104TH CONGRESS
1ST SESSION
H. R. 926
AN ACT
To promote regulatory flexibility and enhance public partici-
pation in Federal agency rulemaking, and for other pur-
poses.
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 ‘‘Regulatory Reform
and Relief Act’’.
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TITLE I—STRENGTHENING
REGULATORY FLEXIBILITY
SEC. 101. JUDICIAL REVIEW.
(a) AMENDMENT.—Section 611 of title 5, United
States Code, is amended to read as follows:
‘‘§ 611. Judicial review
‘‘(a)(1) Except as provided in paragraph (2), not
later than one year notwithstanding any other provision
of law after the effective date of a final rule with respect
to which an agency—
‘‘(A) certified, pursuant to section 605(b), that
such rule would not have a significant economic im-
pact on a substantial number of small entities; or
‘‘(B) prepared a final regulatory flexibility anal-
ysis pursuant to section 604,
an affected small entity may petition for the judicial re-
view of such certification or analysis in accordance with
the terms of this subsection. A court having jurisdiction
to review such rule for compliance with the provisions of
section 553 or under any other provision of law shall have
jurisdiction to review such certification or analysis. In the
case where an agency delays the issuance of a final regu-
latory flexibility analysis pursuant to section 608(b), a pe-
tition for judicial review under this subsection shall be
filed not later than one year notwithstanding any other
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provision of law after the date the analysis is made avail-
able to the public.
‘‘(2) For purposes of this subsection, the term ‘af-
fected small entity’ means a small entity that is or will
be adversely affected by the final rule.
‘‘(3) Nothing in this subsection shall be construed to
affect the authority of any court to stay the effective date
of any rule or provision thereof under any other provision
of law.
‘‘(4)(A) In the case where the agency certified that
such rule would not have a significant economic impact
on a substantial number of small entities, the court may
order the agency to prepare a final regulatory flexibility
analysis pursuant to section 604 if the court determines,
on the basis of the rulemaking record, that the certifi-
cation was arbitrary, capricious, an abuse of discretion,
or otherwise not in accordance with law.
‘‘(B) In the case where the agency prepared a final
regulatory flexibility analysis, the court may order the
agency to take corrective action consistent with the re-
quirements of section 604 if the court determines, on the
basis of the rulemaking record, that the final regulatory
flexibility analysis was prepared by the agency without ob-
servance of procedure required by section 604.
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‘‘(5) If, by the end of the 90-day period beginning
on the date of the order of the court pursuant to para-
graph (4) (or such longer period as the court may pro-
vide), the agency fails, as appropriate—
‘‘(A) to prepare the analysis required by section
604; or
‘‘(B) to take corrective action consistent with
the requirements of section 604,
the court may stay the rule or grant such other relief as
it deems appropriate.
‘‘(6) In making any determination or granting any
relief authorized by this subsection, the court shall take
due account of the rule of prejudicial error.
‘‘(b) In an action for the judicial review of a rule,
any regulatory flexibility analysis for such rule (including
an analysis prepared or corrected pursuant to subsection
(a)(4)) shall constitute part of the whole record of agency
action in connection with such review.
‘‘(c) 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 provided by law.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply only to final agency rules issued
after the date of enactment of this Act.
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SEC. 102. RULES COMMENTED ON BY SBA CHIEF COUNSEL
FOR ADVOCACY.
(a) IN GENERAL.—Section 612 of title 5, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d) ACTION BY THE SBA CHIEF COUNSEL FOR AD-
VOCACY.—
‘‘(1) TRANSMITTAL OF PROPOSED RULES AND
INITIAL
REGULATORY
FLEXIBILITY
ANALYSIS
TO
SBA CHIEF COUNSEL FOR ADVOCACY.—On or before
the 30th day preceding the date of publication by an
agency of general notice of proposed rulemaking for
a rule, the agency shall transmit to the Chief Coun-
sel for Advocacy of the Small Business Administra-
tion—
‘‘(A) a copy of the proposed rule; and
‘‘(B)(i) a copy of the initial regulatory
flexibility analysis for the rule if required under
section 603; or
‘‘(ii) a determination by the agency that an
initial regulatory flexibility analysis is not re-
quired for the proposed rule under section 603
and an explanation for the determination.
‘‘(2) STATEMENT OF EFFECT.—On or before
the 15th day following receipt of a proposed rule and
initial regulatory flexibility analysis from an agency
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under paragraph (1), the Chief Counsel for Advo-
cacy may transmit to the agency a written statement
of the effect of the proposed rule on small entities.
‘‘(3) RESPONSE.—If the Chief Counsel for Ad-
vocacy transmits to an agency a statement of effect
on a proposed rule in accordance with paragraph
(2), the agency shall publish the statement, together
with the response of the agency to the statement, in
the Federal Register at the time of publication of
general notice of proposed rulemaking for the rule.
‘‘(4) SPECIAL RULE.—Any proposed rules is-
sued by an appropriate Federal banking agency (as
that term is defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)), the Na-
tional Credit Union Administration, or the Office of
Federal Housing Enterprise Oversight, in connection
with the implementation of monetary policy or to en-
sure the safety and soundness of federally insured
depository institutions, any affiliate of such an insti-
tution, credit unions, or government sponsored hous-
ing enterprises or to protect the Federal deposit in-
surance funds shall not be subject to the require-
ments of this subsection.’’.
(b) CONFORMING AMENDMENT.—Section 603(a) of
title 5, United States Code, is amended by inserting ‘‘in
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accordance with section 612(d)’’ before the period at the
end of the last sentence.
SEC. 103. SENSE OF CONGRESS REGARDING SBA CHIEF
COUNSEL FOR ADVOCACY.
It is the sense of Congress that the Chief Counsel
for Advocacy of the Small Business Administration should
be permitted to appear as amicus curiae in any action or
case brought in a court of the United States for the pur-
pose of reviewing a rule.
TITLE II—REGULATORY IMPACT
ANALYSES
SEC. 201. DEFINITIONS.
Section 551 of title 5, United States Code, is amend-
ed by striking ‘‘and’’ at the end of paragraph (13), by
striking the period at the end of paragraph (14) and in-
serting a semicolon, and by adding at the end the follow-
ing:
‘‘(15) ‘major rule’ means any rule subject to
section 553(c) that is likely to result in—
‘‘(A) an annual effect on the economy of
$50,000,000 or more;
‘‘(B) a major increase in costs or prices for
consumers, 
individual 
industries, 
Federal,
State, or local government agencies, or geo-
graphic regions, or
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‘‘(C) significant adverse effects on competi-
tion, employment, investment, productivity, in-
novation, or on the ability of United States-
based enterprises to compete with foreign-based
enterprises in domestic and export markets; and
‘‘(16) ‘Director’ means the Director of the Of-
fice of Management and Budget.’’.
SEC. 202. RULEMAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amend-
ed by adding at the end the following:
‘‘(f)(1) Each agency shall for a proposed major rule
publish in the Federal Register, at least 90 days before
the date of publication of the general notice required
under subsection (b), a notice of intent to engage in rule-
making.
‘‘(2) A notice under paragraph (1) for a proposed
major rule shall include, to the extent possible, the infor-
mation required to be included in a regulatory impact
analysis for the rule under subsection (i)(4)(B) and (D).
‘‘(3) For a major rule proposed by an agency, the
head of the agency shall include in a general notice under
subsection (b), a preliminary regulatory impact analysis
for the rule prepared in accordance with subsection (i).
‘‘(4) For a final major rule, the agency shall include
with the statement of basis and purpose—
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‘‘(A) a summary of a final regulatory impact
analysis of the rule in accordance with subsection
(i); and
‘‘(B) a clear delineation of all changes in the in-
formation included in the final regulatory impact
analysis under subsection (i) from any such informa-
tion that was included in the notice for the rule
under subsection (b).
The agency shall provide the complete text of a final regu-
latory impact analysis upon request.
‘‘(5) The issuance of a notice of intent to engage in
rulemaking under paragraph (1) and the issuance of a
preliminary regulatory impact analysis under paragraph
(3) shall not be considered final agency action for pur-
poses of section 704.
‘‘(6) In a rulemaking involving a major rule, the
agency conducting the rulemaking shall make a written
record describing the subject of all contacts the agency
made with persons outside the agency relating to such
rulemaking. If the contact was made with a non-govern-
mental person, the written record of such contact shall be
made available, upon request to the public.’’.
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SEC. 203. HEARING REQUIREMENT FOR PROPOSED RULES;
AND EXTENSION OF COMMENT PERIOD.
(a) HEARING REQUIREMENT.—Section 553 of title 5,
United States Code, as amended by section 202, is further
amended by adding after subsection (f) the following:
‘‘(g) If more than 100 interested persons acting indi-
vidually submit requests for a hearing to an agency re-
garding any major rule proposed by the agency, the agen-
cy shall hold such a hearing on the proposed rule.’’.
(b) EXTENSION OF COMMENT PERIOD.—Section 553
of title 5, United States Code, as amended by subsection
(a), is further amended by adding after subsection (g) the
following:
‘‘(h) If during the 90-day period beginning on the
date of publication of a notice under subsection (f) for a
proposed major rule, or if during the period beginning on
the date of publication or service of notice required by sub-
section (b) for a proposed major rule, more than 100 per-
sons individually contact the agency to request an exten-
sion of the period for making submissions under sub-
section (c) pursuant to the notice, the agency—
‘‘(1) shall provide an additional 30-day period
for making those submissions; and
‘‘(2) may not adopt the rule until after the ad-
ditional period.’’.
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(c) RESPONSE TO COMMENTS.—Section 553(c) of
title 5, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) Each agency shall publish in the Federal Reg-
ister, with each rule published under section 552(a)(1)(D),
responses to the substance of the comments received by
the agency regarding the rule.’’.
SEC. 204. REGULATORY IMPACT ANALYSIS.
Section 553 of title 5, United States Code, as amend-
ed by section 203, is amended by adding after subsection
(h) the following:
‘‘(i)(1) Each agency shall, in connection with every
major rule, prepare, and, to the extent permitted by law,
consider, a regulatory impact analysis. Such analysis may
be combined with any regulatory flexibility analysis per-
formed under sections 603 and 604.
‘‘(2) Each agency shall initially determine whether a
rule it intends to propose or issue is a major rule. The
Director shall have authority to order a rule to be treated
as a major rule and to require any set of related rules
to be considered together as a major rule.
‘‘(3) Except as provided in subsection (j), agencies
shall prepare—
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‘‘(A) a preliminary regulatory impact analysis,
which shall be transmitted, along with a notice of
proposed rulemaking, to the Director at least 60
days prior to the publication of notice of proposed
rulemaking, and
‘‘(B) a final regulatory impact analysis, which
shall be transmitted along with the final rule at least
30 days prior to the publication of a major rule.
‘‘(4) Each preliminary and final regulatory impact
analysis shall contain the following information:
‘‘(A) A description of the potential benefits of
the rule, including any beneficial effects that cannot
be quantified in monetary terms and the identifica-
tion of those likely to receive the benefits.
‘‘(B) An explanation of the necessity, legal au-
thority, and reasonableness of the rule and a de-
scription of the condition that the rule is to address.
‘‘(C) A description of the potential costs of the
rule, including any adverse effects that cannot be
quantified in monetary terms, and the identification
of those likely to bear the costs.
‘‘(D) An analysis of alternative approaches, in-
cluding market based mechanisms, that could sub-
stantially achieve the same regulatory goal at a
lower cost and an explanation of the reasons why
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such alternative approaches were not adopted, to-
gether with a demonstration that the rule provides
for the least costly approach.
‘‘(E) A statement that the rule does not conflict
with, or duplicate, any other rule or a statement of
the reasons why such a conflict or duplication exists.
‘‘(F) A statement of whether the rule will re-
quire on-site inspections or whether persons will be
required by the rule to maintain any records which
will be subject to inspection, and a statement of
whether the rule will require persons to obtain li-
censes, permits, or other certifications including
specification of any associated fees or fines.
‘‘(G) An estimate of the costs to the agency for
implementation and enforcement of the rule and of
whether the agency can be reasonably expected to
implement the rule with the current level of appro-
priations.
‘‘(5)(A) the Director is authorized to review and pre-
pare comments on any preliminary or final regulatory im-
pact analysis, notice of proposed rulemaking, or final rule
based on the requirements of this subsection.
‘‘(B) Upon the request of the Director, an agency
shall consult with the Director concerning the review of
a preliminary impact analysis or notice of proposed rule-
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making and shall refrain from publishing its preliminary
regulatory impact analysis or notice of proposed rule-
making until such review is concluded. The Director’s re-
view may not take longer than 90 days after the date of
the request of the Director.
‘‘(6)(A) An agency may not adopt a major rule unless
the final regulatory impact analysis for the rule is ap-
proved or commented upon in writing by the Director or
by an individual designated by the Director for that pur-
pose.
‘‘(B) Upon receiving notice that the Director intends
to comment in writing with respect to any final regulatory
impact analysis or final rule, the agency shall refrain from
publishing its final regulatory impact analysis or final rule
until the agency has responded to the Director’s comments
and incorporated those comments in the agency’s response
in the rulemaking file. If the Director fails to make such
comments in writing with respect to any final regulatory
impact analysis or final rule within 90 days of the date
the Director gives such notice, the agency may adopt such
final regulatory impact analysis or final rule.
‘‘(7) Notwithstanding section 551(16), for purposes
of this subsection with regard to any rule proposed or is-
sued by an appropriate Federal banking agency (as that
term is defined in section 3(q) of the Federal Deposit In-
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surance Act (12 U.S.C. 1813(q)), the National Credit
Union Administration, or the Office of Federal Housing
Enterprise Oversight, the term ‘Director’ means the head
of such agency, Administration, or Office.’’.
SEC. 205. STANDARD OF CLARITY.
Section 553 of title 5, United States Code, as amend-
ed in section 204, is amended by adding after subsection
(i) the following:
‘‘(j) To the extent practicable, the head of an agency
shall seek to ensure that any proposed major rule or regu-
latory impact analysis of such a rule is written in a reason-
ably simple and understandable manner and provides ade-
quate notice of the content of the rule to affected per-
sons.’’.
SEC. 206. EXEMPTIONS.
Section 553 of title 5, United States Code, as amend-
ed by section 205, is further amended by adding after sub-
section (j) the following:
‘‘(k)(1) The provisions of this section regarding
major rules shall not apply to—
‘‘(A) any regulation that responds to an emer-
gency situation if such regulation is reported to the
Director as soon as is practicable;
‘‘(B) any regulation for which consideration
under the procedures of this section would conflict
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with deadlines imposed by statute or by judicial
order;
‘‘(C) any regulation proposed or issued in con-
nection with the implementation of monetary policy
or to ensure the safety and soundness of federally
insured depository institutions, any affiliate of such
institution, credit unions, or government sponsored
housing enterprises regulated by the Office of Fed-
eral Housing Enterprise Oversight;
‘‘(D) any agency action that the head of the
agency certifies is limited to interpreting, implement-
ing, or administering the internal revenue laws of
the United States, including any regulation proposed
or issued in connection with ensuring the collection
of taxes from a subsidiary of a foreign company
doing business in the United States; and
‘‘(E) any regulation proposed or issued pursu-
ant to section 553 of title 5, United States Code, in
connection with imposing trade sanctions against
any country that engages in illegal trade activities
against the United States that are injurious to
American technology, jobs, pensions, or general eco-
nomic well-being.
A regulation described in subparagraph (B) shall be re-
ported to the Director with a brief explanation of the con-
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flict and the agency, in consultation with the Director,
shall, to the extent permitted by statutory or judicial dead-
lines, adhere to the process of this section.
‘‘(2) The Director may in accordance with the pur-
poses of this section exempt any class or category of regu-
lations from any or all requirements of this section.
‘‘(3) For purposes of paragraph (1), the term ‘emer-
gency situation’ means a situation that is—
‘‘(A) immediately impending and extraordinary
in nature, or
‘‘(B) demanding attention due to a condition,
circumstance, or practice reasonably expected to
cause death, serious illness, or severe injury to hu-
mans or substantial endangerment to private prop-
erty or the environment if no action is taken.’’.
SEC. 207. REPORT.
The Director of the Office of Management and Budg-
et shall submit a report to the Congress no later than 24
months after the date of the enactment of this Act con-
taining an analysis of rulemaking procedures of Federal
agencies and an analysis of the impact of those rule-
making procedures on the regulated public and regulatory
process.
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SEC. 208. EFFECTIVE DATE.
The amendment made by this title shall apply only
to final agency rules issued after rulemaking begun after
the date of enactment of this Act.
TITLE III—PROTECTIONS
SEC. 301. PRESIDENTIAL ACTION.
Pursuant to the authority of section 7301 of title 5,
United States Code, the President shall, within 180 days
of the date of the enactment of this title, prescribe regula-
tions for employees of the executive branch to ensure that
Federal laws and regulations shall be administered con-
sistent with the principle that any person shall, in connec-
tion with the enforcement of such laws and regulations—
(1) be protected from abuse, reprisal, or retalia-
tion, and
(2) be treated fairly, equitably, and with due re-
gard for such person’s rights under the Constitution.
Passed the House of Representatives March 1,
1995.
Attest:
Clerk.
104TH CONGRESS
1ST SESSION
H. R. 926
AN ACT
To promote regulatory flexibility and enhance pub-
lic participation in Federal agency rulemaking,
and for other purposes.