Bill > HR3137

This bill, the Small Business Freedom of Commerce Act of 2011, allows a small business operating in the United States to choose to be exempt from any federal rule or regulation that was put into effect on or after January 20, 2009. To use this exemption, a small business must formally notify the federal agency that issued the rule, and the exemption becomes effective 30 days after this notification. Once exempt, the small business is required to clearly label any affected products and include a notice in any related communications stating that the product or activity is no longer subject to that specific rule or regulation. Failure to comply with these notification requirements will result in penalties. However, this exemption does not apply to rules or regulations issued by the Department of Defense (DOD) or the Department of Homeland Security (DHS) if their respective Secretaries determine that the rule is essential for U.S. security. The bill defines "Federal agency" as any department, agency, or independent establishment of the Federal Government, and "small business concern" is defined according to the Small Business Act.