Small Business OSHA Relief Act of 1996

Small Business OSHA Relief Act of 1996 - Amends the Occupational Safety and Health Act of 1970 (OSHA) to require each OSHA standard promulgated by the Secretary of Labor to be based upon a cost-benefit assessment and a determination that the standard's benefits justify the costs it imposes.

Directs the Secretary, in the case of any employer of 250 or fewer employees cited for a violation of specified requirements, standards, or rules, which is a significant threat to an employee's health or safety, but where the employer has made a good faith correction effort, to waive up to 100 percent of the penalty otherwise proposed for such violation: (1) if the employer corrects the violation within the time set for abatement; or (2), if the employer does not correct the violation within such time, to the extent that the employer uses the amount which would have been paid as the penalty for correction of the violation.

Prohibits issuance of a citation for any posting requirement and any requirement to prepare and maintain injury and illness records or written plan or verification, unless: (1) the employer has willfully or repeatedly violated the requirement; or (2) the failure to meet such requirement has resulted in employee exposure to a hazard.

Directs the Secretary to enter into cooperative agreements with States for consultation to employers concerning the provision of safe and healthful working conditions. Requires the Secretary to reimburse States that enter into such agreements for 90 percent of costs and 100 percent of State staff training and specified out-of-State travel expenses.

Prohibits the Secretary from establishing any performance measures for any subordinate within the Occupational Safety and Health Administration (including any regional director, area director, supervisor, or inspector) with respect to the number of inspections conducted, citations issued, or penalties assessed.