5 U.S.C. § 604 — Final regulatory flexibility analysis

Page 223 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 604 1 So in original. Two pars. (6) have been enacted. (2) the clarification, consolidation, or sim- plification of compliance and reporting re- quirements under the rule for such small enti- ties; (3) the use of performance rather than design standards; and (4) an exemption from coverage of the rule, or any part thereof, for such small entities. (d)(1) For a covered agency, as defined in sec- tion 609(d)(2), each initial regulatory flexibility analysis shall include a description of— (A) any projected increase in the cost of credit for small entities; (B) any significant alternatives to the pro- posed rule which accomplish the stated objec- tives of applicable statutes and which mini- mize any increase in the cost of credit for small entities; and (C) advice and recommendations of rep- resentatives of small entities relating to issues described in subparagraphs (A) and (B) and subsection (b). (2) A covered agency, as defined in section 609(d)(2), shall, for purposes of complying with paragraph (1)(C)— (A) identify representatives of small entities in consultation with the Chief Counsel for Ad- vocacy of the Small Business Administration; and (B) collect advice and recommendations from the representatives identified under sub- paragraph (A) relating to issues described in subparagraphs (A) and (B) of paragraph (1) and subsection (b). (Added Pub. L. 96–354, § 3(a), Sept. 19, 1980, 94 Stat. 1166; amended Pub. L. 104–121, title II, § 241(a)(1), Mar. 29, 1996, 110 Stat. 864; Pub. L. 111–203, title X, § 1100G(b), July 21, 2010, 124 Stat. 2112.) Editorial Notes AMENDMENTS 2010—Subsec. (d). Pub. L. 111–203 added subsec. (d). 1996—Subsec. (a). Pub. L. 104–121, § 241(a)(1)(B), in- serted at end ‘‘In the case of an interpretative rule in- volving 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 collec- tion of information requirement.’’ Pub. L. 104–121, § 241(a)(1)(A), which directed the in- sertion of ‘‘, or publishes a notice of proposed rule- making for an interpretative rule involving the inter- nal revenue laws of the United States’’ after ‘‘proposed rule’’ was executed by making the insertion where those words appeared in first sentence to reflect the probable intent of Congress. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–121 effective on expiration of 90 days after Mar. 29, 1996, but inapplicable to inter- pretative rules for which a notice of proposed rule- making was published prior to Mar. 29, 1996, see section 245 of Pub. L. 104–121, set out as a note under section 601 of this title. EFFECTIVE DATE Section effective Jan. 1, 1981, except that the require- ments of this section applicable only to rules for which a notice of proposed rulemaking was issued on or after Jan. 1, 1981, see section 4 of Pub. L. 96–354, set out as a note under section 601 of this title. § 604. Final regulatory flexibility analysis (a) When an agency promulgates a final rule under section 553 of this title, after being re- quired by that section or any other law to pub- lish a general notice of proposed rulemaking, or promulgates a final interpretative rule involv- ing the internal revenue laws of the United States as described in section 603(a), the agency shall prepare a final regulatory flexibility anal- ysis. Each final regulatory flexibility analysis shall contain— (1) a statement of the need for, and objec- tives of, the rule; (2) a statement of the significant issues raised by the public comments in response to the initial regulatory flexibility analysis, a statement 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) the response of the agency to any com- ments filed by the Chief Counsel for Advocacy of the Small Business Administration in re- sponse to the proposed rule, and a detailed statement of any change made to the proposed rule in the final rule as a result of the com- ments; (4) 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 esti- mate is available; (5) a description of the projected reporting, recordkeeping and other compliance require- ments of the rule, including an estimate of the classes of small entities which will be subject to the requirement and the type of profes- sional skills necessary for preparation of the report or record; (6) 1 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, in- cluding 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 im- pact on small entities was rejected; and (6) 1 for a covered agency, as defined in sec- tion 609(d)(2), a description of the steps the agency has taken to minimize any additional cost of credit for small entities. (b) The agency shall make copies of the final regulatory flexibility analysis available to members of the public and shall publish in the Federal Register such analysis or a summary thereof. (Added Pub. L. 96–354, § 3(a), Sept. 19, 1980, 94 Stat. 1167; amended Pub. L. 104–121, title II, Page 224 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 605 § 241(b), Mar. 29, 1996, 110 Stat. 864; Pub. L. 111–203, title X, § 1100G(c), July 21, 2010, 124 Stat. 2113; Pub. L. 111–240, title I, § 1601, Sept. 27, 2010, 124 Stat. 2551.) Editorial Notes AMENDMENTS 2010—Subsec. (a)(1). Pub. L. 111–240, § 1601(1), struck out ‘‘succinct’’ before ‘‘statement’’. Subsec. (a)(2). Pub. L. 111–240, § 1601(2), substituted ‘‘statement’’ for ‘‘summary’’ before ‘‘of the significant issues’’ and ‘‘of the assessment’’. Subsec. (a)(3), (4). Pub. L. 111–240, § 1601(3), (4), added par. (3) and redesignated former par. (3) as (4). Former par. (4) redesignated (5). Subsec. (a)(5). Pub. L. 111–240, § 1601(3), redesignated par. (4) as (5). Former par. (5), relating to description of steps taken to minimize the significant economic im- pact on small entities, redesignated (6). Pub. L. 111–203, § 1100G(c)(1), which directed amend- ment of par. (4) by striking ‘‘and’’ at the end, was exe- cuted to par. (5) to reflect the probable intent of Con- gress and the intervening redesignation of par. (4) as (5) by Pub. L. 111–240, § 1601(3). See above. Subsec. (a)(6). Pub. L. 111–240, § 1601(3), redesignated par. (5), relating to description of steps taken to mini- mize the significant economic impact on small entities, as (6). Pub. L. 111–203, § 1100G(c)(3), added par. (6) relating to description of steps taken to minimize any additional cost of credit for small entities. Pub. L. 111–203, § 1100G(c)(2), which directed amend- ment of par. (5) by substituting ‘‘; and’’ for period at end, was executed to par. (6), relating to description of steps taken to minimize the significant economic im- pact on small entities, to reflect the probable intent of Congress and the intervening redesignation of par. (5) as (6) by Pub. L. 111–240, § 1601(3). See above. 1996—Subsec. (a). Pub. L. 104–121, § 241(b)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: ‘‘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, the agency shall pre- pare a final regulatory flexibility analysis. Each final regulatory flexibility analysis shall contain— ‘‘(1) a succinct statement of the need for, and the objectives of, the rule; ‘‘(2) a summary of the issues raised by the public comments in response to the initial regulatory flexi- bility 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; and ‘‘(3) a description of each of the significant alter- natives to the rule consistent with the stated objec- tives of applicable statutes and designed to minimize any significant economic impact of the rule on small entities which was considered by the agency, and a statement of the reasons why each one of such alter- natives was rejected.’’ Subsec. (b). Pub. L. 104–121, § 241(b)(2), substituted ‘‘such analysis or a summary thereof.’’ for ‘‘at the time of publication of the final rule under section 553 of this title a statement describing how the public may obtain such copies.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–121 effective on expiration of 90 days after Mar. 29, 1996, but inapplicable to inter- pretative rules for which a notice of proposed rule- making was published prior to Mar. 29, 1996, see section 245 of Pub. L. 104–121, set out as a note under section 601 of this title. EFFECTIVE DATE Section effective Jan. 1, 1981, except that the require- ments of this section applicable only to rules for which a notice of proposed rulemaking was issued on or after Jan. 1, 1981, see section 4 of Pub. L. 96–354, set out as a note under section 601 of this title. § 605. Avoidance of duplicative or unnecessary analyses (a) Any Federal agency may perform the anal- yses required by sections 602, 603, and 604 of this title in conjunction with or as a part of any other agenda or analysis required by any other law if such other analysis satisfies the provi- sions of such sections. (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 im- pact on a substantial 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 Reg- ister 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 cer- tification and statement to the Chief Counsel for Advocacy of the Small Business Administra- tion. (c) In order to avoid duplicative action, an agency may consider a series of closely related rules as one rule for the purposes of sections 602, 603, 604 and 610 of this title. (Added Pub. L. 96–354, § 3(a), Sept. 19, 1980, 94 Stat. 1167; amended Pub. L. 104–121, title II, § 243(a), Mar. 29, 1996, 110 Stat. 866.) Editorial Notes AMENDMENTS 1996—Subsec. (b). Pub. L. 104–121 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as fol- lows: ‘‘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 number of small entities. If the head of the agency makes a cer- tification 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 succinct statement explain- ing the reasons for such certification, and provide such certification and statement to the Chief Counsel for Advocacy of the Small Business Administration.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–121 effective on expiration of 90 days after Mar. 29, 1996, but inapplicable to inter- pretative rules for which a notice of proposed rule- making was published prior to Mar. 29, 1996, see section 245 of Pub. L. 104–121, set out as a note under section 601 of this title. EFFECTIVE DATE Section effective Jan. 1, 1981, see section 4 of Pub. L. 96–354, set out as a note under section 601 of this title.