and the role of procedures established by the Equal
Access to Justice Act (Public Law 96–481; 94 Stat.
2325) in such disputes’’; and
(2) in paragraph (3), by inserting after ‘‘the
Small Business Act’’ the following: ‘‘, including
those related to the Equal Access to Justice Act,’’.
(c) REPORTS TO CONGRESS.—
(1) IN
GENERAL.—Not later than 180 days
after the date of the enactment of this Act, the
Chief Counsel for Advocacy of the Small Business
Administration, in cooperation with the Attorney
General, shall transmit to the Committees on Small
Business and the Judiciary of the Senate and House
of Representatives a report containing—
(A) an analysis of the effectiveness of the
Equal Access to Justice Act (Public Law 96–
481; 94 Stat. 2325) (in this paragraph referred
to as ‘‘EAJA’’) in achieving its purpose to ease
the burden upon small businesses and other
small parties covered by EAJA of engaging in
dispute resolution with the Federal Govern-
ment, including—
(i) the relative awareness of EAJA in
the small business community;
(ii) the relative awareness of EAJA’s
requirements among Federal agencies;
(iii) the extent and quality of rules
and regulations adopted by each Federal
agency for processing, resolving, and pay-
ing attorneys’ fees claims under EAJA;
(iv) the extent to which each Federal
agency claims any exemptions in whole or
in part from EAJA’s coverage;
(v) the frequency or degree of use of
EAJA’s procedures by prevailing small
businesses; and
(vi) an analysis of the costs and bene-
fits of EAJA generally;
(B) an analysis of the variations in the fre-
quency and amounts of fee awards paid by spe-
cific Federal agencies and within specific Fed-
eral circuits and districts under section 504 of
title 5, United States Code, and section 2412 of
title 28, United States Code, including the
number and total dollar amount of all claims
filed with, and all claims processed, settled, liti-
gated, and paid by, each agency under EAJA;
and
(C) recommendations for congressional
oversight or legislative changes with respect to
EAJA, including any recommendations for pro-
mulgation or amendment of regulations issued
under EAJA by specific Federal agencies.
(2) REPORT
ON
SMALL
BUSINESS
AND
COM-
PETITION.—Section 303 of the Small Business Eco-
nomic Policy Act of 1980 (15 U.S.C. 631b) is
amended—
(A) in subsection (a) by striking paragraph
(5) and inserting the following:
‘‘(5) recommend a program for carrying out the
policy declared in section 302 (including a policy to
ensure that the justice system remains accessible to
small business enterprises for the resolution of dis-
putes with the Federal Government), together with
such recommendations for legislation as the Presi-
dent may deem necessary or desirable.’’;
(B) in subsection (b)—
(i) by striking ‘‘(b)’’ and inserting
‘‘(b)(1)’’; and
(ii) by adding at the end the fol-
lowing:
‘‘(2) The President, after consultation with the Chief
Counsel for Advocacy of the Small Business Administra-
tion and the Attorney General, shall transmit simulta-
neously as an appendix to such annual report, a report
that describes, by agency and department—
‘‘(A) the total number of claims filed, proc-
essed, settled, and litigated by small business con-
cerns under section 504 of title 5, United States
Code, and section 2412 of title 28, United States
Code (originally enacted pursuant to the Equal Ac-
cess to Justice Act (Public Law 96–481; 94 Stat.
2325));
‘‘(B) the total dollar amount of all outstanding
awards and settlements to small business concerns
under such sections;
‘‘(C) the total dollar amount of all claims paid
to small business concerns under such sections;
‘‘(D) the underlying legal claims involved in
each controversy with small business concerns under
such sections; and
‘‘(E) any other relevant information that the
President determines may aid Congress in evalu-
ating the impact on small business concerns of such
sections.
‘‘(3) Each agency shall provide the President with
such information as is necessary for the President to com-
ply with the requirements of this subsection.’’; and
(C) in subsection (d)—
(i) by striking ‘‘(d)’’ and inserting
‘‘(d)(1)’’; and
(ii) by adding at the end the fol-
lowing:
‘‘(2) All reports concerning the Equal Access to Jus-
tice Act (Public Law 96–481; 94 Stat. 2325), or the con-
gressional policy to ensure that the justice system remains
accessible to small business enterprises for the resolution
of disputes with the Federal Government, shall be trans-
mitted to the Committees on Small Business and the Judi-
ciary of the Senate and House of Representatives.’’.
SEC. 4. EQUAL ACCESS FOR SMALL PARTIES IN CIVIL AND
ADMINISTRATIVE PROCEEDINGS.
(a) ELIMINATION OF SUBSTANTIAL JUSTIFICATION
STANDARD.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504 of title 5, United States Code, is amended—
(A) in subsection (a)(1), by striking ‘‘, un-
less the adjudicative officer’’ and all that fol-
lows through the period at the end and insert-
ing a period; and
(B) in subsection (a)(2), by striking ‘‘The
party shall also allege that the position of the
agency was not substantially justified.’’.
(2) JUDICIAL PROCEEDINGS.—Section 2412 of
title 28, United States Code, is amended—
(A) in subsection (d)(1)(A), by striking ‘‘,
unless the court’’ and all that follows through
the period at the end and inserting a period;
(B) in subsection (d)(1)(B), by striking
‘‘The party shall also allege’’ and all that fol-
lows through the period at the end and insert-
ing a period; and
(C) in subsection (d)(3), by striking ‘‘, un-
less the court’’ and all that follows through the
period at the end and inserting a period.
(b) ELIGIBILITY OF SMALL BUSINESSES FOR FEE
AWARD.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504(b)(1)(B)(ii) of title 5, United States Code, is
amended by striking ‘‘$7,000,000’’ and inserting
‘‘$10,000,000’’.
(2) 
JUDICIAL
PROCEEDINGS.—Section
2412(d)(2)(B)(ii) of title 28, United States Code, is
amended by striking ‘‘$7,000,000’’ and inserting
‘‘$10,000,000’’.
(c) ELIMINATION OF RATE CAP.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504(b)(1)(A) of title 5, United States Code, is
amended—
(A) by striking ‘‘(i)’’; and
(B) by striking ‘‘by the agency involved’’
and all that follows through ‘‘a higher fee’’ and
inserting ‘‘by the agency involved’’.
(2) 
JUDICIAL
PROCEEDINGS.—Section
2412(d)(2)(A) of title 28, United States Code, is
amended—
(A) by striking ‘‘(i)’’; and
(B) by striking ‘‘by the United States’’ and
all that follows through ‘‘a higher fee’’ and in-
serting ‘‘by the United States’’.
(d) OFFERS OF SETTLEMENT.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504(a) of title 5, United States Code, as amended
by this section, is further amended by adding at the
end the following:
‘‘(5)(A) At any time after an agency receives an ap-
plication submitted under paragraph (2), the agency may
serve upon the applicant a written offer of settlement of
the claims made in the application. If within 10 days after
such service the applicant serves written notice that the
offer is accepted, either the agency or the applicant may
then file the offer and notice of acceptance together with
proof of service thereof.
‘‘(B) An offer not accepted within the time allowed
shall be deemed withdrawn. The fact that an offer is made
but not accepted shall not preclude a subsequent offer. If
any award of fees and expenses for the merits of the pro-
ceeding finally obtained by the applicant is not more favor-
able than the offer, the applicant shall not be entitled to
receive an award for fees or other expenses incurred (in
relation to the application for fees and expenses) after the
date of the offer.’’.
(2) 
JUDICIAL
PROCEEDINGS.—Section
2412(d)(1) of title 28, United States Code, as
amended by this section, is further amended by add-
ing at the end the following:
‘‘(E)(i) At any time after an agency receives an appli-
cation submitted under subparagraph (B), the agency may
serve upon the applicant a written offer of settlement of
the claims made in the application. If within 10 days after
such service the applicant serves written notice that the
offer is accepted, either the agency or the applicant may
then file the offer and notice of acceptance together with
proof of service thereof.
‘‘(ii) An offer not accepted within the time allowed
shall be deemed withdrawn. The fact that an offer is made
but not accepted shall not preclude a subsequent offer. If
any award of fees and expenses for the merits of the pro-
ceeding finally obtained by the applicant is not more favor-
able than the offer, the applicant shall not be entitled to
receive an award for fees or other expenses incurred (in
relation to the application for fees and expenses) after the
date of the offer.’’.
(e) DECLARATION
OF
INTENT
TO
SEEK
FEE
AWARD.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504(a)(2) of title 5, United States Code, as amended
by this section, is further amended by inserting be-
fore the first sentence the following: ‘‘At any time
after the commencement of an adversary adjudica-
tion, the adjudicative officer may (and if requested
by a party shall) require a party to declare whether
such party intends to seek an award of fees and ex-
penses against the agency should such party pre-
vail.’’.
(2) 
JUDICIAL
PROCEEDINGS.—Section
2412(d)(1)(B) of title 28, United States Code, as
amended by this section, is further amended by in-
serting before the first sentence the following: ‘‘At
any time after the commencement of an adversary
adjudication, as defined in subsection (b)(1)(C) of
section 504 of title 5, United States Code, the court
may (and if requested by a party shall) require a
party to declare whether such party intends to seek
an award of fees and expenses against the agency
should such party prevail.’’.
(f) PAYMENT FROM AGENCY APPROPRIATIONS.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504(d) of title 5, United States Code, is amended—
(A) by striking ‘‘subsection’’ and inserting
‘‘section’’; and
(B) by adding at the end the following:
‘‘Fees and expenses awarded under this section
may not be paid from the claims and judgments
account of the Treasury from funds appro-
priated pursuant to section 1304 of title 31.’’.
(2) 
JUDICIAL
PROCEEDINGS.—Section
2412(d)(4) of title 28, United States Code, is
amended by adding at the end the following: ‘‘Fees
and expenses awarded under this subsection may not
be paid from the claims and judgments account of
the Treasury from funds appropriated pursuant to
section 1304 of title 31.’’.
(g) ELIGIBILITY OF TAXPAYERS FOR FEE AWARD.—
(1) ADMINISTRATIVE
PROCEEDINGS.—Section
504 of title 5, United States Code, as amended by
this section, is further amended by striking sub-
section (f).
(2) JUDICIAL PROCEEDINGS.—Section 2412 of
title 28, United States Code, as amended by this
section, is further amended by striking subsection
(e) and redesignating subsection (f) as subsection
(e).
(h) CONFORMING AMENDMENT RELATING TO RE-
PORTING
REQUIREMENT
UNDER
SMALL
BUSINESS
ACT.—Section 504(e) of title 5, United States Code, is
amended to read as follows:
‘‘(e)(1) The Attorney General, after consultation with
the Chief Counsel for Advocacy of the Small Business Ad-
ministration, shall report annually to the Congress on the
amount of fees and other expenses awarded to individuals
during the preceding fiscal year pursuant to this section
and section 2412 of title 28. The report shall describe the
number, nature, and amount of the awards, the claims in-
volved in the controversy, and any other relevant informa-
tion which may aid the Congress in evaluating the scope
and impact of such awards for individuals engaged in dis-
putes with Federal agencies. Each agency shall provide the
Attorney General with such information as is necessary
for the Attorney General to comply with the requirements
of this subsection.