[Weekly Compilation of Presidential Documents Volume 38, Number 33 (Monday, August 19, 2002)]
[Pages 1351-1353]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 13272--Proper Consideration of Small Entities in Agency 
Rulemaking

August 13, 2002

    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, it is hereby ordered as 
follows:
    Section 1. General Requirements. Each agency shall establish 
procedures and policies to promote compliance with the Regulatory 
Flexibility Act, as amended (5 U.S.C. 601 et seq.) (the ``Act''). 
Agencies shall thoroughly review draft rules to assess and take 
appropriate account of the potential impact on small businesses, small 
governmental jurisdictions, and small organizations, as provided by the 
Act. The Chief Counsel for Advocacy of the Small Business Administration 
(Advocacy) shall remain available to advise agencies in performing that 
review consistent with the provisions of the Act.
    Sec. 2. Responsibilities of Advocacy. Consistent with the 
requirements of the Act, other applicable law, and Executive Order 12866 
of September 30, 1993, as amended, Advocacy:
    (a) shall notify agency heads from time to time of the requirements 
of the Act, including by issuing notifications with respect to the basic 
requirements of the Act within 90 days of the date of this order;
    (b) shall provide training to agencies on compliance with the Act; 
and
    (c) may provide comment on draft rules to the agency that has 
proposed or intends

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to propose the rules and to the Office of Information and Regulatory 
Affairs of the Office of Management and Budget (OIRA).
    Sec. 3. Responsibilities of Federal Agencies. Consistent with the 
requirements of the Act and applicable law, agencies shall:
    (a) Within 180 days of the date of this order, issue written 
procedures and policies, consistent with the Act, to ensure that the 
potential impacts of agencies' draft rules on small businesses, small 
governmental jurisdictions, and small organizations are properly 
considered during the rulemaking process. Agency heads shall submit, no 
later than 90 days from the date of this order, their written procedures 
and policies to Advocacy for comment. Prior to issuing final procedures 
and policies, agencies shall consider any such comments received within 
60 days from the date of the submission of the agencies' procedures and 
policies to Advocacy. Except to the extent otherwise specifically 
provided by statute or Executive Order, agencies shall make the final 
procedures and policies available to the public through the Internet or 
other easily accessible means;
    (b) Notify Advocacy of any draft rules that may have a significant 
economic impact on a substantial number of small entities under the Act. 
Such notifications shall be made (i) when the agency submits a draft 
rule to OIRA under Executive Order 12866 if that order requires such 
submission, or (ii) if no submission to OIRA is so required, at a 
reasonable time prior to publication of the rule by the agency; and
    (c) Give every appropriate consideration to any comments provided by 
Advocacy regarding a draft rule. Consistent with applicable law and 
appropriate protection of executive deliberations and legal privileges, 
an agency shall include, in any explanation or discussion accompanying 
publication in the Federal Register of a final rule, the agency's 
response to any written comments submitted by Advocacy on the proposed 
rule that preceded the final rule; provided, however, that such 
inclusion is not required if the head of the agency certifies that the 
public interest is not served thereby.
    Agencies and Advocacy may, to the extent permitted by law, engage in 
an exchange of data and research, as appropriate, to foster the purposes 
of the Act.
    Sec. 4. Definitions. Terms defined in section 601 of title 5, United 
States Code, including the term ``agency,'' shall have the same meaning 
in this order.
    Sec. 5. Preservation of Authority. Nothing in this order shall be 
construed to impair or affect the authority of the Administrator of the 
Small Business Administration to supervise the Small Business 
Administration as provided in the first sentence of section 2(b)(1) of 
Public Law 85-536 (15 U.S.C. 633(b)(1)).
    Sec. 6. Reporting. For the purpose of promoting compliance with this 
order, Advocacy shall submit a report not less than annually to the 
Director of the Office of Management and Budget on the extent of 
compliance with this order by agencies.
    Sec. 7. Confidentiality. Consistent with existing law, Advocacy may 
publicly disclose information that it receives from the agencies in the 
course of carrying out this order only to the extent that such 
information already has been lawfully and publicly disclosed by OIRA or 
the relevant rulemaking agency.
    Sec. 8. Judicial Review. This order is intended only to improve the 
internal management of the Federal Government. This order is not 
intended to, and does not, create any right or benefit, substantive or 
procedural, enforceable at law or equity, against the United States, its 
departments, agencies, or other entities, its officers or employees, or 
any other person.
                                                George W. Bush
 The White House,
 August 13, 2002.

 [Filed with the Office of the Federal Register, 8:45 a.m., August 15, 
2002]

Note: This Executive order was released by the Office of the Press 
Secretary on August 14, and it was published in the Federal Register on 
August 16.

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