I 
109TH CONGRESS 
1ST SESSION 
H. R. 682 
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 
FEBRUARY 9, 2005 
Mr. MANZULLO (for himself, Mr. CHABOT, Mr. KING of Iowa, Mr. WEST-
MORELAND, Mr. PENCE, Mr. AKIN, and Mr. KELLER) introduced the fol-
lowing bill; which was referred to the Committee on the Judiciary, and 
in addition to the Committee on Small Business, for a period to be subse-
quently determined by the Speaker, in each case for consideration 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’’.
(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. 
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 businesses and other small entities unneces-
sary 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-