Bill Summary
The "Regulations Evaluated to Determine The Anticipated Price and Effect Act," or the "RED TAPE Act," aims to enhance the regulatory review process by prohibiting federal agencies from using non-monetized or unquantified factors in their regulatory impact and benefit-cost analyses. The Act mandates that agencies focus solely on tangible, quantifiable monetary benefits when evaluating proposed regulations, ensuring that regulatory actions provide clear financial advantages while minimizing unnecessary costs.
Key provisions include:
1. **Definition of Terms**: The Act clarifies important terms related to regulatory analyses, aligning them with existing executive orders and Office of Management and Budget (OMB) guidelines.
2. **Prohibition on Non-Monetized Factors**: Agencies are explicitly prohibited from considering any factors that cannot be monetized or quantified in their analyses.
3. **Transparency Requirements**: Each agency must publish detailed summaries and methodologies of their regulatory impact and benefit-cost analyses in the Federal Register, promoting public access to information regarding the economic impacts of regulations.
4. **Judicial Review**: Affected parties can challenge regulations in court if they find that an agency used prohibited factors in its analyses, with courts empowered to invalidate such regulations.
5. **Implementation Timeline**: The provisions of the Act will take effect 30 days after its enactment.
Overall, the RED TAPE Act seeks to streamline regulatory processes, ensuring that regulatory decisions are grounded in measurable economic benefits.
Possible Impacts
The "RED TAPE Act" has several implications for individuals and businesses. Here are three examples of how this legislation could affect people:
1. **Limited Consideration of Qualitative Factors**: The prohibition on using non-monetized or unqualified factors in regulatory analyses may lead to the exclusion of important qualitative aspects of regulations that impact public health, environmental protection, or social welfare. For instance, agencies may overlook the long-term benefits of clean air or water quality improvements that cannot be easily quantified in monetary terms. This could adversely affect communities that rely on such protections for their health and quality of life.
2. **Increased Regulatory Burdens for Small Businesses**: By mandating that all regulatory impacts be quantified in monetary terms, small businesses may face increased challenges in compliance. Many small enterprises may lack the resources or expertise to conduct detailed benefit-cost analyses that meet the new requirements, potentially leading to greater regulatory burdens. This might discourage them from pursuing new projects or innovations due to fear of non-compliance or the costs associated with regulatory assessments.
3. **Enhanced Transparency and Public Participation**: The requirement for agencies to publish summaries and full texts of their regulatory impact analyses may lead to greater transparency in the decision-making process. This could empower citizens and advocacy groups to better understand the implications of proposed regulations, allowing them to engage more effectively in public comment periods or legal challenges. As a result, more informed public discourse and scrutiny could occur, potentially leading to more balanced regulatory outcomes that reflect a wider range of stakeholder interests.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 572 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 572
To prohibit the use of non-monetized or unqualified factors for
regulatory analyses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 21, 2025
Mr. Sessions (for himself and Ms. Hageman) introduced the following
bill; which was referred to the Committee on the Judiciary, and in
addition to the Committee on Small Business, 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 prohibit the use of non-monetized or unqualified factors for
regulatory analyses, 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.
This Act may be cited as the ``Regulations Evaluated to Determine
The Anticipated Price and Effect Act'' or the ``RED TAPE Act''.
SEC. 2. FINDINGS.
Congress finds that agencies must prioritize tangible, immediately
quantifiable monetary benefits in their decision making processes,
ensuring regulatory actions yield clear and measurable financial
benefits to the public and private sectors while minimizing unnecessary
regulatory costs or burdens.
SEC. 3. PROHIBITION ON NET BENEFIT DISCOUNTS; CONSIDERATION OF
REGULATORY IMPACT ANALYSES.
(a) In General.--Chapter 6 of title 5, United States Code, is
amended--
(1) in section 601--
(A) in paragraph (6), by striking ``and'' at the
end;
(B) in paragraph (7), by striking the period at the
end and inserting a semicolon;
(C) in paragraph (8)--
(i) by striking ``Recordkeeping
Requirement.--T'' and inserting ``the''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(D) by adding at the end the following:
``(9) the term `benefit-cost analysis' has the meaning
given the term in Office of Management and Budget Circular A-
94, as revised on November 9, 2023, or any successor revision;
and
``(10) the term `regulatory impact analysis' means a
regulatory analysis described in--
``(A) Executive Order 12866 (5 U.S.C. 601 note;
relating to regulatory planning and review);
``(B) Executive Order 13563 (5 U.S.C. 601 note;
relating to improving regulation and regulatory
review);
``(C) Executive Order 14094 (88 Fed. Reg. 21879;
relating to modernizing regulatory review);
``(D) Office of Management and Budget Circular No.
A-4, as revised on November 9, 2023, or any successor
revision; or
``(E) Office of Management and Budget Circular No.
A-94, as revised on November 9, 2023, or any successor
revision.''; and
(2) by adding at the end the following:
``Sec. 613. Prohibition on use of non-monetized or unqualified factors
for regulatory analyses
``(a) Agency Prohibition.--An agency may not consider any non-
monetized or unquantified factor when conducting a regulatory impact
analysis or benefit-cost analysis on any proposed rule, final rule, or
interim final rule.
``(b) OMB Prohibition.--The Office of Management and Budget may
not--
``(1) authorize in any manner, such as in issuing guidance,
a memorandum, a directive, or a rule that permit or endorse the
analysis or use of any non-monetized or unquantified factor
when conducting a regulatory impact analysis or benefit-cost
analysis on any proposed rule, final rule, or interim final
rule; or
``(2) consider any non-monetized or unquantified factor
presented in a regulatory impact analysis or benefit-cost
analysis of another agency.
``(c) Public Transparency.--Each agency shall publish in the
Federal Register, with respect to and along with each proposed rule,
final rule, or interim final rule--
``(1) a summary of each regulatory impact analysis and
benefit-cost analysis conducted by the agency;
``(2) the text of each regulatory impact analysis and
benefit-cost analysis conducted by the agency, including a
disclosure of the methodology and specific analyses used by the
agency in estimating economic impacts, and the determination
and rationale of such economic impact analyses; and
``(3) any additional information of the agency relevant to
the regulatory impact and benefit-cost analyses conducted by
the agency, such as the decision-making processes of the
agency.
``(d) Regulatory Guidance.--Not later than 90 days after the date
of enactment of this section, the Director of the Office of Management
and Budget shall issue revised guidance to agencies to ensure
compliance with the provisions of this section.
``(e) Judicial Review.--
``(1) In general.--Any party affected by a rule issued by
an agency that considered a non-monetized or unquantified
factor when conducting a regulatory impact or benefit-cost
analysis in violation of this section may bring a civil action
against the agency to challenge the rule in a district court of
the United States.
``(2) Invalidation of regulation.--If the court finds that
an agency relied upon non-monetized or unquantified factors to
evaluate a final rule or interim final rule in contravention of
this section, the court shall declare the rule invalid.
``(3) Application.--This subsection shall apply with
respect to any rule issued by an agency on or after November 9,
2023.''.
(b) Technical and Conforming Amendment.--The table of sections for
chapter 6 of title 5, United States Code, is amended by adding at the
end the following:
``613. Prohibition on use of non-monetized or unquantified factors for
regulatory analyses.''.
SEC. 4. EFFECTIVE DATE.
The amendments made by section 3 shall take effect on the date that
is 30 days after the date of enactment of this Act.
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