[104th Congress Public Law 121]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ121.104]
[[Page 110 STAT. 847]]
Public Law 104-121
104th Congress
An Act
To provide for enactment of the Senior Citizens' Right to Work Act of
1996, the Line Item Veto Act, and the Small Business Growth and Fairness
Act of 1996, and to provide for a permanent increase in the public debt
limit. <<NOTE: Mar. 29, 1996 - [H.R. 3136]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Contract with
America Advancement Act of 1996.>>
SECTION 1. <<NOTE: 5 USC 601 note.>> SHORT TITLE.
This Act may be cited as the ``Contract with America Advancement Act
of 1996''.
TITLE <<NOTE: Senior Citizens' Right to Work Act of 1996.>> I--SOCIAL
SECURITY EARNINGS LIMITATION AMENDMENTS
SEC. 101. <<NOTE: 42 USC 1305 note.>> SHORT TITLE OF TITLE.
This title may be cited as the ``Senior Citizens' Right to Work Act
of 1996''.
SEC. 102. INCREASES IN MONTHLY EXEMPT AMOUNT FOR PURPOSES OF THE SOCIAL
SECURITY EARNINGS LIMIT.
(a) Increase in Monthly Exempt Amount for Individuals Who Have
Attained Retirement Age.--Section 203(f)(8)(D) of the Social Security
Act (42 U.S.C. 403(f)(8)(D)) is amended to read as follows:
``(D) Notwithstanding any other provision of this
subsection, the exempt amount which is applicable to an
individual who has attained retirement age (as defined in
section 216(l)) before the close of the taxable year involved
shall be--
``(i) for each month of any taxable year ending
after 1995 and before 1997, $1,041.66\2/3\,
``(ii) for each month of any taxable year ending
after 1996 and before 1998, $1,125.00,
``(iii) for each month of any taxable year ending
after 1997 and before 1999, $1,208.33\1/3\,
``(iv) for each month of any taxable year ending
after 1998 and before 2000, $1,291.66\2/3\,
``(v) for each month of any taxable year ending
after 1999 and before 2001, $1,416.66\2/3\,
``(vi) for each month of any taxable year ending
after 2000 and before 2002, $2,083.33\1/3\, and
``(vii) for each month of any taxable year ending
after 2001 and before 2003, $2,500.00.''.
(b) Conforming Amendments.--
[[Page 110 STAT. 848]]
(1) Section 203(f)(8)(B)(ii) of such Act (42 U.S.C.
403(f)(8)(B)(ii)) is amended--
(A) by striking ``the taxable year ending after 1993
and before 1995'' and inserting ``the taxable year
ending after 2001 and before 2003 (with respect to
individuals described in subparagraph (D)) or the
taxable year ending after 1993 and before 1995 (with
respect to other individuals)''; and
(B) in subclause (II), by striking ``for 1992'' and
inserting ``for 2000 (with respect to individuals
described in subparagraph (D)) or 1992 (with respect to
other individuals)''.
(2) The second sentence of section 223(d)(4)(A) of such Act
(42 U.S.C. 423(d)(4)(A)) is amended by striking ``the exempt
amount under section 203(f)(8) which is applicable to
individuals described in subparagraph (D) thereof'' and
inserting the following: ``an amount equal to the exempt amount
which would be applicable under section 203(f)(8), to
individuals described in subparagraph (D) thereof, if section
102 of the Senior Citizens' Right to Work Act of 1996 had not
been enacted''.
(c) <<NOTE: 42 USC 403 note.>> Effective Date.--The amendments made
by this section shall apply with respect to taxable years ending after
1995.
SEC. 103. CONTINUING DISABILITY REVIEWS.
(a) Authorization for Appropriations for Continuing Disability
Reviews.--Section 201(g)(1)(A) of the Social Security Act (42 U.S.C.
401(g)(1)(A)) is amended by adding at the end the following: ``Of the
amounts authorized to be made available out of the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund under the preceding sentence, there are hereby authorized to
be made available from either or both of such Trust Funds for continuing
disability reviews--
``(i) for fiscal year 1996, $260,000,000;
``(ii) for fiscal year 1997, $360,000,000;
``(iii) for fiscal year 1998, $570,000,000;
``(iv) for fiscal year 1999, $720,000,000;
``(v) for fiscal year 2000, $720,000,000;
``(vi) for fiscal year 2001, $720,000,000; and
``(viii) for fiscal year 2002, $720,000,000.
For purposes of this subparagraph, the term `continuing disability
review' means a review conducted pursuant to section 221(i) and a review
or disability eligibility redetermination conducted to determine the
continuing disability and eligibility of a recipient of benefits under
the supplemental security income program under title XVI, including any
review or redetermination conducted pursuant to section 207 or 208 of
the Social Security Independence and Program Improvements Act of 1994
(Public Law 103-296).''.
(b) Adjustment to Discretionary Spending Limits.--Section 251(b)(2)
of the Balanced Budget and Emergency Deficit Control Act of
1985 <<NOTE: 2 USC 901.>> is amended by adding the following new
subparagraph:
``(H) Continuing disability reviews.--(i) Whenever a
bill or joint resolution making appropriations for
fiscal year 1996, 1997, 1998, 1999, 2000, 2001, or 2002
is enacted that specifies an amount for continuing
disability reviews under the heading `Limitation on
Administrative Expenses' for the Social Security
Administration, the adjustments
[[Page 110 STAT. 849]]
for that fiscal year shall be the additional new budget
authority provided in that Act for such reviews for that
fiscal year and the additional outlays flowing from such
amounts, but shall not exceed--
``(I) for fiscal year 1996, $15,000,000 in
additional new budget authority and $60,000,000 in
additional outlays;
``(II) for fiscal year 1997, $25,000,000 in
additional new budget authority and $160,000,000
in additional outlays;
``(III) for fiscal year 1998, $145,000,000 in
additional new budget authority and $370,000,000
in additional outlays;
``(IV) for fiscal year 1999, $280,000,000 in
additional new budget authority and $520,000,000
in additional outlays;
``(V) for fiscal year 2000, $317,500,000 in
additional new budget authority and $520,000,000
in additional outlays;
``(VI) for fiscal year 2001, $317,500,000 in
additional new budget authority and $520,000,000
in additional outlays; and
``(VII) for fiscal year 2002, $317,500,000 in
additional new budget authority and $520,000,000
in additional outlays.
``(ii) As used in this subparagraph--
``(I) the term `continuing disability reviews'
has the meaning given such term by section
201(g)(1)(A) of the Social Security Act;
``(II) the term `additional new budget
authority' means new budget authority provided for
a fiscal year, in excess of $100,000,000, for the
Supplemental Security Income program and specified
to pay for the costs of continuing disability
reviews attributable to the Supplemental Security
Income program; and
``(III) the term `additional outlays' means
outlays, in excess of $200,000,000 in a fiscal
year, flowing from the amounts specified for
continuing disability reviews under the heading
`Limitation on Administrative Expenses' for the
Social Security Administration, including outlays
in that fiscal year flowing from amounts specified
in Acts enacted for prior fiscal years (but not
before 1996).''.
(c) Budget Allocation Adjustment by Budget Committee.--Section 606
of the Congressional Budget and Impoundment Control Act of
1974 <<NOTE: 2 USC 665e.>> is amended by adding the following new
subsection:
``(e) Continuing Disability Review Adjustment.--
``(1) In general.--(A) For fiscal year 1996, upon the
enactment of the Contract with America Advancement Act of 1996,
the Chairmen of the Committees on the Budget of the Senate and
House of Representatives shall make the adjustments referred to
in subparagraph (C) to reflect $15,000,000 in additional new
budget authority and $60,000,000 in additional outlays for
continuing disability reviews (as defined in section
201(g)(1)(A) of the Social Security Act).
``(B) When the Committee on Appropriations reports an
appropriations measure for fiscal year 1997, 1998, 1999, 2000,
[[Page 110 STAT. 850]]
2001, or 2002 that specifies an amount for continuing disability
reviews under the heading `Limitation on Administrative
Expenses' for the Social Security Administration, or when a
conference committee submits a conference report thereon, the
Chairman of the Committee on the Budget of the Senate or House
of Representatives (whichever is appropriate) shall make the
adjustments referred to in subparagraph (C) to reflect the
additional new budget authority for continuing disability
reviews provided in that measure or conference report and the
additional outlays flowing from such amounts for continuing
disability reviews.
``(C) The adjustments referred to in this subparagraph
consist of adjustments to--
``(i) the discretionary spending limits for that
fiscal year as set forth in the most recently adopted
concurrent resolution on the budget;
``(ii) the allocations to the Committees on
Appropriations of the Senate and the House of
Representatives for that fiscal year under sections
302(a) and 602(a); and
``(iii) the appropriate budgetary aggregates for
that fiscal year in the most recently adopted concurrent
resolution on the budget.
``(D) The adjustments under this paragraph for any fiscal
year shall not exceed the levels set forth in section
251(b)(2)(H) of the Balanced Budget and Emergency Deficit
Control Act of 1985 for that fiscal year. The adjusted
discretionary spending limits, allocations, and aggregates under
this paragraph shall be considered the appropriate limits,
allocations, and aggregates for purposes of congressional
enforcement of this Act and concurrent budget resolutions under
this Act.
``(2) Reporting revised suballocations.--Following the
adjustments made under paragraph (1), the Committees on
Appropriations of the Senate and the House of Representatives
may report appropriately revised suballocations pursuant to
sections 302(b) and 602(b) of this Act to carry out this
subsection.
``(3) Definitions.--As used in this section, the terms
`continuing disability reviews', `additional new budget
authority', and `additional outlays' shall have the same
meanings as provided in section 251(b)(2)(H)(ii) of the Balanced
Budget and Emergency Deficit Control Act of 1985.''.
(d) <<NOTE: 42 USC 401 note.>> Use of Funds and Reports.--
(1) In general.--The Commissioner of Social Security shall
ensure that funds made available for continuing disability
reviews (as defined in section 201(g)(1)(A) of the Social
Security Act) are used, to the greatest extent practicable, to
maximize the combined savings in the old-age, survivors, and
disability insurance, supplemental security income, Medicare,
and medicaid programs.
(2) Report.--The Commissioner of Social Security shall
provide annually (at the conclusion of each of the fiscal years
1996 through 2002) to the Congress a report on continuing
disability reviews which includes--
(A) the amount spent on continuing disability
reviews in the fiscal year covered by the report, and
the number of reviews conducted, by category of review;
[[Page 110 STAT. 851]]
(B) the results of the continuing disability reviews
in terms of cessations of benefits or determinations of
continuing eligibility, by program; and
(C) the estimated savings over the short-, med-
ium-, and long-term to the old-age, survivors, and
disability insurance, supplemental security income,
Medicare, and medicaid programs from continuing
disability reviews which result in cessations of
benefits and the estimated present value of such
savings.
(e) Office of Chief Actuary in the Social Security Administration.--
(1) In general.--Section 702 of the Social Security Act (42
U.S.C. 902) is amended--
(A) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(B) by inserting after subsection (b) the following
new subsection:
``chief actuary
``(c)(1) There shall be in the Administration a Chief Actuary, who
shall be appointed by, and in direct line of authority to, the
Commissioner. The Chief Actuary shall be appointed from individuals who
have demonstrated, by their education and experience, superior expertise
in the actuarial sciences. The Chief Actuary shall serve as the chief
actuarial officer of the Administration, and shall exercise such duties
as are appropriate for the office of the Chief Actuary and in accordance
with professional standards of actuarial independence. The Chief Actuary
may be removed only for cause.
``(2) The Chief Actuary shall be compensated at the highest rate of
basic pay for the Senior Executive Service under section 5382(b) of
title 5, United States Code.''.
(2) <<NOTE: 42 USC 902 note.>> Effective date of
subsection.--The amendments made by this subsection shall take
effect on the date of the enactment of this Act.
SEC. 104. ENTITLEMENT OF STEPCHILDREN TO CHILD'S INSURANCE BENEFITS
BASED ON ACTUAL DEPENDENCY ON STEPPARENT SUPPORT.
(a) Requirement of Actual Dependency for Future Entitlements.--
(1) In general.--Section 202(d)(4) of the Social Security
Act (42 U.S.C. 402(d)(4)) is amended by striking ``was living
with or''.
(2) <<NOTE: 42 USC 402 note.>> Effective date.--The
amendment made by paragraph (1) shall apply with respect to
benefits of individuals who become entitled to such benefits for
months after the third month following the month in which this
Act is enacted.
(b) Termination of Child's Insurance Benefits Based on Work Record
of Stepparent Upon Natural Parent's Divorce From Stepparent.--
(1) In general.--Section 202(d)(1) of the Social Security
Act (42 U.S.C. 402(d)(1)) is amended--
(A) by striking ``or'' at the end of subparagraph
(F);
(B) by striking the period at the end of
subparagraph (G) and inserting ``; or''; and
[[Page 110 STAT. 852]]
(C) by inserting after subparagraph (G) the
following new subparagraph:
``(H) if the benefits under this subsection are based on the
wages and self-employment income of a stepparent who is
subsequently divorced from such child's natural parent, the
month after the month in which such divorce becomes final.''.
(2) Notification.--Section 202(d) of such Act (42 U.S.C.
402(d)) is amended by adding the following new paragraph:
``(10) For purposes of paragraph (1)(H)--
``(A) each stepparent shall notify the Commissioner of
Social Security of any divorce upon such divorce becoming final;
and
``(B) the Commissioner shall annually notify any stepparent
of the rule for termination described in paragraph (1)(H) and of
the requirement described in subparagraph (A).''.
(3) <<NOTE: 42 USC 402 note.>> Effective dates.--
(A) The amendments made by paragraph (1) shall apply
with respect to final divorces occurring after the third
month following the month in which this Act is enacted.
(B) The amendment made by paragraph (2) shall take
effect on the date of the enactment of this Act.
SEC. 105. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.
(a) Amendments Relating to Title II Disability Benefits.--
(1) In general.--Section 223(d)(2) of the Social Security
Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the
following:
``(C) An individual shall not be considered to be disabled
for purposes of this title if alcoholism or drug addiction would
(but for this subparagraph) be a contributing factor material to
the Commissioner's determination that the individual is
disabled.''.
(2) Representative payee requirements.--
(A) Section 205(j)(1)(B) of such Act (42 U.S.C.
405(j)(1)(B)) is amended to read as follows:
``(B) In the case of an individual entitled to benefits based on
disability, the payment of such benefits shall be made to a
representative payee if the Commissioner of Social Security determines
that such payment would serve the interest of the individual because the
individual also has an alcoholism or drug addiction condition (as
determined by the Commissioner) and the individual is incapable of
managing such benefits.''.
(B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C.
405(j)(2)(C)(v)) is amended by striking ``entitled to
benefits'' and all that follows through ``under a
disability'' and inserting ``described in paragraph
(1)(B)''.
(C) Section 205(j)(2)(D)(ii)(II) of such Act (42
U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking all
that follows ``15 years, or'' and inserting ``described
in paragraph (1)(B).''.
(D) Section 205(j)(4)(A)(i)(II) of such Act (42
U.S.C. 405(j)(4)(A)(ii)(II)) is amended by striking
``entitled to benefits'' and all that follows through
``under a disability'' and inserting ``described in
paragraph (1)(B)''.
(3) Treatment referrals for individuals with an alcoholism
or drug addiction condition.--Section 222 of
[[Page 110 STAT. 853]]
such Act (42 U.S.C. 422) is amended by adding at the end the
following new subsection:
``treatment referrals for individuals with an alcoholism or drug
addiction condition
``(e) In the case of any individual whose benefits under this title
are paid to a representative payee pursuant to section 205(j)(1)(B), the
Commissioner of Social Security shall refer such individual to the
appropriate State agency administering the State plan for substance
abuse treatment services approved under subpart II of part B of title
XIX of the Public Health Service Act (42 U.S.C. 300x-21 et seq.).''.
(4) Conforming amendment.--Subsection (c) of section 225 of
such Act (42 U.S.C. 425(c)) is repealed.
(5) <<NOTE: 42 USC 405 note.>> Effective dates.--
(A) The amendments made by paragraphs (1) and (4)
shall apply to any individual who applies for, or whose
claim is finally adjudicated by the Commissioner of
Social Security with respect to, benefits under title II
of the Social Security Act based on disability on or
after the date of the enactment of this Act, and, in the
case of any individual who has applied for, and whose
claim has been finally adjudicated by the Commissioner
with respect to, such benefits before such date of
enactment, such amendments shall apply only with respect
to such benefits for months beginning on or after
January 1, 1997.
(B) The amendments made by paragraphs (2) and (3)
shall apply with respect to benefits for which
applications are filed after the third month following
the month in which this Act is enacted.
(C) Within 90 days after the date of the enactment
of this Act, the Commissioner of Social Security shall
notify each individual who is entitled to monthly
insurance benefits under title II of the Social Security
Act based on disability for the month in which this Act
is enacted and whose entitlement to such benefits would
terminate by reason of the amendments made by this
subsection. If such an individual reapplies for benefits
under title II of such Act (as amended by this Act)
based on disability within 120 days after the date of
the enactment of this Act, the Commissioner of Social
Security shall, not later than January 1, 1997, complete
the entitlement redetermination (including a new medical
determination) with respect to such individual pursuant
to the procedures of such title.
(b) Amendments Relating to SSI Benefits.--
(1) In general.--Section 1614(a)(3) of the Social Security
Act (42 U.S.C. 1382c(a)(3)) is amended by adding at the end the
following:
``(I) Notwithstanding subparagraph (A), an individual shall not be
considered to be disabled for purposes of this title if alcoholism or
drug addiction would (but for this subparagraph) be a contributing
factor material to the Commissioner's determination that the individual
is disabled.''.
(2) Representative payee requirements.--
(A) Section 1631(a)(2)(A)(ii)(II) of such Act (42
U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as
follows:
[[Page 110 STAT. 854]]
``(II) In the case of an individual eligible for benefits under this
title by reason of disability, the payment of such benefits shall be
made to a representative payee if the Commissioner of Social Security
determines that such payment would serve the interest of the individual
because the individual also has an alcoholism or drug addiction
condition (as determined by the Commissioner) and the individual is
incapable of managing such benefits.''.
(B) Section 1631(a)(2)(B)(vii) of such Act (42
U.S.C. 1383(a)(2)(B)(vii)) is amended by striking
``eligible for benefits'' and all that follows through
``is disabled'' and inserting ``described in
subparagraph (A)(ii)(II)''.
(C) Section 1631(a)(2)(B)(ix)(II) of such Act (42
U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking all
that follows ``15 years, or'' and inserting ``described
in subparagraph (A)(ii)(II).''.
(D) Section 1631(a)(2)(D)(i)(II) of such Act (42
U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking
``eligible for benefits'' and all that follows through
``is disabled'' and inserting ``described in
subparagraph (A)(ii)(II)''.
(3) Treatment referrals for individuals with an alcoholism
or drug addiction condition.--Title XVI of such Act (42 U.S.C.
1381 et seq.) is amended by adding at the end the following new
section:
``treatment referrals for individuals with an alcoholism or drug
addiction condition
``Sec. 1636. <<NOTE: 42 USC 1383e.>> In the case of any individual
whose benefits under this title are paid to a representative payee
pursuant to section 1631(a)(2)(A)(ii)(II), the Commissioner of Social
Security shall refer such individual to the appropriate State agency
administering the State plan for substance abuse treatment services
approved under subpart II of part B of title XIX of the Public Health
Service Act (42 U.S.C. 300x-21 et seq.).''.
(4) Conforming amendments.--
(A) Section 1611(e) of such Act (42 U.S.C. 1382(e))
is amended by striking paragraph (3).
(B) Section 1634 of such Act (42 U.S.C. 1383c) is
amended by striking subsection (e).
(5) <<NOTE: 42 USC 1382 note.>> Effective dates.--
(A) The amendments made by paragraphs (1) and (4)
shall apply to any individual who applies for, or whose
claim is finally adjudicated by the Commissioner of
Social Security with respect to, supplemental security
income benefits under title XVI of the Social Security
Act based on disability on or after the date of the
enactment of this Act, and, in the case of any
individual who has applied for, and whose claim has been
finally adjudicated by the Commissioner with respect to,
such benefits before such date of enactment, such
amendments shall apply only with respect to such
benefits for months beginning on or after January 1,
1997.
(B) The amendments made by paragraphs (2) and (3)
shall apply with respect to supplemental security income
benefits under title XVI of the Social Security Act for
which applications are filed after the third month
following the month in which this Act is enacted.
[[Page 110 STAT. 855]]
(C) Within 90 days after the date of the enactment
of this Act, the Commissioner of Social Security shall
notify each individual who is eligible for supplemental
security income benefits under title XVI of the Social
Security Act for the month in which this Act is enacted
and whose eligibility for such benefits would terminate
by reason of the amendments made by this subsection. If
such an individual reapplies for supplemental security
income benefits under title XVI of such Act (as amended
by this Act) within 120 days after the date of the
enactment of this Act, the Commissioner of Social
Security shall, not later than January 1, 1997, complete
the eligibility redetermination (including a new medical
determination) with respect to such individual pursuant
to the procedures of such title.
(D) For purposes of this paragraph, the phrase
``supplemental security income benefits under title XVI
of the Social Security Act'' includes supplementary
payments pursuant to an agreement for Federal
administration under section 1616(a) of the Social
Security Act and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93-66.
(c) Conforming Amendment.--Section 201(c) of the Social Security
Independence and Program Improvements Act of 1994 (42 U.S.C. 425 note)
is repealed.
(d) Supplemental Funding for Alcohol and Substance Abuse Treatment
Programs.--
(1) In general.--Out of any money in the Treasury not
otherwise appropriated, there are hereby appropriated to
supplement State and Tribal programs funded under section 1933
of the Public Health Service Act (42 U.S.C. 300x-33),
$50,000,000 for each of the fiscal years 1997 and 1998.
(2) Additional funds.--Amounts appropriated under paragraph
(1) shall be in addition to any funds otherwise appropriated for
allotments under section 1933 of the Public Health Service Act
(42 U.S.C. 300x-33) and shall be allocated pursuant to such
section 1933.
(3) Use of Funds.--A State or Tribal government receiving an
allotment under this subsection shall consider as priorities,
for purposes of expending funds allotted under this subsection,
activities relating to the treatment of the abuse of alcohol and
other drugs.
SEC. 106. <<NOTE: 42 USC 402 note.>> PILOT STUDY OF EFFICACY OF
PROVIDING INDIVIDUALIZED INFORMATION TO RECIPIENTS OF OLD-
AGE AND SURVIVORS INSURANCE BENEFITS.
(a) In General.--During a 2-year period beginning as soon as
practicable in 1996, the Commissioner of Social Security shall conduct a
pilot study of the efficacy of providing certain individualized
information to recipients of monthly insurance benefits under section
202 of the Social Security Act, designed to promote better understanding
of their contributions and benefits under the social security system.
The study shall involve solely beneficiaries whose entitlement to such
benefits first occurred in or after 1984 and who have remained entitled
to such benefits for a continuous period of not less than 5 years. The
number of such recipients involved in the study shall be of sufficient
size to generate a statistically
[[Page 110 STAT. 856]]
valid sample for purposes of the study, but shall not exceed 600,000
beneficiaries.
(b) Annualized Statements.--During the course of the study, the
Commissioner shall provide to each of the beneficiaries involved in the
study one annualized statement, setting forth the following information:
(1) an estimate of the aggregate wages and self-employment
income earned by the individual on whose wages and self-
employment income the benefit is based, as shown on the records
of the Commissioner as of the end of the last calendar year
ending prior to the beneficiary's first month of entitlement;
(2) an estimate of the aggregate of the employee and self-
employment contributions, and the aggregate of the employer
contributions (separately identified), made with respect to the
wages and self-employment income on which the benefit is based,
as shown on the records of the Commissioner as of the end of the
calendar year preceding the beneficiary's first month of
entitlement; and
(3) an estimate of the total amount paid as benefits under
section 202 of the Social Security Act based on such wages and
self-employment income, as shown on the records of the
Commissioner as of the end of the last calendar year preceding
the issuance of the statement for which complete information is
available.
(c) Inclusion With Matter Otherwise Distributed to Beneficiaries.--
The Commissioner shall ensure that reports provided pursuant to this
section are, to the maximum extent practicable, included with other
reports currently provided to beneficiaries on an annual basis.
(d) Report to the Congress.--The Commissioner shall report to each
House of the Congress regarding the results of the pilot study conducted
pursuant to this section not later than 60 days after the completion of
such study.
SEC. 107. PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST FUNDS.
(a) In General.--Part A of title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended by adding at the end the following new
section:
``protection of social security and medicare trust funds
``Sec. 1145. <<NOTE: 42 USC 1320b-15.>> (a) In General.--No officer
or employee of the United States shall--
``(1) delay the deposit of any amount into (or delay the
credit of any amount to) any Federal fund or otherwise vary from
the normal terms, procedures, or timing for making such deposits
or credits,
``(2) refrain from the investment in public debt obligations
of amounts in any Federal fund, or
``(3) redeem prior to maturity amounts in any Federal fund
which are invested in public debt obligations for any purpose
other than the payment of benefits or administrative expenses
from such Federal fund.
``(b) Public Debt Obligation.--For purposes of this section, the
term `public debt obligation' means any obligation subject to the public
debt limit established under section 3101 of title 31, United States
Code.
[[Page 110 STAT. 857]]
``(c) Federal Fund.--For purposes of this section, the term `Federal
fund' means--
``(1) the Federal Old-Age and Survivors Insurance Trust
Fund;
``(2) the Federal Disability Insurance Trust Fund;
``(3) the Federal Hospital Insurance Trust Fund; and
``(4) the Federal Supplementary Medical Insurance Trust
Fund.''.
(b) <<NOTE: 42 USC 1320b-15 note.>> Effective Date.--The amendment
made by this section shall take effect on the date of the enactment of
this Act.
SEC. 108. PROFESSIONAL STAFF FOR THE SOCIAL SECURITY ADVISORY BOARD.
Section 703(i) of the Social Security Act (42 U.S.C. 903(i)) is
amended in the first sentence by inserting after ``Staff Director'' the
following: ``, and three professional staff members one of whom shall be
appointed from among individuals approved by the members of the Board
who are not members of the political party represented by the majority
of the Board,''.
TITLE <<NOTE: Small Business Regulatory Enforcement Fairness Act of
1996.>> II--SMALL BUSINESS REGULATORY FAIRNESS
SEC. 201. <<NOTE: 5 USC 601 note.>> SHORT TITLE.
This title may be cited as the ``Small Business Regulatory
Enforcement Fairness Act of 1996''.
SEC. 202. <<NOTE: 5 USC 601 note.>> FINDINGS.
Congress finds that--
(1) a vibrant and growing small business sector is critical
to creating jobs in a dynamic economy;
(2) small businesses bear a disproportionate share of
regulatory costs and burdens;
(3) fundamental changes that are needed in the regulatory
and enforcement culture of Federal agencies to make agencies
more responsive to small business can be made without
compromising the statutory missions of the agencies;
(4) three of the top recommendations of the 1995 White House
Conference on Small Business involve reforms to the way
government regulations are developed and enforced, and
reductions in government paperwork requirements;
(5) the requirements of chapter 6 of title 5, United States
Code, have too often been ignored by government agencies,
resulting in greater regulatory burdens on small entities than
necessitated by statute; and
(6) small entities should be given the opportunity to seek
judicial review of agency actions required by chapter 6 of title
5, United States Code.
SEC. 203. <<NOTE: 5 USC 601 note.>> PURPOSES.
The purposes of this title are--
(1) to implement certain recommendations of the 1995 White
House Conference on Small Business regarding the development and
enforcement of Federal regulations;
(2) to provide for judicial review of chapter 6 of title 5,
United States Code;
[[Page 110 STAT. 858]]
(3) to encourage the effective participation of small
businesses in the Federal regulatory process;
(4) to simplify the language of Federal regulations
affecting small businesses;
(5) to develop more accessible sources of information on
regulatory and reporting requirements for small businesses;
(6) to create a more cooperative regulatory environment
among agencies and small businesses that is less punitive and
more solution-oriented; and
(7) to make Federal regulators more accountable for their
enforcement actions by providing small entities with a
meaningful opportunity for redress of excessive enforcement
activities.
Subtitle A <<NOTE: 5 USC 601 note.>> --Regulatory Compliance
Simplification
SEC. 211. DEFINITIONS.
For purposes of this subtitle--
(1) the terms ``rule'' and ``small entity'' have the same
meanings as in section 601 of title 5, United States Code;
(2) the term ``agency'' has the same meaning as in section
551 of title 5, United States Code; and
(3) the term ``small entity compliance guide'' means a
document designated as such by an agency.
SEC. 212. COMPLIANCE GUIDES.
(a) Compliance Guide.--For each rule or group of related rules for
which an agency is required to prepare a final regulatory flexibility
analysis under section 604 of title 5, United States Code, the agency
shall publish one or more guides to assist small entities in complying
with the rule, and shall designate such publications as ``small entity
compliance guides''. The guides shall explain the actions a small entity
is required to take to comply with a rule or group of rules. 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 develop and distribute
such guides.
(b) Comprehensive Source of Information.--Agencies shall cooperate
to make available to small entities through comprehensive sources of
information, the small entity compliance guides and all other available
information on statutory and regulatory requirements affecting small
entities.
(c) Limitation on Judicial Review.--An agency's small entity
compliance guide shall not be subject to judicial review, except that in
any civil or administrative action against a small entity for a
violation occurring after the effective date of this section, the
content of the small entity compliance guide may be considered as
evidence of the reasonableness or appropriateness of any proposed fines,
penalties or damages.
SEC. 213. INFORMAL SMALL ENTITY GUIDANCE.
(a) General.--Whenever appropriate in the interest of administering
statutes and regulations within the jurisdiction of an agency
[[Page 110 STAT. 859]]
which regulates small entities, it shall be the practice of the agency
to answer inquiries by small entities concerning information on, and
advice about, compliance with such statutes and regulations,
interpreting and applying the law to specific sets of facts supplied by
the small entity. In any civil or administrative action against a small
entity, guidance given by an agency applying the law to facts provided
by the small entity may be considered as evidence of the reasonableness
or appropriateness of any proposed fines, penalties or damages sought
against such small entity.
(b) Program.--Each agency regulating the activities of small
entities shall establish a program for responding to such inquiries no
later than 1 year after enactment of this section, utilizing existing
functions and personnel of the agency to the extent practicable.
(c) Reporting.--Each agency regulating the activities of small
business shall report to the Committee on Small Business and Committee
on Governmental Affairs of the Senate and the Committee on Small
Business and Committee on the Judiciary of the House of Representatives
no later than 2 years after the date of the enactment of this section on
the scope of the agency's program, the number of small entities using
the program, and the achievements of the program to assist small entity
compliance with agency regulations.
SEC. 214. SERVICES OF SMALL BUSINESS DEVELOPMENT CENTERS.
(a) Section 21(c)(3) of the Small Business Act (15 U.S.C. 648(c)(3))
is amended--
(1) in subparagraph (O), by striking ``and'' at the end;
(2) in subparagraph (P), by striking the period at the end
and inserting a semicolon; and
(3) by inserting after subparagraph (P) the following new
subparagraphs:
``(Q) providing information to small business
concerns regarding compliance with regulatory
requirements; and
``(R) developing informational publications,
establishing resource centers of reference materials,
and distributing compliance guides published under
section 312(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996.''.
(b) Nothing in this Act in any way affects or limits the ability of
other technical assistance or extension programs to perform or continue
to perform services related to compliance assistance.
SEC. 215. COOPERATION ON GUIDANCE.
Agencies may, to the extent resources are available and where
appropriate, in cooperation with the States, develop guides that fully
integrate requirements of both Federal and State regulations where
regulations within an agency's area of interest at the Federal and State
levels impact small entities. Where regulations vary among the States,
separate guides may be created for separate States in cooperation with
State agencies.
SEC. 216. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall take
effect on the expiration of 90 days after the date of enactment of this
subtitle.
[[Page 110 STAT. 860]]
Subtitle B <<NOTE: 5 USC 601 note.>> --Regulatory Enforcement Reforms
SEC. 221. DEFINITIONS.
For purposes of this subtitle--
(1) the terms ``rule'' and ``small entity'' have the same
meanings as in section 601 of title 5, United States Code;
(2) the term ``agency'' has the same meaning as in section
551 of title 5, United States Code; and
(3) the term ``small entity compliance guide'' means a
document designated as such by an agency.
SEC. 222. SMALL BUSINESS AND AGRICULTURE ENFORCEMENT OMBUDSMAN.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) <<NOTE: 15 USC 631 note.>> by redesignating section 30
as section 31; and
(2) by inserting after section 29 the following new section:
``SEC. 30. <<NOTE: 15 USC 657.>> OVERSIGHT OF REGULATORY ENFORCEMENT.
``(a) Definitions.--For purposes of this section, the term--
``(1) `Board' means a Regional Small Business Regulatory
Fairness Board established under subsection (c); and
``(2) `Ombudsman' means the Small Business and Agriculture
Regulatory Enforcement Ombudsman designated under subsection
(b).
``(b) SBA Enforcement Ombudsman.--
``(1) Not later than 180 days after the date of enactment of
this section, the Administrator shall designate a Small Business
and Agriculture Regulatory Enforcement Ombudsman, who shall
report directly to the Administrator, utilizing personnel of the
Small Business Administration to the extent practicable. Other
agencies shall assist the Ombudsman and take actions as
necessary to ensure compliance with the requirements of this
section. Nothing in this section is intended to replace or
diminish the activities of any Ombudsman or similar office in
any other agency.
``(2) The Ombudsman shall--
``(A) work with each agency with regulatory
authority over small businesses to ensure that small
business concerns that receive or are subject to an
audit, on-site inspection, compliance assistance effort,
or other enforcement related communication or contact by
agency personnel are provided with a means to comment on
the enforcement activity conducted by such personnel;
``(B) establish means to receive comments from small
business concerns regarding actions by agency employees
conducting compliance or enforcement activities with
respect to the small business concern, means to refer
comments to the Inspector General of the affected agency
in the appropriate circumstances, and otherwise seek to
maintain the identity of the person and small business
concern making such comments on a confidential basis to
the same extent as employee identities are protected
under section 7 of the Inspector General Act of 1978 (5
U.S.C. App.);
``(C) based on substantiated comments received from
small business concerns and the Boards, annually report
[[Page 110 STAT. 861]]
to Congress and affected agencies evaluating the
enforcement activities of agency personnel including a
rating of the responsiveness to small business of the
various regional and program offices of each agency;
``(D) coordinate and report annually on the
activities, findings and recommendations of the Boards
to the Administrator and to the heads of affected
agencies; and
``(E) provide the affected agency with an
opportunity to comment on draft reports prepared under
subparagraph (C), and include a section of the final
report in which the affected agency may make such
comments as are not addressed by the Ombudsman in
revisions to the draft.
``(c) <<NOTE: Establishment.>> Regional Small Business Regulatory
Fairness Boards.--
``(1) Not later than 180 days after the date of enactment of
this section, the Administrator shall establish a Small Business
Regulatory Fairness Board in each regional office of the Small
Business Administration.
``(2) Each Board established under paragraph (1) shall--
``(A) meet at least annually to advise the Ombudsman
on matters of concern to small businesses relating to
the enforcement activities of agencies;
``(B) report to the Ombudsman on substantiated
instances of excessive enforcement actions of agencies
against small business concerns including any findings
or recommendations of the Board as to agency enforcement
policy or practice; and
``(C) prior to publication, provide comment on the
annual report of the Ombudsman prepared under subsection
(b).
``(3) Each Board shall consist of five members, who are
owners, operators, or officers of small business concerns,
appointed by the Administrator, after receiving the
recommendations of the chair and ranking minority member of the
Committees on Small Business of the House of Representatives and
the Senate. Not more than three of the Board members shall be of
the same political party. No member shall be an officer or
employee of the Federal Government, in either the executive
branch or the Congress.
``(4) Members of the Board shall serve at the pleasure of
the Administrator for terms of three years or less.
``(5) The Administrator shall select a chair from among the
members of the Board who shall serve at the pleasure of the
Administrator for not more than 1 year as chair.
``(6) A majority of the members of the Board shall
constitute a quorum for the conduct of business, but a lesser
number may hold hearings.
``(d) Powers of the Boards.
``(1) The Board may hold such hearings and collect such
information as appropriate for carrying out this section.
``(2) The Board may use the United States mails in the same
manner and under the same conditions as other departments and
agencies of the Federal Government.
``(3) The Board may accept donations of services necessary
to conduct its business, provided that the donations and their
sources are disclosed by the Board.
[[Page 110 STAT. 862]]
``(4) Members of the Board shall serve without compensation,
provided that, members of the Board shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their
homes or regular places of business in the performance of
services for the Board.''.
SEC. 223. RIGHTS OF SMALL ENTITIES IN ENFORCEMENT ACTIONS.
(a) In General.--Each agency regulating the activities of small
entities shall establish a policy or program within 1 year of enactment
of this section to provide for the reduction, and under appropriate
circumstances for the waiver, of civil penalties for violations of a
statutory or regulatory requirement by a small entity. Under appropriate
circumstances, an agency may consider ability to pay in determining
penalty assessments on small entities.
(b) Conditions and Exclusions.--Subject to the requirements or
limitations of other statutes, policies or programs established under
this section shall contain conditions or exclusions which may include,
but shall not be limited to--
(1) requiring the small entity to correct the violation
within a reasonable correction period;
(2) limiting the applicability to violations discovered
through participation by the small entity in a compliance
assistance or audit program operated or supported by the agency
or a State;
(3) excluding small entities that have been subject to
multiple enforcement actions by the agency;
(4) excluding violations involving willful or criminal
conduct;
(5) excluding violations that pose serious health, safety or
environmental threats; and
(6) requiring a good faith effort to comply with the law.
(c) Reporting.--Agencies shall report to the Committee on Small
Business and Committee on Governmental Affairs of the Senate and the
Committee on Small Business and Committee on Judiciary of the House of
Representatives no later than 2 years after the date of enactment of
this section on the scope of their program or policy, the number of
enforcement actions against small entities that qualified or failed to
qualify for the program or policy, and the total amount of penalty
reductions and waivers.
SEC. 224. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall take
effect on the expiration of 90 days after the date of enactment of this
subtitle.
Subtitle C--Equal Access to Justice Act Amendments
SEC. 231. ADMINISTRATIVE PROCEEDINGS.
(a) Section 504(a) of title 5, United States Code, is amended by
adding at the end the following new paragraph:
``(4) If, in an adversary adjudication arising from an agency action
to enforce a party's compliance with a statutory or regulatory
requirement, the demand by the agency is substantially in excess
[[Page 110 STAT. 863]]
of the decision of the adjudicative officer and is unreasonable when
compared with such decision, under the facts and circumstances of the
case, the adjudicative officer shall award to the party the fees and
other expenses related to defending against the excessive demand, unless
the party has committed a willful violation of law or otherwise acted in
bad faith, or special circumstances make an award unjust. Fees and
expenses awarded under this paragraph shall be paid only as a
consequence of appropriations provided in advance.''.
(b) Section 504(b) of title 5, United States Code, is amended--
(1) in paragraph (1)(A), by striking ``$75'' and inserting
``$125'';
(2) at the end of paragraph (1)(B), by inserting before the
semicolon ``or for purposes of subsection (a)(4), a small entity
as defined in section 601'';
(3) at the end of paragraph (1)(D), by striking ``and'';
(4) at the end of paragraph (1)(E), by striking the period
and inserting ``; and''; and
(5) at the end of paragraph (1), by adding the following new
subparagraph:
``(F) `demand' means the express demand of the agency which
led to the adversary adjudication, but does not include a
recitation by the agency of the maximum statutory penalty (i) in
the administrative complaint, or (ii) elsewhere when accompanied
by an express demand for a lesser amount.''.
SEC. 232. JUDICIAL PROCEEDINGS.
(a) Section 2412(d)(1) of title 28, United States Code, is
amended by adding at the end the following new subparagraph:
``(D) If, in a civil action brought by the United States or a
proceeding for judicial review of an adversary adjudication described in
section 504(a)(4) of title 5, the demand by the United States is
substantially in excess of the judgment finally obtained by the United
States and is unreasonable when compared with such judgment, under the
facts and circumstances of the case, the court shall award to the party
the fees and other expenses related to defending against the excessive
demand, unless the party has committed a willful violation of law or
otherwise acted in bad faith, or special circumstances make an award
unjust. Fees and expenses awarded under this subparagraph shall be paid
only as a consequence of appropriations provided in advance.''.
(b) Section 2412(d) of title 28, United States Code, is amended--
(1) in paragraph (2)(A), by striking ``$75'' and inserting
``$125'';
(2) at the end of paragraph (2)(B), by inserting before the
semicolon ``or for purposes of subsection (d)(1)(D), a small
entity as defined in section 601 of title 5'';
(3) at the end of paragraph (2)(G), by striking ``and'';
(4) at the end of paragraph (2)(H), by striking the period
and inserting ``; and''; and
(5) at the end of paragraph (2), by adding the following new
subparagraph:
``(I) `demand' means the express demand of the United States
which led to the adversary adjudication, but shall not include a
recitation of the maximum statutory penalty (i) in the
complaint, or (ii) elsewhere when accompanied by an express
demand for a lesser amount.''.
[[Page 110 STAT. 864]]
SEC. 233. <<NOTE: 5 USC 504 note.>> EFFECTIVE DATE.
The amendments made by sections 331 and 332 shall apply to civil
actions and adversary adjudications commenced on or after the date of
the enactment of this subtitle.
Subtitle D--Regulatory Flexibility Act Amendments
SEC. 241. REGULATORY FLEXIBILITY ANALYSES.
(a) Initial Regulatory Flexibility Analysis.--
(1) Section 603.--Section 603(a) of title 5, United States
Code, is amended--
(A) by inserting after ``proposed rule'', the phrase
``, or publishes a notice of proposed rulemaking for an
interpretative rule involving the internal revenue laws
of the United States''; and
(B) by inserting at the end of the subsection, the
following new sentence: ``In the case of an
interpretative rule involving the internal revenue laws
of the United States, this chapter applies to
interpretative rules published in the Federal Register
for codification in the Code of Federal Regulations, but
only to the extent that such interpretative rules impose
on small entities a collection of information
requirement.''.
(2) Section 601.--Section 601 of title 5, United States
Code, is amended by striking ``and'' at the end of paragraph
(5), by striking the period at the end of paragraph (6) and
inserting ``; and'', and by adding at the end the following:
``(7) the term `collection of information'--
``(A) means the obtaining, causing to be obtained,
soliciting, or requiring the disclosure to third parties
or the public, of facts or opinions by or for an agency,
regardless of form or format, calling for either--
``(i) answers to identical questions posed to,
or identical reporting or recordkeeping
requirements imposed on, 10 or more persons, other
than agencies, instrumentalities, or employees of
the United States; or
``(ii) answers to questions posed to agencies,
instrumentalities, or employees of the United
States which are to be used for general
statistical purposes; and
``(B) shall not include a collection of information
described under section 3518(c)(1) of title 44, United
States Code.
``(8) Recordkeeping requirement.--The term `recordkeeping
requirement' means a requirement imposed by an agency on persons
to maintain specified records.''.
(b) Final Regulatory Flexibility Analysis.--Section 604 of title 5,
United States Code, is amended--
(1) in subsection (a) to read as follows:
``(a) When an agency promulgates a final rule under section 553 of
this title, after being required by that section or any other law to
publish a general notice of proposed rulemaking, or promulgates a final
interpretative rule involving the internal revenue
[[Page 110 STAT. 865]]
laws of the United States as described in section 603(a), the agency
shall prepare a final regulatory flexibility analysis. Each final
regulatory flexibility analysis shall contain--
``(1) a succinct statement of the need for, and objectives
of, the rule;
``(2) a summary of the significant issues raised by the
public comments in response to the initial regulatory
flexibility analysis, a summary of the assessment of the agency
of such issues, and a statement of any changes made in the
proposed rule as a result of such comments;
``(3) a description of and an estimate of the number of
small entities to which the rule will apply or an explanation of
why no such estimate is available;
``(4) a description of the projected reporting,
recordkeeping and other compliance requirements of the 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 or record; and
``(5) a description of the steps the agency has taken to
minimize the significant economic impact on small entities
consistent with the stated objectives of applicable statutes,
including a statement of the factual, policy, and legal reasons
for selecting the alternative adopted in the final rule and why
each one of the other significant alternatives to the rule
considered by the agency which affect the impact on small
entities was rejected.''; and
(2) in subsection (b), by striking ``at the time'' and all
that follows and inserting ``such analysis or a summary
thereof.''.
SEC. 242. JUDICIAL REVIEW.
Section 611 of title 5, United States Code, is amended to read as
follows:
``Sec. 611. Judicial review
``(a)(1) For any rule subject to this chapter, a small entity that
is adversely affected or aggrieved by final agency action is entitled to
judicial review of agency compliance with the requirements of sections
601, 604, 605(b), 608(b), and 610 in accordance with chapter 7. Agency
compliance with sections 607 and 609(a) shall be judicially reviewable
in connection with judicial review of section 604.
``(2) Each court having jurisdiction to review such rule for
compliance with section 553, or under any other provision of law, shall
have jurisdiction to review any claims of noncompliance with sections
601, 604, 605(b), 608(b), and 610 in accordance with chapter 7. Agency
compliance with sections 607 and 609(a) shall be judicially reviewable
in connection with judicial review of section 604.
``(3)(A) A small entity may seek such review during the period
beginning on the date of final agency action and ending one year later,
except that where a provision of law requires that an action challenging
a final agency action be commenced before the expiration of one year,
such lesser period shall apply to an action for judicial review under
this section.
``(B) In the case where an agency delays the issuance of a final
regulatory flexibility analysis pursuant to section 608(b) of
[[Page 110 STAT. 866]]
this chapter, an action for judicial review under this section shall be
filed not later than--
``(i) one year after the date the analysis is made available
to the public, or
``(ii) where a provision of law requires that an action
challenging a final agency regulation be commenced before the
expiration of the 1-year period, the number of days specified in
such provision of law that is after the date the analysis is
made available to the public.
``(4) In granting any relief in an action under this section, the
court shall order the agency to take corrective action consistent with
this chapter and chapter 7, including, but not limited to--
``(A) remanding the rule to the agency, and
``(B) deferring the enforcement of the rule against small
entities unless the court finds that continued enforcement of
the rule is in the public interest.
``(5) Nothing in this subsection shall be construed to limit the
authority of any court to stay the effective date of any rule or
provision thereof under any other provision of law or to grant any other
relief in addition to the requirements of this section.
``(b) In an action for the judicial review of a rule, the regulatory
flexibility analysis for such rule, including an analysis prepared or
corrected pursuant to paragraph (a)(4), shall constitute part of the
entire record of agency action in connection with such review.
``(c) Compliance or noncompliance by an agency with the provisions
of this chapter shall be subject to judicial review only in accordance
with this section.
``(d) Nothing in this section bars judicial review of any other
impact statement or similar analysis required by any other law if
judicial review of such statement or analysis is otherwise permitted by
law.''.
SEC. 243. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Section 605(b) of title 5, United States Code, is amended to
read as follows:
``(b) Sections 603 and 604 of this title shall not apply to any
proposed or final rule if the head of the agency certifies that the rule
will not, if promulgated, have a significant economic impact on a
substantial <<NOTE: Federal Register, publication.>> number of small
entities. If the head of the agency makes a certification under the
preceding sentence, the agency shall publish such certification in the
Federal Register at the time of publication of general notice of
proposed rulemaking for the rule or at the time of publication of the
final rule, along with a statement providing the factual basis for such
certification. The agency shall provide such certification and statement
to the Chief Counsel for Advocacy of the Small Business
Administration.''.
(b) Section 612 of title 5, United States Code, is amended--
(1) in subsection (a), by striking ``the committees on the
Judiciary of the Senate and the House of Representatives, the
Select Committee on Small Business of the Senate, and the
Committee on Small Business of the House of Representatives''
and inserting ``the Committees on the Judiciary and Small
Business of the Senate and House of Representatives''.
(2) in subsection (b), by striking ``his views with respect
to the'' and inserting in lieu thereof, ``his or her views with
respect to compliance with this chapter, the adequacy of the
rulemaking record with respect to small entities and the''.
[[Page 110 STAT. 867]]
SEC. 244. SMALL BUSINESS ADVOCACY REVIEW PANELS.
(a) Small Business Outreach and Interagency Coordination.-- Section
609 of title 5, United States Code, is amended--
(1) before ``techniques,'' by inserting ``the reasonable use
of'';
(2) in paragraph (4), after ``entities'' by inserting
``including soliciting and receiving comments over computer
networks'';
(3) by designating the current text as subsection (a); and
(4) by adding the following:
``(b) Prior to publication of an initial regulatory flexibility
analysis which a covered agency is required to conduct by this chapter--
``(1) a covered agency shall notify the Chief Counsel for
Advocacy of the Small Business Administration and provide the
Chief Counsel with information on the potential impacts of the
proposed rule on small entities and the type of small entities
that might be affected;
``(2) not later than 15 days after the date of receipt of
the materials described in paragraph (1), the Chief Counsel
shall identify individuals representative of affected small
entities for the purpose of obtaining advice and recommendations
from those individuals about the potential impacts of the
proposed rule;
``(3) the agency shall convene a review panel for such rule
consisting wholly of full time Federal employees of the office
within the agency responsible for carrying out the proposed
rule, the Office of Information and Regulatory Affairs within
the Office of Management and Budget, and the Chief Counsel;
``(4) the panel shall review any material the agency has
prepared in connection with this chapter, including any draft
proposed rule, collect advice and recommendations of each
individual small entity representative identified by the agency
after consultation with the Chief Counsel, on issues related to
subsections 603(b), paragraphs (3), (4) and (5) and 603(c);
``(5) not later than 60 days after the date a covered agency
convenes a review panel pursuant to paragraph (3), the review
panel shall report on the comments of the small entity
representatives and its findings as to issues related to
subsections 603(b), paragraphs (3), (4) and (5) and 603(c),
provided that such report shall be made public as part of the
rulemaking record; and
``(6) where appropriate, the agency shall modify the
proposed rule, the initial regulatory flexibility analysis or
the decision on whether an initial regulatory flexibility
analysis is required.
``(c) An agency may in its discretion apply subsection (b) to rules
that the agency intends to certify under subsection 605(b), but the
agency believes may have a greater than de minimis impact on a
substantial number of small entities.
``(d) For purposes of this section, the term `covered agency' means
the Environmental Protection Agency and the Occupational Safety and
Health Administration of the Department of Labor.
``(e) The Chief Counsel for Advocacy, in consultation with the
individuals identified in subsection (b)(2), and with the Administrator
of the Office of Information and Regulatory Affairs within the Office of
Management and Budget, may waive the requirements of subsections (b)(3),
(b)(4), and (b)(5) by including in the rulemaking
[[Page 110 STAT. 868]]
record a written finding, with reasons therefor, that those requirements
would not advance the effective participation of small entities in the
rulemaking process. For purposes of this subsection, the factors to be
considered in making such a finding are as follows:
``(1) In developing a proposed rule, the extent to which the
covered agency consulted with individuals representative of
affected small entities with respect to the potential impacts of
the rule and took such concerns into consideration.
``(2) Special circumstances requiring prompt issuance of the
rule.
``(3) Whether the requirements of subsection (b) would
provide the individuals identified in subsection (b)(2) with a
competitive advantage relative to other small entities.''.
(b) <<NOTE: 5 USC 609 note.>> Small Business Advocacy
Chairpersons.--Not later than 30 days after the date of enactment of
this Act, the head of each covered agency that has conducted a final
regulatory flexibility analysis shall designate a small business
advocacy chairperson using existing personnel to the extent possible, to
be responsible for implementing this section and to act as permanent
chair of the agency's review panels established pursuant to this
section.
SEC. 245. <<NOTE: 5 USC 601 note.>> EFFECTIVE DATE.
This subtitle shall become effective on the expiration of 90 days
after the date of enactment of this subtitle, except that such
amendments shall not apply to interpretative rules for which a notice of
proposed rulemaking was published prior to the date of enactment.
Subtitle E--Congressional Review
SEC. 251. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.
Title 5, United States Code, is amended by inserting immediately
after chapter 7 the following new chapter:
``CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING
``Sec.
``801. Congressional review.
``802. Congressional disapproval procedure.
``803. Special rule on statutory, regulatory, and judicial deadlines.
``804. Definitions.
``805. Judicial review.
``806. Applicability; severability.
``807. Exemption for monetary policy.
``808. Effective date of certain rules.
``Sec. 801. Congressional review
``(a)(1)(A) <<NOTE: Reports.>> Before a rule can take effect, the
Federal agency promulgating such rule shall submit to each House of the
Congress and to the Comptroller General a report containing--
``(i) a copy of the rule;
``(ii) a concise general statement relating to the rule,
including whether it is a major rule; and
``(iii) the proposed effective date of the rule.
``(B) On the date of the submission of the report under subparagraph
(A), the Federal agency promulgating the rule shall submit to the
Comptroller General and make available to each House of Congress--
[[Page 110 STAT. 869]]
``(i) a complete copy of the cost-benefit analysis of the
rule, if any;
``(ii) the agency's actions relevant to sections 603, 604,
605, 607, and 609;
``(iii) the agency's actions relevant to sections 202, 203,
204, and 205 of the Unfunded Mandates Reform Act of 1995; and
``(iv) any other relevant information or requirements under
any other Act and any relevant Executive orders.
``(C) Upon receipt of a report submitted under subparagraph (A),
each House shall provide copies of the report to the chairman and
ranking member of each standing committee with jurisdiction under the
rules of the House of Representatives or the Senate to report a bill to
amend the provision of law under which the rule is issued.
``(2)(A) <<NOTE: Reports.>> The Comptroller General shall provide a
report on each major rule to the committees of jurisdiction in each
House of the Congress by the end of 15 calendar days after the
submission or publication date as provided in section 802(b)(2). The
report of the Comptroller General shall include an assessment of the
agency's compliance with procedural steps required by paragraph (1)(B).
``(B) Federal agencies shall cooperate with the Comptroller General
by providing information relevant to the Comptroller General's report
under subparagraph (A).
``(3) <<NOTE: Effective dates.>> A major rule relating to a report
submitted under paragraph (1) shall take effect on the latest of--
``(A) the later of the date occurring 60 days after the date
on which--
``(i) the Congress receives the report submitted
under paragraph (1); or
``(ii) <<NOTE: Federal Register, publication.>> the
rule is published in the Federal Register, if so
published;
``(B) if the Congress passes a joint resolution of
disapproval described in section 802 relating to the rule, and
the President signs a veto of such resolution, the earlier
date--
``(i) on which either House of Congress votes and
fails to override the veto of the President; or
``(ii) occurring 30 session days after the date on
which the Congress received the veto and objections of
the President; or
``(C) the date the rule would have otherwise taken effect,
if not for this section (unless a joint resolution of
disapproval under section 802 is enacted).
``(4) <<NOTE: Effective date.>> Except for a major rule, a rule
shall take effect as otherwise provided by law after submission to
Congress under paragraph (1).
``(5) <<NOTE: Effective dates.>> Notwithstanding paragraph (3), the
effective date of a rule shall not be delayed by operation of this
chapter beyond the date on which either House of Congress votes to
reject a joint resolution of disapproval under section 802.
``(b)(1) A rule shall not take effect (or continue), if the Congress
enacts a joint resolution of disapproval, described under section 802,
of the rule.
``(2) A rule that does not take effect (or does not continue) under
paragraph (1) may not be reissued in substantially the same form, and a
new rule that is substantially the same as such a
[[Page 110 STAT. 870]]
rule may not be issued, unless the reissued or new rule is specifically
authorized by a law enacted after the date of the joint resolution
disapproving the original rule.
``(c)(1) Notwithstanding any other provision of this section (except
subject to paragraph (3)), a rule that would not take effect by reason
of subsection (a)(3) may take effect, if the President makes a
determination under paragraph (2) and submits written notice of such
determination to the Congress.
``(2) Paragraph (1) applies to a determination made by the President
by Executive order that the rule should take effect because such rule
is--
``(A) necessary because of an imminent threat to health or
safety or other emergency;
``(B) necessary for the enforcement of criminal laws;
``(C) necessary for national security; or
``(D) issued pursuant to any statute implementing an
international trade agreement.
``(3) An exercise by the President of the authority under this
subsection shall have no effect on the procedures under section 802 or
the effect of a joint resolution of disapproval under this section.
``(d)(1) In addition to the opportunity for review otherwise
provided under this chapter, in the case of any rule for which a report
was submitted in accordance with subsection (a)(1)(A) during the period
beginning on the date occurring--
``(A) in the case of the Senate, 60 session days, or
``(B) in the case of the House of Representatives, 60
legislative days,
before the date the Congress adjourns a session of Congress through the
date on which the same or succeeding Congress first convenes its next
session, section 802 shall apply to such rule in the succeeding session
of Congress.
``(2)(A) In applying section 802 for purposes of such additional
review, a rule described under paragraph (1) shall be treated as
though--
``(i) <<NOTE: Federal Register, publication.>> such rule
were published in the Federal Register (as a rule that shall
take effect) on--
``(I) in the case of the Senate, the 15th session
day, or
``(II) in the case of the House of Representatives,
the 15th legislative day,
after the succeeding session of Congress first convenes; and
``(ii) a report on such rule were submitted to Congress
under subsection (a)(1) on such date.
``(B) Nothing in this paragraph shall be construed to affect the
requirement under subsection (a)(1) that a report shall be submitted to
Congress before a rule can take effect.
``(3) A rule described under paragraph (1) shall take effect as
otherwise provided by law (including other subsections of this section).
``(e)(1) <<NOTE: Effective date.>> For purposes of this subsection,
section 802 shall also apply to any major rule promulgated between March
1, 1996, and the date of the enactment of this chapter.
``(2) In applying section 802 for purposes of Congressional review,
a rule described under paragraph (1) shall be treated as though--
[[Page 110 STAT. 871]]
``(A) <<NOTE: Federal Register, publication.>> such rule
were published in the Federal Register on the date of enactment
of this chapter; and
``(B) a report on such rule were submitted to Congress under
subsection (a)(1) on such date.
``(3) The effectiveness of a rule described under paragraph (1)
shall be as otherwise provided by law, unless the rule is made of no
force or effect under section 802.
``(f) Any rule that takes effect and later is made of no force or
effect by enactment of a joint resolution under section 802 shall be
treated as though such rule had never taken effect.
``(g) If the Congress does not enact a joint resolution of
disapproval under section 802 respecting a rule, no court or agency may
infer any intent of the Congress from any action or inaction of the
Congress with regard to such rule, related statute, or joint resolution
of disapproval.
``Sec. 802. Congressional disapproval procedure
``(a) For purposes of this section, the term `joint resolution'
means only a joint resolution introduced in the period beginning on the
date on which the report referred to in section 801(a)(1)(A) is received
by Congress and ending 60 days thereafter (excluding days either House
of Congress is adjourned for more than 3 days during a session of
Congress), the matter after the resolving clause of which is as follows:
`That Congress disapproves the rule submitted by the ____ relating to
____, and such rule shall have no force or effect.' (The blank spaces
being appropriately filled in).
``(b)(1) A joint resolution described in subsection (a) shall be
referred to the committees in each House of Congress with jurisdiction.
``(2) For purposes of this section, the term `submission or
publication date' means the later of the date on which--
``(A) the Congress receives the report submitted under
section 801(a)(1); or
``(B) <<NOTE: Federal Register, publication.>> the rule is
published in the Federal Register, if so published.
``(c) In the Senate, if the committee to which is referred a joint
resolution described in subsection (a) has not reported such joint
resolution (or an identical joint resolution) at the end of 20 calendar
days after the submission or publication date defined under subsection
(b)(2), such committee may be discharged from further consideration of
such joint resolution upon a petition supported in writing by 30 Members
of the Senate, and such joint resolution shall be placed on the
calendar.
``(d)(1) In the Senate, when the committee to which a joint
resolution is referred has reported, or when a committee is discharged
(under subsection (c)) from further consideration of a joint resolution
described in subsection (a), it is at any time thereafter in order (even
though a previous motion to the same effect has been disagreed to) for a
motion to proceed to the consideration of the joint resolution, and all
points of order against the joint resolution (and against consideration
of the joint resolution) are waived. The motion is not subject to
amendment, or to a motion to postpone, or to a motion to proceed to the
consideration of other business. A motion to reconsider the vote by
which the motion is agreed to or disagreed to shall not be in order. If
a motion to proceed to the consideration of the joint resolution is
agreed
[[Page 110 STAT. 872]]
to, the joint resolution shall remain the unfinished business of the
Senate until disposed of.
``(2) In the Senate, debate on the joint resolution, and on all
debatable motions and appeals in connection therewith, shall be limited
to not more than 10 hours, which shall be divided equally between those
favoring and those opposing the joint resolution. A motion further to
limit debate is in order and not debatable. An amendment to, or a motion
to postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the joint resolution is not in order.
``(3) In the Senate, immediately following the conclusion of the
debate on a joint resolution described in subsection (a), and a single
quorum call at the conclusion of the debate if requested in accordance
with the rules of the Senate, the vote on final passage of the joint
resolution shall occur.
``(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate to the procedure relating to a
joint resolution described in subsection (a) shall be decided without
debate.
``(e) In the Senate the procedure specified in subsection (c) or (d)
shall not apply to the consideration of a joint resolution respecting a
rule--
``(1) after the expiration of the 60 session days beginning
with the applicable submission or publication date, or
``(2) if the report under section 801(a)(1)(A) was submitted
during the period referred to in section 801(d)(1), after the
expiration of the 60 session days beginning on the 15th session
day after the succeeding session of Congress first convenes.
``(f) If, before the passage by one House of a joint resolution of
that House described in subsection (a), that House receives from the
other House a joint resolution described in subsection (a), then the
following procedures shall apply:
``(1) The joint resolution of the other House shall not be
referred to a committee.
``(2) With respect to a joint resolution described in
subsection (a) of the House receiving the joint resolution--
``(A) the procedure in that House shall be the same
as if no joint resolution had been received from the
other House; but
``(B) the vote on final passage shall be on the
joint resolution of the other House.
``(g) This section is enacted by Congress--
``(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of a joint resolution described in
subsection (a), and it supersedes other rules only to the extent
that it is inconsistent with such rules; and
``(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and to
the same extent as in the case of any other rule of that House.
[[Page 110 STAT. 873]]
``Sec. 803. Special rule on statutory, regulatory, and judicial
deadlines
``(a) In the case of any deadline for, relating to, or involving any
rule which does not take effect (or the effectiveness of which is
terminated) because of enactment of a joint resolution under section
802, that deadline is extended until the date 1 year after the date of
enactment of the joint resolution. Nothing in this subsection shall be
construed to affect a deadline merely by reason of the postponement of a
rule's effective date under section 801(a).
``(b) The term `deadline' means any date certain for fulfilling any
obligation or exercising any authority established by or under any
Federal statute or regulation, or by or under any court order
implementing any Federal statute or regulation.
``Sec. 804. Definitions
``For purposes of this chapter--
``(1) The term `Federal agency' means any agency as that
term is defined in section 551(1).
``(2) The term `major rule' means any rule that the
Administrator of the Office of Information and Regulatory
Affairs of the Office of Management and Budget finds has
resulted in or is likely to result in--
``(A) an annual effect on the economy of
$100,000,000 or more;
``(B) a major increase in costs or prices for
consumers, individual industries, Federal, State, or
local government agencies, or geographic regions; or
``(C) 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.
The term does not include any rule promulgated under the
Telecommunications Act of 1996 and the amendments made by that
Act.
``(3) The term `rule' has the meaning given such term in
section 551, except that such term does not include--
``(A) any rule of particular applicability,
including a rule that approves or prescribes for the
future rates, wages, prices, services, or allowances
therefor, corporate or financial structures,
reorganizations, mergers, or acquisitions thereof, or
accounting practices or disclosures bearing on any of
the foregoing;
``(B) any rule relating to agency management or
personnel; or
``(C) any rule of agency organization, procedure, or
practice that does not substantially affect the rights
or obligations of non-agency parties.
``Sec. 805. Judicial review
``No determination, finding, action, or omission under this chapter
shall be subject to judicial review.
``Sec. 806. Applicability; severability
``(a) This chapter shall apply notwithstanding any other provision
of law.
``(b) If any provision of this chapter or the application of any
provision of this chapter to any person or circumstance, is held
[[Page 110 STAT. 874]]
invalid, the application of such provision to other persons or
circumstances, and the remainder of this chapter, shall not be affected
thereby.
``Sec. 807. Exemption for monetary policy
``Nothing in this chapter shall apply to rules that concern monetary
policy proposed or implemented by the Board of Governors of the Federal
Reserve System or the Federal Open Market Committee.
``Sec. 808. Effective date of certain rules
``Notwithstanding section 801--
``(1) any rule that establishes, modifies, opens, closes, or
conducts a regulatory program for a commercial, recreational, or
subsistence activity related to hunting, fishing, or camping, or
``(2) any rule which an agency for good cause finds (and
incorporates the finding and a brief statement of reasons
therefor in the rule issued) that notice and public procedure
thereon are impracticable, unnecessary, or contrary to the
public interest,
shall take effect at such time as the Federal agency promulgating the
rule determines.''.
SEC. 252. EFFECTIVE DATE.
The <<NOTE: 5 USC 801 note.>> amendment made by section 351 shall
take effect on the date of enactment of this Act.
SEC. 253. TECHNICAL AMENDMENT.
The table of chapters for part I of title 5, United States Code, is
amended by inserting immediately after the item relating to chapter 7
the following:
``8. Congressional Review of Agency Rulemaking....................801''.
[[Page 110 STAT. 875]]
TITLE III--PUBLIC DEBT LIMIT
SEC. 301. INCREASE IN PUBLIC DEBT LIMIT.
Subsection (b) of section 3101 of title 31, United States Code, is
amended by striking the dollar limitation contained in such subsection
and inserting ``$5,500,000,000,000''.
Approved March 29, 1996.
LEGISLATIVE HISTORY--H.R. 3136 (S. 942):
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 142 (1996):
Mar. 15, 19, S. 942 considered and passed Senate.
Mar. 28, H.R. 3136 considered and passed House and Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
Mar. 29, Presidential statement.
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