Small Business Regulatory Improvement Act - Revises the Regulatory Flexibility Act. Defines the "economic impact" of a rule to include any direct or indirect economic effects on small entities.
Requires initial regulatory flexibility analyses of a proposed rule to contain a detailed statement describing the type of small entities to which the proposed rule will apply.
Revises provisions requiring the publication by each agency of a plan for the periodic review of its rules that have a significant impact on a substantial number of small entities to determine whether they should be continued, changed, or rescinded, including to: (1) limit to two years the amount of time the period for reviewing an agency's regulations may be extended; and (2) require each agency to report annually on review results to Congress and to the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget (OMB).
Requires an agency to notify the Chief Counsel for Advocacy of the Small Business Administration of any draft rules that may have a significant economic impact on a substantial number of small entities either: (1) when the agency submits a draft rule to the such Office, if submission is required; or (2) if no submission to the Office is so required, at a reasonable time before publication of the rule by the agency.
Requires that final regulatory flexibility analyses include the agency's response to any comments filed on a rule by the Chief Counsel and a detailed statement of any changes made as a result.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4458 Introduced in House (IH)]
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. Velazquez, 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 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 (commonly known as
the Regulatory Flexibility Act), to ensure complete analysis of
potential impacts on small entities of rules, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Regulatory
Improvement Act''.
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 disproportionately burdensome demands, including
legal, accounting, and consulting costs.
(5) Since 1980, Federal agencies have been required to
recognize and take account of the differences in the scale and
resources of regulated entities 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, 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 chapter 6 of
title 5, United States Code, in a manner that permits them to
avoid their analytical responsibilities.
(9) Significant changes are needed in the methods 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 indirect effects, of proposed and final
rules are considered by agencies during the rulemaking process
and that the agencies assess a full range of alternatives that
will limit adverse economic consequences or enhance economic
benefits.
(11) Federal agencies should be capable of assessing the
impact of proposed and final rules without delaying the
regulatory process or impinging on the ability of Federal
agencies to fulfill their statutory mandates.
SEC. 3. CLARIFICATION AND EXPANSION OF RULES COVERED BY THE REGULATORY
FLEXIBILITY ACT.
Section 601 of title 5, United States Code, is amended 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 results
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 required under
this section shall contain a detailed statement describing--
``(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 proposed 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 comply with the rule; and
``(6) all relevant Federal rules which may duplicate,
overlap, or conflict with the proposed rule, or the reasons why
such a description could not be provided.''.
(b) Final Regulatory Flexibility Analysis.--
(1) Paragraph (1) of section 604(a) of title 5, United
States Code, is amended by striking ``succinct''.
(2) Paragraph (3) of such section is amended by striking
``an explanation'' and inserting ``a detailed explanation''.
(3) Paragraph (4) of such section is amended to read as
follows:
``(4) a description of the projected reporting,
recordkeeping, and other compliance requirements of the 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 comply with the rule; and''.
(c) Certification of No Impact.--Subsection (b) of section 605 of
title 5, United States Code, is amended by inserting ``detailed''
before ``statement'' both places such term appears.
SEC. 5. PERIODIC REVIEW OF RULES.
Section 610 of title 5, United States Code, is amended to read as
follows:
``Sec. 610. Periodic review of rules
``(a) Not later than 180 days after the enactment of the Small
Business Regulatory Improvement Act, each agency shall publish in the
Federal Register and place on its website a plan for the periodic
review of rules issued by the agency which the head of the agency
determines have a significant economic impact on a substantial number
of small entities. Such determination shall be made without regard to
whether the agency performed an analysis under section 604. The purpose
of the review shall be to determine whether such rules should be
continued without change, or should be amended or rescinded, consistent
with the stated objectives of applicable statutes, to minimize
significant economic impacts on a substantial number of small entities.
Such plan may be amended by the agency at any time by publishing the
revision in the Federal Register and subsequently placing the amended
plan on the agency's website.
``(b) The plan shall provide for the review of all such agency
rules existing on the date of the enactment of the Small Business
Regulatory Improvement Act within 10 years of the date of publication
of the plan in the Federal Register and for review of rules adopted
after the date of enactment of the Small Business Regulatory
Improvement Act within 10 years after the publication of the final rule
in the Federal Register. If the head of the agency determines that
completion of the review of existing rules is not feasible by the
established date, the head of the agency shall so certify in a
statement published in the Federal Register and may extend the review
for not longer than 2 years after publication of notice of extension in
the Federal Register. Such certification and notice shall be sent to
the Chief Counsel for Advocacy and the Congress.
``(c) Each agency shall annually submit a report regarding the
results of its review pursuant to such plan to the Congress and, in the
case of agencies other than independent regulatory agencies (as defined
in section 3502(5) of title 44, United States Code) to the
Administrator of the Office of Information and Regulatory Affairs of
the Office of Management and Budget. Such report shall include the
identification of any rule with respect to which the head of the agency
made a determination described in paragraph (5) or (6) of subsection
(d) and a detailed explanation of the reasons for such determination.
``(d) In reviewing rules under such plan, the agency shall consider
the following factors:
``(1) The continued need for the rule.
``(2) The nature of complaints received by the agency from
small entities concerning the rule.
``(3) Comments by the Regulatory Enforcement Ombudsman and
the Chief Counsel for Advocacy.
``(4) The complexity of the rule.
``(5) The extent to which the rule overlaps, duplicates, or
conflicts with other Federal rules and, unless the head of the
agency determines it to be infeasible, State and local rules.
``(6) The length of time since the rule has been evaluated
or the degree to which technology, economic conditions, or
other factors have changed in the area affected by the rule.
``(e) The agency shall publish in the Federal Register and on its
website a list of rules to be reviewed pursuant to such plan. Such
publication shall include a brief description of the rule, the reason
why the agency determined that it has a significant economic impact on
a substantial number of small entities (without regard to whether it
had prepared a final regulatory flexibility analysis for the rule), and
request comments from the public, the Chief Counsel for Advocacy, and
the Regulatory Enforcement Ombudsman concerning the enforcement of the
rule.''.
SEC. 6. CHANGES TO THE REGULATORY FLEXIBILITY ACT TO COMPORT WITH
EXECUTIVE ORDER 13272.
(a) Initial Regulatory Flexibility Analysis.--Section 603 of title
5, United States Code, is amended by adding at the end the following:
``(d) An agency shall notify the Chief Counsel for Advocacy of the
Small Business Administration of any draft rules that may have a
significant economic impact on a substantial number of small entities
either--
``(1) when the agency submits a draft rule to the Office of
Information and Regulatory Affairs at the Office of Management
and Budget, if submission is required; or
``(2) if no submission to the Office of Information and
Regulatory Affairs is so required, at a reasonable time prior
to publication of the rule by the agency.''.
(b) Final Regulatory Flexibility Analysis.--
(1) Inclusion of response to comments on certification of
proposed rule.--Paragraph (2) of section 604(a) of title 5,
United States Code, is amended by inserting after ``initial
regulatory flexibility analysis'' the following: ``(or
certification of the proposed rule under section 605(b))''.
(2) Inclusion of response to comments filed by chief
counsel for advocacy.--Subsection (a) of section 604 of title
5, United States Code, is amended by redesignating paragraphs
(3) through (5) as (4) through (6), respectively, and by
inserting after paragraph (2) the following:
``(3) the agency's response to any comments filed by the
Chief Counsel for Advocacy of the Small Business Administration
in response to the proposed rule, and a detailed statement of
any changes made to the proposed rule in the final rule as a
result of such comments;''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by the Yeas and Nays: 26 - 0.
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