Bill Summary
This legislation focuses on prudent and responsible government spending and the management of costs associated with regulatory actions. It establishes a process for removing unnecessary regulations and managing regulatory costs, through annual budgeting and ongoing evaluations conducted by Regulatory Reform Officers and Task Forces. It also emphasizes stakeholder input and transparency in the regulatory reform process. The legislation also addresses accountability and performance assessment of agencies, requiring them to incorporate performance indicators and consider progress in implementing the Act in their annual performance plans. It also establishes a unified regulatory agenda, annual regulatory plan, and Federal regulatory budget to limit incremental regulatory costs. The section defines various terms used in the Act and outlines criteria for a regulatory action to be considered "significant."
Possible Impacts
1. Individuals and businesses will be affected by the legislation through the removal of unnecessary regulations and the management of costs associated with regulatory actions. This could potentially lead to decreased financial burdens for stakeholders and increased efficiency in the regulatory process.
2. The establishment of a unified regulatory agenda and annual regulatory plan will affect agencies by requiring them to include information on both regulatory and deregulatory actions. This could lead to more transparency and accountability in the regulatory reform process and potentially result in cost savings for agencies and stakeholders.
3. The inclusion of performance indicators in annual performance plans for agencies listed in section 901(b)(1) of title 31 will affect the assessment of agency and individual performance. This could incentivize agencies to be more efficient and effective in their implementation of the Act, ultimately benefiting the public and stakeholders involved.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 575 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 575
To provide for a method by which the economic costs of significant
regulatory actions may be offset by the repeal of other regulatory
actions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 15, 2019
Mr. Meadows (for himself, Mr. Walker, Mr. Hice of Georgia, Mr. Gaetz,
Mr. Budd, Mr. Mooney of West Virginia, Mr. Norman, Mr. Jordan, and Mr.
Duncan) introduced the following bill; which was referred to the
Committee on Oversight and Reform, and in addition to the Committee on
the Judiciary, 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 provide for a method by which the economic costs of significant
regulatory actions may be offset by the repeal of other regulatory
actions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Lessening
Regulatory Costs and Establishing a Federal Regulatory Budget Act of
2019''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress; purpose.
Sec. 3. Establishing regulatory reform capacity.
Sec. 4. Accountability.
Sec. 5. Regulatory planning and budget.
Sec. 6. Waiver.
Sec. 7. Definitions.
SEC. 2. SENSE OF CONGRESS; PURPOSE.
(a) Sense of Congress.--It is the sense of Congress that the
Federal Government should be prudent and financially responsible in the
expenditure of funds, from both public and private sources. In addition
to the management of the direct expenditure of taxpayer dollars through
the budgeting process, it is essential to manage the costs associated
with the governmental imposition of private expenditures required to
comply with Federal regulations.
(b) Purpose.--The purpose of this Act is--
(1) to remove unnecessary or outdated regulations when a
new significant regulation is issued; and
(2) to prudently manage and control the cost of planned
regulations through an annual budgeting process.
SEC. 3. ESTABLISHING REGULATORY REFORM CAPACITY.
(a) Regulatory Reform Officers.--
(1) In general.--Except as provided for under section 6,
not later than 60 days after the date of the enactment of this
Act, the head of each agency shall designate an employee or
officer of the agency as the Regulatory Reform Officer (in this
Act referred to as the ``agency RRO'').
(2) Duties.--In accordance with applicable law and in
consultation with relevant senior agency officials, each agency
RRO shall oversee--
(A) the implementation of regulatory reform
initiatives and policies for the agency to ensure that
the agency effectively carries out regulatory reforms;
and
(B) the termination of programs and activities that
derive from or implement statutes, Executive orders,
guidance documents, policy memoranda, rule
interpretations, and similar documents, or relevant
portions thereof, that have been repealed or rescinded.
(b) Regulatory Reform Task Forces.--
(1) Establishment of agency task force; membership.--Except
as provided under section 6, not later than 60 days after the
date of the enactment of this Act, the head of each agency
shall appoint and may remove members to the regulatory reform
task force (in this section referred to as the ``Task Force'')
of the agency, which shall be composed of the following
members:
(A) The agency RRO.
(B) A senior agency official from each relevant
component or office of the agency with significant
authority for issuing or repealing regulatory actions.
(C) Additional senior agency officials involved in
the development of rulemaking or other regulatory
action at the agency, as determined by the head of the
agency.
(2) Chair.--Unless otherwise designated by the head of the
agency, the agency RRO shall chair the Task Force of the
agency.
(3) Joint task forces.--For the consideration of a joint
rulemaking, the Director may form a joint regulatory reform
task force composed of at least one member from the Task Force
of each relevant agency. Any joint regulatory reform task force
formed under this paragraph shall consult with each relevant
Task Force.
(4) Duties.--Each Task Force shall conduct ongoing
evaluations of regulations and other regulatory actions and
make recommendations that are consistent with and that could be
implemented in accordance with applicable law to the head of
the agency regarding repeal, replacement, or modification of
regulations and regulatory actions. To the extent practicable,
each Task Force shall--
(A) not later than 5 years after the date of the
enactment of this Act, complete a review of each
regulation issued by the agency;
(B) for each regulation or regulatory action
reviewed and identified for repeal, replacement, or
modification, estimate the cost savings of such repeal,
replacement, or modification, as applicable; and
(C) identify regulations that are appropriate for
repeal, replacement, or modification, and prioritize
the evaluation of regulations that--
(i) eliminate or have eliminated jobs or
inhibit or have inhibited job creation;
(ii) are outdated, unnecessary, or
ineffective;
(iii) impose costs that exceed benefits;
(iv) create a serious inconsistency or
otherwise interfere with regulatory reform
initiatives and policies;
(v) were issued or are maintained in a
manner that is inconsistent with the
requirements of section 515 of the Treasury and
General Government Appropriations Act, 2001
(Public Law 106-554; 44 U.S.C. 3516 note), or
the guidance issued pursuant to that section,
including any rule that relies in whole or in
part on data, information, or methods that are
not publicly available or that are
insufficiently transparent to meet the standard
for reproducibility; or
(vi) were made pursuant to or to implement
statutes, Executive orders, or other
Presidential directives that have been
subsequently rescinded or substantially
modified.
(c) Consultation With Stakeholders.--In performing the tasks under
this section, each agency RRO and Task Force shall seek input and other
assistance from the public and from entities significantly affected by
regulations, including State, local, and Tribal governments, small
businesses, consumers, non-governmental organizations, and trade
associations. Each agency RRO and Task Force may--
(1) incorporate specific suggestions from stakeholders in
identifying the list of deregulatory actions to recommend to
the head of the agency; and
(2) accept or solicit input from the public in any manner,
if--
(A) the process is transparent to the public and
Congress;
(B) a list of each meeting, a list of each
stakeholder that submitted a comment, and a copy of
each written comment are made publicly available
online; and
(C) the Task Force issues a public notice of any
public meeting to solicit input not less than 7 days
before the public meeting and makes detailed minutes of
the meeting available online not less than 7 days after
the date of the meeting.
(d) Transparent Regulatory Reform.--
(1) Website.--To the extent practicable, the head of each
agency shall publish information about the Task Force of the
agency and other regulatory reform initiatives on the website
of the agency--
(A) which shall include--
(i) a list of the members of the Task Force
of the agency;
(ii) a copy of each report issued under
this subsection; and
(iii) a link to or copy of each notice of a
meeting or solicitation of public comments
issued by the Task Force of the agency; and
(B) which may include--
(i) an online forum to receive comments
from the public; and
(ii) any other information about the Task
Force or other regulatory reform initiatives at
the agency.
(2) Report.--Not less than twice a year, each agency RRO
shall submit to the head of the agency a report on the
activities performed under this section and any recommendations
resulting from such activities (which shall be posted by the
head of the agency on a publicly accessible website), and shall
include the following:
(A) A description of any improvement made toward
implementation of regulatory reform initiatives and
policies.
(B) For each regulation or other regulatory action
reviewed by the Task Force, a detailed description of
the review.
(C) An inventory of each regulation or regulatory
action the Task Force recommends the agency consider
for repeal, replacement, or modification.
(D) A list of all activities conducted under
subsection (c), a summary of all comments received, and
a hyperlink to copies of each public comment received.
SEC. 4. ACCOUNTABILITY.
(a) Incorporation in Performance Plans.--
(1) In general.--Each agency listed in section 901(b)(1) of
title 31, United States Code, shall incorporate in the annual
performance plan of the agency (required under section 1115(b)
of title 31, United States Code) performance indicators that
measure progress implementing this Act.
(2) OMB guidance.--The Director shall issue, and update as
necessary, guidance regarding the implementation of this
subsection.
(b) Performance Assessment.--The head of each agency shall consider
the progress implementing this Act in assessing the performance of the
Task Force of the agency and those individuals responsible for
developing and issuing agency rules.
SEC. 5. REGULATORY PLANNING AND BUDGET.
(a) Unified Agenda and Annual Regulatory Plan.--
(1) Unified regulatory agenda.--During the months of April
and October of each year, the Director shall publish a unified
regulatory agenda, which shall include--
(A) regulatory and deregulatory actions under
development or review at agencies;
(B) a Federal regulatory plan of all significant
regulatory actions and associated deregulatory actions
that agencies reasonably expect to issue in proposed or
final form in the current and following fiscal year;
and
(C) all information required to be included in the
regulatory flexibility agenda under section 602 of
title 5, United States Code.
(2) Agency submissions.--In accordance with guidance issued
by the Director and not less than 60 days before each date of
publication for the unified regulatory agenda under paragraph
(1), the head of each agency shall submit to the Director an
agenda of all regulatory actions and deregulatory actions under
development at the agency, including the following:
(A) For each regulatory action and deregulatory
action:
(i) A regulation identifier number.
(ii) A brief summary of the action.
(iii) The legal authority for the action.
(iv) Any legal deadline for the action.
(v) The name and contact information for a
knowledgeable agency official.
(vi) Any other information as required by
the Director.
(B) An annual regulatory plan, which shall include
a list of each significant regulatory action the agency
reasonably expects to issue in proposed or final form
in the current and following fiscal year, including for
each significant regulatory action:
(i) A summary, including the following:
(I) A statement of the regulatory
objectives.
(II) The legal authority for the
action.
(III) A statement of the need for
the action.
(IV) The agency's schedule for the
action.
(ii) The estimated cost.
(iii) The estimated benefits.
(iv) Any deregulatory action identified to
offset the estimated cost of such significant
regulatory action and an explanation of how the
agency will continue to achieve regulatory
objectives if the deregulatory action is taken.
(v) A best approximation of the total cost
or savings and any cost or savings associated
with a deregulatory action.
(vi) An estimate of the economic effects,
including any estimate of the net effect that
such action will have on the number of jobs in
the United States, that was considered in
drafting the action, or, if such estimate is
not available, a statement affirming that no
information on the economic effects, including
the effect on the number of jobs, of the action
has been considered.
(C) Information required under section 602 of title
5, United States Code.
(D) Information required under any other law to be
reported by agencies about significant regulatory
actions, as determined by the Director.
(b) Federal Regulatory Budget.--
(1) Establishment.--In the April unified regulatory agenda
described under subsection (a), the Director shall establish
the annual Federal Regulatory Budget, which specifies the net
amount of incremental regulatory costs allowed by the Federal
Government and at each agency for the next fiscal year. The
Director may set the incremental regulatory cost allowance to
allow an increase, prohibit an increase, or require a decrease
of incremental regulatory costs.
(2) Default net incremental regulatory cost.--If the
Director does not set a net amount of incremental regulatory
costs allowed for an agency, the net incremental regulatory
cost allowed shall be zero.
(3) Balance rollover of incremental regulatory cost
allowance.--If an agency does not exhaust all of the
incremental regulatory cost allowance for a fiscal year, the
balance may be added to the incremental regulatory cost
allowance for the subsequent fiscal year, without increasing
the incremental regulatory costs allowed for the Federal
Government for the subsequent fiscal year. The Director must
identify the total carryover incremental regulatory cost
allowance available to an agency in the Federal Regulatory
Budget.
(c) Significant Regulatory Action Requirements.--Except as
otherwise required by law, a significant regulatory action shall have
no effect unless--
(1) the--
(A) head of the agency identifies not less than 2
deregulatory actions to offset the costs of such
significant regulatory action, and to the extent
feasible, issues such deregulatory actions before or on
the same schedule as the significant regulatory action;
(B) incremental costs of such significant
regulatory action as offset by any deregulatory action
issued before or on the same schedule as the
significant regulatory action do not cause the agency
to exceed or contribute to the agency exceeding the
incremental regulatory cost allowance of the agency for
that fiscal year; and
(C) significant regulatory action was included on
the most recent version or update of the published
unified regulatory agenda; or
(2) the issuance of the significant regulatory action was
approved in advance in writing by the Director and the written
approval is publicly available online prior to the issuance of
such significant regulatory action.
(d) Guidance by OMB.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Director shall establish and
issue guidance on how agencies should comply with the
requirements of this section. Such guidance shall include the
following:
(A) A process for standardizing the measurement and
estimation of regulatory costs, including cost savings
associated with deregulatory actions.
(B) Standards for determining what qualifies as a
deregulatory action.
(C) Standards for determining the costs of existing
regulatory actions that are considered for repeal,
replacement, or modification.
(D) A process for accounting for costs in different
fiscal years.
(E) Methods to oversee the issuance of significant
regulatory actions offset by cost savings achieved at
different times or by different agencies.
(F) Emergencies and other circumstances that may
justify individual waivers of the requirements of this
section.
(G) Standards by which the Director will determine
whether a regulatory action or a collection of
regulatory actions qualifies as a significant
regulatory action.
(2) Updates to guidance.--The Director shall update the
guidance issued pursuant to this section as necessary.
SEC. 6. WAIVER.
(a) Waiver Authority.--Upon the written request of the head of an
agency, the Director may issue a written waiver of the requirements of
section 3 if the Director determines that the agency generally issues
very few or no rules.
(b) Revocation of Waiver.--The Director may revoke at any time a
waiver issued under this section.
(c) Public Availability of Waivers.--The Director shall maintain a
publicly available list of each agency that is operating under a waiver
issued under this section.
(d) Requirement for Waiver.--A waiver shall not be effective unless
the written waiver and the written request of the agency are publicly
available on the website of the Office of Management and Budget.
SEC. 7. DEFINITIONS.
In this Act:
(1) Agency.--The term ``agency'' has the meaning given that
term in section 551 of title 5, United States Code.
(2) Costs.--The term ``costs'' means opportunity cost to
society.
(3) Cost savings.--The term ``cost savings'' means the cost
imposed by a regulatory action that is eliminated by the
repeal, replacement, or modification of such regulatory action.
(4) Deregulatory action.--The term ``deregulatory action''
means the repeal, replacement, or modification of an existing
regulatory action.
(5) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(6) Incremental regulatory cost.--The term ``incremental
regulatory cost'' means the difference between the estimated
cost of issuing a significant regulatory action and the
estimated cost saved by issuing any deregulatory action.
(7) Regulation; rule.--The term ``regulation'' or ``rule''
has the meaning given the term ``rule'' in section 551 of title
5, United States Code.
(8) Regulatory action.--The term ``regulatory action''
means--
(A) any regulation; and
(B) any other regulatory guidance, statement of
policy, information collection request, form, or
reporting, recordkeeping, or disclosure requirements
that imposes a burden on the public or governs agency
operations.
(9) Significant regulatory action.--The term ``significant
regulatory action'' means any regulatory action, other than
monetary policy proposed or implemented by the Board of
Governors of the Federal Reserve System or the Federal Open
Market Committee, that is likely to--
(A) have an annual effect on the economy of
$100,000,000 or more or adversely affect in a material
way the economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or
safety, or State, local, or Tribal governments or
communities;
(B) create a serious inconsistency or otherwise
interfere with an action taken or planned by another
agency;
(C) materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or
the rights and obligations of recipients thereof; or
(D) raise a novel legal or policy issue.
(10) State.--The term ``State'' means each of the several
States, the District of Columbia, and each territory or
possession of the United States.
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