§ 603. — Initial regulatory flexibility analysis.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 5USC603]
TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
PART I--THE AGENCIES GENERALLY
CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS
Sec. 603. Initial regulatory flexibility analysis
(a) Whenever an agency is required by section 553 of this title, or
any other law, to publish general notice of proposed rulemaking for any
proposed rule, or publishes a notice of proposed rulemaking for an
interpretative rule involving the internal revenue laws of the United
States, the agency shall prepare and make available for public comment
an initial regulatory flexibility analysis. Such analysis shall describe
the impact of the proposed rule on small entities. The initial
regulatory flexibility analysis or a summary shall be published in the
Federal Register at the time of the publication of general notice of
proposed rulemaking for the rule. The agency shall transmit a copy of
the initial regulatory flexibility analysis to the Chief Counsel for
Advocacy of the Small Business Administration. 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.
(b) Each initial regulatory flexibility analysis required under this
section shall contain--
(1) a description of the reasons why action by the agency is
being considered;
(2) a succinct statement of the objectives of, and legal basis
for, the proposed rule;
(3) a description of and, where feasible, an estimate of the
number of small entities to which the proposed rule will apply;
(4) a description of the projected reporting, recordkeeping and
other compliance requirements of the proposed rule, including an
estimate of the classes of small entities which will be subject to
the requirement and the type of professional skills necessary for
preparation of the report or record;
(5) an identification, to the extent practicable, of all
relevant Federal rules which may duplicate, overlap or conflict with
the proposed rule.
(c) Each initial regulatory flexibility analysis shall also contain
a description of any significant alternatives to the proposed rule which
accomplish the stated objectives of applicable statutes and which
minimize any significant economic impact of the proposed rule on small
entities. Consistent with the stated objectives of applicable statutes,
the analysis shall discuss significant alternatives such as--
(1) the establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to small entities;
(2) the clarification, consolidation, or simplification of
compliance and reporting requirements under the rule for such small
entities;
(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.
(Added Pub. L. 96-354, Sec. 3(a), Sept. 19, 1980, 94 Stat. 1166; amended
Pub. L. 104-121, title II, Sec. 241(a)(1), Mar. 29, 1996, 110 Stat.
864.)
References in Text
The internal revenue laws, referred to in subsec. (a), are
classified generally to Title 26, Internal Revenue Code.
Amendments
1996--Subsec. (a). Pub. L. 104-121, Sec. 241(a)(1)(B), inserted at
end ``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.''
Pub. L. 104-121, Sec. 241(a)(1)(A), which directed the insertion of
``, or publishes a notice of proposed rulemaking for an interpretative
rule involving the internal 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.
Effective Date of 1996 Amendment
Amendment 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.
Section Referred to in Other Sections
This section is referred to in sections 604, 605, 606, 607, 608,
609, 801 of this title; title 42 section 1302.
