Waiver of fines for first-time paperwork violations by small businesses

Section 3506 of title 44, United States Code (commonly referred to as the Paperwork Reduction Act), is amended by adding at the end the following: (j) Small businesses (1) Definitions In this subsection: (A) First-time violation The term first-time violation means a violation by a small business concern of a requirement regarding collection of information by an agency, where the small business concern has not previously violated any similar requirement regarding collection of information by that same agency during the 5-year period preceding the violation. (B) Small business concern The term small business concern has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632). (2) First-time violation (A) In general Except as provided in subparagraph (C), in the case of a first-time violation by a small business concern of a requirement regarding the collection of information by an agency, the head of the agency shall not impose a civil fine on the small business concern. (B) Determination For purposes of determining whether to impose a civil fine on a small business concern under subparagraph (A), the head of an agency shall not take into account any violation by the small business concern of a requirement regarding collection of information by another agency. (C) Exception An agency may impose a civil fine on a small business concern for a first-time violation if the head of the agency determines that— (i) the violation has the potential to cause serious harm to the public interest; (ii) failure to impose a civil fine would impede or interfere with the detection of criminal activity; (iii) the violation is a violation of an internal revenue law or a law concerning the assessment or collection of any tax, debt, revenue, or receipt; (iv) the violation was not corrected on or before the date that is 6 months after the date on which the small business concern receives notification of the violation in writing from the agency; or (v) except as provided in paragraph (3), the violation presents a danger to the public health or safety. (3) Danger to public health or safety (A) In general In any case in which the head of an agency determines under paragraph (2)(C)(v) that a violation presents a danger to the public health or safety, the head of the agency may determine not to impose a civil fine on the small business concern if the violation is corrected not later than 24 hours after receipt by the owner of the small business concern of notification of the violation in writing. (B) Considerations In determining whether to allow a small business concern 24 hours to correct a violation under subparagraph (A), the head of an agency shall take into account all of the facts and circumstances regarding the violation, including— (i) the nature and seriousness of the violation, including whether the violation is technical or inadvertent or involves willful or criminal conduct; (ii) whether the small business concern had made a good faith effort to comply with applicable laws and to remedy the violation within the shortest practicable period of time; and (iii) whether the small business concern has obtained a significant economic benefit from the violation. (C) Notice to Congress In any case in which the head of an agency imposes a civil fine on a small business concern for a violation that presents a danger to the public health or safety and does not allow the small business concern 24 hours to correct the violation under subparagraph (A), the head of the agency shall notify Congress regarding the determination not later than 60 days after the date on which the civil fine is imposed by the agency..