I 
110TH CONGRESS 
1ST SESSION H. R. 4458 
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 
DECEMBER 12, 2007 
Mr. ELLSWORTH (for himself, Ms. VELA´ZQUEZ, Ms. CLARKE, Mr. CUELLAR, 
Mr. HIGGINS, Ms. HIRONO, Mr. JOHNSON of Georgia, Ms. MOORE of 
Wisconsin, Mr. SESTAK, and Mr. SHULER) introduced the following bill; 
which was referred to the Committee on the Judiciary, and in addition 
to the Committee on Small Business, for a period to be subsequently de-
termined 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. 
This Act may be cited as the ‘‘Small Business Regu-
latory Improvement Act’’. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Small businesses are frequently the source 
of new products, methods, and innovations. 
(2) A vibrant and growing small business sector 
is critical to creating jobs in a dynamic economy. 
(3) Regulations designed for application to 
large-scale entities have been applied uniformly to 
small businesses and other small entities. 
(4) Uniform Federal regulatory and reporting 
requirements in many instances have imposed on 
small businesses and other small entities dispropor-
tionately burdensome demands, including legal, ac-
counting, and consulting costs. 
(5) 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. 
(6) 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. 
(7) Federal agencies have failed to analyze and 
uncover less costly alternative regulatory approaches, 
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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. 
(8) 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. 
(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 
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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. 
Section 601 of title 5, United States Code, is amend-
ed by adding at the end the following new paragraph: 
‘‘(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).’’. 
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 describing— 
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‘‘(1) the reasons why the action by the agency 
is being considered; 
‘‘(2) the objectives of, and legal basis for, the 
proposed rule; 
‘‘(3) the type of small entities to which the pro-
posed rule will apply; 
‘‘(4) the number of small entities to which the 
proposed rule will apply or why such estimate is not 
available; 
‘‘(5) the projected reporting, recordkeeping, and 
other compliance requirements of the proposed rule, 
including an estimate of the classes of small entities 
which will be subject to the requirement, the costs, 
and the type of professional skills necessary to com-
ply with the rule; and 
‘‘(6) all relevant Federal rules which may dupli-
cate, overlap, or conflict with the proposed rule, or 
the reasons why such a description could not be pro-
vided.’’. 
(b) FINAL REGULATORY FLEXIBILITY ANALYSIS.— 
(1) Paragraph (1) of section 604(a) of title 5, 
United States Code, is amended by striking ‘‘suc-
cinct’’. 
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