
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
