OFFICE OF REGULATION POLICY AND MANAGEMENT
OFFICE OF THE GENERAL COUNSEL
STANDARD OPERATING PROCEDURES
FOR
REGULATORY FLEXIBILITY ACT COMPLIANCE

1.    PURPOSE
      This SOP establishes procedures to ensure compliance with the requirements of Executive Order 13272 of August 13, 2002 (Proper Consideration of Small Entities in Agency Rulemaking) and the Regulatory Flexibility Act (5 U.S.C. §§ 601-12). 

2.    POLICY
      The Department of Veterans Affairs will give proper consideration to the impact of its rulemaking activities on small entities.  Rulemaking activities in VA are centrally coordinated and managed to ensure that VA regulations comply with all legal requirements and efficiently implement statutes, executive orders, and Secretarial policies and priorities.  The Office of Regulation Policy and Management manages compliance with the requirements of the Regulatory Flexibility Act and Executive Order 13272 in order to ensure that all proponents of VA regulations properly evaluate the impact their regulations may have on small entities, such as small business concerns, small not-for-profit organizations, and small local governmental bodies. 

3.  RESPONSIBILITIES
      a.  The Director for Regulation Policy and Management will determine when Regulatory Flexibility Act analyses are appropriate, and will ensure that VA analyses are coordinated with the Chief Counsel for Advocacy of the Small Business Administration (Advocacy).
      b.  The General Counsel will provide supervision, legal review, and guidance for all VA rulemaking activities.
      c.  The Director, Office of Small and Disadvantaged Business Utilization will provide technical advice and assistance, as necessary.
      d.  The Director for Regulations Management will:
           (1) provide staff coordination and assistance to VA regulation drafters in performing impact analyses required by the Regulatory Flexibility Act;
           (2) supervise the submission and coordination of VA analyses with the Office of Information and Regulatory Affairs (OIRA), Office of Management and Budget (OMB), the Chief Counsel for Advocacy of the Small Business Administration (Advocacy), and the Federal Register;
          (3) be responsible for compliance with all procedures mandated by the Regulatory Flexibility Act, E.O. 13272, and other laws and regulations pertaining to rulemaking;
          (4) conduct periodic reviews, as required by section 610(a) of the Regulatory Flexibility Act, of VA regulations that have significant economic impact on a substantial number of small entities; and,
          (5) provide instruction and reference materials for VA personnel involved in the rulemaking process.

4.   REFERENCES
      a.  Regulatory Flexibility Act (5 U.S.C. §§ 601-12)
      b.  Executive Order 13272 of August 13, 2002, Proper Consideration of Small Entities in Agency Rulemaking (67 FR 53461; August 16, 2002)
      c.  Executive Order 12866 of September 30, 1993, Regulatory Planning and Review (58 FR 51735; October 4, 1993), as amended
      d.  OMB Guidance:  Economic Analysis of Federal Regulations under Executive Order 12866, dated January 11, 1996 (www.whitehouse.gov/omb/inforeg/riaguide.html)
      e.  OMB Guidance:  Making Sense of Regulation: 2001 Report to Congress on the Costs and Benefits of Regulations and Unfunded Mandates on State, Local, and Tribal Entities
      f.  SBA, Office of Advocacy, Guidance:  The Regulatory Flexibility Act, An Implementation Guide for Federal Agencies, dated November 2002 (www.sba.gov/advo/). 
      g.  Related rulemaking laws and executive orders:
          (1)  Paperwork Reduction Act of 1980 (44 U.S.C. §§ 3501-21)
          (2)  Unfunded Mandates Reform Act of 1995 (2 U.S.C. §§ 658, 1501-03, 1531-34)
          (3)  Truth in Regulating Act of 2000 (5 U.S.C. §§ 801-08)
          (4)  Administrative Procedure Act of 1946 (5 U.S.C. §§ 551-59, 701-06, 1305, 3105, 3344, 5372, 7521)
          (5)  Executive Order 13132 of August 4, 1999, Federalism (64 FR 43255; August 10, 1999)