1.Short title; table of
contents
(a)This Act may be cited as the Job Impact Analysis Act of
2010
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Job impact statement for reported bills and joint
resolutions.
Sec. 4. Clarification and expansion of rules covered by the
Regulatory Flexibility Act.
Sec. 5. Requirements providing for more detailed
analyses.
Sec. 6. Periodic review of rules.
Sec. 7. Office of Advocacy.
Sec. 8. Clerical amendments.
2.Congress finds the following:
(1)A vibrant and
growing small business sector is critical to the recovery of the economy of the
United States.
(2)Regulations
designed for application to large-scale entities have been applied uniformly to
small businesses and other small entities, sometimes inhibiting the ability of
small entities to create new jobs.
(3)Uniform Federal
regulatory and reporting requirements in many instances have imposed on small
businesses and other small entities unnecessary and disproportionately
burdensome demands, including legal, accounting, and consulting costs, thereby
threatening the viability of small entities and the ability of small entities
to compete and create new jobs in a global marketplace.
(4)Since 1980,
Federal agencies have been required to recognize and take account of the
differences in the scale and resources of regulated entities, but in many
instances have failed to do so.
(5)In 2009, there
were nearly 70,000 pages in the Federal Register, and, according to research by
the Office of Advocacy of the Small Business Administration, the annual cost of
Federal regulations totals $1,100,000,000,000. Small firms bear a
disproportionate burden, paying approximately 45 percent, or $7,647, more per
employee than larger firms in annual regulatory compliance costs.
(6)The Federal
Government should fully consider the costs, including indirect economic impacts
and the potential for job creation and job loss, of proposed rules.
(7)It is the
intention of 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, enhance economic benefits, and fully address potential
job creation or job loss.
(8)To the maximum
extent practicable, the Director of the Congressional Budget Office should, in
certain estimates the Director prepares with respect to bills or joint
resolutions reported by congressional committees, estimate the potential job
creation or job loss attributable to the bills or joint resolutions.
3.Job impact
statement for reported bills and joint resolutionsSection
424 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C.
658c) is amended—
(1)in subsection (a)(2)—
(A)in subparagraph (B), by striking
and
at the end;
(B)in subparagraph
(C), by striking the period at the end and inserting ; and
;
and
(C)by adding at the
end the following:
(D)if the Director
estimates that the total amount of direct costs of all Federal
intergovernmental mandates in the bill or joint resolution will equal or exceed
$5,000,000,000 (adjusted annually for inflation), to the extent practicable,
the potential job creation or job loss in State, local, and tribal governments
as a result of the mandates.
;
and
(2)in subsection (b)(2)—
(A)in subparagraph (A), by striking
and
at the end;
(B)in subparagraph
(B), by striking the period at the end and inserting ; and
;
and
(C)by adding at the
end the following:
(C)if the Director estimates that the total
amount of direct costs of all Federal private sector mandates in the bill or
joint resolution will equal or exceed $5,000,000,000 (adjusted annually for
inflation), to the extent practicable, the potential job creation or job loss
in the private sector as a result of the
mandates.
.
4.Clarification
and expansion of rules covered by the Regulatory Flexibility ActSection 601 of title 5, United States Code,
is amended—
(1)in paragraph (6), by striking
and
at the end;
(2)in paragraph (7)(B), by striking the period
at the end and inserting a semicolon;
(3)in paragraph
(8)—
(A)by striking
Recordkeeping
requirement.—The
and inserting the
;
and
(B)by striking the
period at the end and inserting ; and
; and
(4)by adding at the end the following:
(9)the term
economic impact means, with respect to a proposed or final
rule—
(A)any direct
economic effect of the rule on small entities; and
(B)any indirect
economic effect on small entities, including potential job creation or job
loss, that is reasonably foreseeable and that results from the rule, without
regard to whether small entities are directly regulated by the
rule.
.
5.Requirements
providing for more detailed analyses
(a)Initial
regulatory flexibility analysisSection 603 of title 5, United
States Code, is amended—
(1)by striking
subsection (b) and inserting the following:
(b)Each initial
regulatory flexibility analysis required under this section shall contain a
detailed statement—
(1)describing the
reasons why action by the agency is being considered;
(2)describing the
objectives of, and legal basis for, the proposed rule;
(3)estimating the
number and type of small entities to which the proposed rule will apply;
(4)describing 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 and the type of professional skills
necessary for preparation of the report and record;
(5)describing 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;
and
(6)estimating the
additional cumulative economic impact of the proposed rule on small entities,
including job creation and employment by small entities, beyond that already
imposed on the class of small entities by the agency, or the reasons why such
an estimate is not available.
;
and
(2)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 under Executive Order 12866, if that order
requires such submission; 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)Section 604(a) of title 5, United States Code, is
amended—
(A)by inserting
detailed
before description
each place it
appears;
(B)in paragraph (1),
by striking succinct
;
(C)in paragraph
(2)—
(i)by
striking summary
each place it appears and inserting
statement
; and
(ii)by
inserting (or certification of the proposed rule under section
605(b))
after initial regulatory flexibility
analysis
;
(D)in paragraph (3),
by striking an explanation
and inserting a detailed
explanation
;
(E)by redesignating
paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively;
and
(F)by inserting
after paragraph (2) the following:
(3)the response of
the agency 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 change made to the proposed rule in the final rule as a result
of the
comments;
.
(2)Publication of
analysis on web site, etcSection 604(b) of title 5, United
States Code, is amended to read as follows:
(b)The agency
shall—
(1)make copies of
the final regulatory flexibility analysis available to the public, including by
publishing the entire final regulatory flexibility analysis on the Web site of
the agency; and
(2)publish in the
Federal Register the final regulatory flexibility analysis, or a summary of the
analysis that includes the telephone number, mailing address, and address of
the Web site where the complete final regulatory flexibility analysis may be
obtained.
.
(c)Cross-References
to other analysesSection 605(a) of title 5, United States Code,
is amended to read as follows:
(a)A Federal agency
shall be deemed to have satisfied a requirement regarding the content of a
regulatory flexibility agenda or regulatory flexibility analysis under section
602, 603, or 604, if the Federal agency provides in the agenda or regulatory
flexibility analysis a cross-reference to the specific portion of an agenda or
analysis that is required by another law and that satisfies the
requirement.
.
(d)The
second sentence of section 605(b) of title 5, United States Code, is amended by
striking statement providing the factual
and inserting
detailed statement providing the factual and legal
.
(e)Quantification
requirementsSection 607 of title 5, United States Code, is
amended to read as follows:
607.Quantification
requirementsIn complying with
sections 603 and 604, an agency shall provide—
(1)a quantifiable or
numerical description of the effects of the proposed or final rule, including
an estimate of the potential for job creation or job loss, and alternatives to
the proposed or final rule; or
(2)a more general
descriptive statement and a detailed statement explaining why quantification is
not practicable or
reliable.
.
6.Section 610 of title
5, United States Code, is amended to read as follows:
610.
(a)Not later than
180 days after the enactment of the Job
Impact Analysis Act of 2010, each agency shall publish in the
Federal Register and place on its Web site a plan for the periodic review of
rules issued by the agency that the head of the agency determines has 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 any significant adverse economic impacts on a substantial number of
small entities (including an estimate of any adverse impacts on job creation
and employment by 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 Web site of the agency.
(b)The plan shall
provide for the review of all such agency rules existing on the date of the
enactment of the Job Impact Analysis Act of
2010 within 10 years after the date of publication of the plan in
the Federal Register and every 10 years thereafter and for review of rules
adopted after the date of enactment of the Job Impact Analysis Act of 2010 within 10
years after the publication of the final rule in the Federal Register and every
10 years thereafter. 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 Congress.
(c)Each agency shall
annually submit a report regarding the results of its review pursuant to such
plan to 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
of infeasibility under 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—
(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 contribution
of the rule to the cumulative economic impact of all Federal rules on the class
of small entities affected by the rule, unless the head of the agency
determines that such calculations cannot be made and reports that determination
in the annual report required under subsection (c);
(7)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; and
(8)the current
impact of the rule, including—
(A)the estimated
number of small entities to which the rule will apply;
(B)the estimated
number of small business jobs that will be lost or created by the rule;
and
(C)the projected
reporting, recordkeeping and other compliance requirements of the proposed
rule, including—
(i)an estimate of
the classes of small entities that will be subject to the requirement;
and
(ii)the type of
professional skills necessary for preparation of the report or record.
(e)The agency shall
publish in the Federal Register and on the Web site of the agency 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 the agency 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.
.
7.
(a)Section 203 of
Public Law
94–305 (15 U.S.C. 634c) is amended—
(1)in paragraph (4),
by striking and
at the end;
(2)in paragraph (5),
by striking the period and inserting ; and
; and
(3)by adding at the
end the following:
(6)carry out the
responsibilities of the Office of Advocacy under chapter 6 of title 5, United
States
Code.
.
(b)Budgetary line
item and authorization of appropriationsTitle II of
Public Law
94–305 (15 U.S.C. 634a et seq.) is amended
by striking section 207 and inserting the following:
207.Budgetary line
item and authorization of appropriations
(a)Each budget of the United States Government submitted by
the President under section 1105 of title 31, United States Code, shall include
a separate statement of the amount of appropriations requested for the Office
of Advocacy of the Small Business Administration, which shall be designated in
a separate account in the General Fund of the Treasury.
(b)Administrative
operationsThe Administrator of the Small Business Administration
shall provide the Office of Advocacy with appropriate and adequate office space
at central and field office locations, together with such equipment, operating
budget, and communications facilities and services as may be necessary, and
shall provide necessary maintenance services for such offices and the equipment
and facilities located in such offices.
(c)Authorization
of appropriationsThere are authorized to be appropriated such
sums as are necessary to carry out this title. Any amount appropriated under
this subsection shall remain available, without fiscal year limitation, until
expended.
.
8.
(a)The
heading of section 605 of title 5, United States Code, is amended to read as
follows:
605.Incorporations
by reference and
certifications
.
(b)The table of sections for chapter 6 of title 5, United
States Code, is amended—
(1)by striking the
item relating to section 605 and inserting the following:
605. Incorporations by reference and
certifications.
;
and(2)by striking the
item relating to section 607 and inserting the following:
607. Quantification
requirements.
.