§609 — Title 5 Government Organization and Employees | U.S. Code

Summary

When a new rule will have a big economic effect on lots of small businesses or other small entities, the agency in charge must give those small entities a chance to join the rulemaking. The agency must use practical ways to reach them, for example by saying so in advance notices, publishing the proposal where small entities will see it, telling interested small entities directly, holding open meetings or hearings (including online comment options), and changing agency procedures to make it easier and cheaper for small entities to participate. Before a covered agency publishes its initial regulatory flexibility analysis, it must tell the Chief Counsel for Advocacy at the Small Business Administration and send information about possible impacts. Within 15 days the Chief Counsel will pick small-entity representatives to advise on the rule. The agency must set up a review panel made up of agency staff, the Office of Information and Regulatory Affairs, and the Chief Counsel. The panel reviews materials, gathers the representatives’ advice, and must report its findings publicly within 60 days. The agency should change the proposed rule or the analysis if appropriate. A covered agency may choose to use this process for other rules it thinks may have more than a de minimis impact. Covered agencies are the Environmental Protection Agency; the Consumer Financial Protection Bureau of the Federal Reserve System; and the Occupational Safety and Health Administration. The Chief Counsel, with others, may waive the panel steps (b)(3), (b)(4), and (b)(5) in writing if those steps would not help participation, considering prior consultation, urgent need for the rule, or unfair competitive advantage.

Title 5, §609

Government Organization and Employees — Source: USLM XML via OLRC

(a)When any rule is promulgated which will have a significant economic impact on a substantial number of small entities, the head of the agency promulgating the rule or the official of the agency with statutory responsibility for the promulgation of the rule shall assure that small entities have been given an opportunity to participate in the rulemaking for the rule through the reasonable use of techniques such as—

(1)the inclusion in an advanced notice of proposed rulemaking, if issued, of a statement that the proposed rule may have a significant economic effect on a substantial number of small entities;

(2)the publication of general notice of proposed rulemaking in publications likely to be obtained by small entities;

(3)the direct notification of interested small entities;

(4)the conduct of open conferences or public hearings concerning the rule for small entities including soliciting and receiving comments over computer networks; and

(5)the adoption or modification of agency procedural rules to reduce the cost or complexity of participation in the rulemaking by small entities.

(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 subsection 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 subsection 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—

(1)the Environmental Protection Agency;

(2)the Consumer Financial Protection Bureau of the Federal Reserve System; and

(3)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 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.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Subsec. (d). Pub. L. 111–203 substituted “means—” for “means the Environmental Protection Agency and the Occupational Safety and Health Administration of the Department of Labor.” and added pars. (1) to (3). 1996—Pub. L. 104–121, § 244(a)(2), (3), designated existing provisions as subsec. (a) and inserted “including soliciting and receiving comments over computer networks” after “entities” in par. (4). Pub. L. 104–121, § 244(a)(1), which directed insertion of “the reasonable use of” before “techniques,” in introductory provisions, was executed by making the insertion in text which did not contain a comma after the word “techniques” to reflect the probable intent of Congress. Subsecs. (b) to (e). Pub. L. 104–121, § 244(a)(4), added subsecs. (b) to (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated 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 AmendmentAmendment by Pub. L. 104–121 effective on expiration of 90 days after Mar. 29, 1996, but inapplicable to interpretative rules for which a notice of proposed rulemaking 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. Small Business Advocacy Chairpersons Pub. L. 104–121, title II, § 244(b), Mar. 29, 1996, 110 Stat. 868, provided that: “Not later than 30 days after the date of enactment of this Act [Mar. 29, 1996], 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.”

§609 Procedures for Gathering Comments

Summary

Title 5, §609

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata