Small Business Freedom of Commerce Act of 2011

Small Business Freedom of Commerce Act of 2011 - Allows a small business operating in the United States to elect to be exempt from any federal rule or regulation issued on or after January 20, 2009. Requires the small business to notify the federal agency that issued the rule or regulation that it has elected such exemption, and makes the exemption effective 30 days after such notification.

Requires an exempt small business to: (1) label any product affected by the exemption as no longer subject to such rule or regulation, and (2) include in any communication relating to the affected product or activity a notice that it is no longer so subject.

Provides penalties for small business noncompliance with such requirements.

Prohibits a small business from electing to be exempt from a rule or regulation issued by the Department of Defense (DOD) or Homeland Security (DHS) if the Secretary of Defense or Homeland Security has determined that the rule or regulation is necessary for U.S. security.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3137 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3137

  To permit small business concerns operating in the United States to 
elect to be exempt from certain Federal rules and regulations, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 6, 2011

 Mr. Garrett introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
  To permit small business concerns operating in the United States to 
elect to be exempt from certain Federal rules and regulations, 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 Freedom of Commerce 
Act of 2011''.

SEC. 2. SMALL BUSINESS EXEMPTIONS.

    (a) Election.--Notwithstanding any other provision of law, a small 
business concern operating in the United States may elect to be exempt 
from any Federal rule or regulation issued on or after January 20, 
2009.
    (b) Process for Exemption.--
            (1) Notification of federal agency.--To be exempt from a 
        rule or regulation under this section, the highest ranking 
        official of a small business concern shall provide to the 
        Federal agency that issued such rule or regulation written 
        notice that the small business concern has elected to be exempt 
        from such rule or regulation.
            (2) Timing.--A small business concern shall be exempt from 
        a rule or regulation beginning on the date that is 30 days 
        after the date that written notice provided by such concern 
        under paragraph (1), with respect to such rule or regulation, 
        is received by the applicable Federal agency.
            (3) Confirmation of written notice.--Not later than 7 days 
        after receiving a written notice under paragraph (1), the head 
        of the Federal agency that received such notice shall provide 
        to the applicable small business concern written confirmation 
        that such notice has been received.
    (c) Notification of Public.--A small business concern that is 
exempt from a Federal rule or regulation under this section shall--
            (1) label any product of the concern affected by such 
        exemption in a manner that provides notice that the product is 
        no longer subject to such rule or regulation; and
            (2) include in any communication of the concern relating to 
        a product or activity affected by such exemption notice that 
        the product or activity is no longer subject to such rule or 
        regulation.
    (d) Penalties.--A small business concern that fails to satisfy any 
requirement under this section shall be subject to penalties for 
noncompliance with an applicable Federal rule or regulation without 
regard to any election of the small business concern to be exempt from 
such rule or regulation.
    (e) Limitations.--A small business concern may not elect to be 
exempt under this section from a rule or regulation issued by the 
Department of Defense or the Department of Homeland Security, if the 
Secretary of Defense or the Secretary of Homeland Security has 
determined that such rule or regulation is necessary for the security 
of the United States.
    (f) Definitions.--In this section, the following definitions apply:
            (1) Federal agency.--The term ``Federal agency'' means any 
        department, agency, or independent establishment of the Federal 
        Government.
            (2) Small business concern.--The term ``small business 
        concern'' has the meaning given such term in section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).
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