[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2542 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2542

 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

                             June 27, 2013

Mr. Bachus (for himself, Mr. Graves of Missouri, Mr. Barrow of Georgia, 
Mr. Matheson, Mr. Smith of Texas, Mr. Coble, and Mr. Rokita) 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Regulatory 
Flexibility Improvements Act of 2013''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Clarification and expansion of rules covered by the Regulatory 
                            Flexibility Act.
Sec. 3. Expansion of report of regulatory agenda.
Sec. 4. Requirements providing for more detailed analyses.
Sec. 5. Repeal of waiver and delay authority; additional powers of the 
                            Chief Counsel for Advocacy.
Sec. 6. Procedures for gathering comments.
Sec. 7. Periodic review of rules.
Sec. 8. Judicial review of compliance with the requirements of the 
                            Regulatory Flexibility Act available after 
                            publication of the final rule.
Sec. 9. Jurisdiction of court of appeals over rules implementing the 
                            Regulatory Flexibility Act.
Sec. 10. Establishment and approval of small business concern size 
                            standards by chief counsel for advocacy.
Sec. 11. Clerical amendments.
Sec. 12. Agency preparation of guides.

SEC. 2. CLARIFICATION AND EXPANSION OF RULES COVERED BY THE REGULATORY 
              FLEXIBILITY ACT.

    (a) In General.--Paragraph (2) of section 601 of title 5, United 
States Code, is amended to read as follows:
            ``(2) Rule.--The term `rule' has the meaning given such 
        term in section 551(4) of this title, except that such term 
        does not include a rule of particular (and not general) 
        applicability relating to rates, wages, corporate or financial 
        structures or reorganizations thereof, prices, facilities, 
        appliances, services, or allowances therefor or to valuations, 
        costs or accounting, or practices relating to such rates, 
        wages, structures, prices, appliances, services, or 
        allowances.''.
    (b) Inclusion of Rules With Indirect Effects.--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).''.
    (c) Inclusion of Rules With Beneficial Effects.--
            (1) Initial regulatory flexibility analysis.--Subsection 
        (c) of section 603 of title 5, United States Code, is amended 
        by striking the first sentence and inserting ``Each initial 
        regulatory flexibility analysis shall also contain a detailed 
        description of alternatives to the proposed rule which minimize 
        any adverse significant economic impact or maximize any 
        beneficial significant economic impact on small entities.''.
            (2) Final regulatory flexibility analysis.--The first 
        paragraph (6) of section 604(a) of title 5, United States Code, 
        is amended by striking ``minimize the significant economic 
        impact'' and inserting ``minimize the adverse significant 
        economic impact or maximize the beneficial significant economic 
        impact''.
    (d) Inclusion of Rules Affecting Tribal Organizations.--Paragraph 
(5) of section 601 of title 5, United States Code, is amended by 
inserting ``and tribal organizations (as defined in section 4(l) of the 
Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450b(l))),'' after ``special districts,''.
    (e) Inclusion of Land Management Plans and Formal Rulemaking.--
            (1) Initial regulatory flexibility analysis.--Subsection 
        (a) of section 603 of title 5, United States Code, is amended 
        in the first sentence--
                    (A) by striking ``or'' after ``proposed rule,''; 
                and
                    (B) by inserting ``or publishes a revision or 
                amendment to a land management plan,'' after ``United 
                States,''.
            (2) Final regulatory flexibility analysis.--Subsection (a) 
        of section 604 of title 5, United States Code, is amended in 
        the first sentence--
                    (A) by striking ``or'' after ``proposed 
                rulemaking,''; and
                    (B) by inserting ``or adopts a revision or 
                amendment to a land management plan,'' after ``section 
                603(a),''.
            (3) Land management plan defined.--Section 601 of title 5, 
        United States Code, is amended by adding at the end the 
        following new paragraph:
            ``(10) Land management plan.--
                    ``(A) In general.--The term `land management plan' 
                means--
                            ``(i) any plan developed by the Secretary 
                        of Agriculture under section 6 of the Forest 
                        and Rangeland Renewable Resources Planning Act 
                        of 1974 (16 U.S.C. 1604); and
                            ``(ii) any plan developed by the Secretary 
                        of the Interior under section 202 of the 
                        Federal Land Policy and Management Act of 1976 
                        (43 U.S.C. 1712).
                    ``(B) Revision.--The term `revision' means any 
                change to a land management plan which--
                            ``(i) in the case of a plan described in 
                        subparagraph (A)(i), is made under section 
                        6(f)(5) of the Forest and Rangeland Renewable 
                        Resources Planning Act of 1974 (16 U.S.C. 
                        1604(f)(5)); or
                            ``(ii) in the case of a plan described in 
                        subparagraph (A)(ii), is made under section 
                        1610.5-6 of title 43, Code of Federal 
                        Regulations (or any successor regulation).
                    ``(C) Amendment.--The term `amendment' means any 
                change to a land management plan which--
                            ``(i) in the case of a plan described in 
                        subparagraph (A)(i), is made under section 
                        6(f)(4) of the Forest and Rangeland Renewable 
                        Resources Planning Act of 1974 (16 U.S.C. 
                        1604(f)(4)) and with respect to which the 
                        Secretary of Agriculture prepares a statement 
                        described in section 102(2)(C) of the National 
                        Environmental Policy Act of 1969 (42 U.S.C. 
                        4332(2)(C)); or
                            ``(ii) in the case of a plan described in 
                        subparagraph (A)(ii), is made under section 
                        1610.5-5 of title 43, Code of Federal 
                        Regulations (or any successor regulation) and 
                        with respect to which the Secretary of the 
                        Interior prepares a statement described in 
                        section 102(2)(C) of the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4332(2)(C)).''.
    (f) Inclusion of Certain Interpretive Rules Involving the Internal 
Revenue Laws.--
            (1) In general.--Subsection (a) of section 603 of title 5, 
        United States Code, is amended by striking the period at the 
        end and inserting ``or a recordkeeping requirement, and without 
        regard to whether such requirement is imposed by statute or 
        regulation.''.
            (2) Collection of information.--Paragraph (7) of section 
        601 of title 5, United States Code, is amended to read as 
        follows:
            ``(7) Collection of information.--The term `collection of 
        information' has the meaning given such term in section 3502(3) 
        of title 44.''.
            (3) Recordkeeping requirement.--Paragraph (8) of section 
        601 of title 5, United States Code, is amended to read as 
        follows:
            ``(8) Recordkeeping requirement.--The term `recordkeeping 
        requirement' has the meaning given such term in section 
        3502(13) of title 44.''.
    (g) Definition of Small Organization.--Paragraph (4) of section 601 
of title 5, United States Code, is amended to read as follows:
            ``(4) Small organization.--
                    ``(A) In general.--The term `small organization' 
                means any not-for-profit enterprise which, as of the 
                issuance of the notice of proposed rulemaking--
                            ``(i) in the case of an enterprise which is 
                        described by a classification code of the North 
                        American Industrial Classification System, does 
                        not exceed the size standard established by the 
                        Administrator of the Small Business 
                        Administration pursuant to section 3 of the 
                        Small Business Act (15 U.S.C. 632) for small 
                        business concerns described by such 
                        classification code; and
                            ``(ii) in the case of any other enterprise, 
                        has a net worth that does not exceed $7,000,000 
                        and has not more than 500 employees.
                    ``(B) Local labor organizations.--In the case of 
                any local labor organization, subparagraph (A) shall be 
                applied without regard to any national or international 
                organization of which such local labor organization is 
                a part.
                    ``(C) Agency definitions.--Subparagraphs (A) and 
                (B) shall not apply to the extent that an agency, after 
                consultation with the Office of Advocacy of the Small 
                Business Administration and after opportunity for 
                public comment, establishes one or more definitions for 
                such term which are appropriate to the activities of 
                the agency and publishes such definitions in the 
                Federal Register.''.

SEC. 3. EXPANSION OF REPORT OF REGULATORY AGENDA.

    Section 602 of title 5, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``, and'' at the 
                end and inserting ``;'';
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following:
            ``(3) a brief description of the sector of the North 
        American Industrial Classification System that is primarily 
        affected by any rule which the agency expects to propose or 
        promulgate which is likely to have a significant economic 
        impact on a substantial number of small entities; and''; and
            (2) in subsection (c), to read as follows:
    ``(c) Each agency shall prominently display a plain language 
summary of the information contained in the regulatory flexibility 
agenda published under subsection (a) on its website within 3 days of 
its publication in the Federal Register. The Office of Advocacy of the 
Small Business Administration shall compile and prominently display a 
plain language summary of the regulatory agendas referenced in 
subsection (a) for each agency on its website within 3 days of their 
publication in the Federal Register.''.

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--
            ``(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;
            ``(6) estimating the additional cumulative economic impact 
        of the proposed rule on small entities beyond that already 
        imposed on the class of small entities by the agency or why 
        such an estimate is not available; and
            ``(7) describing any disproportionate economic impact on 
        small entities or a specific class of small entities.''.
    (b) Final Regulatory Flexibility Analysis.--
            (1) In general.--Section 604(a) of title 5, United States 
        Code, is amended--
                    (A) in paragraph (4), by striking ``an 
                explanation'' and inserting ``a detailed explanation'';
                    (B) in each of paragraphs (4), (5), and the first 
                paragraph (6), by inserting ``detailed'' before 
                ``description''; and
                    (C) by adding at the end the following:
            ``(7) describing any disproportionate economic impact on 
        small entities or a specific class of small entities.''.
            (2) 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 ``(or certification 
        of the proposed rule under section 605(b))'' after ``initial 
        regulatory flexibility analysis''.
            (3) Publication of analysis on website.--Subsection (b) of 
        section 604 of title 5, United States Code, is amended to read 
        as follows:
    ``(b) The agency shall make copies of the final regulatory 
flexibility analysis available to the public, including placement of 
the entire analysis on the agency's website, and shall publish in the 
Federal Register the final regulatory flexibility analysis, or a 
summary thereof which includes the telephone number, mailing address, 
and link to the website where the complete analysis may be obtained.''.
    (c) Cross-References to Other Analyses.--Subsection (a) of section 
605 of title 5, United States Code, is amended to read as follows:
    ``(a) A Federal agency shall be treated as satisfying any 
requirement regarding the content of an agenda or regulatory 
flexibility analysis under section 602, 603, or 604, if such agency 
provides in such agenda or analysis a cross-reference to the specific 
portion of another agenda or analysis which is required by any other 
law and which satisfies such requirement.''.
    (d) Certifications.--Subsection (b) of section 605 of title 5, 
United States Code, is amended--
            (1) by inserting ``detailed'' before ``statement'' the 
        first place it appears; and
            (2) by inserting ``and legal'' after ``factual''.
    (e) Quantification Requirements.--Section 607 of title 5, United 
States Code, is amended to read as follows:
``Sec. 607. Quantification requirements
    ``In 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 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.''.

SEC. 5. REPEAL OF WAIVER AND DELAY AUTHORITY; ADDITIONAL POWERS OF THE 
              CHIEF COUNSEL FOR ADVOCACY.

    (a) In General.--Section 608 is amended to read as follows:
``Sec. 608. Additional powers of Chief Counsel for Advocacy
    ``(a)(1) Not later than 270 days after the date of the enactment of 
the Regulatory Flexibility Improvements Act of 2013, the Chief Counsel 
for Advocacy of the Small Business Administration shall, after 
opportunity for notice and comment under section 553, issue rules 
governing agency compliance with this chapter. The Chief Counsel may 
modify or amend such rules after notice and comment under section 553. 
This chapter (other than this subsection) shall not apply with respect 
to the issuance, modification, and amendment of rules under this 
paragraph.
    ``(2) An agency shall not issue rules which supplement the rules 
issued under subsection (a) unless such agency has first consulted with 
the Chief Counsel for Advocacy to ensure that such supplemental rules 
comply with this chapter and the rules issued under paragraph (1).
    ``(b) Notwithstanding any other law, the Chief Counsel for Advocacy 
of the Small Business Administration may intervene in any agency 
adjudication (unless such agency is authorized to impose a fine or 
penalty under such adjudication), and may inform the agency of the 
impact that any decision on the record may have on small entities. The 
Chief Counsel shall not initiate an appeal with respect to any 
adjudication in which the Chief Counsel intervenes under this 
subsection.
    ``(c) The Chief Counsel for Advocacy may file comments in response 
to any agency notice requesting comment, regardless of whether the 
agency is required to file a general notice of proposed rulemaking 
under section 553.''.
    (b) Conforming Amendments.--
            (1) Section 611(a)(1) of such title is amended by striking 
        ``608(b),''.
            (2) Section 611(a)(2) of such title is amended by striking 
        ``608(b),''.
            (3) Section 611(a)(3) of such title is amended--
                    (A) by striking subparagraph (B); and
                    (B) by striking ``(3)(A) A small entity'' and 
                inserting the following:
    ``(3) A small entity''.

SEC. 6. PROCEDURES FOR GATHERING COMMENTS.

    Section 609 of title 5, United States Code, is amended by striking 
subsection (b) and all that follows through the end of the section and 
inserting the following:
    ``(b)(1) Prior to publication of any proposed rule described in 
subsection (e), an agency making such rule shall notify the Chief 
Counsel for Advocacy of the Small Business Administration and provide 
the Chief Counsel with--
            ``(A) all materials prepared or utilized by the agency in 
        making the proposed rule, including the draft of the proposed 
        rule; and
            ``(B) information on the potential adverse and beneficial 
        economic impacts of the proposed rule on small entities and the 
        type of small entities that might be affected.
    ``(2) An agency shall not be required under paragraph (1) to 
provide the exact language of any draft if the rule--
            ``(A) relates to the internal revenue laws of the United 
        States; or
            ``(B) is proposed by an independent regulatory agency (as 
        defined in section 3502(5) of title 44).
    ``(c) Not later than 15 days after the receipt of such materials 
and information under subsection (b), the Chief Counsel for Advocacy of 
the Small Business Administration shall--
            ``(1) identify small entities or representatives of small 
        entities or a combination of both for the purpose of obtaining 
        advice, input, and recommendations from those persons about the 
        potential economic impacts of the proposed rule and the 
        compliance of the agency with section 603; and
            ``(2) convene a review panel consisting of an employee from 
        the Office of Advocacy of the Small Business Administration, an 
        employee from the agency making the rule, and in the case of an 
        agency other than an independent regulatory agency (as defined 
        in section 3502(5) of title 44), an employee from the Office of 
        Information and Regulatory Affairs of the Office of Management 
        and Budget to review the materials and information provided to 
        the Chief Counsel under subsection (b).
    ``(d)(1) Not later than 60 days after the review panel described in 
subsection (c)(2) is convened, the Chief Counsel for Advocacy of the 
Small Business Administration shall, after consultation with the 
members of such panel, submit a report to the agency and, in the case 
of an agency other than an independent regulatory agency (as defined in 
section 3502(5) of title 44), the Office of Information and Regulatory 
Affairs of the Office of Management and Budget.
    ``(2) Such report shall include an assessment of the economic 
impact of the proposed rule on small entities, including an assessment 
of the proposed rule's impact on the cost that small entities pay for 
energy, and a discussion of any alternatives that will minimize adverse 
significant economic impacts or maximize beneficial significant 
economic impacts on small entities.
    ``(3) Such report shall become part of the rulemaking record. In 
the publication of the proposed rule, the agency shall explain what 
actions, if any, the agency took in response to such report.
    ``(e) A proposed rule is described by this subsection if the 
Administrator of the Office of Information and Regulatory Affairs of 
the Office of Management and Budget, the head of the agency (or the 
delegatee of the head of the agency), or an independent regulatory 
agency determines that the proposed rule is likely to result in--
            ``(1) an annual effect on the economy of $100,000,000 or 
        more;
            ``(2) a major increase in costs or prices for consumers, 
        individual industries, Federal, State, or local governments, 
        tribal organizations, or geographic regions;
            ``(3) significant adverse effects on competition, 
        employment, investment, productivity, innovation, or on the 
        ability of United States-based enterprises to compete with 
        foreign-based enterprises in domestic and export markets; or
            ``(4) a significant economic impact on a substantial number 
        of small entities.
    ``(f) Upon application by the agency, the Chief Counsel for 
Advocacy of the Small Business Administration may waive the 
requirements of subsections (b) through (e) if the Chief Counsel 
determines that compliance with the requirements of such subsections 
are impracticable, unnecessary, or contrary to the public interest.''.

SEC. 7. 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 Regulatory 
Flexibility Improvements Act of 2013, 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 any 
adverse significant economic impacts or maximize any beneficial 
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 Regulatory 
Flexibility Improvements Act of 2013 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 Regulatory Flexibility 
Improvements Act of 2013 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 of the Small Business 
Administration and the Congress.
    ``(c) The plan shall include a section that details how an agency 
will conduct outreach to and meaningfully include small businesses for 
the purposes of carrying out this section. The agency shall include in 
this section a plan for how the agency will contact small businesses 
and gather their input on existing agency rules.
    ``(d) Each agency shall annually submit a report regarding the 
results of its review pursuant to such plan to the Congress, the Chief 
Counsel for Advocacy of the Small Business Administration, and, in the 
case of agencies other than independent regulatory agencies (as defined 
in section 3502(5) of title 44) 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 (e) and a detailed explanation of 
the reasons for such determination.
    ``(e) In reviewing a rule pursuant to subsections (a) through (d), 
the agency shall amend or rescind the rule to minimize any adverse 
significant economic impact on a substantial number of small entities 
or disproportionate economic impact on a specific class of small 
entities, or maximize any beneficial significant economic impact of the 
rule on a substantial number of small entities to the greatest extent 
possible, consistent with the stated objectives of applicable statutes. 
In amending or rescinding the rule, 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 of the Small Business 
        Administration.
            ``(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, territorial, 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 (d).
            ``(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.
    ``(f) 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 of the 
Small Business Administration, and the Regulatory Enforcement Ombudsman 
concerning the enforcement of the rule.''.

SEC. 8. JUDICIAL REVIEW OF COMPLIANCE WITH THE REQUIREMENTS OF THE 
              REGULATORY FLEXIBILITY ACT AVAILABLE AFTER PUBLICATION OF 
              THE FINAL RULE.

    (a) In General.--Paragraph (1) of section 611(a) of title 5, United 
States Code, is amended by striking ``final agency action'' and 
inserting ``such rule''.
    (b) Jurisdiction.--Paragraph (2) of such section is amended by 
inserting ``(or which would have such jurisdiction if publication of 
the final rule constituted final agency action)'' after ``provision of 
law,''.
    (c) Time for Bringing Action.--Paragraph (3) of such section is 
amended--
            (1) by striking ``final agency action'' and inserting 
        ``publication of the final rule''; and
            (2) by inserting ``, in the case of a rule for which the 
        date of final agency action is the same date as the publication 
        of the final rule,'' after ``except that''.
    (d) Intervention by Chief Counsel for Advocacy.--Subsection (b) of 
section 612 of title 5, United States Code, is amended by inserting 
before the first period ``or agency compliance with section 601, 603, 
604, 605(b), 609, or 610''.

SEC. 9. JURISDICTION OF COURT OF APPEALS OVER RULES IMPLEMENTING THE 
              REGULATORY FLEXIBILITY ACT.

    (a) In General.--Section 2342 of title 28, United States Code, is 
amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (7) the following new 
        paragraph:
            ``(8) all final rules under section 608(a) of title 5.''.
    (b) Conforming Amendments.--Paragraph (3) of section 2341 of title 
28, United States Code, is amended--
            (1) in subparagraph (D), by striking ``and'' at the end;
            (2) in subparagraph (E), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(F) the Office of Advocacy of the Small Business 
                Administration, when the final rule is under section 
                608(a) of title 5.''.
    (c) Authorization To Intervene and Comment on Agency Compliance 
With Administrative Procedure.--Subsection (b) of section 612 of title 
5, United States Code, is amended by inserting ``chapter 5, and chapter 
7,'' after ``this chapter,''.

SEC. 10. ESTABLISHMENT AND APPROVAL OF SMALL BUSINESS CONCERN SIZE 
              STANDARDS BY CHIEF COUNSEL FOR ADVOCACY.

    (a) In General.--Subparagraph (A) of section 3(a)(2) of the Small 
Business Act (15 U.S.C. 632(a)(2)(A)) is amended to read as follows:
                    ``(A) In general.--In addition to the criteria 
                specified in paragraph (1)--
                            ``(i) the Administrator may specify 
                        detailed definitions or standards by which a 
                        business concern may be determined to be a 
                        small business concern for purposes of this Act 
                        or the Small Business Investment Act of 1958; 
                        and
                            ``(ii) the Chief Counsel for Advocacy may 
                        specify such definitions or standards for 
                        purposes of any other Act.''.
    (b) Approval by Chief Counsel.--Clause (iii) of section 3(a)(2)(C) 
of the Small Business Act (15 U.S.C. 632(a)(2)(C)(iii)) is amended to 
read as follows:
                            ``(iii) except in the case of a size 
                        standard prescribed by the Administrator, is 
                        approved by the Chief Counsel for Advocacy.''.
    (c) Industry Variation.--Paragraph (3) of section 3(a) of the Small 
Business Act (15 U.S.C. 632(a)(3)) is amended--
            (1) by inserting ``or Chief Counsel for Advocacy, as 
        appropriate'' before ``shall ensure''; and
            (2) by inserting ``or Chief Counsel for Advocacy'' before 
        the period at the end.
    (d) Judicial Review of Size Standards Approved by Chief Counsel.--
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended by 
adding at the end the following new paragraph:
            ``(6) Judicial review of standards approved by chief 
        counsel.--In the case of an action for judicial review of a 
        rule which includes a definition or standard approved by the 
        Chief Counsel for Advocacy under this subsection, the party 
        seeking such review shall be entitled to join the Chief Counsel 
        as a party in such action.''.

SEC. 11. CLERICAL AMENDMENTS.

    (a) Section 601 of title 5, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking the semicolon at the end and 
                inserting a period; and
                    (B) by striking ``(1) the term'' and inserting the 
                following:
            ``(1) Agency.--The term'';
            (2) in paragraph (3)--
                    (A) by striking the semicolon at the end and 
                inserting a period; and
                    (B) by striking ``(3) the term'' and inserting the 
                following:
            ``(3) Small business.--The term'';
            (3) in paragraph (5)--
                    (A) by striking the semicolon at the end and 
                inserting a period; and
                    (B) by striking ``(5) the term'' and inserting the 
                following:
            ``(5) Small governmental jurisdiction.--The term''; and
            (4) in paragraph (6)--
                    (A) by striking ``; and'' and inserting a period; 
                and
                    (B) by striking ``(6) the term'' and inserting the 
                following:
            ``(6) Small entity.--The term''.
    (b) The heading of section 605 of title 5, United States Code, is 
amended to read as follows:
``Sec. 605. Incorporations by reference and certifications''.
    (c) 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 new item:

``605. Incorporations by reference and certifications.'';
            (2) by striking the item relating to section 607 and 
        inserting the following new item:

``607. Quantification requirements.'';
        and
            (3) by striking the item relating to section 608 and 
        inserting the following:

``608. Additional powers of Chief Counsel for Advocacy.''.
    (d) Chapter 6 of title 5, United States Code, is amended as 
follows:
            (1) In section 603, by striking subsection (d).
            (2) In section 604(a) by striking the second paragraph (6).

SEC. 12. AGENCY PREPARATION OF GUIDES.

    Section 212(a)(5) the Small Business Regulatory Enforcement 
Fairness Act of 1996 (5 U.S.C. 601 note) is amended to read as follows:
            ``(5) Agency preparation of guides.--The agency shall, in 
        its sole discretion, taking into account the subject matter of 
        the rule and the language of relevant statutes, ensure that the 
        guide is written using sufficiently plain language likely to be 
        understood by affected small entities. Agencies may prepare 
        separate guides covering groups or classes of similarly 
        affected small entities and may cooperate with associations of 
        small entities to distribute such guides. In developing guides, 
        agencies shall solicit input from affected small entities or 
        associations of affected small entities. An agency may prepare 
        guides and apply this section with respect to a rule or a group 
        of related rules.''.
                                 <all>