[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1536 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1536

 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 SENATE OF THE UNITED STATES

                             June 10, 2015

 Mr. Vitter (for himself, Mr. Risch, Mr. Enzi, Mr. Rubio, Mrs. Ernst, 
 and Mr. Gardner) introduced the following bill; which was read twice 
  and referred to the Committee on Homeland Security and Governmental 
                                Affairs

_______________________________________________________________________

                                 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.

    This Act may be cited as the ``Small Business Regulatory 
Flexibility Improvements Act of 2015''.

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 pertaining to the protection of the 
        rights of and benefits for veterans or 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, facilities, 
        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 (including 
                compliance costs and effects on revenue) 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 designated as paragraph (6) of section 604(a) of 
        title 5, United States Code, (relating to minimization of 
        significant economic impacts) 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, as amended by subsection (b), 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 nonprofit 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.''.
    (h) Definition of Small Governmental Jurisdiction.--Paragraph (5) 
of section 601 of title 5, United States Code, is amended to read as 
follows:
            ``(5) Small governmental jurisdiction.--
                    ``(A) In general.--The term `small governmental 
                jurisdiction' means the government of a city, county, 
                town, township, village, school district, or special 
                district with a population of less than 50,000.
                    ``(B) Subdivisions and departments.--
                Notwithstanding subparagraph (A), a subdivision, 
                department, agency, district, or authority of a State, 
                city, county, town, township, village, school district, 
                or special district described by a classification code 
                of the North American Industrial Classification System 
                shall be considered to be a small governmental 
                jurisdiction if that subdivision, department, agency, 
                district, or authority, by itself, 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.
                    ``(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) by striking subsection (c) and inserting the following:
    ``(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;
            ``(7) describing any disproportionate economic impact on 
        small entities or a specific class of small entities; and
            ``(8) describing any impairment of the ability of small 
        entities to have access to credit.''.
    (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 designated as paragraph (6) (relating to 
                minimization of significant economic impacts), by 
                inserting ``detailed'' before ``description'';
                    (C) in the first paragraph designated as paragraph 
                (6) (relating to minimization of significant economic 
                impacts), by striking ``and'' at the end;
                    (D) in the second paragraph designated as paragraph 
                (6) (relating to covered agencies), by striking the 
                period and inserting ``; and'';
                    (E) by redesignating the second paragraph 
                designated as paragraph (6) as paragraph (7); and
                    (F) by adding at the end the following:
            ``(8) a detailed description of 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 of title 5, United States Code, 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 Small Business Regulatory Flexibility Improvements Act of 2015, 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 paragraph (1) 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) Additional Duties of Office of Advocacy.--Section 203 of Public 
Law 94-305 (15 U.S.C. 634c) is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) at the discretion of the Chief Counsel for Advocacy, 
        comment on regulatory action by an agency that affects small 
        businesses, without regard to whether the agency is required to 
        file a notice of proposed rulemaking under section 553 of title 
        5, United States Code, with respect to the action.''.
    (c) 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--
            (1) in subsection (b), by striking ``covered agency'' each 
        place it appears and inserting ``agency'';
            (2) by striking subsection (d);
            (3) by redesignating subsection (e) as subsection (d); and
            (4) in paragraph (1) of subsection (d), as so redesignated, 
        by striking ``covered agency'' and inserting ``agency''.

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 this section, 
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--
            ``(1) the review of all such agency rules described in 
        subsection (a) existing on the date of the enactment of this 
        section--
                    ``(A) within 10 years of the date of publication of 
                the plan in the Federal Register; and
                    ``(B) every 10 years thereafter; and
            ``(2) the review of all such agency rules described in 
        subsection (a) adopted after the date of enactment of this 
        section--
                    ``(A) within 10 years after the publication of the 
                final rule in the Federal Register; and
                    ``(B) every 10 years thereafter.
    ``(c) 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.
    ``(d) The plan shall include a section that details how an agency 
will conduct outreach to and meaningfully include small businesses 
(including small business concerns owned and controlled by women, small 
business concerns owned and controlled by veterans, and small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals (as such terms are defined in the Small 
Business Act)) 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.
    ``(e) 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 (f) and a detailed explanation of 
the reasons for such determination.
    ``(f) In reviewing a rule pursuant to subsections (a) through (e), 
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--
            ``(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 (e);
            ``(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 economic impact of the rule, including--
                    ``(A) the estimated number of small entities to 
                which the rule will apply;
                    ``(B) the estimated number of small entity jobs 
                that will be lost or created due to 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.
    ``(g) Each year, each agency shall publish in the Federal Register 
and on its website a list of rules to be reviewed pursuant to such 
plan. The agency shall include in the publication a solicitation of 
public comments on any further inclusions or exclusions of rules from 
the list, and shall respond to such comments. 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.
    ``(h)(1) Not later than 6 months after each date described in 
subsection (b), the Inspector General for each agency shall--
            ``(A) determine whether the agency has conducted the review 
        required under subsection (b) appropriately; and
            ``(B) notify the head of the agency of--
                    ``(i) the results of the determination under 
                subparagraph (A); and
                    ``(ii) any issues preventing the Inspector General 
                from determining that the agency has conducted the 
                review under subsection (b) appropriately.
    ``(2)(A) Not later than 6 months after the date on which the head 
of an agency receives a notice under paragraph (1)(B) that the agency 
has not conducted the review under subsection (b) appropriately, the 
agency shall address the issues identified in the notice.
    ``(B) Not later than 30 days after the last day of the 6-month 
period described in subparagraph (A), the Inspector General for an 
agency that receives a notice described in subparagraph (A) shall--
            ``(i) determine whether the agency has addressed the issues 
        identified in the notice; and
            ``(ii) notify Congress if the Inspector General determines 
        that the agency has not addressed the issues identified in the 
        notice.''.

SEC. 8. JUDICIAL REVIEW TO ALLOW SMALL ENTITIES TO CHALLENGE PROPOSED 
              REGULATIONS.

    (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, as 
amended by section 5(c)(3) of this Act, is amended--
            (1) by striking ``such review during the period beginning 
        on the date of final agency action'' and inserting the 
        following: ``such review--
            ``(A) in the case of noncompliance with section 605(b), 
        before the close of the public comment period; and
            ``(B) in any other case, during the period beginning on the 
        date of 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, 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 in the second sentence 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:
            ``(9) 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) Definitions.--Section 601 of title 5, United States Code, is 
amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``this chapter--'' and inserting ``this chapter:'';
            (2) 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'';
            (3) 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'';
            (4) 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
            (5) 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) Incorporations by Reference and Certifications.--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) Table of Sections.--The table of sections for chapter 6 of 
title 5, United States Code, is amended as follows:
            (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.''.
            (3) By striking the item relating to section 608 and 
        inserting the following:

``608. Additional powers of Chief Counsel for Advocacy.''.
    (d) Other Clerical Amendments to Chapter 6.--Chapter 6 of title 5, 
United States Code, is amended--
            (1) in section 603(d)--
                    (A) by striking paragraph (2);
                    (B) by striking ``(1) For a covered agency, as 
                defined in section 609(d)(2), each initial regulatory 
                flexibility analysis'' and inserting ``Each initial 
                regulatory flexibility analysis by an agency'';
                    (C) by striking ``(A) any'' and inserting ``(1) 
                any'';
                    (D) by striking ``(B) any'' and inserting ``(2) 
                any''; and
                    (E) by striking ``(C) advice'' and inserting ``(3) 
                advice''; and
            (2) in paragraph (7) of section 604(a), as so redesignated 
        by section 4(b)(1)(D) of this Act, by striking ``for a covered 
        agency, as defined in section 609(d)(2),''.

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.''.

SEC. 13. REPORTING ON ENFORCEMENT ACTIONS RELATING TO SMALL ENTITIES.

    Section 223 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (5 U.S.C. 601 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Each agency'' and inserting the 
                following:
            ``(1) Establishment of policy or program.--Each agency''; 
        and
                    (B) by adding at the end the following:
            ``(2) Review of civil penalties.--Not later than 2 years 
        after the date of enactment of the Small Business Regulatory 
        Flexibility Improvements Act of 2015, and every 2 years 
        thereafter, each agency regulating the activities of small 
        entities shall review the civil penalties imposed by the agency 
        for violations of a statutory or regulatory requirement by a 
        small entity to determine whether a reduction or waiver of the 
        civil penalties is appropriate.''; and
            (2) in subsection (c)--
                    (A) by striking ``Agencies shall report'' and all 
                that follows through ``the scope'' and inserting ``Not 
                later than 2 years after the date of enactment of the 
                Small Business Regulatory Flexibility Improvements Act 
                of 2015, and every 2 years thereafter, each agency 
                shall submit to the Committee on Small Business and 
                Entrepreneurship and the Committee on Homeland Security 
                and Governmental Affairs of the Senate and the 
                Committee on Small Business and the Committee on the 
                Judiciary of the House of Representatives a report 
                discussing the scope''; and
                    (B) by striking ``and the total amount of penalty 
                reductions and waivers'' and inserting ``the total 
                amount of penalty reductions and waivers, and the 
                results of the most recent review under subsection 
                (a)(2)''.

SEC. 14. SUSPENSION OF FINES FOR FIRST-TIME PAPERWORK VIOLATIONS BY 
              SMALL BUSINESS CONCERNS.

    Section 3506 of title 44, United States Code (commonly referred to 
as the ``Paperwork Reduction Act''), is amended by adding at the end 
the following:
    ``(j) Small Businesses.--
            ``(1) Small business concern.--In this subsection, the term 
        `small business concern' has the meaning given that term under 
        section 3 of the Small Business Act (15 U.S.C. 632).
            ``(2) In general.--In the case of a first-time violation by 
        a small business concern of a requirement regarding the 
        collection of information by an agency, the head of the agency 
        shall not impose a civil fine on the small business concern 
        unless the head of the agency determines that--
                    ``(A) the violation has the potential to cause 
                serious harm to the public interest;
                    ``(B) failure to impose a civil fine would impede 
                or interfere with the detection of criminal activity;
                    ``(C) the violation is a violation of an internal 
                revenue law or a law concerning the assessment or 
                collection of any tax, debt, revenue, or receipt;
                    ``(D) the violation was not corrected on or before 
                the date that is 6 months after the date on which the 
                small business concern receives notification of the 
                violation in writing from the agency; or
                    ``(E) except as provided in paragraph (3), the 
                violation presents a danger to the public health or 
                safety.
            ``(3) Danger to public health or safety.--
                    ``(A) In general.--In any case in which the head of 
                an agency determines under paragraph (2)(E) that a 
                violation presents a danger to the public health or 
                safety, the head of the agency may, notwithstanding 
                paragraph (2)(E), determine not to impose a civil fine 
                on the small business concern if the violation is 
                corrected not later than 24 hours after receipt by the 
                owner of the small business concern of notification of 
                the violation in writing.
                    ``(B) Considerations.--In determining whether to 
                allow a small business concern 24 hours to correct a 
                violation under subparagraph (A), the head of an agency 
                shall take into account all of the facts and 
                circumstances regarding the violation, including--
                            ``(i) the nature and seriousness of the 
                        violation, including whether the violation is 
                        technical or inadvertent or involves willful or 
                        criminal conduct;
                            ``(ii) whether the small business concern 
                        has made a good faith effort to comply with 
                        applicable laws and to remedy the violation 
                        within the shortest practicable period of time; 
                        and
                            ``(iii) whether the small business concern 
                        has obtained a significant economic benefit 
                        from the violation.
                    ``(C) Notice to congress.--In any case in which the 
                head of an agency imposes a civil fine on a small 
                business concern for a violation that presents a danger 
                to the public health or safety and does not allow the 
                small business concern 24 hours to correct the 
                violation under subparagraph (A), the head of the 
                agency shall notify Congress regarding the 
                determination not later than 60 days after the date on 
                which the civil fine is imposed by the agency.
            ``(4) Limited to first-time violations.--
                    ``(A) In general.--This subsection shall not apply 
                to any violation by a small business concern of a 
                requirement regarding collection of information by an 
                agency if the small business concern previously 
                violated any requirement regarding collection of 
                information by the agency.
                    ``(B) Other agencies.--For purposes of making a 
                determination under subparagraph (A), the head of an 
                agency shall not take into account any violation of a 
                requirement regarding collection of information by 
                another agency.''.

SEC. 15. ENSURING THAT AGENCIES CONSIDER SMALL ENTITY IMPACT DURING THE 
              RULEMAKING PROCESS.

    Section 605(b) of title 5, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
            ``(2) If, after publication of the certification required 
        under paragraph (1), the head of the agency determines that 
        there will be a significant economic impact on a substantial 
        number of small entities, the agency shall comply with the 
        requirements of section 603 before the publication of the final 
        rule, by--
                    ``(A) publishing an initial regulatory flexibility 
                analysis for public comment; or
                    ``(B) re-proposing the rule with an initial 
                regulatory flexibility analysis.
            ``(3) The head of an agency may not make a certification 
        relating to a rule under this subsection, unless the head of 
        the agency has determined--
                    ``(A) the average cost of the rule for small 
                entities affected or reasonably presumed to be affected 
                by the rule;
                    ``(B) the number of small entities affected or 
                reasonably presumed to be affected by the rule; and
                    ``(C) the number of affected small entities for 
                which that cost will be significant.
            ``(4) Before publishing a certification and a statement 
        providing the factual basis for the certification under 
        paragraph (1), the head of an agency shall--
                    ``(A) transmit a copy of the certification and 
                statement to the Chief Counsel for Advocacy of the 
                Small Business Administration; and
                    ``(B) consult with the Chief Counsel for Advocacy 
                of the Small Business Administration on the accuracy of 
                the certification and statement.''.

SEC. 16. COMPTROLLER GENERAL REPORT.

    Not later than 90 days after the date of enactment of this Act, the 
Comptroller General of the United States shall complete and publish a 
study that examines whether the Chief Counsel for Advocacy of the Small 
Business Administration has the capacity and resources to carry out the 
duties of the Chief Counsel under this Act and the amendments made by 
this Act.
                                 <all>