security
shall, not later than January 1, 1997, complete
the entitlement redetermination (including a
new medical determination) with respect to
such individual pursuant to the procedures of
such title.
(b) AMENDMENTS RELATING TO SSI BENEFITS.—
(1) IN GENERAL.—Section 1614(a)(3) of the
Social Security Act (42 U.S.C. 1382c(a)(3)) is
amended by adding at the end the following:
‘‘(I) Notwithstanding subparagraph (A), an individ-
ual shall not be considered to be disabled for purposes of
this title if alcoholism or drug addiction would (but for
this subparagraph) be a contributing factor material to
the Commissioner’s determination that the individual is
disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 1631(a)(2)(A)(ii)(II) of such
Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend-
ed to read as follows:
‘‘(II) In the case of an individual eligible for benefits
under this title by reason of disability, the payment of
such benefits shall be made to a representative payee if
the Commissioner of Social Security determines that such
payment would serve the interest of the individual because
the individual also has an alcoholism or drug addiction
condition (as determined by the Commissioner) and the
individual is incapable of managing such benefits.’’.
(B) Section 1631(a)(2)(B)(vii) of such Act
(42 U.S.C. 1383(a)(2)(B)(vii)) is amended by
striking ‘‘eligible for benefits’’ and all that fol-
lows through ‘‘is disabled’’ and inserting ‘‘de-
scribed in subparagraph (A)(ii)(II)’’.
(C) Section 1631(a)(2)(B)(ix)(II) of such
Act 
(42 
U.S.C. 
1383(a)(2)(B)(ix)(II)) 
is
amended by striking all that follows ‘‘15 years,
or’’ and inserting ‘‘described in subparagraph
(A)(ii)(II).’’.
(D) Section 1631(a)(2)(D)(i)(II) of such
Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend-
ed by striking ‘‘eligible for benefits’’ and all
that follows through ‘‘is disabled’’ and inserting
‘‘described in subparagraph (A)(ii)(II)’’.
(3) TREATMENT REFERRALS FOR INDIVIDUALS
WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI-
TION.—Title XVI of such Act (42 U.S.C. 1381 et
seq.) is amended by adding at the end the following
new section:
‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN
ALCOHOLISM OR DRUG ADDICTION CONDITION
‘‘SEC. 1636. In the case of any individual whose bene-
fits under this title are paid to a representative payee pur-
suant to section 1631(a)(2)(A)(ii)(II), the Commissioner
of Social Security shall refer such individual to the appro-
priate State agency administering the State plan for sub-
stance abuse treatment services approved under subpart
II of part B of title XIX of the Public Health Service Act
(42 U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENTS.—
(A) Section 1611(e) of such Act (42
U.S.C. 1382(e)) is amended by striking para-
graph (3).
(B) Section 1634 of such Act (42 U.S.C.
1383c) is amended by striking subsection (e).
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply to any individual who
applies for, or whose claim is finally adjudicated
by the Commissioner of Social Security with re-
spect to, supplemental security income benefits
under title XVI of the Social Security Act based
on disability on or after the date of the enact-
ment of this Act, and, in the case of any indi-
vidual who has applied for, and whose claim has
been finally adjudicated by the Commissioner
with respect to, such benefits before such date
of enactment, such amendments shall apply
only with respect to such benefits for months
beginning on or after January 1, 1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to supple-
mental security income benefits under title XVI
of the Social Security Act for which applica-
tions are filed after the third month following
the month in which this Act is enacted.
(C) Within 90 days after the date of the
enactment of this Act, the Commissioner of So-
cial Security shall notify each individual who is
eligible for supplemental security income bene-
fits under title XVI of the Social Security Act
for the month in which this Act is enacted and
whose eligibility for such benefits would termi-
nate by reason of the amendments made by this
subsection. If such an individual reapplies for
supplemental security income benefits under
title XVI of such Act (as amended by this Act)
within 120 days after the date of the enactment
of this Act, the Commissioner of Social Security
shall, not later than January 1, 1997, complete
the eligibility redetermination (including a new
medical determination) with respect to such in-
dividual pursuant to the procedures of such
title.
(D) For purposes of this paragraph, the
phrase ‘‘supplemental security income benefits
under title XVI of the Social Security Act’’ in-
cludes supplementary payments pursuant to an
agreement for Federal administration under
section 1616(a) of the Social Security Act and
payments pursuant to an agreement entered
into under section 212(b) of Public Law 93–66.
(c) CONFORMING AMENDMENT.—Section 201(c) of
the Social Security Independence and Program Improve-
ments Act of 1994 (42 U.S.C. 425 note) is repealed.
(d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND
SUBSTANCE ABUSE TREATMENT PROGRAMS.—
(1) IN GENERAL.—Out of any money in the
Treasury not otherwise appropriated, there are here-
by appropriated to supplement State and Tribal pro-
grams funded under section 1933 of the Public
Health 
Service 
Act 
(42 
U.S.C. 
300x–33),
$50,000,000 for each of the fiscal years 1997 and
1998.
(2) 
ADDITIONAL
FUNDS.—Amounts 
appro-
priated under paragraph (1) shall be in addition to
any funds otherwise appropriated for allotments
under section 1933 of the Public Health Service Act
(42 U.S.C. 300x–33) and shall be allocated pursuant
to such section 1933.
(3) USE OF FUNDS.—A State or Tribal govern-
ment receiving an allotment under this subsection
shall consider as priorities, for purposes of expend-
ing funds allotted under this subsection, activities
relating to the treatment of the abuse of alcohol and
other drugs.
SEC. 106. PILOT STUDY OF EFFICACY OF PROVIDING INDI-
VIDUALIZED INFORMATION TO RECIPIENTS
OF OLD-AGE AND SURVIVORS INSURANCE
BENEFITS.
(a) IN GENERAL.—During a 2-year period beginning
as soon as practicable in 1996, the Commissioner of Social
Security shall conduct a pilot study of the efficacy of pro-
viding certain individualized information to recipients of
monthly insurance benefits under section 202 of the Social
Security Act, designed to promote better understanding
of their contributions and benefits under the social secu-
rity system. The study shall involve solely beneficiaries
whose entitlement to such benefits first occurred in or
after 1984 and who have remained entitled to such bene-
fits for a continuous period of not less than 5 years. The
number of such recipients involved in the study shall be
of sufficient size to generate a statistically valid sample
for purposes of the study, but shall not exceed 600,000
beneficiaries.
(b) ANNUALIZED STATEMENTS.—During the course
of the study, the Commissioner shall provide to each of
the beneficiaries involved in the study one annualized
statement, setting forth the following information:
(1) an estimate of the aggregate wages and
self-employment income earned by the individual on
whose wages and self-employment income the benefit
is based, as shown on the records of the Commis-
sioner as of the end of the last calendar year ending
prior to the beneficiary’s first month of entitlement;
(2) an estimate of the aggregate of the em-
ployee and self-employment contributions, and the
aggregate of the employer contributions (separately
identified), made with respect to the wages and self-
employment income on which the benefit is based, as
shown on the records of the Commissioner as of the
end of the calendar year preceding the beneficiary’s
first month of entitlement; and
(3) an estimate of the total amount paid as
benefits under section 202 of the Social Security Act
based on such wages and self-employment income, as
shown on the records of the Commissioner as of the
end of the last calendar year preceding the issuance
of the statement for which complete information is
available.
(c) INCLUSION WITH MATTER OTHERWISE DISTRIB-
UTED TO BENEFICIARIES.—The Commissioner shall en-
sure that reports provided pursuant to this section are,
to the maximum extent practicable, included with other
reports currently provided to beneficiaries on an annual
basis.
(d) REPORT TO THE CONGRESS.—The Commissioner
shall report to each House of the Congress regarding the
results of the pilot study conducted pursuant to this sec-
tion not later than 60 days after the completion of such
study.
SEC. 107. PROTECTION OF SOCIAL SECURITY AND MEDI-
CARE TRUST FUNDS.
(a) IN GENERAL.—Part A of title XI of the Social
Security Act (42 U.S.C. 1301 et seq.) is amended by add-
ing at the end the following new section:
‘‘PROTECTION OF SOCIAL SECURITY AND MEDICARE
TRUST FUNDS
‘‘SEC. 1145. (a) IN GENERAL.—No officer or em-
ployee of the United States shall—
‘‘(1) delay the deposit of any amount into (or
delay the credit of any amount to) any Federal fund
or otherwise vary from the normal terms, proce-
dures, or timing for making such deposits or credits,
‘‘(2) refrain from the investment in public debt
obligations of amounts in any Federal fund, or
‘‘(3) redeem prior to maturity amounts in any
Federal fund which are invested in public debt obli-
gations for any purpose other than the payment of
benefits or administrative expenses from such Fed-
eral fund.
‘‘(b) PUBLIC DEBT OBLIGATION.—For purposes of
this section, the term ‘public debt obligation’ means any
obligation subject to the public debt limit established
under section 3101 of title 31, United States Code.
‘‘(c) FEDERAL FUND.—For purposes of this section,
the term ‘Federal fund’ means—
‘‘(1) the Federal Old-Age and Survivors Insur-
ance Trust Fund;
‘‘(2) the Federal Disability Insurance Trust
Fund;
‘‘(3) the Federal Hospital Insurance Trust
Fund; and
‘‘(4) the Federal Supplementary Medical Insur-
ance Trust Fund.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
SEC. 108. PROFESSIONAL STAFF FOR THE SOCIAL SECU-
RITY ADVISORY BOARD.
Section 703(i) of the Social Security Act (42
U.S.C. 903(i)) is amended in the first sentence by insert-
ing after ‘‘Staff Director’’ the following: ‘‘, and three pro-
fessional staff members one of whom shall be appointed
from among individuals approved by the members of the
Board who are not members of the political party rep-
resented by the majority of the Board,’’.
TITLE II—SMALL BUSINESS
REGULATORY FAIRNESS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Small Business Regu-
latory Enforcement Fairness Act of 1996’’.
SEC. 202. FINDINGS.
Congress finds that—
(1) a vibrant and growing small business sector
is critical to creating jobs in a dynamic economy;
(2) small businesses bear a disproportionate
share of regulatory costs and burdens;
(3) fundamental changes that are needed in the
regulatory and enforcement culture of Federal agen-
cies to make agencies more responsive to small busi-
ness can be made without compromising the statu-
tory missions of the agencies;
(4) three of the top recommendations of the
1995 White House Conference on Small Business in-
volve reforms to the way government regulations are
developed and enforced, and reductions in govern-
ment paperwork requirements;
(5) the requirements of chapter 6 of title 5,
United States Code, have too often been ignored by
government agencies, resulting in greater regulatory
burdens on small entities than necessitated by stat-
ute; and
(6) small entities should be given the oppor-
tunity to seek judicial review of agency actions re-
quired by chapter 6 of title 5, United States Code.
SEC. 203. PURPOSES.
The purposes of this title are—
(1) to implement certain recommendations of
the 1995 White House Conference on Small Busi-
ness regarding the development and enforcement of
Federal regulations;
(2) to provide for judicial review of chapter 6
of title 5, United States Code;
(3) to encourage the effective participation of
small businesses in the Federal regulatory process;
(4) to simplify the language of Federal regula-
tions affecting small businesses;
(5) to develop more accessible sources of infor-
mation on regulatory and reporting requirements for
small businesses;
(6) to create a more cooperative regulatory en-
vironment among agencies and small businesses that
is less punitive and more solution-oriented; and
(7) to make Federal regulators more account-
able for their enforcement actions by providing small
entities with a meaningful opportunity for redress of
excessive enforcement activities.
Subtitle A—Regulatory Compliance
Simplification
SEC. 211. DEFINITIONS.
For purposes of this subtitle—
(1) the terms ‘‘rule’’ and ‘‘small entity’’ have
the same meanings as in section 601 of title 5, Unit-
ed States Code;
(2) the term ‘‘agency’’ has the same meaning as
in section 551 of title 5, United States Code; and
(3) the term ‘‘small entity compliance guide’’
means a document designated as such by an agency.
SEC. 212. COMPLIANCE GUIDES.
(a) COMPLIANCE GUIDE.—For each rule or group of
related rules for which an agency is required to prepare
a final regulatory flexibility analysis under section 604 of
title 5, United States Code, the agency shall publish one
or more guides to assist small entities in complying with
the rule, and shall designate such publications as ‘‘small
entity compliance guides’’. The guides shall explain the ac-
tions a small entity is required to take to comply with a
rule or group of rules. The agency shall, in its sole discre-
tion, taking into account the subject matter of the rule
and the language 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 simi-
larly affected small entities, and may cooperate with asso-
ciations of small entities to develop and distribute such
guides.
(b) COMPREHENSIVE SOURCE OF INFORMATION.—
Agencies shall cooperate to make available to small enti-
ties through comprehensive sources of information, the
small entity compliance guides and all other available in-
formation on statutory and regulatory requirements af-
fecting small entities.
(c) LIMITATION ON JUDICIAL REVIEW.—An agency’s
small entity compliance guide shall not be subject to judi-
cial review, except that in any civil or administrative ac-
tion against a small entity for a violation occurring after
the effective date of this section, the content of the small
entity compliance guide may be considered as evidence of
the reasonableness or appropriateness of any proposed
fines, penalties or damages.
SEC. 213. INFORMAL SMALL ENTITY GUIDANCE.
(a) GENERAL.—Whenever appropriate in the interest
of administering statutes and regulations within the juris-
diction of an agency which regulates small entities, it shall
be the practice of the agency to answer inquiries by small
entities concerning information on, and advice about, com-
pliance with such statutes and regulations, interpreting
and applying the law to specific sets of facts supplied by
the small entity. In any civil or administrative action
against a small entity, guidance given by an agency apply-
ing the law to facts provided by the small entity may be
considered as evidence of the reasonableness or appro-
priateness of any proposed fines, penalties or damages
sought against such small entity.
(b) PROGRAM.—Each agency regulating the activities
of small entities shall establish a program for responding
to such inquiries no later than 1 year after enactment of
this section, utilizing existing functions and personnel of
the agency to the extent practicable.
(c) REPORTING.—Each agency regulating the activi-
ties of small business shall report to the Committee on
Small Business and Committee on Governmental Affairs
of the Senate and the Committee on Small Business and
Committee on the Judiciary of the House of Representa-
tives no later than 2 years after the date of the enactment
of this section on the scope of the agency’s program, the
number of small entities using the program, and the
achievements of the program to assist small entity compli-
ance with agency regulations.
SEC. 214. SERVICES OF SMALL BUSINESS DEVELOPMENT
CENTERS.
(a) Section 21(c)(3) of the Small Business Act (15
U.S.C. 648(c)(3)) is amended—
(1) in subparagraph (O), by striking ‘‘and’’ at
the end;
(2) in subparagraph (P), by striking the period
at the end and inserting a semicolon; and
(3) by inserting after subparagraph (P) the fol-
lowing new subparagraphs:
‘‘(Q) providing information to small busi-
ness concerns regarding compliance with regu-
latory requirements; and
‘‘(R) developing informational publications,
establishing resource centers of reference mate-
rials, and distributing compliance guides pub-
lished under section 312(a) of the Small Busi-
ness Regulatory Enforcement Fairness Act of
1996.’’.
(b) Nothing in this Act in any way affects or limits
the ability of other technical assistance or extension pro-
grams to perform or continue to perform services related
to compliance assistance.
SEC. 215. COOPERATION ON GUIDANCE.
Agencies may, to the extent resources are available
and where appropriate, in cooperation with the states, de-
velop guides that fully integrate requirements of both Fed-
eral and state regulations where regulations within an
agency’s area of interest at the Federal and state levels
impact small entities. Where regulations vary among the
states, separate guides may be created for separate states
in cooperation with State agencies.
SEC. 216. EFFECTIVE DATE.
This subtitle and the amendments made by this sub-
title shall take effect on the expiration of 90 days after
the date of enactment of this subtitle.
Subtitle B—Regulatory
Enforcement Reforms
SEC. 221. DEFINITIONS.
For purposes of this subtitle—
(1) the terms ‘‘rule’’ and ‘‘small entity’’ have
the same meanings as in section 601 of title 5, Unit-
ed States Code;
(2) the term ‘‘agency’’ has the same meaning as
in section 551 of title 5, United States Code; and
(3) the term ‘‘small entity compliance guide’’
means a document designated as such by an agency.
SEC. 222. SMALL BUSINESS AND AGRICULTURE ENFORCE-
MENT OMBUDSMAN.
The Small Business Act (15 U.S.C. 631 et seq.) is
amended—
(1) by redesignating section 30 as section 31;
and
(2) by inserting after section 29 the following
new section:
‘‘SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.
‘‘(a) DEFINITIONS.—For purposes of this section, the
term—
‘‘(1) ‘‘Board’’ means a Regional Small Business
Regulatory Fairness Board established under sub-
section (c); and
‘‘(2) ‘‘Ombudsman’’ means the Small Business
and Agriculture Regulatory Enforcement Ombuds-
man designated under subsection (b).
‘‘(b) SBA ENFORCEMENT OMBUDSMAN.—
‘‘(1) Not later than 180 days after the date of
enactment of this section, the Administrator shall
designate a Small Business and Agriculture Regu-
latory Enforcement Ombudsman, who shall report
directly to the Administrator, utilizing personnel of
the Small Business Administration to the extent
practicable. Other agencies shall assist the Ombuds-
man and take actions as necessary to ensure compli-
ance with the requirements of this section. Nothing
in this section is intended to replace or diminish the
activities of any Ombudsman or similar office in any
other agency.
‘‘(2) The Ombudsman shall—
‘‘(A) work with each agency with regu-
latory authority over small businesses to ensure
that small business concerns that receive or are
subject to an audit, on-site inspection, compli-
ance assistance effort, or other enforcement re-
lated communication or contact by agency per-
sonnel are provided with a means to comment
on the enforcement activity conducted by such
personnel;
‘‘(B) establish means to receive comments
from small business concerns regarding actions
by agency employees conducting compliance or
enforcement activities with respect to the small
business concern, means to refer comments to
the Inspector General of the affected agency in
the appropriate circumstances, and otherwise
seek to maintain the identity of the person and
small business concern making such comments
on a confidential basis to the same extent as
employee identities are protected under section
7 of the Inspector General Act of 1978 (5
U.S.C.App.);
‘‘(C) based on substantiated comments re-
ceived from small business concerns and the
Boards, annually report to Congress and af-
fected agencies evaluating the enforcement ac-
tivities of agency personnel including a rating of
the responsiveness to small business of the var-
ious regional and program offices of each agen-
cy;
‘‘(D) coordinate and report annually on the
activities, findings and recommendations of the
Boards to the Administrator and to the heads
of affected agencies; and
‘‘(E) provide the affected agency with an
opportunity to comment on draft reports pre-
pared under subparagraph (C), and include a
section of the final report in which the affected
agency may make such comments as are not
addressed by the Ombudsman in revisions to
the draft.
‘‘(c) REGIONAL
SMALL
BUSINESS
REGULATORY
FAIRNESS BOARDS.—
‘‘(1) Not later than 180 days after the date of
enactment of this section, the Administrator shall
establish a Small Business Regulatory Fairness
Board in each regional office of the Small Business
Administration.
‘‘(2) Each Board established under paragraph
(1) shall—
‘‘(A) meet at least annually to advise the
Ombudsman on matters of concern to small
businesses relating to the enforcement activities
of agencies;
‘‘(B) report to the Ombudsman on sub-
stantiated instances of excessive enforcement
actions of agencies against small business con-
cerns including any findings or recommenda-
tions of the Board as to agency enforcement
policy or practice; and
‘‘(C) prior to publication, provide comment
on the annual report of the Ombudsman pre-
pared under subsection (b).
‘‘(3) Each Board shall consist of five members,
who are owners, operators, or officers of small busi-
ness concerns, appointed by the Administrator, after
receiving the recommendations of the chair and
ranking minority member of the Committees on
Small Business of the House of Representatives and
the Senate. Not more than three of the Board mem-
bers shall be of the same political party. No member
shall be an officer or employee of the Federal Gov-
ernment, in either the executive branch or the Con-
gress.
‘‘(4) Members of the Board shall serve at the
pleasure of the Administrator for terms of three
years or less.
‘‘(5) The Administrator shall select a chair
from among the members of the Board who shall
serve at the pleasure of the Administrator for not
more than 1 year as chair.
‘‘(6) A majority of the members of the Board
shall constitute a quorum for the conduct of busi-
ness, but a lesser number may hold hearings.
‘‘(d) POWERS OF THE BOARDS.
‘‘(1) The Board may hold such hearings and
collect such information as appropriate for carrying
out this section.
‘‘(2) The Board may use the United States
mails in the same manner and under the same con-
ditions as other departments and agencies of the
Federal Government.
‘‘(3) The Board may accept donations of serv-
ices necessary to conduct its business, provided that
the donations and their sources are disclosed by the
Board.
‘‘(4) Members of the Board shall serve without
compensation, provided that, members of the Board
shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for em-
ployees of agencies under subchapter I of chapter 57
of title 5, United States Code, while away from their
homes or regular places of business in the perform-
ance of services for the Board.’’.
SEC. 223. RIGHTS OF SMALL ENTITIES IN ENFORCEMENT
ACTIONS.
(a) IN GENERAL.—Each agency regulating the activi-
ties of small entities shall establish a policy or program
within 1 year of enactment of this section to provide for
the reduction, and under appropriate circumstances for
the waiver, of civil penalties for violations of a statutory
or regulatory requirement by a small entity. Under appro-
priate circumstances, an agency may consider ability to
pay in determining penalty assessments on small entities.
(b) CONDITIONS AND EXCLUSIONS.—Subject to the
requirements or limitations of other statutes, policies or
programs established under this section shall contain con-
ditions or exclusions which may include, but shall not be
limited to—
(1) requiring the small entity to correct the vio-
lation within a reasonable correction period;
(2) limiting the applicability to violations dis-
covered through participation by the small entity in
a compliance assistance or audit program operated
or supported by the agency or a state;
(3) excluding small entities that have been sub-
ject to multiple enforcement actions by the agency;
(4) excluding violations involving willful or
criminal conduct;
(5) excluding violations that pose serious
health, safety or environmental threats; and
(6) requiring a good faith effort to comply with
the law.
(c) REPORTING.—Agencies shall report to the Com-
mittee on Small Business and Committee on Govern-
mental Affairs of the Senate and the Committee on Small
Business and Committee on Judiciary of the House of
Representatives no later than 2 years after the date of
enactment of this section on the scope of their program
or policy, the number of enforcement actions against small
entities that qualified or failed to qualify for the program
or policy, and the total amount of penalty reductions and
waivers.
SEC. 224. EFFECTIVE DATE.
This subtitle and the amendments made by this sub-
title shall take effect on the expiration of 90 days after
the date of enactment of this subtitle.
Subtitle C—Equal Access to Justice
Act Amendments
SEC. 231. ADMINISTRATIVE PROCEEDINGS.
(a) Section 504(a) of title 5, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(4) If, in an adversary adjudication arising from an
agency action to enforce a party’s compliance with a statu-
tory or regulatory requirement, the demand by the agency
is substantially in excess of the decision of the adjudicative
officer and is unreasonable when compared with such deci-
sion, under the facts and circumstances of the case, the
adjudicative officer shall award to the party the fees and
other expenses related to defending against the excessive
demand, unless the party has committed a willful violation
of law or otherwise acted in bad faith, or special cir-
cumstances make an award unjust. Fees and expenses
awarded under this paragraph shall be paid only as a con-
sequence of appropriations provided in advance.’’.
(b) Section 504(b) of title 5, United States Code, is
amended—
(1) in paragraph (1)(A), by striking ‘‘$75’’ and
inserting ‘‘$125’’;
(2) at the end of paragraph (1)(B), by inserting
before the semicolon ‘‘or for purposes of subsection
(a)(4), a small entity as defined in section 601’’;
(3) at the end of paragraph (1)(D), by striking
‘‘and’’;
(4) at the end of paragraph (1)(E), by striking
the period and inserting ‘‘; and’’; and
(5) at the end of paragraph (1), by adding the
following new subparagraph:
‘‘(F) ‘demand’ means the express demand of
the agency which led to the adversary adjudication,
but does not include a recitation by the agency of
the maximum statutory penalty (i) in the adminis-
trative complaint, or (ii) elsewhere when accom-
panied by an express demand for a lesser amount.’’.
SEC. 232. JUDICIAL PROCEEDINGS.
(a) Section 2412(d)(1) of title 28, United States
Code, is amended by adding at the end the following new
subparagraph:
‘‘(D) If, in a civil action brought by the United States
or a proceeding for judicial review of an adversary adju-
dication described in section 504(a)(4) of title 5, the de-
mand by the United States is substantially in excess of
the judgment finally obtained by the United States and
is unreasonable when compared with such judgment,
under the facts and circumstances of the case, the court
shall award to the party the fees and other expenses relat-
ed to defending against the excessive demand, unless the
party has committed a willful violation of law or otherwise
acted in bad faith, or special circumstances make an
award unjust. Fees and expenses awarded under this sub-
paragraph shall be paid only as a consequence of appro-
priations provided in advance.’’.
(b) Section 2412(d) of title 28, United States Code,
is amended—
(1) in paragraph (2)(A), by striking ‘‘$75’’ and
inserting ‘‘$125’’;
(2) at the end of paragraph (2)(B), by inserting
before the semicolon ‘‘or for purposes of subsection
(d)(1)(D), a small entity as defined in section 601
of title 5’’;
(3) at the end of paragraph (2)(G), by striking
‘‘and’’;
(4) at the end of paragraph (2)(H), by striking
the period and inserting ‘‘; and’’; and
(5) at the end of paragraph (2), by adding the
following new subparagraph:
‘‘(I) ‘demand’ means the express demand of the
United States which led to the adversary adjudica-
tion, but shall not include a recitation of the maxi-
mum statutory penalty (i) in the complaint, or (ii)
elsewhere when accompanied by an express demand
for a lesser amount.’’.
SEC. 233. EFFECTIVE DATE.
The amendments made by sections 331 and 332 shall
apply to civil actions and adversary adjudications com-
menced on or after the date of the enactment of this sub-
title.
Subtitle D—Regulatory Flexibility
Act Amendments
SEC. 241. REGULATORY FLEXIBILITY ANALYSES.
(a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.—
(1) SECTION 603.—Section 603(a) of title 5,
United States Code, is amended—
(A) by inserting after ‘‘proposed rule’’, the
phrase ‘‘, or publishes a notice of proposed rule-
making for an interpretative rule involving the
internal revenue laws of the United States’’;
and
(B) by inserting at the end of the sub-
section, the following new sentence: ‘‘In the
case of an interpretative rule involving the in-
ternal revenue laws of the United States, this
chapter applies to interpretative rules published
in the Federal Register for codification in the
Code of Federal Regulations, but only to the
extent that such interpretative rules impose on
small entities a collection of information re-
quirement.’’.
(2) SECTION 601.—Section 601 of title 5, Unit-
ed States Code, is amended by striking ‘‘and’’ at the
end of paragraph (5), by striking the period at the
end of paragraph (6) and inserting ‘‘; and’’, and by
adding at the end the following:
‘‘(7) the term ‘collection of information’—
‘‘(A) means the obtaining, causing to be
obtained, soliciting, or requiring the disclosure
to third parties or the public, of facts or opin-
ions by or for an agency, regardless of form or
format, calling for either—
‘‘(i) answers to identical questions
posed to, or identical reporting or record-
keeping requirements imposed on, 10 or
more persons, other than agencies, instru-
mentalities, or employees of the United
States; or
‘‘(ii) answers to questions posed to
agencies, instrumentalities, or employees of
the United States which are to be used for
general statistical purposes; and
‘‘(B) shall not include a collection of infor-
mation described under section 3518(c)(1) of
title 44, United States Code.
‘‘(8) 
RECORDKEEPING
REQUIREMENT.—The
term ‘recordkeeping requirement’ means a require-
ment imposed by an agency on persons to maintain
specified records.
(b) FINAL REGULATORY FLEXIBILITY ANALYSIS.—
Section 604 of title 5, United States Code, is amended—
(1) in subsection (a) to read as follows:
‘‘(a) When an agency promulgates a final rule under
section 553 of this title, after being required by that sec-
tion or any other law to publish a general notice of pro-
posed rulemaking, or promulgates a final interpretative
rule involving the internal revenue laws of the United
States as described in section 603(a), the agency shall pre-
pare a final regulatory flexibility analysis. Each final regu-
latory flexibility analysis shall contain—
‘‘(1) a succinct statement of the need for, and
objectives of, the rule;
‘‘(2) a summary of the significant issues raised
by the public comments in response to the initial
regulatory flexibility analysis, a summary of the as-
sessment of the agency of such issues, and a state-
ment of any changes made in the proposed rule as
a result of such comments;
‘‘(3) a description of and an estimate of the
number of small entities to which the rule will apply
or an explanation of why no such estimate is avail-
able;
‘‘(4) a description of the projected reporting,
record keeping and other compliance requirements of
the 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 or record; and
‘‘(5) a description of the steps the agency has
taken to minimize the significant economic impact
on small entities consistent with the stated objectives
of applicable statutes, including a statement of the
factual, policy, and legal reasons for selecting the al-
ternative adopted in the final rule and why each one
of the other significant alternatives to the rule con-
sidered by the agency which affect the impact on
small entities was rejected.’’; and
(2) in subsection (b), by striking ‘‘at the time’’
and all that follows and inserting ‘‘such analysis or
a summary thereof.’’.
SEC. 242. JUDICIAL REVIEW.
Section 611 of title 5, United States Code, is amend-
ed to read as follows:
‘‘§ 611. Judicial review
‘‘(a)(1) For any rule subject to this chapter, a small
entity that is adversely affected or aggrieved by final agen-
cy action is entitled to judicial review of agency compliance
with the requirements of sections 601, 604, 605(b),
608(b), and 610 in accordance with chapter 7. Agency
compliance with sections 607 and 609(a) shall be judicially
reviewable in connection with judicial review of section
604.
‘‘(2) Each court having jurisdiction to review such
rule for compliance with section 553, or under any other
provision of law, shall have jurisdiction to review any
claims of noncompliance with sections 601, 604, 605(b),
608(b), and 610 in accordance with chapter 7. Agency
compliance with sections 607 and 609(a) shall be judicially
reviewable in connection with judicial review of section
604.
‘‘(3)(A) A small entity may seek such review during
the period beginning on the date of final agency action
and ending one year later, except that where a provision
of law requires that an action challenging a final agency
action be commenced before the expiration of one year,
such lesser period shall apply to an action for judicial re-
view under this section.
‘‘(B) In the case where an agency delays the issuance
of a final regulatory flexibility analysis pursuant to section
608(b) of this chapter, an action for judicial review under
this section shall be filed not later than—
‘‘(i) one year after the date the analysis is made
available to the public, or
‘‘(ii) where a provision of law requires that an
action challenging a final agency regulation be com-
menced before the expiration of the 1-year period,
the number of days specified in such provision of law
that is after the date the analysis is made available
to the public.
‘‘(4) In granting any relief in an action under this
section, the court shall order the agency to take corrective
action consistent with this chapter and chapter 7, includ-
ing, but not limited to—
‘‘(A) remanding the rule to the agency, and
‘‘(B) deferring the enforcement of the rule
against small entities unless the court finds that
continued enforcement of the rule is in the public in-
terest.
‘‘(5) Nothing in this subsection shall be construed to
limit the authority of any court to stay the effective date
of any rule or provision thereof under any other provision
of law or to grant any other relief in addition to the re-
quirements of this section.
‘‘(b) In an action for the judicial review of a rule,
the regulatory flexibility analysis for such rule, including
an analysis prepared or corrected pursuant to paragraph
(a)(4), shall constitute part of the entire record of agency
action in connection with such review.
‘‘(c) Compliance or noncompliance by an agency with
the provisions of this chapter shall be subject to judicial
review only in accordance with this section.
‘‘(d) Nothing in this section bars judicial review of
any other impact statement or similar analysis required
by any other law if judicial review of such statement or
analysis is otherwise permitted by law.’’.
SEC. 243. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 605(b) of title 5, United States Code, is
amended to read as follows:
‘‘(b) Sections 603 and 604 of this title shall not apply
to any proposed or final rule if the head of the agency
certifies that the rule will not, if promulgated, have a sig-
nificant economic impact on a substantial number of small
entities. If the head of the agency makes a certification
under the preceding sentence, the agency shall publish
such certification in the Federal Register at the time of
publication of general notice of proposed rulemaking for
the rule or at the time of publication of the final rule,
along with a statement providing the factual basis for such
certification. The agency shall provide such certification
and statement to the Chief Counsel for Advocacy of the
Small Business Administration.’’.
(b) Section 612 of title 5, United States Code is
amended—
(1) in subsection (a), by striking ‘‘the commit-
tees on the Judiciary of the Senate and the House
of Representatives, the Select Committee on Small
Business of the Senate, and the Committee on Small
Business of the House of Representatives’’ and in-
serting ‘‘the Committees on the Judiciary and Small
Business of the Senate and House of Representa-
tives’’.
(2) in subsection (b), by striking ‘‘his views
with respect to the’’ and inserting in lieu thereof,
‘‘his or her views with respect to compliance with
this chapter, the adequacy of the rulemaking record
with respect to small entities and the’’.
SEC. 244. SMALL BUSINESS ADVOCACY REVIEW PANELS.
(a) SMALL BUSINESS OUTREACH AND INTERAGENCY
COORDINATION.— Section 609 of title 5, United States
Code is amended—
(1) before ‘‘techniques,’’ by inserting ‘‘the rea-
sonable use of’’;
(2) in paragraph (4), after ‘‘entities’’ by insert-
ing ‘‘including soliciting and receiving comments
over computer networks’’;
(3) by designating the current text as sub-
section (a); and
(4) by adding the following:
‘‘(b) Prior to publication of an initial regulatory flexi-
bility analysis which a covered agency is required to con-
duct by this chapter—
‘‘(1) a covered agency shall notify the Chief
Counsel for Advocacy of the Small Business Admin-
istration and provide the Chief Counsel with infor-
mation on the potential impacts of the proposed rule
on small entities and the type of small entities that
might be affected;
‘‘(2) not later than 15 days after the date of re-
ceipt of the materials described in paragraph (1),
the Chief Counsel shall identify individuals rep-
resentative of affected small entities for the purpose
of obtaining advice and recommendations from those
individuals about the potential impacts of the pro-
posed rule;
‘‘(3) the agency shall convene a review panel for
such rule consisting wholly of full time Federal em-
ployees of the office within the agency responsible
for carrying out the proposed rule, the Office of In-
formation and Regulatory Affairs within the Office
of Management and Budget, and the Chief Counsel;
‘‘(4) the panel shall review any material the
agency has prepared in connection with this chapter,
including any draft proposed rule, collect advice and
recommendations of each individual small entity rep-
resentative identified by the agency after consulta-
tion with the Chief Counsel, on issues related to sub-
sections 603(b), paragraphs (3), (4) and (5) and
603(c);
‘‘(5) not later than 60 days after the date a
covered agency convenes a review panel pursuant to
paragraph (3), the review panel shall report on the
comments of the small entity representatives and its
findings as to issues related to subsections 603(b),
paragraphs (3), (4) and (5) and 603(c), provided
that such report shall be made public as part of the
rulemaking record; and
‘‘(6) where appropriate, the agency shall modify
the proposed rule, the initial regulatory flexibility
analysis or the decision on whether an initial regu-
latory flexibility analysis is required.
‘‘(c) An agency may in its discretion apply subsection
(b) to rules that the agency intends to certify under sub-
section 605(b), but the agency believes may have a greater
than de minimis impact on a substantial number of small
entities.
‘‘(d) For purposed of this section, the term covered
agency means the Environmental Protection Agency and
the Occupational Safety and Health Administration of the
Department of Labor.
‘‘(e) The Chief Counsel for Advocacy, in consultation
with the individuals identified in subsection (b)(2), and
with the Administrator of the Office of Information and
Regulatory Affairs within the Office of Management and
Budget, may waive the requirements of subsections (b)(3),
(b)(4), and (b)(5) by including in the rulemaking record
a written finding, with reasons therefor, that those re-
quirements would not advance the effective participation
of small entities in the rulemaking process. For purposes
of this subsection, the factors to be considered in making
such a finding are as follows:
‘‘(1) In developing a proposed rule, the extent
to which the covered agency consulted with individ-
uals representative of affected small entities with re-
spect to the potential impacts of the rule and took
such concerns into consideration.
‘‘(2) Special circumstances requiring prompt is-
suance of the rule.
‘‘(3) Whether the requirements of subsection
(b) would provide the individuals identified in sub-
section (b)(2) with a competitive advantage relative
to other small entities.’’.
(b) SMALL BUSINESS ADVOCACY CHAIRPERSONS.—
Not later than 30 days after the date of enactment of this
Act, the head of each covered agency that has conducted
a final regulatory flexibility analysis shall designate a
small business advocacy chairperson using existing person-
nel to the extent possible, to be responsible for implement-
ing this section and to act as permanent chair of the agen-
cy’s review panels established pursuant to this section.
SEC. 245. EFFECTIVE DATE.
This subtitle shall become effective on the expiration
of 90 days after the date of enactment of this subtitle,
except that such amendments shall not apply to interpre-
tative rules for which a notice of proposed rulemaking was
published prior to the date of enactment.
Subtitle E—Congressional Review
SEC. 251. CONGRESSIONAL REVIEW OF AGENCY RULE-
MAKING.
Title 5, United States Code, is amended by inserting
immediately after chapter 7 the following new chapter:
‘‘CHAPTER 8—CONGRESSIONAL REVIEW
OF AGENCY RULEMAKING
‘‘Sec.
‘‘801. Congressional review.
‘‘802. Congressional disapproval procedure.
‘‘803. Special rule on statutory, regulatory, and judicial deadlines.
‘‘804. Definitions.
‘‘805. Judicial review.
‘‘806. Applicability; severability.
‘‘807. Exemption for monetary policy.
‘‘808. Effective date of certain rules.
‘‘§ 801. Congressional review
‘‘(a)(1)(A) Before a rule can take effect, the Federal
agency promulgating such rule shall submit to each House
of the Congress and to the Comptroller General a report
containing—
‘‘(i) a copy of the rule;
‘‘(ii) a concise general statement relating to the
rule, including whether it is a major rule; and
‘‘(iii) the proposed effective date of the rule.
‘‘(B) On the date of the submission of the report
under subparagraph (A), the Federal agency promulgating
the rule shall submit to the Comptroller General and make
available to each House of Congress—
‘‘(i) a complete copy of the cost-benefit analysis
of the rule, if any;
‘‘(ii) the agency’s actions relevant to sections
603, 604, 605, 607, and 609;
‘‘(iii) the agency’s actions relevant to sections
202, 203, 204, and 205 of the Unfunded Mandates
Reform Act of 1995; and
‘‘(iv) any other relevant information or require-
ments under any other Act and any relevant Execu-
tive Orders.
‘‘(C) Upon receipt of a report submitted under sub-
paragraph (A), each House shall provide copies of the re-
port to the Chairman and Ranking Member of each stand-
ing committee with jurisdiction under the rules of the
House of Representatives or the Senate to report a bill
to amend the provision of law under which the rule is is-
sued.
‘‘(2)(A) The Comptroller General shall provide a re-
port on each major rule to the committees of jurisdiction
in each House of the Congress by the end of 15 calendar
days after the submission or publication date as provided
in section 802(b)(2). The report of the Comptroller Gen-
eral shall include an assessment of the agency’s compli-
ance with procedural steps required by paragraph (1)(B).
‘‘(B) Federal agencies shall cooperate with the Comp-
troller General by providing information relevant to the
Comptroller General’s report under subparagraph (A).
‘‘(3) A major rule relating to a report submitted
under paragraph (1) shall take effect on the latest of—
‘‘(A) the later of the date occurring 60 days
after the date on which—
‘‘(i) the Congress receives the report sub-
mitted under paragraph (1); or
‘‘(ii) the rule is published in the Federal
Register, if so published;
‘‘(B) if the Congress passes a joint resolution of
disapproval described in section 802 relating to the
rule, and the President signs a veto of such resolu-
tion, the earlier date—
‘‘(i) on which either House of Congress
votes and fails to override the veto of the Presi-
dent; or
‘‘(ii) occurring 30 session days after the
date on which the Congress received the veto
and objections of the President; or
‘‘(C) the date the rule would have otherwise
taken effect, if not for this section (unless a joint
resolution of disapproval under section 802 is en-
acted).
‘‘(4) Except for a major rule, a rule shall take effect
as otherwise provided by law after submission to Congress
under paragraph (1).
‘‘(5) Notwithstanding paragraph (3), the effective
date of a rule shall not be delayed by operation of this
chapter beyond the date on which either House of Con-
gress votes to reject a joint resolution of disapproval under
section 802.
‘‘(b)(1) A rule shall not take effect (or continue), if
the Congress enacts a joint resolution of disapproval, de-
scribed under section 802, of the rule.
‘‘(2) A rule that does not take effect (or does not
continue) under paragraph (1) may not be reissued in sub-
stantially the same form, and a new rule that is substan-
tially the same as such a rule may not be issued, unless
the reissued or new rule is specifically authorized by a law
enacted after the date of the joint resolution disapproving
the original rule.
‘‘(c)(1) Notwithstanding any other provision of this
section (except subject to paragraph (3)), a rule that
would not take effect by reason of subsection (a)(3) may
take effect, if the President makes a determination under
paragraph (2) and submits written notice of such deter-
mination to the Congress.
‘‘(2) Paragraph (1) applies to a determination made
by the President by Executive Order that the rule should
take effect because such rule is—
‘‘(A) necessary because of an imminent threat
to health or safety or other emergency;
‘‘(B) necessary for the enforcement of criminal
laws;
‘‘(C) necessary for national security; or
‘‘(D) issued pursuant to any statute implement-
ing an international trade agreement.
‘‘(3) An exercise by the President of the authority
under this subsection shall have no effect on the proce-
dures under section 802 or the effect of a joint resolution
of disapproval under this section.
‘‘(d)(1) In addition to the opportunity for review oth-
erwise provided under this chapter, in the case of any rule
for which a report was submitted in accordance with sub-
section (a)(1)(A) during the period beginning on the date
occurring—
‘‘(A) in the case of the Senate, 60 session days,
or
‘‘(B) in the case of the House of Representa-
tives, 60 legislative days,
before the date the Congress adjourns a session of Con-
gress through the date on which the same or succeeding
Congress first convenes its next session, section 802 shall
apply to such rule in the succeeding session of Congress.
‘‘(2)(A) In applying section 802 for purposes of such
additional review, a rule described under paragraph (1)
shall be treated as though—
‘‘(i) such rule were published in the Federal
Register (as a rule that shall take effect) on—
‘‘(I) in the case of the Senate, the 15th
session day, or
‘‘(II) in the case of the House of Rep-
resentatives, the 15th legislative day,
after the succeeding session of Congress first con-
venes; and
‘‘(ii) a report on such rule were submitted to
Congress under subsection (a)(1) on such date.
‘‘(B) Nothing in this paragraph shall be construed
to affect the requirement under subsection (a)(1) that a
report shall be submitted to Congress before a rule can
take effect.
‘‘(3) A rule described under paragraph (1) shall take
effect as otherwise provided by law (including other sub-
sections of this section).
‘‘(e)(1) For purposes of this subsection, section 802
shall also apply to any major rule promulgated between
March 1, 1996, and the date of the enactment of this
chapter.
‘‘(2) In applying section 802 for purposes of Congres-
sional review, a rule described under paragraph (1) shall
be treated as though—
‘‘(A) such rule were published in the Federal
Register on the date of enactment of this chapter;
and
‘‘(B) a report on such rule were submitted to
Congress under subsection (a)(1) on such date.
‘‘(3) The effectiveness of a rule described under para-
graph (1) shall be as otherwise provided by law, unless
the rule is made of no force or effect under section 802.
‘‘(f) Any rule that takes effect and later is made of
no force or effect by enactment of a joint resolution under
section 802 shall be treated as though such rule had never
taken effect.
‘‘(g) If the Congress does not enact a joint resolution
of disapproval under section 802 respecting a rule, no
court or agency may infer any intent of the Congress from
any action or inaction of the Congress with regard to such
rule, related statute, or joint resolution of disapproval.
‘‘§ 802. Congressional disapproval procedure
‘‘(a) For purposes of this section, the term ‘joint res-
olution’ means only a joint resolution introduced in the
period beginning on the date on which the report referred
to in section 801(a)(1)(A) is received by Congress and
ending 60 days thereafter (excluding days either House
of Congress is adjourned for more than 3 days during a
session of Congress), the matter after the resolving clause
of which is as follows: ‘That Congress disapproves the rule
submitted by the ll relating to ll, and such rule
shall have no force or effect.’ (The blank spaces being ap-
propriately filled in).
‘‘(b)(1) A joint resolution described in subsection (a)
shall be referred to the committees in each House of Con-
gress with jurisdiction.
‘‘(2) For purposes of this section, the term ‘submis-
sion or publication date’ means the later of the date on
which—
‘‘(A) the Congress receives the report submitted
under section 801(a)(1); or
‘‘(B) the rule is published in the Federal Reg-
ister, if so published.
‘‘(c) In the Senate, if the committee to which is re-
ferred a joint resolution described in subsection (a) has
not reported such joint resolution (or an identical joint
resolution) at the end of 20 calendar days after the sub-
mission or publication date defined under subsection
(b)(2), such committee may be discharged from further
consideration of such joint resolution upon a petition sup-
ported in writing by 30 Members of the Senate, and such
joint resolution shall be placed on the calendar.
‘‘(d)(1) In the Senate, when the committee to which
a joint resolution is referred has reported, or when a com-
mittee is discharged (under subsection (c)) from further
consideration of a joint resolution described in subsection
(a), it is at any time thereafter in order (even though a
previous motion to the same effect has been disagreed to)
for a motion to proceed to the consideration of the joint
resolution, and all points of order against the joint resolu-
tion (and against consideration of the joint resolution) are
waived. The motion is not subject to amendment, or to
a motion to postpone, or to a motion to proceed to the
consideration of other business. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall
not be in order. If a motion to proceed to the consideration
of the joint resolution is agreed to, the joint resolution
shall remain the unfinished business of the Senate until
disposed of.
‘‘(2) In the Senate, debate on the joint resolution,
and on all debatable motions and appeals in connection
therewith, shall be limited to not more than 10 hours,
which shall be divided equally between those favoring and
those opposing the joint resolution. A motion further to
limit debate is in order and not debatable. An amendment
to, or a motion to postpone, or a motion to proceed to
the consideration of other business, or a motion to recom-
mit the joint resolution is not in order.
‘‘(3) In the Senate, immediately following the conclu-
sion of the debate on a joint resolution described in sub-
section (a), and a single quorum call at the conclusion of
the debate if requested in accordance with the rules of the
Senate, the vote on final passage of the joint resolution
shall occur.
‘‘(4) Appeals from the decisions of the Chair relating
to the application of the rules of the Senate to the proce-
dure relating to a joint resolution described in subsection
(a) shall be decided without debate.
‘‘(e) In the Senate the procedure specified in sub-
section (c) or (d) shall not apply to the consideration of
a joint resolution respecting a rule—
‘‘(1) after the expiration of the 60 session days
beginning with the applicable submission or publica-
tion date, or
‘‘(2) if the report under section 801(a)(1)(A)
was submitted during the period referred to in sec-
tion 801(d)(1), after the expiration of the 60 session
days beginning on the 15th session day after the
succeeding session of Congress first convenes.