(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 interpretive 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.
[5 USC 603. As amended
by act of March 24, 1996 (110 Stat. 864).]
