I
104TH CONGRESS
1ST SESSION
H. R. 1979
To protect the rights of small entities subject to investigative or enforcement
action by agencies, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 30, 1995
Mr. DUNCAN (for himself and Mr. TALENT) introduced the following bill;
which was referred to the Committee on the Judiciary, and in addition
to the Committee on Small Business, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To protect the rights of small entities subject to investigative
or enforcement action by agencies, 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 Bill of Rights Act’’.
SEC. 2. SMALL BUSINESS REGULATORY BILL OF RIGHTS.
(a) IN GENERAL.—Chapter 5 of title 5, United
States Code, is amended by adding at the end the follow-
ing new subchapter:
‘‘SUBCHAPTER VI—SMALL BUSINESS
REGULATORY BILL OF RIGHTS
‘‘§ 597. Definition
‘‘For purposes of this subchapter, the term ‘small en-
tity’ has the same meaning given such term in section
601(6).
‘‘§ 597a. Rights of small entities prior to enforcement
action
‘‘Except as provided in section 597d, each agency
shall ensure that its regulatory enforcement program in-
cludes—
‘‘(1) a no-fault compliance audit program in
which no penalties may be assessed against a small
entity upon voluntary application by the entity to
the agency or a licensed private sector entity for a
compliance audit;
‘‘(2) a publicized, coherent compliance assist-
ance program available to regulated small entities
under the agency’s jurisdiction that provides tech-
nical and other compliance related assistance to
small entities upon request of a small entity;
‘‘(3) a method to enforce regulations in a uni-
form, consistent, and nonarbitrary manner nation-
wide; and
‘‘(4) an abatement period of not less than 60
days to allow the small entity to correct any viola-
tions before a penalty is assessed.
‘‘§ 597b. Rights during investigative or enforcement
action
‘‘Except as provided in section 597d, each small en-
tity that is the subject of a Federal investigative or en-
forcement action shall, upon the initiation of an inspec-
tion, investigation, or other official proceeding directed
against the person, have the right—
‘‘(1) to be provided access to all information
gathered on the entity by Government officials on a
timely basis;
‘‘(2) to remain silent;
‘‘(3) to be advised as to whether the person or
entity has a right to a warrant;
‘‘(4) to be warned that statements can be used
against the small entity and representatives of the
small entity;
‘‘(5) to have an attorney or accountant present;
‘‘(6) to be informed as to the scope and purpose
of the agency action;
‘‘(7) to be present at the inspection, investiga-
tion, or proceeding; and
‘‘(8) to be free of unreasonable seizures of prop-
erty or assets.
‘‘§ 597c. Rights after investigative or enforcement
action
‘‘Except as provided in section 597d, each small en-
tity that has been found in violation of a regulation and
was subject to an enforcement action or penalty shall have
the right—
‘‘(1) to be free from inspections for 180 days
after the date on which the small entity obtains cer-
tification from the agency that the small entity is in
compliance with the regulation;
‘‘(2) to have ability to pay factored into the as-
sessment of penalties through flexible payment plans
with reduced installments that reflect the entity’s
long-term ability to pay (taking into account cash-
flow and long-term profitability); and
‘‘(3) to not have fines paid be used to finance
the inspecting agency, but instead credited to the
General Treasury of the United States, to be used
for reduction of the Federal deficit.
‘‘§ 597d. Exceptions and limitation
‘‘(a) A provision of this subchapter shall not apply
if compliance with such provision would—