[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1350 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1350

To promote increased understanding of Federal regulations and increased 
 voluntary compliance with such regulations by small entities, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 20 (legislative day, October 18), 1995

 Mr. Feingold introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To promote increased understanding of Federal regulations and increased 
 voluntary compliance with such regulations by small entities, 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 Fair Treatment Act of 
1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
      TITLE I--REGULATORY SIMPLIFICATION AND VOLUNTARY COMPLIANCE

Sec. 101. Definitions.
Sec. 102. Compliance guides.
Sec. 103. No action letter.
Sec. 104. Voluntary self-audits.
                   TITLE II--MISCELLANEOUS PROVISIONS

Sec. 201. Performance measures.
Sec. 202. Grace period for correction of violations of Environmental 
                            Protection Agency regulations.
Sec. 203. Waiver of punitive fines for small entities.

      TITLE I--REGULATORY SIMPLIFICATION AND VOLUNTARY COMPLIANCE

SEC. 101. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Compliance guide.--The term ``compliance guide'' means 
        a publication made by a covered agency under section 102(a).
            (2) Covered agency.--The term ``covered agency'' means any 
        agency that, on the date of enactment of this Act, has 
        promulgated any rule for which a regulatory flexibility 
        analysis was required under section 605 of title 5, United 
        States Code, and any other agency that promulgates any such 
        rule, as of the date of enactment of this Act.
            (3) No action letter.--The term ``no action letter'' means 
        a written determination from a covered agency stating that, 
        based on a no action request submitted to the agency by a small 
        entity, the agency will not take enforcement action against the 
        small entity under the rules of the covered agency.
            (4) No action request.--The term ``no action request'' 
        means a written correspondence submitted by a small entity to a 
        covered agency--
                    (A) stating a set of facts; and
                    (B) requesting a determination by the agency of 
                whether the agency would take an enforcement action 
                against the small entity based on such facts and the 
                application of any rule of the agency.
            (5) Rule.--The term ``rule'' has the same meaning as in 
        section 601(2) of title 5, United States Code.
            (6) Small entity.--The term ``small entity'' has the same 
        meaning as in section 601(6) of title 5, United States Code.
            (7) Small business concern.--The term ``small business 
        concern'' has the same meaning as in section 3 of the Small 
        Business Act.
            (8) Voluntary self-audit.--The term ``voluntary self-
        audit'' means an audit, assessment, or review of any operation, 
        practice, or condition of a small entity that--
                    (A) is initiated by an officer, employee, or agent 
                of the small entity; and
                    (B) is not required by law.

SEC. 102. COMPLIANCE GUIDES.

    (a) Compliance Guide.--
            (1) Publication.--If a covered agency is required to 
        prepare a regulatory flexibility analysis for a rule or group 
        of related rules under section 603 of title 5, United States 
        Code, the agency shall publish a compliance guide for such rule 
        or group of related rules.
            (2) Requirements.--Each compliance guide published under 
        paragraph (1) shall--
                    (A) contain a summary description of the rule or 
                group of related rules;
                    (B) contain a citation to the location of the 
                complete rule or group of related rules in the Federal 
                Register;
                    (C) provide notice to small entities of the 
                requirements under the rule or group of related rules 
                and explain the actions that a small entity is required 
                to take to comply with the rule or group of related 
                rules;
                    (D) be written in a manner to be understood by the 
                average owner or manager of a small entity; and
                    (E) be updated as required to reflect changes in 
                the rule.
    (b) Dissemination.--
            (1) In general.--Each covered agency shall establish a 
        system to ensure that compliance guides required under this 
        section are published, disseminated, and made easily available 
        to small entities.
            (2) Small business development centers.--In carrying out 
        this subsection, each covered agency shall provide sufficient 
        numbers of compliance guides to small business development 
        centers for distribution to small businesses concerns.
    (c) Limitation on Enforcement.--
            (1) In general.--No covered agency may bring an enforcement 
        action in any Federal court or in any Federal administrative 
        proceeding against a small entity to enforce a rule for which a 
        compliance guide is not published and disseminated by the 
        covered agency as required under this section.
            (2) Effective dates.--This subsection shall take effect--
                    (A) 1 year after the date of the enactment of this 
                Act with regard to a final regulation in effect on the 
                date of the enactment of this Act; and
                    (B) on the date of the enactment of this Act with 
                regard to a regulation that takes effect as a final 
                regulation after such date of enactment.

SEC. 103. NO ACTION LETTER.

    (a) Application.--This section applies to all covered agencies, 
except--
            (1) the Federal Trade Commission;
            (2) the Equal Employment Opportunity Commission; and
            (3) the Consumer Product Safety Commission.
    (b) Issuance of No Action Letter.--Not later than 90 days after the 
date on which a covered agency receives a no action request, the agency 
shall--
            (1) make a determination regarding whether to grant the no 
        action request, deny the no action request, or seek further 
        information regarding the no action request; and
            (2) if the agency makes a determination under paragraph (1) 
        to grant the no action request, issue a no action letter and 
        transmit the letter to the requesting small entity.
    (c) Reliance on No Action Letter or Compliance Guide.--In any 
enforcement action brought by a covered agency in any Federal court or 
Federal administrative proceeding against a small entity, the small 
entity shall have a complete defense to any allegation of noncompliance 
or violation of a rule if the small entity affirmatively pleads and 
proves by a preponderance of the evidence that the act or omission 
constituting the alleged noncompliance or violation was taken in good 
faith with and in reliance on--
            (1) a no action letter from that agency; or
            (2) a compliance guide of the applicable rule published by 
        the agency under section 102(a).

SEC. 104. VOLUNTARY SELF-AUDITS.

    (a) Procedures.--Each agency shall establish voluntary self-audit 
procedures for small entities regulated by the agency.
    (b) Inadmissibility of Evidence and Limitation on Discovery.--If 
action to address a violation is taken not later than 180 days after 
the date on which a voluntary self-audit is concluded, the evidence 
described in subsection (c)--
            (1) shall not be admissible, unless agreed to by the small 
        entity, in any enforcement action brought against a small 
        entity by a Federal agency in any Federal--
                    (A) court; or
                    (B) administrative proceeding; and
            (2) may not be the subject of discovery in any enforcement 
        action brought against a small entity by a Federal agency in 
        any Federal--
                    (A) court; or
                    (B) administrative proceeding.
    (c) Application.--For purposes of subsection (b), the evidence 
described in this subsection is--
            (1) a voluntary self-audit made in good faith; and
            (2) any report, finding, opinion, or any other oral or 
        written communication made in good faith relating to such 
        voluntary self-audit.
    (d) Exceptions.--Subsection (b) shall not apply if--
            (1) the act or omission that forms the basis of the 
        enforcement action is a violation of criminal law; or
            (2) the voluntary self-audit or the report, finding, 
        opinion, or other oral or written communication was prepared 
        for the purpose of avoiding disclosure of information required 
        for an investigative, administrative, or judicial proceeding 
        that, at the time of preparation, was imminent or in progress.

                   TITLE II--MISCELLANEOUS PROVISIONS

SEC. 201. PERFORMANCE MEASURES.

    No covered agency shall establish or enforce agency personnel 
practices that reward agency employees, directly or indirectly, based 
on the number of contacts made with small entities in pursuit of 
enforcement actions or on the amount of fines levied against small 
entities to enforce agency regulations.

SEC. 202. GRACE PERIOD FOR CORRECTION OF VIOLATIONS OF ENVIRONMENTAL 
              PROTECTION AGENCY REGULATIONS.

    (a) In General.--Subject to subsection (b), for violations of 
regulations identified on or after the date of enactment of this Act, 
the Administrator of the Environmental Protection Agency shall afford 
small entities 180 days after the date on which the violation is 
identified to correct such violation.
    (b) Exception.--Subsection (a) shall not apply--
            (1) if the Administrator of the Environmental Protection 
        Agency determines that there is an imminent risk to public 
        health or worker safety; or
            (2) to a violation of a regulation for which criminal 
        liability may be imposed.

SEC. 203. WAIVER OF PUNITIVE FINES FOR SMALL ENTITIES.

    Notwithstanding any other law, policy, or practice, a covered 
agency may waive all or part of a punitive fine that would otherwise be 
imposed on a small entity if--
            (1) the fine is for a first time violation of a law or 
        regulation; and
            (2) the small entity acts quickly and in good faith to 
        correct the violation.
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