I 
108TH CONGRESS 
1ST SESSION H. R. 2345
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 
JUNE 5, 2003
Mr. MANZULLO (for himself, Mr. OSE, Mr. PENCE, and Mr. TERRY) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary, and in addition to the Committee on Small Business, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation 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 en-
sure complete analysis of potential impacts on small enti-
ties 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Regulatory Flexibility Improvements Act of 2003’’.
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Clarification and expansion of rules covered by the Regulatory Flexi-
bility Act. 
Sec. 4. Requirements providing for more detailed analyses. 
Sec. 5. Repeal of procedure for waiver and delay. 
Sec. 6. Procedures for gathering comments. 
Sec. 7. Periodic review of rules. 
Sec. 8. Judicial review of compliance with the requirements of the Regulatory 
Flexibility Act available after publication of the final rule. 
Sec. 9. Establishment and approval of small business concern size standards by 
Chief Counsel for Advocacy. 
Sec. 10. Additional powers of the Chief Counsel for Advocacy. 
Sec. 11. Clerical amendments.
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) A vibrant and growing small business sector 
is critical to creating jobs in a dynamic economy. 
(2) Regulations designed for application to 
large-scale entities have been applied uniformly to 
small businesses and other small entities even 
though the problems sought to be solved by such 
regulations are not usually caused by these small 
businesses and other small entities. 
(3) Uniform Federal regulatory and reporting 
requirements in many instances have imposed on 
small entities unnecessary and disproportionately 
burdensome demands, including legal, accounting, 
and consulting costs. 
(4) Since 1980 Federal agencies have been re-
quired to recognize and take account of the dif-
ferences in the scale and resources of regulated enti-
ties but have failed to do so. 
(5) Alternative regulatory approaches that do 
not conflict with the stated objectives of the statutes 
the regulations seek to implement may be available 
and may minimize the significant economic impact 
of regulations on small businesses and other small 
entities. 
(6) Federal agencies have failed to analyze and 
uncover less costly alternative regulatory approaches, 
despite the fact that the chapter 6 of title 5, United 
States Code (commonly known as the Regulatory 
Flexibility Act) requires them to do so. 
(7) Federal agencies continue to interpret chap-
ter 6 of title 5, United States Code, in a manner 
that permits them to avoid their analytical respon-
sibilities. 
(8) The existing oversight of the compliance of 
Federal agencies with the analytical requirements to 
assess regulatory impacts on small businesses and 
other small entities and obtain input from the Chief 
Counsel for Advocacy has not sufficiently modified 
the Federal agency regulatory culture. 
(9) Significant changes are needed in the meth-
ods by which Federal agencies develop and analyze
regulations, receive input from affected entities, and 
develop regulatory alternatives that will lessen the 
burden or maximize the benefits of final rules to 
small businesses and other small entities. 
(10) It is the intention of the Congress to 
amend chapter 6 of title 5, United States Code, to 
ensure that all impacts, including foreseeable indi-
rect effects, of proposed and final rules are consid-
ered by agencies during the rulemaking process and 
that the agencies assess a full range of alternatives 
that will limit adverse economic consequences or en-
hance economic benefits. 
(11) Federal agencies should be capable of as-
sessing the impact of proposed and final rules with-
out delaying the regulatory process or impinging on 
the ability of Federal agencies to fulfill their statu-
tory mandates. 
SEC. 3. CLARIFICATION AND EXPANSION OF RULES COV-
ERED BY THE REGULATORY FLEXIBILITY 
ACT. 
(a) IN GENERAL.—Paragraph (2) of section 601 of 
title 5, United States Code, is amended to read as follows: 
‘‘(2) RULE.—The term ‘rule’ has the meaning 
given such term in section 551(4) of this title, ex-
cept that—
‘‘(A) such term includes any rule of gen-
eral applicability governing grants to State and 
local governments for which the agency provides 
an opportunity for notice and comment; and 
‘‘(B) such term does not include a rule of 
particular (and not general) applicability relat-
ing to rates, wages, corporate or financial struc-
tures or reorganizations thereof, prices, facili-
ties, appliances, services, or allowances therefor 
or to valuations, costs or accounting, or prac-
tices relating to such rates, wages, structures, 
prices, appliances, services, or allowances.’’. 
(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 new para-
graph: 
‘‘(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 on small 
entities which is reasonably foreseeable and re-
sults 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.—Subsection (c) of section 603 of title 5, 
United States Code, is amended by striking the first 
sentence and inserting ‘‘Each initial regulatory flexi-
bility analysis shall also contain a detailed descrip-
tion of alternatives to the proposed rule which mini-
mize any significant adverse economic impact or 
maximize any significant beneficial economic impact 
on small entities.’’. 
(2) FINAL
REGULATORY
FLEXIBILITY
ANAL-
YSIS.—Paragraph (5) of section 604(a) of title 5, 
United States Code, is amended by striking ‘‘mini-
mize the significant economic impact’’ and inserting 
‘‘minimize the significant adverse economic impact 
or maximize the significant beneficial economic im-
pact’’. 
(d) INCLUSION OF RULES AFFECTING TRIBAL ORGA-
NIZATIONS.—Paragraph (5) of section 601 of title 5, 
United States Code, is amended by inserting ‘‘and tribal 
organizations (as defined in section 4(l) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 
450b(l))),’’ after ‘‘special districts,’’. 
(e) INCLUSION OF LAND MANAGEMENT PLANS AND 
FORMAL RULEMAKING.—
(1) INITIAL REGULATORY FLEXIBILITY ANAL-
YSIS.—Subsection (a) of section 603 of title 5, 
United States Code, is amended in the first sen-
tence—
(A) by striking ‘‘or’’ after ‘‘proposed 
rule,’’; and 
(B) by inserting ‘‘publishes a revision or 
amendment to a land management plan, or 
issues a proposed rule made on the record after 
opportunity for an agency hearing,’’ after 
‘‘United States,’’. 
(2) FINAL
REGULATORY
FLEXIBILITY
ANAL-
YSIS.—Subsection (a) of section 604 of title 5, 
United States Code, is amended in the first sen-
tence—
(A) by striking ‘‘or’’ after ‘‘proposed rule-
making,’’; and 
(B) by inserting ‘‘, adopts a revision or 
amendment to a land management plan, or 
issues a final rule made on the record after op-
portunity for an agency hearing,’’ after ‘‘section 
603(a),’’. 
(3) LAND MANAGEMENT PLAN DEFINED.—Sec-
tion 601 of title 5, United States Code (as amended 
by subsection (b)), is further amended by adding at 
the end the following new paragraph: 
‘‘(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 Interior under section 202 of the 
Federal Land Policy and Management Act 
of 1976 (43 U.S.C. 1712). 
‘‘(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 
‘‘(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 WHICH IM-
POSE RECORDKEEPING REQUIREMENTS, ETC.—
(1) IN
GENERAL.—Subsection (a) of section 
603 of title 5, United States Code, is amended by 
striking the period at the end and inserting ‘‘or a 
recordkeeping requirement, and without regard to 
whether such requirement is imposed by statute or 
regulation.’’. 
(2) COLLECTION OF INFORMATION.—Paragraph 
(7) of section 601 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 
such term in section 3502(3) of title 44, United 
States Code.’’. 
(3) RECORDKEEPING
REQUIREMENT.—Para-
graph (8) of section 601 of title 5, United States 
Code, is amended to read as follows: 
‘‘(8) 
RECORDKEEPING
REQUIREMENT.—The 
term ‘recordkeeping requirement’ has the meaning
given such term in section 3502(13) of title 44, 
United States Code.’’. 
(g) DEFINITION OF SMALL ORGANIZATION.—Para-
graph (4) of section 601 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 not-for-profit enterprise 
which, as of the issuance of the notice of pro-
posed rulemaking—
‘‘(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 
$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) PROFESSIONAL AND TRADE ASSOCIA-
TIONS.—In the case of any professional or 
trade association, subparagraph (A) shall be ap-
plied without regard to the net worth or num-
ber of employees of any member of such asso-
ciation. 
‘‘(D) 
AGENCY
DEFINITIONS.—Subpara-
graphs (A), (B), and (C) shall not apply to the 
extent that an agency establishes, after oppor-
tunity for public comment, one or more defini-
tions for such term which are appropriate to 
the activities of the agency and publishes such 
definition(s) in the Federal Register.’’. 
SEC. 4. REQUIREMENTS PROVIDING FOR MORE DETAILED 
ANALYSES. 
(a) INITIAL REGULATORY FLEXIBILITY ANALYSIS.—
Subsection (b) of section 603 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; and 
‘‘(6) estimating the additional cumulative eco-
nomic impact of the proposed rule on small entities 
beyond that already imposed on the class of small 
entities by the agency or why such an estimate is 
not available.’’. 
(b) FINAL REGULATORY FLEXIBILITY ANALYSIS.—
(1) IN GENERAL.—
(A) Paragraph (1) of section 604(a) of 
title 5, United States Code, is amended by 
striking ‘‘succinct’’. 
(B) Paragraph (2) of such section is 
amended by striking ‘‘summary’’ each place it 
appears and inserting ‘‘statement’’. 
(C) Paragraph (3) of such section is 
amended by striking ‘‘an explanation’’ and in-
serting ‘‘a detailed explanation’’. 
(D) Paragraphs (3), (4), and (5) of such 
section are each amended by inserting ‘‘de-
tailed’’ before ‘‘description’’. 
(2) INCLUSION OF RESPONSE TO COMMENTS ON 
CERTIFICATION
OF
PROPOSED
RULE.—Paragraph 
(2) of section 604(a) of title 5, United States Code, 
is amended by inserting ‘‘(or certification of the pro-
posed rule under section 605(b))’’ after ‘‘initial reg-
ulatory flexibility analysis’’. 
(3) INCLUSION
OF
RESPONSE
TO
COMMENTS 
FILED BY CHIEF COUNSEL FOR ADVOCACY.—Sub-
section (a) of section 604 of title 5, United States 
Code, is amended by redesignating paragraphs (3), 
(4), and (5) as paragraphs (4), (5), and (6), respec-
tively, and inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) the agency’s response to any comments 
filed by the Chief Counsel for Advocacy in response 
to the proposed rule, and a detailed statement of 
any changes made to the proposed rule in the final 
rule as a result of such comments;’’. 
(4) PUBLICATION OF ANALYSIS ON WEBSITE, 
ETC.—Subsection (b) of section 604 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 agency’s website, 
and shall publish in the Federal Register the final regu-
latory flexibility analysis, or a summary thereof which in-
cludes the telephone number, mailing address, and link to 
the website where the complete analysis may be ob-
tained.’’. 
(c) CROSS-REFERENCES
TO OTHER ANALYSES.—
Subsection (a) of section 605 of title 5, United States 
Code, is amended to read as follows: 
‘‘(a) A Federal agency shall be treated as satisfying 
any requirement regarding the content of an agenda or 
regulatory flexibility analysis under section 602, 603, or 
604, if such agency provides in such 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 such requirement.’’. 
(d) CERTIFICATIONS.—Subsection (b) of such section 
is amended—
(1) by inserting ‘‘detailed’’ before ‘‘statement’’; 
and 
(2) by inserting ‘‘and legal’’ after ‘‘factual’’. 
(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 
‘‘(2) a more general descriptive statement and 
a detailed statement explaining why quantification is 
not practicable or reliable.’’. 
SEC. 5. REPEAL OF PROCEDURE FOR WAIVER AND DELAY. 
(a) IN GENERAL.—Title 5, United States Code, is 
amended by striking section 608. 
(b) CONFORMING AMENDMENTS.—
(1) Paragraphs (1) and (2) of section 611(a) of 
title 5, United States Code, are each amended by 
striking ‘‘608(b),’’. 
(2) Paragraph (3) of such section is amended—
(A) by striking subparagraph (B); and 
(B) by striking ‘‘(3)(A) A small entity’’ 
and inserting the following: 
‘‘(3) A small entity’’. 
SEC. 6. PROCEDURES FOR GATHERING COMMENTS.
Section 609 of title 5, United States Code, is amend-
ed by striking subsection (b) and all that follows and in-
serting the following new subsections: 
‘‘(b)(1) Prior to publication of any proposed rule de-
scribed in subsection (e), the agency making such rule 
shall notify the Chief Counsel for Advocacy 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 of
a proposed rule relating to the internal revenue laws of 
the United States or implementing the Communications 
Act of 1934. 
‘‘(c) Not later than 15 days after the receipt of such 
information, the Chief Counsel for Advocacy 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 or section 
605(b) of this title; and 
‘‘(2) convene a review panel consisting of an 
employee from the Office of Advocacy, an employee 
from the agency making the rule, and an employee 
from the Office of Information and Regulatory Af-
fairs of the Office of Management and Budget to re-
view the information provided 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 shall, after consultation with the mem-
bers of such panel, submit a report to the agency and the 
Office of Information and Regulatory Affairs of the Office 
of Management and Budget.
‘‘(2) Such report shall include an assessment of the 
impact of the proposed rule on small entities and a discus-
sion of any alternatives that will minimize adverse eco-
nomic impacts or maximize beneficial economic impacts on 
small entities. 
‘‘(3) Such report shall become part of the rulemaking 
record. In the publication of the proposed rule, the agency 
shall explain what actions, if any, the agency took in re-
sponse to such 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 Administrator of the Environmental Protection Agen-
cy, the Assistant Secretary of the Occupational Safety and 
Health Administration, the Commissioner of the Internal 
Revenue Service, the Administrator of the Centers for 
Medicare & Medicaid Services, or the Federal Communica-
tions Commission determines that the proposed rule is 
likely to result in—
‘‘(1) an annual effect on the economy of 
$100,000,000 or more; 
‘‘(2) a major increase in costs or prices for con-
sumers, individual industries, Federal, State, or local 
governments, tribal organizations, or geographic re-
gions;
‘‘(3) significant adverse effects on competition, 
employment, investment, productivity, innovation, or 
on 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 may waive the requirements of sub-
sections (b) through (e) if the Chief Counsel determines 
that compliance with the requirements of such subsections 
are impracticable, unnecessary, or contrary to the public 
interest.’’. 
SEC. 7. PERIODIC REVIEW OF RULES. 
Section 610 of title 5, United States Code is amended 
to read as follows: 
‘‘§ 610. Periodic review of rules 
‘‘(a) Not later than 180 days after the enactment of 
the Regulatory Flexibility Improvements Act of 2002, 
each agency shall publish in the Federal Register and 
place on its website a plan for the periodic review of rules 
issued by the agency which the head of the agency deter-
mines has a significant economic 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 contin-
ued without change, or should be amended or rescinded, 
consistent with the stated objectives of applicable statutes, 
to minimize any significant adverse economic impacts or 
maximize any significant beneficial economic impacts on 
a substantial number of small entities. Such plan may be 
amended by the agency at any time by publishing the revi-
sion in the Federal Register and subsequently placing the 
amended plan on the agency’s website. 
‘‘(b) The plan shall provide for the review of all such 
agency rules existing on the date of the enactment of the 
Regulatory Flexibility Improvements Act of 2002 within 
10 years of the date of publication of the plan in the Fed-
eral Register and for review of rules adopted after the date 
of enactment of the Regulatory Flexibility Improvements 
Act of 2002 within 10 years after the publication of the 
final rule in the Federal Register. If the head of the agen-
cy 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 review 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 and the Con-
gress. 
‘‘(c) Each agency shall annually submit a report re-
garding the results of its review pursuant to such plan 
to the Congress and, in the case of agencies other than 
independent regulatory agencies (as defined in section 
3502(5) of title 44, United States Code) to the Adminis-
trator of the Office 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 de-
scribed in paragraph (5) or (6) of subsection (d) and a 
detailed explanation of the reasons for such determination. 
‘‘(d) In reviewing rules under such plan, 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. 
‘‘(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 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 (c). 
‘‘(7) The length of time since the rule has been 
evaluated or the degree to which technology, eco-
nomic conditions, or other factors have changed in 
the area affected by the rule. 
‘‘(e) The agency shall publish in the Federal Register 
and on its website a list of rules to be reviewed pursuant 
to such plan. Such publication shall include a brief de-
scription of the rule, the reason why the agency deter-
mined that it has a significant economic impact on a sub-
stantial number of small entities (without regard to wheth-
er it had prepared a final regulatory flexibility analysis 
for the rule), and request comments from the public, the 
Chief Counsel for Advocacy, and the Regulatory Enforce-
ment 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.—Paragraph (1) of section 611(a) 
of title 5, United States Code, is amended by striking 
‘‘final agency action’’ and inserting ‘‘such rule’’. 
(b) JURISDICTION.—Paragraph (2) of such section is 
amended by inserting ‘‘(or which would have such jurisdic-
tion if publication of the final rule constituted final agency 
action)’’ after ‘‘provision of law,’’. 
(c) TIME FOR BRINGING ACTION.—Paragraph (3) of 
such section (as amended by section 5(b)(2)) is amend-
ed—
(1) by striking ‘‘final agency action’’ and insert-
ing ‘‘publication of the final rule’’; and 
(2) by inserting ‘‘, in the case of a rule for 
which the date of final agency action is the same 
date as the publication of the final rule,’’ after ‘‘ex-
cept that’’. 
(d) INTERVENTION BY CHIEF COUNSEL FOR ADVO-
CACY.—Subsection (b) of section 612 of title 5, United 
States Code, is amended by inserting before the first pe-
riod ‘‘or agency compliance with section 601, 604, 605(b), 
609, or 610’’.
SEC. 9. ESTABLISHMENT AND APPROVAL OF SMALL BUSI-
NESS CONCERN SIZE STANDARDS BY CHIEF 
COUNSEL FOR ADVOCACY. 
(a) IN GENERAL.—Subparagraph (A) of section 
3(a)(2) 
of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
632(a)(2)(A)) is amended to read as follows: 
‘‘(A) IN GENERAL.—In addition to the cri-
teria specified in paragraph (1)—
‘‘(i) the Administrator may specify de-
tailed definitions or standards by which a 
business concern may be determined to be 
a small business concern for purposes of 
this Act or the Small Business Investment 
Act of 1958; and 
‘‘(ii) the Chief Counsel for Advocacy 
may specify such definitions or standards 
for purposes of any other Act.’’. 
(b) APPROVAL BY CHIEF COUNSEL.—Clause (iii) of 
section 3(a)(2)(C) of the Small Business Act (15 U.S.C. 
632(a)(2)(C)(iii)) is amended to read as follows: 
‘‘(iii) except in the case of a size 
standard prescribed by the Administrator, 
is approved by the Chief Counsel for Advo-
cacy.’’.
(c) INDUSTRY VARIATION.—Paragraph (3) of section 
3(a) of the Small Business Act (15 U.S.C. 632(a)(3)) is 
amended—
(1) by inserting ‘‘and Chief Counsel for Advo-
cacy’’ before ‘‘shall ensure’’; and 
(2) by inserting ‘‘or Chief Counsel for Advo-
cacy’’ before the period at the end. 
(d) JUDICIAL REVIEW
OF SIZE STANDARDS AP-
PROVED BY CHIEF COUNSEL.—Section 3(a) of the Small 
Business Act (15 U.S.C. 632(a)) is amended by adding 
at the end the following new paragraph: 
‘‘(4) JUDICIAL REVIEW OF STANDARDS APPROVED BY 
CHIEF COUNSEL.—In the case of an action for judicial re-
view of a rule which includes a definition or standard ap-
proved by the Chief Counsel for Advocacy under this sub-
section, the party seeking such review shall be entitled to 
join the Chief Counsel as a party in such action.’’. 
SEC. 10. ADDITIONAL POWERS OF THE CHIEF COUNSEL 
FOR ADVOCACY. 
(a) IN GENERAL.—Chapter 6 of title 5, United 
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 613. Additional powers of Chief Counsel for Advo-
cacy 
‘‘(a)(1) Not later than 270 days after the date of the 
enactment of the Regulatory Flexibility Improvements Act 
of 2002, the Chief Counsel for Advocacy shall, after oppor-
tunity for notice and comment under section 553, issue 
rules governing agency compliance with this chapter. The 
Chief Counsel may modify or amend such rules after no-
tice and comment under section 553. This chapter (other 
than this subsection and section 614) shall not apply with 
respect to the issuance, modification, and amendment of 
rules under this paragraph. 
‘‘(2) An agency shall not issue rules which supple-
ment the rules issued under subsection (a) unless such 
agency has first consulted with the Chief Counsel for Ad-
vocacy to ensure that such supplemental rules comply with 
this chapter and the rules issued under paragraph (1). 
‘‘(b) Notwithstanding any other law, the Chief Coun-
sel for Advocacy may intervene in any adjudication before 
any Federal agency (unless such agency is authorized to 
impose a fine or penalty under such adjudication), and 
may inform the agency of the impact that any decision 
on the record may have on small entities. The Chief Coun-
sel shall not initiate an appeal with respect to any adju-
dication in which the Chief Counsel 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 rulemaking under section
553.’’.
(b) JURISDICTION
OF COURT
OF APPEALS OVER
RULES IMPLEMENTING THE REGULATORY FLEXIBILITY
ACT.—
(1) IN
GENERAL.—Section 2342 of title 28,
United States Code, is amended—
(A) in paragraph (6), by striking ‘‘and’’ at
the end;
(B) in paragraph (7), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(8) all final rules under section 613(a) of title
5, United States Code.’’.
(2) CONFORMING
AMENDMENTS.—Paragraph
(3) of section 2341 of title 28, United States Code,
is amended—
(A) in subparagraph (D), by striking
‘‘and’’ at the end;
(B) in subparagraph (E), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new 
subparagraph: 
‘‘(F) the Office of Advocacy of the Small 
Business Administration, when the final rule is 
under section 613(a) of title 5, United States 
Code.’’. 
(c) AUTHORIZATION TO INTERVENE AND COMMENT 
ON AGENCY COMPLIANCE WITH ADMINISTRATIVE PROCE-
DURE.—Subsection (b) of section 612 of title 5, United 
States Code, is amended by inserting ‘‘chapter 5, and 
chapter 7,’’ after ‘‘this chapter,’’. 
SEC. 11. CLERICAL AMENDMENTS. 
(a) Section 601 of title 5, United States Code, is 
amended—
(1) in paragraph (1)—
(A) by striking the semicolon at the end 
and inserting a period; and 
(B) by striking ‘‘(1) the term’’ and insert-
ing the following: 
‘‘(1) AGENCY.—The term’’; 
(2) in paragraph (3)—
(A) by striking the semicolon at the end 
and inserting a period, and 
(B) by striking ‘‘(3) the term’’ and insert-
ing the following:
‘‘(3) SMALL BUSINESS.—The term’’; 
(3) in paragraph (5)—
(A) by striking the semicolon at the end 
and inserting a period, and 
(B) by striking ‘‘(5) the term’’ and insert-
ing the following: 
‘‘(5) SMALL GOVERNMENTAL JURISDICTION.—
The term’’; and 
(4) in paragraph (6)—
(A) by striking ‘‘; and’’ and inserting a pe-
riod, and 
(B) by striking ‘‘(6) the term’’ and insert-
ing the following: 
‘‘(6) SMALL ENTITY.—The term’’. 
(b) The heading of section 605 of title 5, United 
States Code, is amended to read as follows: 
‘‘§ 605. Incorporations by reference and certifi-
cations’’. 
(c) The table of sections for chapter 6 of title 5, 
United States Code, is amended—
(1) by striking the item relating to section 605 
and inserting the following new item:
‘‘605. Incorporations by reference and certifications.’’;
(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 
(4) by inserting at the end the following new 
item:
‘‘613. Additional powers of Chief Counsel for Advocacy.’’.
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