I 112th CONGRESS 1st Session H. R. 3137 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.

1.

Short title

This Act may be cited as the Small Business Freedom of Commerce Act of 2011.

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)).