H.R. 6240 (112th): Manufacturing Comeback Act of 2012

112th Congress, 2011–2013. Text as of Jul 31, 2012 (Introduced).

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I

112th CONGRESS

2d Session

H. R. 6240

IN THE HOUSE OF REPRESENTATIVES

July 31, 2012

introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, the Judiciary, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To make reforms to taxes, regulations, and workforce development programs in order to increase employment in the manufacturing sector and overall economy.

1.

Short title

(a)

Short title

This Act may be cited as the Manufacturing Comeback Act of 2012.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title.

Title I—Research and Development

Sec. 101. Extension and expansion of research and development tax credit.

Title II—Corporate and Individual Provisions Generally

Sec. 201. Extension of bonus depreciation and temporary 100 percent expensing for certain business assets.

Sec. 202. Extension of increased small business expensing.

Sec. 203. Maximum corporate income tax rate reduced to 25 percent for 2013.

Sec. 204. Temporary extension of 2001 tax relief.

Sec. 205. Temporary extension of 2003 tax relief.

Title III—Workforce Training

Sec. 301. Short title.

Sec. 302. Industry-recognized and nationally portable credentials for job training programs.

Sec. 303. Skill credential registry.

Sec. 304. Effective Date.

Title IV—Economic Impact of Research Grants

Sec. 401. Economic impact of research grants.

Title V—Regulations

Sec. 501. Short title; table of contents.

Sec. 502. Clarification and expansion of rules covered by the Regulatory Flexibility Act.

Sec. 503. Expansion of report of regulatory agenda.

Sec. 504. Requirements providing for more detailed analyses.

Sec. 505. Repeal of waiver and delay authority; Additional powers of the Chief Counsel for Advocacy.

Sec. 506. Procedures for gathering comments.

Sec. 507. Periodic review of rules.

Sec. 508. Judicial review of compliance with the requirements of the Regulatory Flexibility Act available after publication of the final rule.

Sec. 509. Jurisdiction of court of appeals over rules implementing the Regulatory Flexibility Act.

Sec. 510. Clerical amendments.

Sec. 511. Agency preparation of guides.

Title VI—Vocational Training at State Level

Sec. 601. Findings.

Sec. 602. Sense of Congress.

I

Research and Development

101.

Extension and expansion of research and development tax credit

(a)

Extension

(1)

Subparagraph (B) of section 41(h)(1) of the Internal Revenue Code of 1986 is amended by striking December 31, 2011 and inserting December 31, 2016.

(2)

Conforming amendment

Section 45C(b)(1)(D) of such Code is amended by striking December 31, 2011 and inserting December 31, 2016.

(b)

Alternative simplified credit

Subparagraph (A) of section 41(c)(5) of such Code is amended by striking 14 percent (12 percent in the case of taxable years ending before January 1, 2009) and inserting 25 percent.

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after December 31, 2011.

II

Corporate and Individual Provisions Generally

201.

Extension of bonus depreciation and temporary 100 percent expensing for certain business assets

(a)

In general

Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended—

(1)

by striking January 1, 2012 in subparagraph (A)(iv) and inserting January 1, 2014, and

(2)

by striking January 1, 2011 each place it appears and inserting January 1, 2013.

(b)

Temporary 100 percent expensing

Paragraph (5) of section 168(k) of such Code is amended—

(1)

by striking 2013 and inserting 2014, and

(2)

by striking 2012 both places it appears and inserting 2013.

(c)

Extension of election To accelerate the AMT credit in lieu of bonus depreciation

Subclause (II) of section 168(k)(4)(D)(iii) of such Code is amended by striking 2013 and inserting 2014.

(d)

Conforming amendments

(1)

The heading for subsection (k) of section 168 of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(2)

The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking pre-January 1, 2013 and inserting pre-January 1, 2014.

(3)

Subparagraph (C) of section 168(n)(2) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(4)

Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(5)

Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(e)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2012, in taxable years ending after such date.

202.

Extension of increased small business expensing

(a)

Dollar limitation

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 is amended—

(1)

in subparagraph (B) by striking or 2011 and inserting , 2011, or 2012,

(2)

in subparagraph (C) by striking 2012 and inserting 2013, and

(3)

in subparagraph (D) by striking 2012 and inserting 2013.

(b)

Reduction in limitation

Paragraph (2) of section 179(b) of such Code is amended—

(1)

in subparagraph (B) by striking or 2011 and inserting , 2011, or 2012,

(2)

in subparagraph (C) by striking 2012 and inserting 2013, and

(3)

in subparagraph (D) by striking 2012 and inserting 2013.

(c)

Inflation adjustment

Subparagraph (A) of section 179(b) of such Code is amended by striking 2012 and inserting 2013.

(d)

Computer software

Section 179(d)(1)(A)(ii) of such Code is amended by striking 2013 and inserting 2014.

(e)

Conforming amendment

Section 179(c)(2) of such Code is amended by striking 2013 and inserting 2014.

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

203.

Maximum corporate income tax rate reduced to 25 percent for 2013

(a)

In general

Subsection (b) of section 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(3)

Special rule for 2013

In the case of a taxable year beginning in 2013—

(A)

in lieu of paragraph (1), the amount of the tax imposed by subsection (a) shall be the sum of—

(i)

15 percent of so much of the taxable income as does not exceed $50,000, and

(ii)

25 percent of so much of the taxable income as exceeds $50,000,

(B)

paragraph (2) shall be applied by substituting 25 percent for 35 percent, and

(C)

paragraphs (1) and (2) of section 1445(e) shall be applied by substituting 25 percent for 35 percent.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

204.

Temporary extension of 2001 tax relief

(a)

In general

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking December 31, 2012 both places it appears and inserting December 31, 2013.

(b)

Effective date

The amendment made by this section shall take effect as if included in the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001.

205.

Temporary extension of 2003 tax relief

(a)

In general

Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 is amended by striking December 31, 2012 and inserting December 31, 2013.

(b)

Effective date

The amendment made by this section shall take effect as if included in the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003.

III

Workforce Training

301.

Short title

This title may be cited as the American Manufacturing Efficiency and Retraining Investment Collaboration Achievement Works Act or the AMERICA Works Act.

302.

Industry-recognized and nationally portable credentials for job training programs

(a)

Workforce Investment Act of 1998

(1)

General employment and training activities

Section 134(d)(4)(F) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(4)(F)) is amended by adding at the end the following:

(iv)

Priority for programs that provide an industry-Recognized and nationally portable credential

In selecting and approving training services, or programs of training services, under this section, a one-stop operator and employees of a one-stop center referred to in subsection (c) shall give priority consideration to services and programs (approved by the appropriate State agency and local board in conjunction with section 122) that lead to a credential that is in high demand in the local area served and listed in the registry described in section 3(b) of the AMERICA Works Act.

.

(2)

Youth activities

Section 129(c)(1)(C) of the Workforce Investment Act of 1998 (29 U.S.C. 2854(c)(1)(C)) is amended—

(A)

by redesignating clauses (ii) through (iv) as clauses (iii) through (v), respectively; and

(B)

by inserting after clause (i) the following:

(ii)

training (with priority consideration given to programs that lead to a credential that is in high demand in the local area served and listed in the registry described in section 3(b) of the AMERICA Works Act, if the local board determines that such programs are available and appropriate);

.

(b)

Career and technical education

(1)

State plan

Section 122(c)(1)(B) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2342(c)(1)(B)) is amended by striking the semicolon at the end and inserting the following:

and, with respect to programs of study leading to an industry-recognized credential or certificate, will give priority consideration to programs of study that—

(i)

lead to an appropriate (as determined by the eligible agency) skills credential (which may be a certificate) that is in high demand in the area served and listed in the registry described in section 3(b) of the AMERICA Works Act; and

(ii)

may provide a basis for additional credentials, certificates, or degrees;

.

(2)

Use of local funds

Section 134(b) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2354(b)) is amended—

(A)

in paragraph (11), by striking ; and and inserting a semicolon;

(B)

in paragraph (12)(B), by striking the period and inserting ; and; and

(C)

by adding at the end the following:

(13)

describe the career and technical education activities supporting the attainment of industry-recognized credentials or certificates, and how the eligible recipient, in selecting such activities, gave priority consideration to activities supporting high-demand registry skill credentials described in section 122(c)(1)(B)(i).

.

(3)

Tech-prep programs

Section 203(c)(2)(E) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2373(c)(2)(E)) is amended by striking industry-recognized credential, a certificate, and inserting industry-recognized credential or certificate (such as a high-demand registry skill credential described in section 122(c)(1)(B)(i)),.

(c)

Training programs under TAA

Section 236(a)(5) of the Trade Act of 1974 (19 U.S.C. 2296(a)(5)) is amended by inserting after the sentence that follows subparagraph (H)(ii) the following: In approving training programs under paragraph (1), the Secretary shall give priority consideration to programs that lead to a credential that is in high demand in the local area (defined for purposes of title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)) served by the corresponding one-stop delivery system under that title for the training programs, and that is listed in the registry described in section 3(b) of the AMERICA Works Act..

303.

Skill credential registry

(a)

Definitions

In this section:

(1)

Covered provision

The term covered provision means any of sections 129 and 134 of the Workforce Investment Act of 1998 (29 U.S.C. 2854, 2864), section 122(c)(1)(B) of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2342(c)(1)(B)), and section 236 of the Trade Act of 1974 (19 U.S.C. 2296).

(2)

Industry-recognized

The term industry-recognized, used with respect to a credential, means a credential that—

(A)

is sought or accepted by companies within the industry sector involved as recognized, preferred, or required for recruitment, screening, or hiring; and

(B)

is endorsed by a nationally recognized trade association or organization representing a significant part of the industry sector.

(3)

Nationally portable

The term nationally portable, used with respect to a credential, means a credential that is sought or accepted by companies within the industry sector involved, across multiple States, as recognized, preferred, or required for recruitment, screening, or hiring.

(4)

Workforce investment activities

The term workforce investment activities has the meaning given the term in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801).

(b)

Registry

(1)

In general

Not later than 120 days after the date of enactment of this Act, the Secretary of Labor (referred to in this section as the Secretary) shall create a registry of skill credentials (which may be certificates), for purposes of enabling programs that lead to such a credential to receive priority under a covered provision.

(2)

Registry

The Secretary shall—

(A)

list the credential in the registry if the credential is required by Federal or State law for an occupation (such as a credential required by a State law regarding qualifications for a health care occupation);

(B)

list the credential in the registry if the credential is a credential from the Manufacturing Institute-Endorsed Manufacturing Skills Certification System; and

(C)

list the credential, and list an updated credential, in the registry if the credential involved is an industry-recognized, nationally portable credential that is consistent with the Secretary's established industry competency models and is consistently updated through third party validation to reflect changing industry competencies.

(c)

Rule of construction

Nothing in this title shall be construed to require an entity with responsibility for selecting or approving an education, training, or workforce investment activities program with regard to a covered provision, to select a program with a credential listed in the registry described in subsection (b).

304.

Effective Date

This title, and the amendments made by this title, take effect 120 days after the date of enactment of this Act.

IV

Economic Impact of Research Grants

401.

Economic impact of research grants

The Secretary of Labor and the Secretary of Commerce shall prepare for each research grant made by their departments a statement describing the economic impact of the activities to be carried out using the grant funding.

V

Regulations

501.

Short title; table of contents

This title may be cited as the Regulatory Flexibility Improvements Act of 2012.

502.

Clarification and expansion of rules covered by the Regulatory Flexibility Act

(a)

In general

Paragraph (2) of section 601 of title 5, United States Code, is amended to read as follows:

(2)

Rule

The term rule has the meaning given such term in section 551(4) of this title, except that such term does not include a rule of particular (and not general) applicability relating to rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services, or allowances therefor or to valuations, costs or accounting, or practices relating to such rates, wages, structures, prices, appliances, services, or allowances.

.

(b)

Inclusion of rules with indirect effects

Section 601 of title 5, United States Code, is amended by adding at the end the following new paragraph:

(9)

Economic impact

The term economic impact means, with respect to a proposed or final rule—

(A)

any direct economic effect on small entities of such rule; and

(B)

any indirect economic effect on small entities which is reasonably foreseeable and results from such rule (without regard to whether small entities will be directly regulated by the rule).

.

(c)

Inclusion of rules with beneficial effects

(1)

Initial regulatory flexibility analysis

Subsection (c) of section 603 of title 5, United States Code, is amended by striking the first sentence and inserting Each initial regulatory flexibility analysis shall also contain a detailed description of alternatives to the proposed rule which minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities..

(2)

Final regulatory flexibility analysis

The first paragraph (6) of section 604(a) of title 5, United States Code, is amended by striking minimize the significant economic impact and inserting minimize the adverse significant economic impact or maximize the beneficial significant economic impact.

(d)

Inclusion of rules affecting tribal organizations

Paragraph (5) of section 601 of title 5, United States Code, is amended by inserting and tribal organizations (as defined in section 4(l) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b(l))), after special districts,.

(e)

Inclusion of land management plans and formal rulemaking

(1)

Initial regulatory flexibility analysis

Subsection (a) of section 603 of title 5, United States Code, is amended in the first sentence—

(A)

by striking or after proposed rule,; and

(B)

by inserting or publishes a revision or amendment to a land management plan, after United States,.

(2)

Final regulatory flexibility analysis

Subsection (a) of section 604 of title 5, United States Code, is amended in the first sentence—

(A)

by striking or after proposed rulemaking,; and

(B)

by inserting or adopts a revision or amendment to a land management plan, after section 603(a),.

(3)

Land management plan defined

Section 601 of title 5, United States Code, is amended by adding at the end the following new paragraph:

(10)

Land management plan

(A)

In general

The term land management plan means—

(i)

any plan developed by the Secretary of Agriculture under section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604); and

(ii)

any plan developed by the Secretary of the Interior under section 202 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712).

(B)

Revision

The term revision means any change to a land management plan which—

(i)

in the case of a plan described in subparagraph (A)(i), is made under section 6(f)(5) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604(f)(5)); or

(ii)

in the case of a plan described in subparagraph (A)(ii), is made under section 1610.5–6 of title 43, Code of Federal Regulations (or any successor regulation).

(C)

Amendment

The term amendment means any change to a land management plan which—

(i)

in the case of a plan described in subparagraph (A)(i), is made under section 6(f)(4) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604(f)(4)) and with respect to which the Secretary of Agriculture prepares a statement described in section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)); or

(ii)

in the case of a plan described in subparagraph (A)(ii), is made under section 1610.5–5 of title 43, Code of Federal Regulations (or any successor regulation) and with respect to which the Secretary of the Interior prepares a statement described in section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).

.

(f)

Inclusion of certain interpretive rules involving the internal revenue laws

(1)

In general

Subsection (a) of section 603 of title 5, United States Code, is amended by striking the period at the end and inserting or a recordkeeping requirement, and without regard to whether such requirement is imposed by statute or regulation..

(2)

Collection of information

Paragraph (7) of section 601 of title 5, United States Code, is amended to read as follows:

(7)

Collection of information

The term collection of information has the meaning given such term in section 3502(3) of title 44.

.

(3)

Recordkeeping requirement

Paragraph (8) of section 601 of title 5, United States Code, is amended to read as follows:

(8)

Recordkeeping requirement

The term recordkeeping requirement has the meaning given such term in section 3502(13) of title 44.

.

(g)

Definition of small organization

Paragraph (4) of section 601 of title 5, United States Code, is amended to read as follows:

(4)

Small organization

(A)

In general

The term small organization means any not-for-profit enterprise which, as of the issuance of the notice of proposed rulemaking—

(i)

in the case of an enterprise which is described by a classification code of the North American Industrial Classification System, does not exceed the size standard established by the Administrator of the Small Business Administration pursuant to section 3 of the Small Business Act (15 U.S.C. 632) for small business concerns described by such classification code; and

(ii)

in the case of any other enterprise, has a net worth that does not exceed $7,000,000 and has not more than 500 employees.

(B)

Local labor organizations

In the case of any local labor organization, subparagraph (A) shall be applied without regard to any national or international organization of which such local labor organization is a part.

(C)

Agency definitions

Subparagraphs (A) and (B) shall not apply to the extent that an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions for such term which are appropriate to the activities of the agency and publishes such definitions in the Federal Register.

.

503.

Expansion of report of regulatory agenda

Section 602 of title 5, United States Code, is amended—

(1)

in subsection (a)—

(A)

in paragraph (2), by striking , and at the end and inserting ;;

(B)

by redesignating paragraph (3) as paragraph (4); and

(C)

by inserting after paragraph (2) the following:

(3)

a brief description of the sector of the North American Industrial Classification System that is primarily affected by any rule which the agency expects to propose or promulgate which is likely to have a significant economic impact on a substantial number of small entities; and

; and

(2)

in subsection (c), to read as follows:

(c)

Each agency shall prominently display a plain language summary of the information contained in the regulatory flexibility agenda published under subsection (a) on its website within 3 days of its publication in the Federal Register. The Office of Advocacy of the Small Business Administration shall compile and prominently display a plain language summary of the regulatory agendas referenced in subsection (a) for each agency on its website within 3 days of their publication in the Federal Register.

.

504.

Requirements providing for more detailed analyses

(a)

Initial regulatory flexibility analysis

Subsection (b) of section 603 of title 5, United States Code, is amended to read as follows:

(b)

Each initial regulatory flexibility analysis required under this section shall contain a detailed statement—

(1)

describing the reasons why action by the agency is being considered;

(2)

describing the objectives of, and legal basis for, the proposed rule;

(3)

estimating the number and type of small entities to which the proposed rule will apply;

(4)

describing 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 and record;

(5)

describing all relevant Federal rules which may duplicate, overlap, or conflict with the proposed rule, or the reasons why such a description could not be provided;

(6)

estimating the additional cumulative economic impact of the proposed rule, or the cumulative impact of any other rule stemming from the implementation of the Free Trade Agreements, on small entities beyond that already imposed on the class of small entities by the agency or why such an estimate is not available; and

(7)

describing any disproportionate economic impact on small entities or a specific class of small entities.

.

(b)

Final regulatory flexibility analysis

(1)

In general

Section 604(a) of title 5, United States Code, is amended—

(A)

in paragraph (4), by striking an explanation and inserting a detailed explanation;

(B)

in each of paragraphs (4), (5), and the first paragraph (6), by inserting detailed before description; and

(C)

by adding at the end the following:

(7)

describing any disproportionate economic impact on small entities or a specific class of small entities.

.

(2)

Inclusion of response to comments on certification of proposed rule

Paragraph (2) of section 604(a) of title 5, United States Code, is amended by inserting (or certification of the proposed rule under section 605(b)) after initial regulatory flexibility analysis.

(3)

Publication of analysis on website

Subsection (b) of section 604 of title 5, United States Code, is amended to read as follows:

(b)

The agency shall make copies of the final regulatory flexibility analysis available to the public, including placement of the entire analysis on the agency’s website, and shall publish in the Federal Register the final regulatory flexibility analysis, or a summary thereof which includes the telephone number, mailing address, and link to the website where the complete analysis may be obtained.

.

(c)

Cross-References to other analyses

Subsection (a) of section 605 of title 5, United States Code, is amended to read as follows:

(a)

A Federal agency shall be treated as satisfying any requirement regarding the content of an agenda or regulatory flexibility analysis under section 602, 603, or 604, if such agency provides in such agenda or analysis a cross-reference to the specific portion of another agenda or analysis which is required by any other law and which satisfies such requirement.

.

(d)

Certifications

Subsection (b) of section 605 of title 5, United States Code, is amended—

(1)

by inserting detailed before statement the first place it appears; and

(2)

by inserting and legal after factual.

(e)

Quantification requirements

Section 607 of title 5, United States Code, is amended to read as follows:

607.

Quantification requirements

In complying with sections 603 and 604, an agency shall provide—

(1)

a quantifiable or numerical description of the effects of the proposed or final rule and alternatives to the proposed or final rule; or

(2)

a more general descriptive statement and a detailed statement explaining why quantification is not practicable or reliable.

.

505.

Repeal of waiver and delay authority; Additional powers of the Chief Counsel for Advocacy

(a)

In general

Section 608 is amended to read as follows:

608.

Additional powers of Chief Counsel for Advocacy

(a)
(1)

Not later than 270 days after the date of the enactment of the Regulatory Flexibility Improvements Act of 2012, the Chief Counsel for Advocacy of the Small Business Administration shall, after opportunity for notice and comment under section 553, issue rules governing agency compliance with this chapter. The Chief Counsel may modify or amend such rules after notice and comment under section 553. This chapter (other than this subsection) shall not apply with respect to the issuance, modification, and amendment of rules under this paragraph.

(2)

An agency shall not issue rules which supplement the rules issued under subsection (a) unless such agency has first consulted with the Chief Counsel for Advocacy to ensure that such supplemental rules comply with this chapter and the rules issued under paragraph (1).

(b)

Notwithstanding any other law, the Chief Counsel for Advocacy of the Small Business Administration may intervene in any agency adjudication (unless such agency is authorized to impose a fine or penalty under such adjudication), and may inform the agency of the impact that any decision on the record may have on small entities. The Chief Counsel shall not initiate an appeal with respect to any adjudication in which the Chief Counsel intervenes under this subsection.

(c)

The Chief Counsel for Advocacy may file comments in response to any agency notice requesting comment, regardless of whether the agency is required to file a general notice of proposed rulemaking under section 553.

.

(b)

Conforming amendments

(1)

Section 611(a)(1) of such title is amended by striking 608(b),.

(2)

Section 611(a)(2) of such title is amended by striking 608(b),.

(3)

Section 611(a)(3) of such title is amended—

(A)

by striking subparagraph (B); and

(B)

by striking (3)(A) A small entity and inserting the following:

(3)

A small entity

.

506.

Procedures for gathering comments

Section 609 of title 5, United States Code, is amended by striking subsection (b) and all that follows through the end of the section and inserting the following:

(b)
(1)

Prior to publication of any proposed rule described in subsection (e), an agency making such rule shall notify the Chief Counsel for Advocacy of the Small Business Administration and provide the Chief Counsel with—

(A)

all materials prepared or utilized by the agency in making the proposed rule, including the draft of the proposed rule; and

(B)

information on the potential adverse and beneficial economic impacts of the proposed rule on small entities and the type of small entities that might be affected.

(2)

An agency shall not be required under paragraph (1) to provide the exact language of any draft if the rule—

(A)

relates to the internal revenue laws of the United States; or

(B)

is proposed by an independent regulatory agency (as defined in section 3502(5) of title 44).

(c)

Not later than 15 days after the receipt of such materials and information under subsection (b), the Chief Counsel for Advocacy of the Small Business Administration shall—

(1)

identify small entities or representatives of small entities or a combination of both for the purpose of obtaining advice, input, and recommendations from those persons about the potential economic impacts of the proposed rule and the compliance of the agency with section 603; and

(2)

convene a review panel consisting of an employee from the Office of Advocacy of the Small Business Administration, an employee from the agency making the rule, and in the case of an agency other than an independent regulatory agency (as defined in section 3502(5) of title 44), an employee from the Office of Information and Regulatory Affairs of the Office of Management and Budget to review the materials and information provided to the Chief Counsel under subsection (b).

(d)
(1)

Not later than 60 days after the review panel described in subsection (c)(2) is convened, the Chief Counsel for Advocacy of the Small Business Administration shall, after consultation with the members of such panel, submit a report to the agency and, in the case of an agency other than an independent regulatory agency (as defined in section 3502(5) of title 44), the Office of Information and Regulatory Affairs of the Office of Management and Budget.

(2)

Such report shall include an assessment of the economic impact of the proposed rule on small entities, including an assessment of the proposed rule’s impact on the cost that small entities pay for energy, and a discussion of any alternatives that will minimize adverse significant economic impacts or maximize beneficial significant economic impacts on small entities.

(3)

Such report shall become part of the rulemaking record. In the publication of the proposed rule, the agency shall explain what actions, if any, the agency took in response to such report.

(e)

A proposed rule is described by this subsection if the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget, the head of the agency (or the delegatee of the head of the agency), or an independent regulatory agency determines that the proposed rule is likely to result in—

(1)

an annual effect on the economy of $100,000,000 or more;

(2)

a major increase in costs or prices for consumers, individual industries, Federal, State, or local governments, tribal organizations, or geographic regions;

(3)

significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or

(4)

a significant economic impact on a substantial number of small entities.

(f)

Upon application by the agency, the Chief Counsel for Advocacy of the Small Business Administration may waive the requirements of subsections (b) through (e) if the Chief Counsel determines that compliance with the requirements of such subsections are impracticable, unnecessary, or contrary to the public interest.

.

507.

Periodic review of rules

Section 610 of title 5, United States Code, is amended to read as follows:

610.

Periodic review of rules

(a)

Not later than 180 days after the enactment of the Regulatory Flexibility Improvements Act of 2011, each agency shall publish in the Federal Register and place on its website a plan for the periodic review of rules issued by the agency which the head of the agency determines have a significant economic impact on a substantial number of small entities. Such determination shall be made without regard to whether the agency performed an analysis under section 604. The purpose of the review shall be to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objectives of applicable statutes, to minimize any adverse significant economic impacts or maximize any beneficial significant economic impacts on a substantial number of small entities. Such plan may be amended by the agency at any time by publishing the revision in the Federal Register and subsequently placing the amended plan on the agency’s website.

(b)

The plan shall provide for the review of all such agency rules existing on the date of the enactment of the Regulatory Flexibility Improvements Act of 2011 within 10 years of the date of publication of the plan in the Federal Register and for review of rules adopted after the date of enactment of the Regulatory Flexibility Improvements Act of 2011 within 10 years after the publication of the final rule in the Federal Register. If the head of the agency determines that completion of the review of existing rules is not feasible by the established date, the head of the agency shall so certify in a statement published in the Federal Register and may extend the review for not longer than 2 years after publication of notice of extension in the Federal Register. Such certification and notice shall be sent to the Chief Counsel for Advocacy of the Small Business Administration and the Congress.

(c)

The plan shall include a section that details how an agency will conduct outreach to and meaningfully include small businesses for the purposes of carrying out this section. The agency shall include in this section a plan for how the agency will contact small businesses and gather their input on existing agency rules.

(d)

Each agency shall annually submit a report regarding the results of its review pursuant to such plan to the Congress, the Chief Counsel for Advocacy of the Small Business Administration, and, in the case of agencies other than independent regulatory agencies (as defined in section 3502(5) of title 44) to the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget. Such report shall include the identification of any rule with respect to which the head of the agency made a determination described in paragraph (5) or (6) of subsection (e) and a detailed explanation of the reasons for such determination.

(e)

In reviewing a rule pursuant to subsections (a) through (d), the agency shall amend or rescind the rule to minimize any adverse significant economic impact on a substantial number of small entities or disproportionate economic impact on a specific class of small entities, or maximize any beneficial significant economic impact of the rule on a substantial number of small entities to the greatest extent possible, consistent with the stated objectives of applicable statutes. In amending or rescinding the rule, the agency shall consider the following factors:

(1)

The continued need for the rule.

(2)

The nature of complaints received by the agency from small entities concerning the rule.

(3)

Comments by the Regulatory Enforcement Ombudsman and the Chief Counsel for Advocacy of the Small Business Administration.

(4)

The complexity of the rule.

(5)

The extent to which the rule overlaps, duplicates, or conflicts with other Federal rules and, unless the head of the agency determines it to be infeasible, State, territorial, and local rules.

(6)

The contribution of the rule to the cumulative economic impact of all Federal rules on the class of small entities affected by the rule, unless the head of the agency determines that such calculations cannot be made and reports that determination in the annual report required under subsection (d).

(7)

The length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule.

(f)

The agency shall publish in the Federal Register and on its website a list of rules to be reviewed pursuant to such plan. Such publication shall include a brief description of the rule, the reason why the agency determined that it has a significant economic impact on a substantial number of small entities (without regard to whether it had prepared a final regulatory flexibility analysis for the rule), and request comments from the public, the Chief Counsel for Advocacy of the Small Business Administration, and the Regulatory Enforcement Ombudsman concerning the enforcement of the rule.

.

508.

Judicial review of compliance with the requirements of the Regulatory Flexibility Act available after publication of the final rule

(a)

In general

Paragraph (1) of section 611(a) of title 5, United States Code, is amended by striking final agency action and inserting such rule.

(b)

Jurisdiction

Paragraph (2) of such section is amended by inserting (or which would have such jurisdiction if publication of the final rule constituted final agency action) after provision of law,.

(c)

Time for bringing action

Paragraph (3) of such section is amended—

(1)

by striking final agency action and inserting publication of the final rule; and

(2)

by inserting , in the case of a rule for which the date of final agency action is the same date as the publication of the final rule, after except that.

(d)

Intervention by Chief Counsel for Advocacy

Subsection (b) of section 612 of title 5, United States Code, is amended by inserting before the first period or agency compliance with section 601, 603, 604, 605(b), 609, or 610.

509.

Jurisdiction of court of appeals over rules implementing the Regulatory Flexibility Act

(a)

In general

Section 2342 of title 28, United States Code, is amended—

(1)

in paragraph (6), by striking and at the end;

(2)

in paragraph (7), by striking the period at the end and inserting ; and; and

(3)

by inserting after paragraph (7) the following new paragraph:

(8)

all final rules under section 608(a) of title 5.

.

(b)

Conforming amendments

Paragraph (3) of section 2341 of title 28, United States Code, is amended—

(1)

in subparagraph (D), by striking and at the end;

(2)

in subparagraph (E), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following new subparagraph:

(F)

the Office of Advocacy of the Small Business Administration, when the final rule is under section 608(a) of title 5.

.

(c)

Authorization To intervene and comment on agency compliance with administrative procedure

Subsection (b) of section 612 of title 5, United States Code, is amended by inserting chapter 5, and chapter 7, after this chapter,.

510.

Clerical amendments

(a)

Section 601 of title 5, United States Code, is amended—

(1)

in paragraph (1)—

(A)

by striking the semicolon at the end and inserting a period; and

(B)

by striking (1) the term and inserting the following:

(1)

Agency

The term

;

(2)

in paragraph (3)—

(A)

by striking the semicolon at the end and inserting a period; and

(B)

by striking (3) the term and inserting the following:

(3)

Small business

The term

;

(3)

in paragraph (5)—

(A)

by striking the semicolon at the end and inserting a period; and

(B)

by striking (5) the term and inserting the following:

(5)

Small governmental jurisdiction

The term

; and

(4)

in paragraph (6)—

(A)

by striking ; and and inserting a period; and

(B)

by striking (6) the term and inserting the following:

(6)

Small entity

The term

.

(b)

The heading of section 605 of title 5, United States Code, is amended to read as follows:

605.

Incorporations by reference and certifications

.

(c)

The table of sections for chapter 6 of title 5, United States Code, is amended—

(1)

by striking the item relating to section 605 and inserting the following new item:

605. Incorporations by reference and certifications.

;

(2)

by striking the item relating to section 607 and inserting the following new item:

607. Quantification requirements.

;

and
(3)

by striking the item relating to section 608 and inserting the following:

608. Additional powers of Chief Counsel for Advocacy.

.

(d)

Chapter 6 of title 5, United States Code, is amended as follows:

(1)

In section 603, by striking subsection (d).

(2)

In section 604(a) by striking the second paragraph (6).

511.

Agency preparation of guides

Section 212(a)(5) the Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended to read as follows:

(5)

Agency preparation of guides

The agency shall, in its sole discretion, taking into account the subject matter of the rule and the language of relevant statutes, ensure that the guide is written using sufficiently plain language likely to be understood by affected small entities. Agencies may prepare separate guides covering groups or classes of similarly affected small entities and may cooperate with associations of small entities to distribute such guides. In developing guides, agencies shall solicit input from affected small entities or associations of affected small entities. An agency may prepare guides and apply this section with respect to a rule or a group of related rules.

.

VI

Vocational Training at State Level

601.

Findings

The Congress finds that—

(1)

high schools, community colleges, technical schools, as well as public and private universities and colleges should, when opportunities are available and viable, establish local and statewide partnerships with industry, especially manufacturing companies;

(2)

these partnerships include, but are not limited to, targeting curriculum and course work, in conjunction with private businesses and industry certification organizations that provide industry recognized nationally portable skills to meet the needs of industry; and

(3)

these partnerships will connect the intellectual knowledge available at our technical colleges, our two year universities, and at our four year colleges and universities with business leaders in order to create a synergism that encourages businesses to grow and expand through the availability of a higher skilled workforce.

602.

Sense of Congress

It is the sense of Congress that schools should establish local and statewide partnerships with industry, especially manufacturing companies.