SEC. 2. SUSPENSION OF FINES FOR FIRST-TIME PAPER-
WORK VIOLATIONS BY SMALL BUSINESS CON-
CERNS. 
Section 3506 of chapter 35 of title 44, United States 
Code (commonly referred to as the ‘‘Paperwork Reduction 
Act’’) is amended by adding at the end the following new 
subsection: 
‘‘(i)(1) In the case of a first-time violation by a small 
business concern of a requirement regarding collection of 
information by an agency, the head of such agency shall 
provide that no civil fine shall be imposed on the small 
business concern unless, based on the particular facts and 
circumstances regarding the violation—
‘‘(A) the head of the agency determines that the 
violation has the potential to cause serious harm to 
the public interest; 
‘‘(B) the head of the agency determines that 
failure to impose a civil fine would impede or inter-
fere with the detection of criminal activity; 
‘‘(C) the violation is a violation of an internal 
revenue law or a law concerning the assessment or 
collection of any tax, debt, revenue, or receipt; 
‘‘(D) the violation is not corrected on or before 
the date that is six months after the date of receipt 
by the small business concern of notification of the 
violation in writing from the agency; or
‘‘(E) except as provided in paragraph (2), the 
head of the agency determines that the violation pre-
sents a danger to the public health or safety. 
‘‘(2)(A) In any case in which the head of an agency 
determines under paragraph (1)(E) that a violation pre-
sents a danger to the public health or safety, the head 
of the agency may, notwithstanding paragraph (1)(E), de-
termine that a civil fine should not be imposed on the 
small business concern if the violation is corrected within 
24 hours of receipt of notice in writing by the small busi-
ness concern of the violation. 
‘‘(B) In determining whether to provide a small busi-
ness concern with 24 hours to correct a violation under 
subparagraph (A), the head of the agency shall take into 
account all of the facts and circumstances regarding the 
violation, including—
‘‘(i) the nature and seriousness of the violation, 
including whether the violation is technical or inad-
vertent or involves willful or criminal conduct; 
‘‘(ii) whether the small business concern has 
made a good faith effort to comply with applicable 
laws, and to remedy the violation within the shortest 
practicable period of time; and
‘‘(iii) whether the small business concern has 
obtained a significant economic benefit from the vio-
lation. 
‘‘(C) In any case in which the head of the agency 
imposes a civil fine on a small business concern for a viola-
tion with respect to which this paragraph applies and does 
not provide the small business concern with 24 hours to 
correct the violation, the head of the agency shall notify 
Congress regarding such determination not later than 60 
days after the date that the civil fine is imposed by the 
agency. 
‘‘(3) With respect to any agency, this subsection shall 
not apply to any violation by a small business concern of 
a requirement regarding collection of information by such 
agency if such small business concern previously violated 
any requirement regarding collection of information by 
such agency. 
‘‘(4) In determining if a violation is a first-time viola-
tion for purposes of this subsection, the head of an agency 
shall not take into account any violation of a requirement 
regarding collection of information by another agency. 
‘‘(5) For purposes of this subsection, the term ‘small 
business concern’ means a business concern that meets the 
requirements of section 3(a) of the Small Business Act
(15 U.S.C. 632(a)) and the regulations promulgated pur-
suant to such section.’’.
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