[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9 Referred in Senate (RFS)]

  1st Session
                                 H.R. 9


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                March 9 (legislative day, March 6), 1995

  Received; read twice and referred to the Committee on Governmental 
                                Affairs

_______________________________________________________________________

                                 AN ACT


 
  To create jobs, enhance wages, strengthen property rights, maintain 
 certain economic liberties, decentralize and reduce the power of the 
Federal Government with respect to the States, localities, and citizens 
  of the United States, and to increase the accountability of Federal 
                               officials.

    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 ``Job Creation and Wage Enhancement 
Act of 1995''.

                               DIVISION A

SEC. 101. SHORT TITLE.

    This division may be cited as the ``Paperwork Reduction Act of 
1995''.

SEC. 102. COORDINATION OF FEDERAL INFORMATION POLICY.

    Chapter 35 of title 44, United States Code, is amended to read as 
follows:

        ``CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

``Sec.
``3501. Purposes.
``3502. Definitions.
``3503. Office of Information and Regulatory Affairs.
``3504. Authority and functions of Director.
``3505. Assignment of tasks and deadlines.
``3506. Federal agency responsibilities.
``3507. Public information collection activities; submission to 
                            Director; approval and delegation.
``3508. Determination of necessity for information; hearing.
``3509. Designation of central collection agency.
``3510. Cooperation of agencies in making information available.
``3511. Establishment and operation of Government Information Locator 
                            Service.
``3512. Public protection.
``3513. Director review of agency activities; reporting; agency 
                            response.
``3514. Responsiveness to Congress.
``3515. Administrative powers.
``3516. Rules and regulations.
``3517. Consultation with other agencies and the public.
``3518. Effect on existing laws and regulations.
``3519. Access to information.
``3520. Authorization of appropriations.
``Sec. 3501. Purposes
    ``The purposes of this chapter are to--
            ``(1) minimize the paperwork burden for individuals, small 
        businesses, educational and nonprofit institutions, Federal 
        contractors, State, local and tribal governments, and other 
        persons resulting from the collection of information by or for 
        the Federal Government;
            ``(2) ensure the greatest possible public benefit from and 
        maximize the utility of information created, collected, 
        maintained, used, shared and disseminated by or for the Federal 
        Government;
            ``(3) coordinate, integrate, and to the extent practicable 
        and appropriate, make uniform Federal information resources 
        management policies and practices as a means to improve the 
        productivity, efficiency, and effectiveness of Government 
        programs, including the reduction of information collection 
        burdens on the public and the improvement of service delivery 
        to the public;
            ``(4) improve the quality and use of Federal information to 
        strengthen decisionmaking, accountability, and openness in 
        Government and society;
            ``(5) minimize the cost to the Federal Government of the 
        creation, collection, maintenance, use, dissemination, and 
        disposition of information;
            ``(6) strengthen the partnership between the Federal 
        Government and State, local, and tribal governments by 
        minimizing the burden and maximizing the utility of information 
        created, collected, maintained, used, disseminated, and 
        retained by or for the Federal Government;
            ``(7) provide for the dissemination of public information 
        on a timely basis, on equitable terms, and in a manner that 
        promotes the utility of the information to the public and makes 
        effective use of information technology;
            ``(8) ensure that the creation, collection, maintenance, 
        use, dissemination, and disposition of information by or for 
        the Federal Government is consistent with applicable laws, 
        including laws relating to--
                    ``(A) privacy and confidentiality, including 
                section 552a of title 5;
                    ``(B) security of information, including the 
                Computer Security Act of 1987 (Public Law 100-235); and
                    ``(C) access to information, including section 552 
                of title 5;
            ``(9) ensure the integrity, quality, and utility of the 
        Federal statistical system;
            ``(10) ensure that information technology is acquired, 
        used, and managed to improve performance of agency missions, 
        including the reduction of information collection burdens on 
        the public; and
            ``(11) improve the responsibility and accountability of the 
        Office of Management and Budget and all other Federal agencies 
        to Congress and to the public for implementing the information 
        collection review process, information resources management, 
        and related policies and guidelines established under this 
        chapter.
``Sec. 3502. Definitions
    ``As used in this chapter--
            ``(1) the term `agency' means any executive department, 
        military department, Government corporation, Government 
        controlled corporation, or other establishment in the executive 
        branch of the Government (including the Executive Office of the 
        President), or any independent regulatory agency, but does not 
        include--
                    ``(A) the General Accounting Office;
                    ``(B) Federal Election Commission;
                    ``(C) the governments of the District of Columbia 
                and of the territories and possessions of the United 
                States, and their various subdivisions; or
                    ``(D) Government-owned contractor-operated 
                facilities, including laboratories engaged in national 
                defense research and production activities;
            ``(2) the term `burden' means time, effort, or financial 
        resources expended by persons to generate, maintain, or provide 
        information to or for a Federal agency, including the resources 
        expended for--
                    ``(A) reviewing instructions;
                    ``(B) acquiring, installing, and utilizing 
                technology and systems;
                    ``(C) adjusting the existing ways to comply with 
                any previously applicable instructions and 
                requirements;
                    ``(D) searching data sources;
                    ``(E) completing and reviewing the collection of 
                information; and
                    ``(F) transmitting, or otherwise disclosing the 
                information;
            ``(3) the term `collection of information' means the 
        obtaining, causing to be obtained, soliciting, or requiring the 
        disclosure to third parties or the public, of facts or opinions 
        by or for an agency, regardless of form or format, calling for 
        either--
                    ``(A) answers to identical questions posed to, or 
                identical reporting or recordkeeping requirements 
                imposed on, ten or more persons, other than agencies, 
                instrumentalities, or employees of the United States; 
                or
                    ``(B) answers to questions posed to agencies, 
                instrumentalities, or employees of the United States 
                which are to be used for general statistical purposes;
            ``(4) the term `Director' means the Director of the Office 
        of Management and Budget;
            ``(5) the term `independent regulatory agency' means the 
        Board of Governors of the Federal Reserve System, the Commodity 
        Futures Trading Commission, the Consumer Product Safety 
        Commission, the Federal Communications Commission, the Federal 
        Deposit Insurance Corporation, the Federal Energy Regulatory 
        Commission, the Federal Housing Finance Board, the Federal 
        Maritime Commission, the Federal Trade Commission, the 
        Interstate Commerce Commission, the Mine Enforcement Safety and 
        Health Review Commission, the National Labor Relations Board, 
        the Nuclear Regulatory Commission, the Occupational Safety and 
        Health Review Commission, the Postal Rate Commission, the 
        Securities and Exchange Commission, and any other similar 
        agency designated by statute as a Federal independent 
        regulatory agency or commission;
            ``(6) the term `information resources' means information 
        and related resources, such as personnel, equipment, funds, and 
        information technology;
            ``(7) the term `information resources management' means the 
        process of managing information resources to accomplish agency 
        missions and to improve agency performance, including through 
        the reduction of information collection burdens on the public;
            ``(8) the term `information system' means a discrete set of 
        information resources and processes, automated or manual, 
        organized for the collection, processing, maintenance, use, 
        sharing, dissemination, or disposition of information;
            ``(9) the term `information technology' has the same 
        meaning as the term `automatic data processing equipment' as 
        defined by section 111(a)(2) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 759(a)(2));
            ``(10) the term `person' means an individual, partnership, 
        association, corporation, business trust, or legal 
        representative, an organized group of individuals, a State, 
        territorial, or local government or branch thereof, or a 
        political subdivision of a State, territory, or local 
        government or a branch of a political subdivision;
            ``(11) the term `practical utility' means the ability of an 
        agency to use information, particularly the capability to 
        process such information in a timely and useful fashion;
            ``(12) the term `public information' means any information, 
        regardless of form or format, that an agency discloses, 
        disseminates, or makes available to the public; and
            ``(13) the term `recordkeeping requirement' means a 
        requirement imposed by or for an agency on persons to maintain 
        specified records, including a requirement to--
                    ``(A) retain such records;
                    ``(B) notify third parties or the public of the 
                existence of such records;
                    ``(C) disclose such records to third parties or the 
                public; or
                    ``(D) report to third parties or the public 
                regarding such records.
``Sec. 3503. Office of Information and Regulatory Affairs
    ``(a) There is established in the Office of Management and Budget 
an office to be known as the Office of Information and Regulatory 
Affairs.
    ``(b) There shall be at the head of the Office an Administrator who 
shall be appointed by the President, by and with the advice and consent 
of the Senate. The Director shall delegate to the Administrator the 
authority to administer all functions under this chapter, except that 
any such delegation shall not relieve the Director of responsibility 
for the administration of such functions. The Administrator shall serve 
as principal adviser to the Director on Federal information resources 
management policy.
``Sec. 3504. Authority and functions of Director
    ``(a)(1) The Director shall--
            ``(A) develop, coordinate and oversee the implementation of 
        Federal information resources management policies, principles, 
        standards, and guidelines; and
            ``(B) provide direction and oversee--
                    ``(i) the review and approval of the collection of 
                information and the reduction of the information 
                collection burden;
                    ``(ii) agency dissemination of and public access to 
                information;
                    ``(iii) statistical activities;
                    ``(iv) records management activities;
                    ``(v) privacy, confidentiality, security, 
                disclosure, and sharing of information; and
                    ``(vi) the acquisition and use of information 
                technology.
    ``(2) The authority of the Director under this chapter shall be 
exercised consistent with applicable law.
    ``(b) With respect to general information resources management 
policy, the Director shall--
            ``(1) develop and oversee the implementation of uniform 
        information resources management policies, principles, 
        standards, and guidelines;
            ``(2) foster greater sharing, dissemination, and access to 
        public information, including through--
                    ``(A) the use of the Government Information Locator 
                Service; and
                    ``(B) the development and utilization of common 
                standards for information collection, storage, 
                processing and communication, including standards for 
                security, interconnectivity and interoperability;
            ``(3) initiate and review proposals for changes in 
        legislation, regulations, and agency procedures to improve 
        information resources management practices;
            ``(4) oversee the development and implementation of best 
        practices in information resources management, including 
        training; and
            ``(5) oversee agency integration of program and management 
        functions with information resources management functions.
    ``(c) With respect to the collection of information and the control 
of paperwork, the Director shall--
            ``(1) review and approve proposed agency collections of 
        information;
            ``(2) coordinate the review of the collection of 
        information associated with Federal procurement and acquisition 
        by the Office of Information and Regulatory Affairs with the 
        Office of Federal Procurement Policy, with particular emphasis 
        on applying information technology to improve the efficiency 
        and effectiveness of Federal procurement, acquisition, and 
        payment and to reduce information collection burdens on the 
        public;
            ``(3) minimize the Federal information collection burden, 
        with particular emphasis on those individuals and entities most 
        adversely affected;
            ``(4) maximize the practical utility of and public benefit 
        from information collected by or for the Federal Government;
            ``(5) establish and oversee standards and guidelines by 
        which agencies are to estimate the burden to comply with a 
        proposed collection of information; and
            ``(6) place an emphasis on minimizing the burden on small 
        businesses with 50 or fewer employees.
    ``(d) With respect to information dissemination, the Director shall 
develop and oversee the implementation of policies, principles, 
standards, and guidelines to--
            ``(1) apply to Federal agency dissemination of public 
        information, regardless of the form or format in which such 
        information is disseminated; and
            ``(2) promote public access to public information and 
        fulfill the purposes of this chapter, including through the 
        effective use of information technology.
    ``(e) With respect to statistical policy and coordination, the 
Director shall--
            ``(1) coordinate the activities of the Federal statistical 
        system to ensure--
                    ``(A) the efficiency and effectiveness of the 
                system; and
                    ``(B) the integrity, objectivity, impartiality, 
                utility, and confidentiality of information collected 
                for statistical purposes;
            ``(2) ensure that budget proposals of agencies are 
        consistent with system-wide priorities for maintaining and 
        improving the quality of Federal statistics and prepare an 
        annual report on statistical program funding;
            ``(3) develop and oversee the implementation of 
        Governmentwide policies, principles, standards, and guidelines 
        concerning--
                    ``(A) statistical collection procedures and 
                methods;
                    ``(B) statistical data classification;
                    ``(C) statistical information presentation and 
                dissemination;
                    ``(D) timely release of statistical data; and
                    ``(E) such statistical data sources as may be 
                required for the administration of Federal programs;
            ``(4) evaluate statistical program performance and agency 
        compliance with Governmentwide policies, principles, standards 
        and guidelines;
            ``(5) promote the sharing of information collected for 
        statistical purposes consistent with privacy rights and 
        confidentiality pledges;
            ``(6) coordinate the participation of the United States in 
        international statistical activities, including the development 
        of comparable statistics;
            ``(7) appoint a chief statistician who is a trained and 
        experienced professional statistician to carry out the 
        functions described under this subsection;
            ``(8) establish an Interagency Council on Statistical 
        Policy to advise and assist the Director in carrying out the 
        functions under this subsection that shall--
                    ``(A) be headed by the chief statistician; and
                    ``(B) consist of--
                            ``(i) the heads of the major statistical 
                        programs; and
                            ``(ii) representatives of other statistical 
                        agencies under rotating membership; and
            ``(9) provide opportunities for training in statistical 
        policy functions to employees of the Federal Government under 
        which--
                    ``(A) each trainee shall be selected at the 
                discretion of the Director based on agency requests and 
                shall serve under the chief statistician for at least 6 
                months and not more than 1 year; and
                    ``(B) all costs of the training shall be paid by 
                the agency requesting training.
    ``(f) With respect to records management, the Director shall--
            ``(1) provide advice and assistance to the Archivist of the 
        United States and the Administrator of General Services to 
        promote coordination in the administration of chapters 29, 31, 
        and 33 of this title with the information resources management 
        policies, principles, standards, and guidelines established 
        under this chapter;
            ``(2) review compliance by agencies with--
                    ``(A) the requirements of chapters 29, 31, and 33 
                of this title; and
                    ``(B) regulations promulgated by the Archivist of 
                the United States and the Administrator of General 
                Services; and
            ``(3) oversee the application of records management 
        policies, principles, standards, and guidelines, including 
        requirements for archiving information maintained in electronic 
        format, in the planning and design of information systems.
    ``(g) With respect to privacy and security, the Director shall--
            ``(1) develop and oversee the implementation of policies, 
        principles, standards, and guidelines on privacy, 
        confidentiality, security, disclosure and sharing of 
        information collected or maintained by or for agencies;
            ``(2) oversee and coordinate compliance with sections 552 
        and 552a of title 5, the Computer Security Act of 1987 (40 
        U.S.C. 759 note), and related information management laws; and
            ``(3) require Federal agencies, consistent with the 
        Computer Security Act of 1987 (40 U.S.C. 759 note), to identify 
        and afford security protections commensurate with the risk and 
        magnitude of the harm resulting from the loss, misuse, or 
        unauthorized access to or modification of information collected 
        or maintained by or on behalf of an agency.
    ``(h) With respect to Federal information technology, the Director 
shall--
            ``(1) in consultation with the Director of the National 
        Institute of Standards and Technology and the Administrator of 
        General Services--
                    ``(A) develop and oversee the implementation of 
                policies, principles, standards, and guidelines for 
                information technology functions and activities of the 
                Federal Government, including periodic evaluations of 
                major information systems; and
                    ``(B) oversee the development and implementation of 
                standards under section 111(d) of the Federal Property 
                and Administrative Services Act of 1949 (40 U.S.C. 
                759(d));
            ``(2) monitor the effectiveness of, and compliance with, 
        directives issued under sections 110 and 111 of the Federal 
        Property and Administrative Services Act of 1949 (40 U.S.C. 757 
        and 759);
            ``(3) coordinate the development and review by the Office 
        of Information and Regulatory Affairs of policy associated with 
        Federal procurement and acquisition of information technology 
        with the Office of Federal Procurement Policy;
            ``(4) ensure, through the review of agency budget 
        proposals, information resources management plans and other 
        means--
                    ``(A) agency integration of information resources 
                management plans, program plans and budgets for 
                acquisition and use of information technology; and
                    ``(B) the efficiency and effectiveness of inter-
                agency information technology initiatives to improve 
                agency performance and the accomplishment of agency 
                missions; and
            ``(5) promote the use of information technology by the 
        Federal Government to improve the productivity, efficiency, and 
        effectiveness of Federal programs, including through 
        dissemination of public information and the reduction of 
        information collection burdens on the public.
``Sec. 3505. Assignment of tasks and deadlines
    ``(a) In carrying out the functions under this chapter, the 
Director shall--
            ``(1) in consultation with agency heads, set an annual 
        Governmentwide goal for the reduction of information collection 
        burdens by at least 10 percent, and set annual agency goals 
        to--
                    ``(A) reduce information collection burdens imposed 
                on the public that--
                            ``(i) represent the maximum practicable 
                        opportunity in each agency; and
                            ``(ii) are consistent with improving agency 
                        management of the process for the review of 
                        collections of information established under 
                        section 3506(c); and
                    ``(B) improve information resources management in 
                ways that increase the productivity, efficiency and 
                effectiveness of Federal programs, including service 
                delivery to the public;
            ``(2) with selected agencies and non-Federal entities on a 
        voluntary basis, initiate and conduct pilot projects to test 
        alternative policies, practices, regulations, and procedures to 
        fulfill the purposes of this chapter, particularly with regard 
        to minimizing the Federal information collection burden; and
            ``(3) in consultation with the Administrator of General 
        Services, the Director of the National Institute of Standards 
        and Technology, the Archivist of the United States, and the 
        Director of the Office of Personnel Management, develop and 
        maintain a Governmentwide strategic plan for information 
        resources management, that shall include--
                    ``(A) a description of the objectives and the means 
                by which the Federal Government shall apply information 
                resources to improve agency and program performance;
                    ``(B) plans for--
                            ``(i) reducing information burdens on the 
                        public, including reducing such burdens through 
                        the elimination of duplication and meeting 
                        shared data needs with shared resources;
                            ``(ii) enhancing public access to and 
                        dissemination of, information, using electronic 
                        and other formats; and
                            ``(iii) meeting the information technology 
                        needs of the Federal Government in accordance 
                        with the purposes of this chapter; and
                    ``(C) a description of progress in applying 
                information resources management to improve agency 
                performance and the accomplishment of missions.
    ``(b) For purposes of any pilot project conducted under subsection 
(a)(2), the Director may waive the application of any regulation or 
administrative directive issued by an agency with which the project is 
conducted, including any regulation or directive requiring a collection 
of information, after giving timely notice to the public and the 
Congress regarding the need for such waiver.
``Sec. 3506. Federal agency responsibilities
    ``(a)(1) The head of each agency shall be responsible for--
            ``(A) carrying out the agency's information resources 
        management activities to improve agency productivity, 
        efficiency, and effectiveness; and
            ``(B) complying with the requirements of this chapter and 
        related policies established by the Director.
    ``(2)(A) Except as provided under subparagraph (B), the head of 
each agency shall designate a senior official who shall report directly 
to such agency head to carry out the responsibilities of the agency 
under this chapter.
    ``(B) The Secretary of the Department of Defense and the Secretary 
of each military department may each designate a senior official who 
shall report directly to such Secretary to carry out the 
responsibilities of the department under this chapter. If more than one 
official is designated for the military departments, the respective 
duties of the officials shall be clearly delineated.
    ``(3) The senior official designated under paragraph (2) shall head 
an office responsible for ensuring agency compliance with and prompt, 
efficient, and effective implementation of the information policies and 
information resources management responsibilities established under 
this chapter, including the reduction of information collection burdens 
on the public. The senior official and employees of such office shall 
be selected with special attention to the professional qualifications 
required to administer the functions described under this chapter.
    ``(4) Each agency program official shall be responsible and 
accountable for information resources assigned to and supporting the 
programs under such official. In consultation with the senior official 
designated under paragraph (2) and the agency Chief Financial Officer 
(or comparable official), each agency program official shall define 
program information needs and develop strategies, systems, and 
capabilities to meet those needs.
    ``(b) With respect to general information resources management, 
each agency shall--
            ``(1) manage information resources to--
                    ``(A) reduce information collection burdens on the 
                public;
                    ``(B) increase program efficiency and 
                effectiveness; and
                    ``(C) improve the integrity, quality, and utility 
                of information to all users within and outside the 
                agency, including capabilities for ensuring 
                dissemination of public information, public access to 
                government information, and protections for privacy and 
                security;
            ``(2) in accordance with guidance by the Director, develop 
        and maintain a strategic information resources management plan 
        that shall describe how information resources management 
        activities help accomplish agency missions;
            ``(3) develop and maintain an ongoing process to--
                    ``(A) ensure that information resources management 
                operations and decisions are integrated with 
                organizational planning, budget, financial management, 
                human resources management, and program decisions;
                    ``(B) in cooperation with the agency Chief 
                Financial Officer (or comparable official), develop a 
                full and accurate accounting of information technology 
                expenditures, related expenses, and results; and
                    ``(C) establish goals for improving information 
                resources management's contribution to program 
                productivity, efficiency, and effectiveness, methods 
                for measuring progress towards those goals, and clear 
                roles and responsibilities for achieving those goals;
            ``(4) in consultation with the Director, the Administrator 
        of General Services, and the Archivist of the United States, 
        maintain a current and complete inventory of the agency's 
        information resources, including directories necessary to 
        fulfill the requirements of section 3511 of this chapter; and
            ``(5) in consultation with the Director and the Director of 
        the Office of Personnel Management, conduct formal training 
        programs to educate agency program and management officials 
        about information resources management.
    ``(c) With respect to the collection of information and the control 
of paperwork, each agency shall--
            ``(1) establish a process within the office headed by the 
        official designated under subsection (a), that is sufficiently 
        independent of program responsibility to evaluate fairly 
        whether proposed collections of information should be approved 
        under this chapter, to--
                    ``(A) review each collection of information before 
                submission to the Director for review under this 
                chapter, including--
                            ``(i) an evaluation of the need for the 
                        collection of information;
                            ``(ii) a functional description of the 
                        information to be collected;
                            ``(iii) a plan for the collection of the 
                        information;
                            ``(iv) a specific, objectively supported 
                        estimate of burden;
                            ``(v) a test of the collection of 
                        information through a pilot program, if 
                        appropriate; and
                            ``(vi) a plan for the efficient and 
                        effective management and use of the information 
                        to be collected, including necessary resources;
                    ``(B) ensure that each information collection--
                            ``(i) is inventoried, displays a control 
                        number and, if appropriate, an expiration date;
                            ``(ii) indicates the collection is in 
                        accordance with the clearance requirements of 
                        section 3507; and
                            ``(iii) contains a statement to inform the 
                        person receiving the collection of 
                        information--
                                    ``(I) the reasons the information 
                                is being collected;
                                    ``(II) the way such information is 
                                to be used;
                                    ``(III) an estimate, to the extent 
                                practicable, of the burden of the 
                                collection; and
                                    ``(IV) whether responses to the 
                                collection of information are 
                                voluntary, required to obtain a 
                                benefit, or mandatory; and
                    ``(C) assess the information collection burden of 
                proposed legislation affecting the agency;
            ``(2)(A) except for good cause or as provided under 
        subparagraph (B), provide 60-day notice in the Federal 
        Register, and otherwise consult with members of the public and 
        affected agencies concerning each proposed collection of 
        information, to solicit comment to--
                    ``(i) evaluate whether the proposed collection of 
                information is necessary for the proper performance of 
                the functions of the agency, including whether the 
                information shall have practical utility;
                    ``(ii) evaluate the accuracy of the agency's 
                estimate of the burden of the proposed collection of 
                information;
                    ``(iii) enhance the quality, utility, and clarity 
                of the information to be collected; and
                    ``(iv) minimize the burden of the collection of 
                information on those who are to respond, including 
                through the use of automated collection techniques or 
                other forms of information technology; and
            ``(B) for any proposed collection of information contained 
        in a proposed rule (to be reviewed by the Director under 
        section 3507(d)), provide notice and comment through the notice 
        of proposed rulemaking for the proposed rule and such notice 
        shall have the same purposes specified under subparagraph (A) 
        (i) through (iv);
            ``(3) certify (and provide a record supporting such 
        certification, including public comments received by the 
        agency) that each collection of information submitted to the 
        Director for review under section 3507--
                    ``(A) is necessary for the proper performance of 
                the functions of the agency, including that the 
                information has practical utility;
                    ``(B) is not unnecessarily duplicative of 
                information otherwise reasonably accessible to the 
                agency;
                    ``(C) reduces to the extent practicable and 
                appropriate the burden on persons who shall provide 
                information to or for the agency, including with 
                respect to small entities, as defined under section 
                601(6) of title 5, the use of such techniques as--
                            ``(i) establishing differing compliance or 
                        reporting requirements or timetables that take 
                        into account the resources available to those 
                        who are to respond;
                            ``(ii) the clarification, consolidation, or 
                        simplification of compliance and reporting 
                        requirements; or
                            ``(iii) an exemption from coverage of the 
                        collection of information, or any part thereof;
                    ``(D) is written using plain, coherent, and 
                unambiguous terminology and is understandable to those 
                who are to respond;
                    ``(E) is to be implemented in ways consistent and 
                compatible, to the maximum extent practicable, with the 
                existing reporting and recordkeeping practices of those 
                who are to respond;
                    ``(F) indicates for each recordkeeping requirement 
                the length of time persons are required to maintain the 
                records specified;
                    ``(G) contains the statement required under 
                paragraph (1)(B)(iii);
                    ``(H) has been developed by an office that has 
                planned and allocated resources for the efficient and 
                effective management and use of the information to be 
                collected, including the processing of the information 
                in a manner which shall enhance, where appropriate, the 
                utility of the information to agencies and the public;
                    ``(I) uses effective and efficient statistical 
                survey methodology appropriate to the purpose for which 
                the information is to be collected; and
                    ``(J) to the maximum extent practicable, uses 
                information technology to reduce burden and improve 
                data quality, agency efficiency and responsiveness to 
                the public; and
            ``(4) place an emphasis on minimizing the burden on small 
        businesses with 50 or fewer employees.
    ``(d) With respect to information dissemination, each agency 
shall--
            ``(1) ensure that the public has timely, equal, and 
        equitable access to the agency's public information, including 
        ensuring such access through--
                    ``(A) encouraging a diversity of public and private 
                sources for information based on government public 
                information,
                    ``(B) in cases in which the agency provides public 
                information maintained in electronic format, providing 
                timely, equal, and equitable access to the underlying 
                data (in whole or in part); and
                    ``(C) agency dissemination of public information in 
                an efficient, effective, and economical manner;
            ``(2) regularly solicit and consider public input on the 
        agency's information dissemination activities;
            ``(3) provide adequate notice when initiating, 
        substantially modifying, or terminating significant information 
        dissemination products; and
            ``(4) not, except where specifically authorized by 
        statute--
                    ``(A) establish an exclusive, restricted, or other 
                distribution arrangement that interferes with timely 
                and equitable availability of public information to the 
                public;
                    ``(B) restrict or regulate the use, resale, or 
                redissemination of public information by the public;
                    ``(C) charge fees or royalties for resale or 
                redissemination of public information; or
                    ``(D) establish user fees for public information 
                that exceed the cost of dissemination, except that the 
                Director may waive the application of this subparagraph 
                to an agency, if--
                            ``(i) the head of the agency submits a 
                        written request to the Director, publishes a 
                        notice of the request in the Federal Register, 
                        and provides a copy of the request to the 
                        public upon request;
                            ``(ii) the Director sets forth in writing a 
                        statement of the scope, conditions, and 
                        duration of the waiver and the reasons for 
                        granting it, and makes such statement available 
                        to the public upon request; and
                            ``(iii) the granting of the waiver would 
                        not materially impair the timely and equitable 
                        availability of public information to the 
                        public.
    ``(e) With respect to statistical policy and coordination, each 
agency shall--
            ``(1) ensure the relevance, accuracy, timeliness, 
        integrity, and objectivity of information collected or created 
        for statistical purposes;
            ``(2) inform respondents fully and accurately about the 
        sponsors, purposes, and uses of statistical surveys and 
        studies;
            ``(3) protect respondents' privacy and ensure that 
        disclosure policies fully honor pledges of confidentiality;
            ``(4) observe Federal standards and practices for data 
        collection, analysis, documentation, sharing, and dissemination 
        of information;
            ``(5) ensure the timely publication of the results of 
        statistical surveys and studies, including information about 
        the quality and limitations of the surveys and studies; and
            ``(6) make data available to statistical agencies and 
        readily accessible to the public.
    ``(f) With respect to records management, each agency shall 
implement and enforce applicable policies and procedures, including 
requirements for archiving information maintained in electronic format, 
particularly in the planning, design and operation of information 
systems.
    ``(g) With respect to privacy and security, each agency shall--
            ``(1) implement and enforce applicable policies, 
        procedures, standards, and guidelines on privacy, 
        confidentiality, security, disclosure and sharing of 
        information collected or maintained by or for the agency;
            ``(2) assume responsibility and accountability for 
        compliance with and coordinated management of sections 552 and 
        552a of title 5, the Computer Security Act of 1987 (40 U.S.C. 
        759 note), and related information management laws; and
            ``(3) consistent with the Computer Security Act of 1987 (40 
        U.S.C. 759 note), identify and afford security protections 
        commensurate with the risk and magnitude of the harm resulting 
        from the loss, misuse, or unauthorized access to or 
        modification of information collected or maintained by or on 
        behalf of an agency.
    ``(h) With respect to Federal information technology, each agency 
shall--
            ``(1) implement and enforce applicable Governmentwide and 
        agency information technology management policies, principles, 
        standards, and guidelines;
            ``(2) assume responsibility and accountability for 
        information technology investments;
            ``(3) promote the use of information technology by the 
        agency to improve the productivity, efficiency, and 
        effectiveness of agency programs, including the reduction of 
        information collection burdens on the public and improved 
        dissemination of public information;
            ``(4) propose changes in legislation, regulations, and 
        agency procedures to improve information technology practices, 
        including changes that improve the ability of the agency to use 
        technology to reduce burden; and
            ``(5) assume responsibility for maximizing the value and 
        assessing and managing the risks of major information systems 
        initiatives through a process that is--
                    ``(A) integrated with budget, financial, and 
                program management decisions; and
                    ``(B) used to select, control, and evaluate the 
                results of major information systems initiatives.
``Sec. 3507. Public information collection activities; submission to 
              Director; approval and delegation
    ``(a) An agency shall not conduct or sponsor the collection of 
information unless in advance of the adoption or revision of the 
collection of information--
            ``(1) the agency has--
                    ``(A) conducted the review established under 
                section 3506(c)(1);
                    ``(B) evaluated the public comments received under 
                section 3506(c)(2);
                    ``(C) submitted to the Director the certification 
                required under section 3506(c)(3), the proposed 
                collection of information, copies of pertinent 
                statutory authority, regulations, and other related 
                materials as the Director may specify; and
                    ``(D) published a notice in the Federal Register--
                            ``(i) stating that the agency has made such 
                        submission; and
                            ``(ii) setting forth--
                                    ``(I) a title for the collection of 
                                information;
                                    ``(II) a summary of the collection 
                                of information;
                                    ``(III) a brief description of the 
                                need for the information and the 
                                proposed use of the information;
                                    ``(IV) a description of the likely 
                                respondents and proposed frequency of 
                                response to the collection of 
                                information;
                                    ``(V) an estimate of the burden 
                                that shall result from the collection 
                                of information; and
                                    ``(VI) notice that comments may be 
                                submitted to the agency and Director;
            ``(2) the Director has approved the proposed collection of 
        information or approval has been inferred, under the provisions 
        of this section; and
            ``(3) the agency has obtained from the Director a control 
        number to be displayed upon the collection of information.
    ``(b) The Director shall provide at least 30 days for public 
comment prior to making a decision under subsection (c), (d), or (h), 
except for good cause or as provided under subsection (j).
    ``(c)(1) For any proposed collection of information not contained 
in a proposed rule, the Director shall notify the agency involved of 
the decision to approve or disapprove the proposed collection of 
information.
    ``(2) The Director shall provide the notification under paragraph 
(1), within 60 days after receipt or publication of the notice under 
subsection (a)(1)(D), whichever is later.
    ``(3) If the Director does not notify the agency of a denial or 
approval within the 60-day period described under paragraph (2)--
            ``(A) the approval may be inferred;
            ``(B) a control number shall be assigned without further 
        delay; and
            ``(C) the agency may collect the information for not more 
        than 1 year.
    ``(d)(1) For any proposed collection of information contained in a 
proposed rule--
            ``(A) as soon as practicable, but no later than the date of 
        publication of a notice of proposed rulemaking in the Federal 
        Register, each agency shall forward to the Director a copy of 
        any proposed rule which contains a collection of information 
        and any information requested by the Director necessary to make 
        the determination required under this subsection; and
            ``(B) within 60 days after the notice of proposed 
        rulemaking is published in the Federal Register, the Director 
        may file public comments pursuant to the standards set forth in 
        section 3508 on the collection of information contained in the 
proposed rule.
    ``(2) When a final rule is published in the Federal Register, the 
agency shall explain--
            ``(A) how any collection of information contained in the 
        final rule responds to the comments, if any, filed by the 
        Director or the public; or
            ``(B) the reasons such comments were rejected.
    ``(3) If the Director has received notice and failed to comment on 
an agency rule within 60 days after the notice of proposed rulemaking, 
the Director may not disapprove any collection of information 
specifically contained in an agency rule.
    ``(4) No provision in this section shall be construed to prevent 
the Director, in the Director's discretion--
            ``(A) from disapproving any collection of information which 
        was not specifically required by an agency rule;
            ``(B) from disapproving any collection of information 
        contained in an agency rule, if the agency failed to comply 
        with the requirements of paragraph (1) of this subsection;
            ``(C) from disapproving any collection of information 
        contained in a final agency rule, if the Director finds within 
        60 days after the publication of the final rule, and after 
        considering the agency's response to the Director's comments 
        filed under paragraph (2), that the collection of information 
        cannot be approved under the standards set forth in section 
        3508; or
            ``(D) from disapproving any collection of information 
        contained in a final rule, if--
                    ``(i) the Director determines that the agency has 
                substantially modified in the final rule the collection 
                of information contained in the proposed rule; and
                    ``(ii) the agency has not given the Director the 
                information required under paragraph (1) with respect 
                to the modified collection of information, at least 60 
                days before the issuance of the final rule.
    ``(5) This subsection shall apply only when an agency publishes a 
notice of proposed rulemaking and requests public comments.
    ``(6) The decision by the Director to approve or not act upon a 
collection of information contained in an agency rule shall not be 
subject to judicial review.
    ``(e)(1) Any decision by the Director under subsection (c), (d), 
(h), or (j) to disapprove a collection of information, or to instruct 
the agency to make substantive or material change to a collection of 
information, shall be publicly available and include an explanation of 
the reasons for such decision.
    ``(2) Any written communication between the Administrator of the 
Office of Information and Regulatory Affairs, or any employee of the 
Office of Information and Regulatory Affairs, and an agency or person 
not employed by the Federal Government concerning a proposed collection 
of information shall be made available to the public.
    ``(3) This subsection shall not require the disclosure of--
            ``(A) any information which is protected at all times by 
        procedures established for information which has been 
specifically authorized under criteria established by an Executive 
order or an Act of Congress to be kept secret in the interest of 
national defense or foreign policy; or
            ``(B) any communication relating to a collection of 
        information, the disclosure of which could lead to retaliation 
        or discrimination against the communicator.
    ``(f)(1) An independent regulatory agency which is administered by 
2 or more members of a commission, board, or similar body, may by 
majority vote void--
            ``(A) any disapproval by the Director, in whole or in part, 
        of a proposed collection of information that agency; or
            ``(B) an exercise of authority under subsection (d) of 
        section 3507 concerning that agency.
    ``(2) The agency shall certify each vote to void such disapproval 
or exercise to the Director, and explain the reasons for such vote. The 
Director shall without further delay assign a control number to such 
collection of information, and such vote to void the disapproval or 
exercise shall be valid for a period of 3 years.
    ``(g) The Director may not approve a collection of information for 
a period in excess of 3 years.
    ``(h)(1) If an agency decides to seek extension of the Director's 
approval granted for a currently approved collection of information, 
the agency shall--
            ``(A) conduct the review established under section 3506(c), 
        including the seeking of comment from the public on the 
        continued need for, and burden imposed by the collection of 
        information; and
            ``(B) after having made a reasonable effort to seek public 
        comment, but no later than 60 days before the expiration date 
        of the control number assigned by the Director for the 
        currently approved collection of information, submit the 
        collection of information for review and approval under this 
        section, which shall include an explanation of how the agency 
        has used the information that it has collected.
    ``(2) If under the provisions of this section, the Director 
disapproves a collection of information contained in an existing rule, 
or recommends or instructs the agency to make a substantive or material 
change to a collection of information contained in an existing rule, 
the Director shall--
            ``(A) publish an explanation thereof in the Federal 
        Register; and
            ``(B) instruct the agency to undertake a rulemaking within 
        a reasonable time limited to consideration of changes to the 
        collection of information contained in the rule and thereafter 
        to submit the collection of information for approval or 
        disapproval under this chapter.
    ``(3) An agency may not make a substantive or material modification 
to a collection of information after such collection has been approved 
by the Director, unless the modification has been submitted to the 
Director for review and approval under this chapter.
    ``(i)(1) If the Director finds that a senior official of an agency 
designated under section 3506(a) is sufficiently independent of program 
responsibility to evaluate fairly whether proposed collections of 
information should be approved and has sufficient resources to carry 
out this responsibility effectively, the Director may, by rule in 
accordance with the notice and comment provisions of chapter 5 of title 
5, United States Code, delegate to such official the authority to 
approve proposed collections of information in specific program areas, 
for specific purposes, or for all agency purposes.
    ``(2) A delegation by the Director under this section shall not 
preclude the Director from reviewing individual collections of 
information if the Director determines that circumstances warrant such 
a review. The Director shall retain authority to revoke such 
delegations, both in general and with regard to any specific matter. In 
acting for the Director, any official to whom approval authority has 
been delegated under this section shall comply fully with the rules and 
regulations promulgated by the Director.
    ``(j)(1) The agency head may request the Director to authorize 
collection of information prior to expiration of time periods 
established under this chapter, if an agency head determines that--
            ``(A) a collection of information--
                    ``(i) is needed prior to the expiration of such 
                time periods; and
                    ``(ii) is essential to the mission of the agency; 
                and
            ``(B) the agency cannot reasonably comply with the 
        provisions of this chapter within such time periods because--
                    ``(i) public harm is reasonably likely to result if 
                normal clearance procedures are followed; or
                    ``(ii) an unanticipated event has occurred and the 
                use of normal clearance procedures is reasonably likely 
                to prevent or disrupt the collection of information 
                related to the event or is reasonably likely to cause a 
                statutory or court-ordered deadline to be missed.
    ``(2) The Director shall approve or disapprove any such 
authorization request within the time requested by the agency head and, 
if approved, shall assign the collection of information a control 
number. Any collection of information conducted under this subsection 
may be conducted without compliance with the provisions of this chapter 
for a maximum of 90 days after the date on which the Director received 
the request to authorize such collection.
``Sec. 3508. Determination of necessity for information; hearing
    ``Before approving a proposed collection of information, the 
Director shall determine whether the collection of information by the 
agency is necessary for the proper performance of the functions of the 
agency, including whether the information shall have practical utility. 
Before making a determination the Director may give the agency and 
other interested persons an opportunity to be heard or to submit 
statements in writing. To the extent, if any, that the Director 
determines that the collection of information by an agency is 
unnecessary for any reason, the agency may not engage in the collection 
of information.
``Sec. 3509. Designation of central collection agency
    ``The Director may designate a central collection agency to obtain 
information for two or more agencies if the Director determines that 
the needs of such agencies for information will be adequately served by 
a single collection agency, and such sharing of data is not 
inconsistent with applicable law. In such cases the Director shall 
prescribe (with reference to the collection of information) the duties 
and functions of the collection agency so designated and of the 
agencies for which it is to act as agent (including reimbursement for 
costs). While the designation is in effect, an agency covered by the 
designation may not obtain for itself information for the agency which 
is the duty of the collection agency to obtain. The Director may modify 
the designation from time to time as circumstances require. The 
authority to designate under this section is subject to the provisions 
of section 3507(f) of this chapter.
``Sec. 3510. Cooperation of agencies in making information available
    ``(a) The Director may direct an agency to make available to 
another agency, or an agency may make available to another agency, 
information obtained by a collection of information if the disclosure 
is not inconsistent with applicable law.
    ``(b)(1) If information obtained by an agency is released by that 
agency to another agency, all the provisions of law (including 
penalties which relate to the unlawful disclosure of information) apply 
to the officers and employees of the agency to which information is 
released to the same extent and in the same manner as the provisions 
apply to the officers and employees of the agency which originally 
obtained the information.
    ``(2) The officers and employees of the agency to which the 
information is released, in addition, shall be subject to the same 
provisions of law, including penalties, relating to the unlawful 
disclosure of information as if the information had been collected 
directly by that agency.
``Sec. 3511. Establishment and operation of Government Information 
              Locator Service
    ``In order to assist agencies and the public in locating 
information and to promote information sharing and equitable access by 
the public, the Director shall--
            ``(1) cause to be established and maintained a distributed 
        agency-based electronic Government Information Locator Service 
        (hereafter in this section referred to as the `Service'), which 
        shall identify the major information systems, holdings, and 
        dissemination products of each agency;
            ``(2) require each agency to establish and maintain an 
        agency information locator service as a component of, and to 
        support the establishment and operation of the Service;
            ``(3) in cooperation with the Archivist of the United 
        States, the Administrator of General Services, the Public 
        Printer, and the Librarian of Congress, establish an 
        interagency committee to advise the Secretary of Commerce on 
        the development of technical standards for the Service to 
        ensure compatibility, promote information sharing, and uniform 
        access by the public;
            ``(4) consider public access and other user needs in the 
        establishment and operation of the Service;
            ``(5) ensure the security and integrity of the Service, 
        including measures to ensure that only information which is 
        intended to be disclosed to the public is disclosed through the 
        Service; and
            ``(6) periodically review the development and effectiveness 
        of the Service and make recommendations for improvement, 
        including other mechanisms for improving public access to 
        Federal agency public information.
``Sec. 3512. Public protection
    ``(a) Notwithstanding any other provision of law, no person shall 
be subject to any penalty for failing to maintain or provide 
information to any agency if the collection of information involved was 
made after December 31, 1981, and at the time of the failure did not 
display a current control number assigned by the Director, or fails to 
state that such request is not subject to this chapter.
    ``(b) Actions taken by agencies which are not in compliance with 
subsection (a) of this section shall give rise to a complete defense or 
bar to such action by an agency, which may be raised at any time during 
the agency decision making process or judicial review of the agency 
decision under any available process for judicial review.
``Sec. 3513. Director review of agency activities; reporting; agency 
              response
    ``(a) In consultation with the Administrator of General Services, 
the Archivist of the United States, the Director of the National 
Institute of Standards and Technology, and the Director of the Office 
of Personnel Management, the Director shall periodically review 
selected agency information resources management activities to 
ascertain the efficiency and effectiveness of such activities to 
improve agency performance and the accomplishment of agency missions.
    ``(b) Each agency having an activity reviewed under subsection (a) 
shall, within 60 days after receipt of a report on the review, provide 
a written plan to the Director describing steps (including milestones) 
to--
            ``(1) be taken to address information resources management 
        problems identified in the report; and
            ``(2) improve agency performance and the accomplishment of 
        agency missions.
``Sec. 3514. Responsiveness to Congress
    ``(a)(1) The Director shall--
            ``(A) keep the Congress and congressional committees fully 
        and currently informed of the major activities under this 
        chapter; and
            ``(B) submit a report on such activities to the President 
        of the Senate and the Speaker of the House of Representatives 
        annually and at such other times as the Director determines 
        necessary.
    ``(2) The Director shall include in any such report a description 
of the extent to which agencies have--
            ``(A) reduced information collection burdens on the public, 
        including--
                    ``(i) a summary of accomplishments and planned 
                initiatives to reduce collection of information 
                burdens;
                    ``(ii) a list of all violations of this chapter and 
                of any rules, guidelines, policies, and procedures 
                issued pursuant to this chapter;
                    ``(iii) a list of any increase in the collection of 
                information burden, including the authority for each 
                such collection; and
                    ``(iv) a list of agencies that in the preceding 
                year did not reduce information collection burdens by 
                at least 10 percent pursuant to section 3505, a list of 
                the programs and statutory responsibilities of those 
                agencies that precluded that reduction, and 
                recommendations to assist those agencies to reduce 
                information collection burdens in accordance with that 
                section;
            ``(B) improved the quality and utility of statistical 
        information;
            ``(C) improved public access to Government information; and
            ``(D) improved program performance and the accomplishment 
        of agency missions through information resources management.
    ``(b) The preparation of any report required by this section shall 
be based on performance results reported by the agencies and shall not 
increase the collection of information burden on persons outside the 
Federal Government.
``Sec. 3515. Administrative powers
    ``Upon the request of the Director, each agency (other than an 
independent regulatory agency) shall, to the extent practicable, make 
its services, personnel, and facilities available to the Director for 
the performance of functions under this chapter.
``Sec. 3516. Rules and regulations
    ``The Director shall promulgate rules, regulations, or procedures 
necessary to exercise the authority provided by this chapter.
``Sec. 3517. Consultation with other agencies and the public
    ``(a) In developing information resources management policies, 
plans, rules, regulations, procedures, and guidelines and in reviewing 
collections of information, the Director shall provide interested 
agencies and persons early and meaningful opportunity to comment.
    ``(b) Any person may request the Director to review any collection 
of information conducted by or for an agency to determine, if, under 
this chapter, the person shall maintain, provide, or disclose the 
information to or for the agency. Unless the request is frivolous, the 
Director shall, in coordination with the agency responsible for the 
collection of information--
            ``(1) respond to the request within 60 days after receiving 
        the request, unless such period is extended by the Director to 
        a specified date and the person making the request is given 
        notice of such extension; and
            ``(2) take appropriate remedial action, if necessary.
``Sec. 3518. Effect on existing laws and regulations
    ``(a) Except as otherwise provided in this chapter, the authority 
of an agency under any other law to prescribe policies, rules, 
regulations, and procedures for Federal information resources 
management activities is subject to the authority of the Director under 
this chapter.
    ``(b) Nothing in this chapter shall be deemed to affect or reduce 
the authority of the Secretary of Commerce or the Director of the 
Office of Management and Budget pursuant to Reorganization Plan No. 1 
of 1977 (as amended) and Executive order, relating to 
telecommunications and information policy, procurement and management 
of telecommunications and information systems, spectrum use, and 
related matters.
    ``(c)(1) Except as provided in paragraph (2), this chapter shall 
not apply to obtaining, causing to be obtained, soliciting, or 
requiring the disclosure to third parties or the public, of facts or 
opinions--
            ``(A) during the conduct of a Federal criminal 
        investigation or prosecution, or during the disposition of a 
        particular criminal matter;
            ``(B) during the conduct of--
                    ``(i) a civil action to which the United States or 
                any official or agency thereof is a party; or
                    ``(ii) an administrative action or investigation 
                involving an agency against specific individuals or 
                entities;
            ``(C) by compulsory process pursuant to the Antitrust Civil 
        Process Act and section 13 of the Federal Trade Commission 
        Improvements Act of 1980; or
            ``(D) during the conduct of intelligence activities as 
        defined in section 4-206 of Executive Order No. 12036, issued 
        January 24, 1978, or successor orders, or during the conduct of 
        cryptologic activities that are communications security 
        activities.
    ``(2) This chapter applies to obtaining, causing to be obtained, 
soliciting, or requiring the disclosure to third parties or the public, 
of facts or opinions during the conduct of general investigations 
(other than information collected in an antitrust investigation to the 
extent provided in subparagraph (C) of paragraph (1)) undertaken with 
reference to a category of individuals or entities such as a class of 
licensees or an entire industry.
    ``(d) Nothing in this chapter shall be interpreted as increasing or 
decreasing the authority conferred by Public Law 89-306 on the 
Administrator of the General Services Administration, the Secretary of 
Commerce, or the Director of the Office of Management and Budget.
    ``(e) Nothing in this chapter shall be interpreted as increasing or 
decreasing the authority of the President, the Office of Management and 
Budget or the Director thereof, under the laws of the United States, 
with respect to the substantive policies and programs of departments, 
agencies and offices, including the substantive authority of any 
Federal agency to enforce the civil rights laws.
``Sec. 3519. Access to information
    ``Under the conditions and procedures prescribed in section 716 of 
title 31, the Director and personnel in the Office of Information and 
Regulatory Affairs shall furnish such information as the Comptroller 
General may require for the discharge of the responsibilities of the 
Comptroller General. For the purpose of obtaining such information, the 
Comptroller General or representatives thereof shall have access to all 
books, documents, papers and records, regardless of form or format, of 
the Office.
``Sec. 3520. Authorization of appropriations
    ``There are authorized to be appropriated to the Office of 
Information and Regulatory Affairs to carry out the provisions of this 
chapter such sums as may be necessary.''.

SEC. 103. EFFECTIVE DATE.

    The amendments made by this division shall take effect October 1, 
1995.

                               DIVISION B

SEC. 201. SHORT TITLE.

    This division may be cited as the ``Private Property Protection Act 
of 1995''.

SEC. 202. FEDERAL POLICY AND DIRECTION.

    (a) General Policy.--It is the policy of the Federal Government 
that no law or agency action should limit the use of privately owned 
property so as to diminish its value.
    (b) Application to Federal Agency Action.--Each Federal agency, 
officer, and employee should exercise Federal authority to ensure that 
agency action will not limit the use of privately owned property so as 
to diminish its value.

SEC. 203. RIGHT TO COMPENSATION.

    (a) In General.--The Federal Government shall compensate an owner 
of property whose use of any portion of that property has been limited 
by an agency action, under a specified regulatory law, that diminishes 
the fair market value of that portion by 20 percent or more. The amount 
of the compensation shall equal the diminution in value that resulted 
from the agency action. If the diminution in value of a portion of that 
property is greater than 50 percent, at the option of the owner, the 
Federal Government shall buy that portion of the property for its fair 
market value.
    (b) Duration of Limitation on Use.--Property with respect to which 
compensation has been paid under this Act shall not thereafter be used 
contrary to the limitation imposed by the agency action, even if that 
action is later rescinded or otherwise vitiated. However, if that 
action is later rescinded or otherwise vitiated, and the owner elects 
to refund the amount of the compensation, adjusted for inflation, to 
the Treasury of the United States, the property may be so used.

SEC. 204. EFFECT OF STATE LAW.

    If a use is a nuisance as defined by the law of a State or is 
already prohibited under a local zoning ordinance, no compensation 
shall be made under this division with respect to a limitation on that 
use.

SEC. 205. EXCEPTIONS.

    (a) Prevention of Hazard to Health or Safety or Damage to Specific 
Property.--No compensation shall be made under this division with 
respect to an agency action the primary purpose of which is to prevent 
an identifiable--
            (1) hazard to public health or safety; or
            (2) damage to specific property other than the property 
        whose use is limited.
    (b) Navigation Servitude.--No compensation shall be made under this 
division with respect to an agency action pursuant to the Federal 
navigation servitude, as defined by the courts of the United States, 
except to the extent such servitude is interpreted to apply to 
wetlands.

SEC. 206. PROCEDURE.

    (a) Request of Owner.--An owner seeking compensation under this 
division shall make a written request for compensation to the agency 
whose agency action resulted in the limitation. No such request may be 
made later than 180 days after the owner receives actual notice of that 
agency action.
    (b) Negotiations.--The agency may bargain with that owner to 
establish the amount of the compensation. If the agency and the owner 
agree to such an amount, the agency shall promptly pay the owner the 
amount agreed upon.
    (c) Choice of Remedies.--If, not later than 180 days after the 
written request is made, the parties do not come to an agreement as to 
the right to and amount of compensation, the owner may choose to take 
the matter to binding arbitration or seek compensation in a civil 
action.
    (d) Arbitration.--The procedures that govern the arbitration shall, 
as nearly as practicable, be those established under title 9, United 
States Code, for arbitration proceedings to which that title applies. 
An award made in such arbitration shall include a reasonable attorney's 
fee and other arbitration costs (including appraisal fees). The agency 
shall promptly pay any award made to the owner.
    (e) Civil Action.--An owner who does not choose arbitration, or who 
does not receive prompt payment when required by this section, may 
obtain appropriate relief in a civil action against the agency. An 
owner who prevails in a civil action under this section shall be 
entitled to, and the agency shall be liable for, a reasonable 
attorney's fee and other litigation costs (including appraisal fees). 
The court shall award interest on the amount of any compensation from 
the time of the limitation.
    (f) Source of Payments.--Any payment made under this section to an 
owner, and any judgment obtained by an owner in a civil action under 
this section shall, notwithstanding any other provision of law, be made 
from the annual appropriation of the agency whose action occasioned the 
payment or judgment. If the agency action resulted from a requirement 
imposed by another agency, then the agency making the payment or 
satisfying the judgment may seek partial or complete reimbursement from 
the appropriated funds of the other agency. For this purpose the head 
of the agency concerned may transfer or reprogram any appropriated 
funds available to the agency. If insufficient funds exist for the 
payment or to satisfy the judgment, it shall be the duty of the head of 
the agency to seek the appropriation of such funds for the next fiscal 
year.

SEC. 207. LIMITATION.

    Notwithstanding any other provision of law, any obligation of the 
United States to make any payment under this division shall be subject 
to the availability of appropriations.

SEC. 208. DUTY OF NOTICE TO OWNERS.

    Whenever an agency takes an agency action limiting the use of 
private property, the agency shall give appropriate notice to the 
owners of that property directly affected explaining their rights under 
this division and the procedures for obtaining any compensation that 
may be due to them under this division.

SEC. 209. RULES OF CONSTRUCTION.

    (a) Effect on Constitutional Right to Compensation.--Nothing in 
this division shall be construed to limit any right to compensation 
that exists under the Constitution or under other laws of the United 
States.
    (b) Effect of Payment.--Payment of compensation under this division 
(other than when the property is bought by the Federal Government at 
the option of the owner) shall not confer any rights on the Federal 
Government other than the limitation on use resulting from the agency 
action.

SEC. 210. DEFINITIONS.

    For the purposes of this division--
            (1) the term ``property'' means land and includes the right 
        to use or receive water;
            (2) a use of property is limited by an agency action if a 
        particular legal right to use that property no longer exists 
        because of the action;
            (3) the term ``agency action'' has the meaning given that 
        term in section 551 of title 5, United States Code, but also 
        includes the making of a grant to a public authority 
        conditioned upon an action by the recipient that would 
        constitute a limitation if done directly by the agency;
            (4) the term ``agency'' has the meaning given that term in 
        section 551 of title 5, United States Code;
            (5) the term ``specified regulatory law'' means--
                    (A) section 404 of the Federal Water Pollution 
                Control Act (33 U.S.C. 1344);
                    (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.);
                    (C) title XII of the Food Security Act of 1985 (16 
                U.S.C. 3801 et seq.); or
                    (D) with respect to an owner's right to use or 
                receive water only--
                            (i) the Act of June 17, 1902, and all Acts 
                        amendatory thereof or supplementary thereto, 
                        popularly called the ``Reclamation Acts'' (43 
                        U.S.C. 371 et seq.);
                            (ii) the Federal Land Policy Management Act 
                        (43 U.S.C. 1701 et seq.); or
                            (iii) section 6 of the Forest and Rangeland 
                        Renewable Resources Planning Act of 1974 (16 
                        U.S.C. 1604);
            (6) the term ``fair market value'' means the most probable 
        price at which property would change hands, in a competitive 
        and open market under all conditions requisite to a fair sale, 
        between a willing buyer and a willing seller, neither being 
        under any compulsion to buy or sell and both having reasonable 
        knowledge of relevant facts, at the time the agency action 
        occurs;
            (7) the term ``State'' includes the District of Columbia, 
        Puerto Rico, and any other territory or possession of the 
        United States; and
            (8) the term ``law of the State'' includes the law of a 
        political subdivision of a State.

                               DIVISION C

SEC. 301. SHORT TITLE.

    This division may be cited as the ``Regulatory Reform and Relief 
Act''.

             TITLE I--STRENGTHENING REGULATORY FLEXIBILITY

SEC. 311. JUDICIAL REVIEW.

    (a) Amendment.--Section 611 of title 5, United States Code, is 
amended to read as follows:
``Sec. 611. Judicial review
    ``(a)(1) Except as provided in paragraph (2), not later than one 
year, notwithstanding any other provision of law, after the effective 
date of a final rule with respect to which an agency--
            ``(A) certified, pursuant to section 605(b), that such rule 
        would not have a significant economic impact on a substantial 
        number of small entities; or
            ``(B) prepared a final regulatory flexibility analysis 
        pursuant to section 604,
an affected small entity may petition for the judicial review of such 
certification or analysis in accordance with the terms of this 
subsection. A court having jurisdiction to review such rule for 
compliance with the provisions of section 553 or under any other 
provision of law shall have jurisdiction to review such certification 
or analysis. In the case where an agency delays the issuance of a final 
regulatory flexibility analysis pursuant to section 608(b), a petition 
for judicial review under this subsection shall be filed not later than 
one year, notwithstanding any other provision of law, after the date 
the analysis is made available to the public.
    ``(2) For purposes of this subsection, the term `affected small 
entity' means a small entity that is or will be adversely affected by 
the final rule.
    ``(3) Nothing in this subsection shall be construed to affect the 
authority of any court to stay the effective date of any rule or 
provision thereof under any other provision of law.
    ``(4)(A) In the case where the agency certified that such rule 
would not have a significant economic impact on a substantial number of 
small entities, the court may order the agency to prepare a final 
regulatory flexibility analysis pursuant to section 604 if the court 
determines, on the basis of the rulemaking record, that the 
certification was arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law.
    ``(B) In the case where the agency prepared a final regulatory 
flexibility analysis, the court may order the agency to take corrective 
action consistent with the requirements of section 604 if the court 
determines, on the basis of the rulemaking record, that the final 
regulatory flexibility analysis was prepared by the agency without 
observance of procedure required by section 604.
    ``(5) If, by the end of the 90-day period beginning on the date of 
the order of the court pursuant to paragraph (4) (or such longer period 
as the court may provide), the agency fails, as appropriate--
            ``(A) to prepare the analysis required by section 604; or
            ``(B) to take corrective action consistent with the 
        requirements of section 604,
the court may stay the rule or grant such other relief as it deems 
appropriate.
    ``(6) In making any determination or granting any relief authorized 
by this subsection, the court shall take due account of the rule of 
prejudicial error.
    ``(b) In an action for the judicial review of a rule, any 
regulatory flexibility analysis for such rule (including an analysis 
prepared or corrected pursuant to subsection (a)(4)) shall constitute 
part of the whole record of agency action in connection with such 
review.
    ``(c) Nothing in this section bars judicial review of any other 
impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise provided by 
law.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply only to final agency rules issued after the date of enactment of 
this division.

SEC. 312. RULES COMMENTED ON BY SBA CHIEF COUNSEL FOR ADVOCACY.

    (a) In General.--Section 612 of title 5, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Action by the SBA Chief Counsel for Advocacy.--
            ``(1) Transmittal of proposed rules and initial regulatory 
        flexibility analysis to sba chief counsel for advocacy.--On or 
        before the 30th day preceding the date of publication by an 
        agency of general notice of proposed rulemaking for a rule, the 
        agency shall transmit to the Chief Counsel for Advocacy of the 
        Small Business Administration--
                    ``(A) a copy of the proposed rule; and
                    ``(B)(i) a copy of the initial regulatory 
                flexibility analysis for the rule if required under 
                section 603; or
                    ``(ii) a determination by the agency that an 
                initial regulatory flexibility analysis is not required 
                for the proposed rule under section 603 and an 
                explanation for the determination.
            ``(2) Statement of effect.--On or before the 15th day 
        following receipt of a proposed rule and initial regulatory 
        flexibility analysis from an agency under paragraph (1), the 
        Chief Counsel for Advocacy may transmit to the agency a written 
        statement of the effect of the proposed rule on small entities.
            ``(3) Response.--If the Chief Counsel for Advocacy 
        transmits to an agency a statement of effect on a proposed rule 
        in accordance with paragraph (2), the agency shall publish the 
        statement, together with the response of the agency to the 
        statement, in the Federal Register at the time of publication 
        of general notice of proposed rulemaking for the rule.
            ``(4) Special rule.--Any proposed rules issued by an 
        appropriate Federal banking agency (as that term is defined in 
        section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(q)), the National Credit Union Administration, or the 
        Office of Federal Housing Enterprise Oversight, in connection 
        with the implementation of monetary policy or to ensure the 
        safety and soundness of federally insured depository 
        institutions, any affiliate of such an institution, credit 
        unions, or government sponsored housing enterprises or to 
        protect the Federal deposit insurance funds shall not be 
        subject to the requirements of this subsection.''.
    (b) Conforming Amendment.--Section 603(a) of title 5, United States 
Code, is amended by inserting ``in accordance with section 612(d)'' 
before the period at the end of the last sentence.

SEC. 313. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR ADVOCACY.

    It is the sense of Congress that the Chief Counsel for Advocacy of 
the Small Business Administration should be permitted to appear as 
amicus curiae in any action or case brought in a court of the United 
States for the purpose of reviewing a rule.

                  TITLE II--REGULATORY IMPACT ANALYSES

SEC. 321. DEFINITIONS.

    Section 551 of title 5, United States Code, is amended by striking 
``and'' at the end of paragraph (13), by striking the period at the end 
of paragraph (14) and inserting a semicolon, and by adding at the end 
the following:
            ``(15) `major rule' means any rule subject to section 
        553(c) that is likely to result in--
                    ``(A) an annual effect on the economy of 
                $50,000,000 or more;
                    ``(B) a major increase in costs or prices for 
                consumers, individual industries, Federal, State, or 
                local government agencies, or geographic regions, or
                    ``(C) significant adverse effects on competition, 
                employment, investment, productivity, innovation, or on 
                the ability of United States-based enterprises to 
                compete with foreign-based enterprises in domestic and 
                export markets; and
            ``(16) `Director' means the Director of the Office of 
        Management and Budget.''.

SEC. 322. RULEMAKING NOTICES FOR MAJOR RULES.

    Section 553 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(f)(1) Each agency shall for a proposed major rule publish in the 
Federal Register, at least 90 days before the date of publication of 
the general notice required under subsection (b), a notice of intent to 
engage in rulemaking.
    ``(2) A notice under paragraph (1) for a proposed major rule shall 
include, to the extent possible, the information required to be 
included in a regulatory impact analysis for the rule under subsection 
(i)(4)(B) and (D).
    ``(3) For a major rule proposed by an agency, the head of the 
agency shall include in a general notice under subsection (b), a 
preliminary regulatory impact analysis for the rule prepared in 
accordance with subsection (i).
    ``(4) For a final major rule, the agency shall include with the 
statement of basis and purpose--
            ``(A) a summary of a final regulatory impact analysis of 
        the rule in accordance with subsection (i); and
            ``(B) a clear delineation of all changes in the information 
        included in the final regulatory impact analysis under 
        subsection (i) from any such information that was included in 
        the notice for the rule under subsection (b).
The agency shall provide the complete text of a final regulatory impact 
analysis upon request.
    ``(5) The issuance of a notice of intent to engage in rulemaking 
under paragraph (1) and the issuance of a preliminary regulatory impact 
analysis under paragraph (3) shall not be considered final agency 
action for purposes of section 704.
    ``(6) In a rulemaking involving a major rule, the agency conducting 
the rulemaking shall make a written record describing the subject of 
all contacts the agency made with persons outside the agency relating 
to such rulemaking. If the contact was made with a non-governmental 
person, the written record of such contact shall be made available, 
upon request to the public.''.

SEC. 323. HEARING REQUIREMENT FOR PROPOSED RULES; AND EXTENSION OF 
              COMMENT PERIOD.

    (a) Hearing Requirement.--Section 553 of title 5, United States 
Code, as amended by section 322, is further amended by adding after 
subsection (f) the following:
    ``(g) If more than 100 interested persons acting individually 
submit requests for a hearing to an agency regarding any major rule 
proposed by the agency, the agency shall hold such a hearing on the 
proposed rule.''.
    (b) Extension of Comment Period.--Section 553 of title 5, United 
States Code, as amended by subsection (a), is further amended by adding 
after subsection (g) the following:
    ``(h) If during the 90-day period beginning on the date of 
publication of a notice under subsection (f) for a proposed major rule, 
or if during the period beginning on the date of publication or service 
of notice required by subsection (b) for a proposed major rule, more 
than 100 persons individually contact the agency to request an 
extension of the period for making submissions under subsection (c) 
pursuant to the notice, the agency--
            ``(1) shall provide an additional 30-day period for making 
        those submissions; and
            ``(2) may not adopt the rule until after the additional 
        period.''.
    (c) Response to Comments.--Section 553(c) of title 5, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following:
    ``(2) Each agency shall publish in the Federal Register, with each 
rule published under section 552(a)(1)(D), responses to the substance 
of the comments received by the agency regarding the rule.''.

SEC. 324. REGULATORY IMPACT ANALYSIS.

    Section 553 of title 5, United States Code, as amended by section 
323, is amended by adding after subsection (h) the following:
    ``(i)(1) Each agency shall, in connection with every major rule, 
prepare, and, to the extent permitted by law, consider, a regulatory 
impact analysis. Such analysis may be combined with any regulatory 
flexibility analysis performed under sections 603 and 604.
    ``(2) Each agency shall initially determine whether a rule it 
intends to propose or issue is a major rule. The Director shall have 
authority to order a rule to be treated as a major rule and to require 
any set of related rules to be considered together as a major rule.
    ``(3) Except as provided in subsection (j), agencies shall 
prepare--
            ``(A) a preliminary regulatory impact analysis, which shall 
        be transmitted, along with a notice of proposed rulemaking, to 
        the Director at least 60 days prior to the publication of 
        notice of proposed rulemaking, and
            ``(B) a final regulatory impact analysis, which shall be 
        transmitted along with the final rule at least 30 days prior to 
        the publication of a major rule.
    ``(4) Each preliminary and final regulatory impact analysis shall 
contain the following information:
            ``(A) A description of the potential benefits of the rule, 
        including any beneficial effects that cannot be quantified in 
        monetary terms and the identification of those likely to 
        receive the benefits.
            ``(B) An explanation of the necessity, legal authority, and 
        reasonableness of the rule and a description of the condition 
        that the rule is to address.
            ``(C) A description of the potential costs of the rule, 
        including any adverse effects that cannot be quantified in 
        monetary terms, and the identification of those likely to bear 
        the costs.
            ``(D) An analysis of alternative approaches, including 
        market based mechanisms, that could substantially achieve the 
        same regulatory goal at a lower cost and an explanation of the 
        reasons why such alternative approaches were not adopted, 
        together with a demonstration that the rule provides for the 
        least costly approach.
            ``(E) A statement that the rule does not conflict with, or 
        duplicate, any other rule or a statement of the reasons why 
        such a conflict or duplication exists.
            ``(F) A statement of whether the rule will require on-site 
        inspections or whether persons will be required by the rule to 
        maintain any records which will be subject to inspection, and a 
        statement of whether the rule will require persons to obtain 
        licenses, permits, or other certifications, including 
        specification of any associated fees or fines.
            ``(G) An estimate of the costs to the agency for 
        implementation and enforcement of the rule and of whether the 
        agency can be reasonably expected to implement the rule with 
        the current level of appropriations.
    ``(5)(A) the Director is authorized to review and prepare comments 
on any preliminary or final regulatory impact analysis, notice of 
proposed rulemaking, or final rule based on the requirements of this 
subsection.
    ``(B) Upon the request of the Director, an agency shall consult 
with the Director concerning the review of a preliminary impact 
analysis or notice of proposed rulemaking and shall refrain from 
publishing its preliminary regulatory impact analysis or notice of 
proposed rulemaking until such review is concluded. The Director's 
review may not take longer than 90 days after the date of the request 
of the Director.
    ``(6)(A) An agency may not adopt a major rule unless the final 
regulatory impact analysis for the rule is approved or commented upon 
in writing by the Director or by an individual designated by the 
Director for that purpose.
    ``(B) Upon receiving notice that the Director intends to comment in 
writing with respect to any final regulatory impact analysis or final 
rule, the agency shall refrain from publishing its final regulatory 
impact analysis or final rule until the agency has responded to the 
Director's comments and incorporated those comments in the agency's 
response in the rulemaking file. If the Director fails to make such 
comments in writing with respect to any final regulatory impact 
analysis or final rule within 90 days of the date the Director gives 
such notice, the agency may adopt such final regulatory impact analysis 
or final rule.
    ``(7) Notwithstanding section 551(16), for purposes of this 
subsection with regard to any rule proposed or issued by an appropriate 
Federal banking agency (as that term is defined in section 3(q) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(q)), the National Credit 
Union Administration, or the Office of Federal Housing Enterprise 
Oversight, the term `Director' means the head of such agency, 
Administration, or Office.''.

SEC. 325. STANDARD OF CLARITY.

    Section 553 of title 5, United States Code, as amended in section 
324, is amended by adding after subsection (i) the following:
    ``(j) To the extent practicable, the head of an agency shall seek 
to ensure that any proposed major rule or regulatory impact analysis of 
such a rule is written in a reasonably simple and understandable manner 
and provides adequate notice of the content of the rule to affected 
persons.''.

SEC. 326. EXEMPTIONS.

    Section 553 of title 5, United States Code, as amended by section 
325, is further amended by adding after subsection (j) the following:
    ``(k)(1) The provisions of this section regarding major rules shall 
not apply to--
            ``(A) any regulation that responds to an emergency 
        situation if such regulation is reported to the Director as 
        soon as is practicable;
            ``(B) any regulation for which consideration under the 
        procedures of this section would conflict with deadlines 
        imposed by statute or by judicial order;
            ``(C) any regulation proposed or issued in connection with 
        the implementation of monetary policy or to ensure the safety 
        and soundness of federally insured depository institutions, any 
        affiliate of such institution, credit unions, or government 
        sponsored housing enterprises regulated by the Office of 
        Federal Housing Enterprise Oversight;
            ``(D) any agency action that the head of the agency 
        certifies is limited to interpreting, implementing, or 
        administering the internal revenue laws of the United States, 
        including any regulation proposed or issued in connection with 
        ensuring the collection of taxes from a subsidiary of a foreign 
        company doing business in the United States; and
            ``(E) any regulation proposed or issued pursuant to section 
        553 of title 5, United States Code, in connection with imposing 
        trade sanctions against any country that engages in illegal 
        trade activities against the United States that are injurious 
        to American technology, jobs, pensions, or general economic 
        well-being.
A regulation described in subparagraph (B) shall be reported to the 
Director with a brief explanation of the conflict and the agency, in 
consultation with the Director, shall, to the extent permitted by 
statutory or judicial deadlines, adhere to the process of this section.
    ``(2) The Director may in accordance with the purposes of this 
section exempt any class or category of regulations from any or all 
requirements of this section.
    ``(3) For purposes of paragraph (1), the term `emergency situation' 
means a situation that is--
            ``(A) immediately impending and extraordinary in nature, or
            ``(B) demanding attention due to a condition, circumstance, 
        or practice reasonably expected to cause death, serious 
        illness, or severe injury to humans or substantial endangerment 
        to private property or the environment if no action is 
        taken.''.

SEC. 327. REPORT.

    The Director of the Office of Management and Budget shall submit a 
report to the Congress no later than 24 months after the date of the 
enactment of this Act containing an analysis of rulemaking procedures 
of Federal agencies and an analysis of the impact of those rulemaking 
procedures on the regulated public and regulatory process.

SEC. 328. EFFECTIVE DATE.

    The amendment made by this title shall apply only to final agency 
rules issued after rulemaking begun after the date of enactment of this 
Act.

                         TITLE III--PROTECTIONS

SEC. 331. PRESIDENTIAL ACTION.

    Pursuant to the authority of section 7301 of title 5, United States 
Code, the President shall, within 180 days of the date of the enactment 
of this Act, prescribe regulations for employees of the executive 
branch to ensure that Federal laws and regulations shall be 
administered consistent with the principle that any person shall, in 
connection with the enforcement of such laws and regulations--
            (1) be protected from abuse, reprisal, or retaliation, and
            (2) be treated fairly, equitably, and with due regard for 
        such person's rights under the Constitution.

                               DIVISION D

SEC. 401. SHORT TITLE.

    This division may be cited as the ``Risk Assessment and Cost-
Benefit Act of 1995''.

SEC. 402. FINDINGS.

    The Congress finds that:
            (1) Environmental, health, and safety regulations have led 
        to dramatic improvements in the environment and have 
        significantly reduced human health risk; however, the Federal 
        regulations that have led to these improvements have been more 
        costly and less effective than they could have been; too often, 
        regulatory priorities have not been based upon a realistic 
        consideration of risk, risk reduction opportunities, and costs.
            (2) The public and private resources available to address 
        health, safety, and environmental concerns are not unlimited; 
        those resources need to be allocated to address the greatest 
        needs in the most cost-effective manner and so that the 
        incremental costs of regulatory alternatives are reasonably 
        related to the incremental benefits.
            (3) To provide more cost-effective and cost-reasonable 
        protection to human health and the environment, regulatory 
        priorities should be based upon realistic consideration of 
        risk; the priority setting process must include scientifically 
        sound, objective, and unbiased risk assessments, comparative 
        risk analysis, and risk management choices that are grounded in 
        cost-benefit principles.
            (4) Risk assessment has proven to be a useful decision 
        making tool; however, improvements are needed in both the 
        quality of assessments and the characterization and 
        communication of findings; scientific and other data must be 
        better collected, organized, and evaluated; most importantly, 
        the critical information resulting from a risk assessment must 
        be effectively communicated in an objective and unbiased manner 
        to decision makers, and from decision makers to the public.
            (5) The public stake holders must be fully involved in the 
        risk-decision making process. They have the right-to-know about 
        the risks addressed by regulation, the amount of risk to be 
        reduced, the quality of the science used to support decisions, 
        and the cost of implementing and complying with regulations. 
        This knowledge will allow for public scrutiny and promote 
        quality, integrity, and responsiveness of agency decisions.
            (6) Although risk assessment is one important method to 
        improve regulatory decision-making, other approaches to secure 
        prompt relief from the burden of unnecessary and overly complex 
        regulations will also be necessary.

SEC. 403. COVERAGE OF DIVISION.

    This division does not apply to any of the following:
            (1) A situation that the head of an affected Federal agency 
        determines to be an emergency. In such circumstance, the head 
        of the agency shall comply with the provisions of this division 
        within as reasonable a time as is practical.
            (2) Activities necessary to maintain military readiness.
            (3) Any individual food, drug, or other product label, or 
        to any risk characterization appearing on any such label, if 
        the individual product label is required by law to be approved 
        by a Federal department or agency prior to use.
            (4) Approval of State programs or plans by Federal 
        agencies.

SEC. 404. UNFUNDED MANDATES.

    Nothing in this division itself shall, without Federal funding and 
further Federal agency action, create any new obligation or burden on 
any State or local government or otherwise impose any financial burden 
on any State or local government in the absence of Federal funding, 
except with respect to routine information requests.

SEC. 405. DEFINITIONS.

    For purposes of this division:
            (1) Costs.--The term ``costs'' includes the direct and 
        indirect costs to the United States Government, to State, 
        local, and tribal governments, and to the private sector, wage 
        earners, consumers, and the economy, of implementing and 
        complying with a rule or alternative strategy.
            (2) Benefit.--The term ``benefit'' means the reasonably 
        identifiable significant health, safety, environmental, social 
        and economic benefits that are expected to result directly or 
        indirectly from implementation of a rule or alternative 
        strategy.
            (3) Major rule.--The term ``major rule'' means any 
        regulation that is likely to result in an annual increase in 
        costs of $25,000,000 or more. Such term does not include any 
        regulation or other action taken by an agency to authorize or 
        approve any individual substance or product.
            (4) Program designed to protect human health.--The term 
        ``program designed to protect human health'' does not include 
        regulatory programs concerning health insurance, health 
        provider services, or health care diagnostic services.
            (5) Emergency.--As used in this division, the term 
        ``emergency'' means a situation that is immediately impending 
        and extraordinary in nature, demanding attention due to a 
        condition, circumstance, or practice reasonably expected to 
        cause death, serious illness, or severe injury to humans, or 
        substantial endangerment to private property or the environment 
        if no action is taken.

SEC. 406. AVAILABILITY OF INFORMATION AMONG FEDERAL AGENCIES.

    Covered Federal agencies shall make existing databases and 
information developed under this division available to other Federal 
agencies, subject to applicable confidentiality requirements, for the 
purpose of meeting the requirements of this division. Within 15 months 
after the date of enactment of this division, the President shall issue 
guidelines for Federal agencies to comply with this section.

               TITLE I--RISK ASSESSMENT AND COMMUNICATION

SEC. 411. SHORT TITLE.

    This title may be cited as the ``Risk Assessment and Communication 
Act of 1995''.

SEC. 412. PURPOSES.

    The purposes of this title are--
            (1) to present the public and executive branch with the 
        most scientifically objective and unbiased information 
        concerning the nature and magnitude of health, safety, and 
        environmental risks in order to provide for sound regulatory 
        decisions and public education;
            (2) to provide for full consideration and discussion of 
        relevant data and potential methodologies;
            (3) to require explanation of significant choices in the 
        risk assessment process which will allow for better peer review 
        and public understanding; and
            (4) to improve consistency within the executive branch in 
        preparing risk assessments and risk characterizations.

SEC. 413. EFFECTIVE DATE; APPLICABILITY; SAVINGS PROVISIONS.

    (a) Effective Date.--Except as otherwise specifically provided in 
this title, the provisions of this title shall take effect 18 months 
after the date of enactment of this Act.
    (b) Applicability.--
            (1) In general.--Except as provided in paragraph (3), this 
        title applies to all significant risk assessment documents and 
        significant risk characterization documents, as defined in 
        paragraph (2).
            (2) Significant risk assessment document or significant 
        risk characterization document.--(A) As used in this title, the 
        terms ``significant risk assessment document'' and 
        ``significant risk characterization document'' include, at a 
minimum, risk assessment documents or risk characterization documents 
prepared by or on behalf of a covered Federal agency in the 
implementation of a regulatory program designed to protect human 
health, safety, or the environment, used as a basis for one of the 
items referred to in subparagraph (B), and--
                    (i) included by the agency in that item; or
                    (ii) inserted by the agency in the administrative 
                record for that item.
            (B) The items referred to in subparagraph (A) are the 
        following:
                    (i) Any proposed or final major rule, including any 
                analysis or certification under title II, promulgated 
                as part of any Federal regulatory program designed to 
                protect human health, safety, or the environment.
                    (ii) Any proposed or final environmental clean-up 
                plan for a facility or Federal guidelines for the 
                issuance of any such plan. As used in this clause, the 
                term ``environmental clean-up'' means a corrective 
                action under the Solid Waste Disposal Act, a removal or 
                remedial action under the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 1980, and 
                any other environmental restoration and waste 
                management carried out by or on behalf of a covered 
                Federal agency with respect to any substance other than 
                municipal waste.
                    (iii) Any proposed or final permit condition 
                placing a restriction on facility siting or operation 
                under Federal laws administered by the Environmental 
                Protection Agency or the Department of the Interior. 
                Nothing in this section (iii) shall apply to the 
                requirements of section 404 of the Clean Water Act.
                    (iv) Any report to Congress.
                    (v) Any regulatory action to place a substance on 
                any official list of carcinogens or toxic or hazardous 
                substances or to place a new health effects value on 
                such list, including the Integrated Risk Information 
                System Database maintained by the Environmental 
                Protection Agency.
                    (vi) Any guidance, including protocols of general 
                applicability, establishing policy regarding risk 
                assessment or risk characterization.
            (C) The terms ``significant risk assessment document'' and 
        ``significant risk characterization document'' shall also 
        include the following:
                    (i) Any such risk assessment and risk 
                characterization documents provided by a covered 
                Federal agency to the public and which are likely to 
                result in an annual increase in costs of $25,000,000 or 
                more.
                    (ii) Environmental restoration and waste management 
                carried out by or on behalf of the Department of 
                Defense with respect to any substance other than 
                municipal waste.
            (D) Within 15 months after the date of the enactment of 
        this Act, each covered Federal agency administering a 
        regulatory program designed to protect human health, safety, or 
        the environment shall promulgate a rule establishing those 
        additional categories, if any, of risk assessment and risk 
        characterization documents prepared by or on behalf of the 
        covered Federal agency that the agency will consider 
        significant risk assessment documents or significant risk 
        characterization documents for purposes of this title. In 
        establishing such categories, the head of the agency shall 
        consider each of the following:
                    (i) The benefits of consistent compliance by 
                documents of the covered Federal agency in the 
                categories.
                    (ii) The administrative burdens of including 
                documents in the categories.
                    (iii) The need to make expeditious administrative 
                decisions regarding documents in the categories.
                    (iv) The possible use of a risk assessment or risk 
                characterization in any compilation of risk hazards or 
                health or environmental effects prepared by an agency 
                and commonly made available to, or used by, any 
                Federal, State, or local government agency.
                    (v) Such other factors as may be appropriate.
            (E)(i) Not later than 18 months after the date of the 
        enactment of this Act, the President, acting through the 
        Director of the Office of Management and Budget, shall 
        determine whether any other Federal agencies should be 
        considered covered Federal agencies for purposes of this title. 
        Such determination, with respect to a particular Federal 
        agency, shall be based on the impact of risk assessment 
        documents and risk characterization documents on--
                    (I) regulatory programs administered by that 
                agency; and
                    (II) the communication of risk information by that 
                agency to the public.
        The effective date of such a determination shall be no later 
        than 6 months after the date of the determination.
            (ii) Not later than 15 months after the President, acting 
        through the Director of the Office of Management and Budget, 
        determines pursuant to clause (i) that a Federal agency should 
        be considered a covered Federal agency for purposes of this 
        title, the head of that agency shall promulgate a rule pursuant 
        to subparagraph (D) to establish additional categories of risk 
        assessment and risk characterization documents described in 
        that subparagraph.
            (3) Exceptions.--(A) This title does not apply to risk 
        assessment or risk characterization documents containing risk 
        assessments or risk characterizations performed with respect to 
        the following:
                    (i) A screening analysis, where appropriately 
                labeled as such, including a screening analysis for 
                purposes of product regulation or premanufacturing 
                notices.
                    (ii) Any health, safety, or environmental 
                inspections.
                    (iii) The sale or lease of Federal resources or 
                regulatory activities that directly result in the 
                collection of Federal receipts.
            (B) No analysis shall be treated as a screening analysis 
        for purposes of subparagraph (A) if the results of such 
        analysis are used as the basis for imposing restrictions on 
        substances or activities.
            (C) The risk assessment principle set forth in section 
        414(b)(1) need not apply to any risk assessment or risk 
        characterization document described in clause (iii) of 
        paragraph (2)(B). The risk characterization and communication 
        principle set forth in section 415(4) need not apply to any 
        risk assessment or risk characterization document described in 
        clause (v) or (vi) of paragraph (2)(B).
    (c) Savings Provisions.--The provisions of this title shall be 
supplemental to any other provisions of law relating to risk 
assessments and risk characterizations, except that nothing in this 
title shall be construed to modify any statutory standard or statutory 
requirement designed to protect health, safety, or the environment. 
Nothing in this title shall be interpreted to preclude the 
consideration of any data or the calculation of any estimate to more 
fully describe risk or provide examples of scientific uncertainty or 
variability. Nothing in this title shall be construed to require the 
disclosure of any trade secret or other confidential information.

SEC. 414. PRINCIPLES FOR RISK ASSESSMENT.

    (a) In General.--The head of each covered Federal agency shall 
apply the principles set forth in subsection (b) in order to assure 
that significant risk assessment documents and all of their components 
distinguish scientific findings from other considerations and are, to 
the extent feasible, scientifically objective, unbiased, and inclusive 
of all relevant data and rely, to the extent available and practicable, 
on scientific findings. Discussions or explanations required under this 
section need not be repeated in each risk assessment document as long 
as there is a reference to the relevant discussion or explanation in 
another agency document which is available to the public.
    (b) Principles.--The principles to be applied are as follows:
            (1) When discussing human health risks, a significant risk 
        assessment document shall contain a discussion of both relevant 
        laboratory and relevant epidemiological data of sufficient 
        quality which finds, or fails to find, a correlation between 
        health risks and a potential toxin or activity. Where conflicts 
        among such data appear to exist, or where animal data is used 
        as a basis to assess human health, the significant risk 
        assessment document shall, to the extent feasible and 
        appropriate, include discussion of possible reconciliation of 
        conflicting information, and as relevant, differences in study 
        designs, comparative physiology, routes of exposure, 
        bioavailability, pharmacokinetics, and any other relevant 
        factor, including the sufficiency of basic data for review. The 
        discussion of possible reconciliation should indicate whether 
        there is a biological basis to assume a resulting harm in 
        humans. Animal data shall be reviewed with regard to its 
        relevancy to humans.
            (2) Where a significant risk assessment document involves 
        selection of any significant assumption, inference, or model, 
        the document shall, to the extent feasible--
                    (A) present a representative list and explanation 
                of plausible and alternative assumptions, inferences, 
                or models;
                    (B) explain the basis for any choices;
                    (C) identify any policy or value judgments;
                    (D) fully describe any model used in the risk 
                assessment and make explicit the assumptions 
                incorporated in the model; and
                    (E) indicate the extent to which any significant 
                model has been validated by, or conflicts with, 
                empirical data.

SEC. 415. PRINCIPLES FOR RISK CHARACTERIZATION AND COMMUNICATION.

    Each significant risk characterization document shall meet each of 
the following requirements:
            (1) Estimates of risk.--The risk characterization shall 
        describe the populations or natural resources which are the 
        subject of the risk characterization. If a numerical estimate 
        of risk is provided, the agency shall, to the extent feasible, 
        provide--
                    (A) the best estimate or estimates for the specific 
                populations or natural resources which are the subject 
                of the characterization (based on the information 
                available to the Federal agency); and
                    (B) a statement of the reasonable range of 
                scientific uncertainties.
        In addition to such best estimate or estimates, the risk 
        characterization document may present plausible upper-bound or 
        conservative estimates in conjunction with plausible lower 
        bounds estimates. Where appropriate, the risk characterization 
        document may present, in lieu of a single best estimate, 
        multiple best estimates based on assumptions, inferences, or 
        models which are equally plausible, given current scientific 
        understanding. To the extent practical and appropriate, the 
        document shall provide descriptions of the distribution and 
        probability of risk estimates to reflect differences in 
        exposure variability or sensitivity in populations and 
        attendant uncertainties. Sensitive subpopulations or highly 
        exposed subpopulations include, where relevant and appropriate, 
        children, the elderly, pregnant women, and disabled persons.
            (2) Exposure scenarios.--The risk characterization document 
        shall explain the exposure scenarios used in any risk 
        assessment, and, to the extent feasible, provide a statement of 
        the size of the corresponding population at risk and the 
        likelihood of such exposure scenarios.
            (3) Comparisons.--The document shall contain a statement 
        that places the nature and magnitude of risks to human health, 
        safety, or the environment in context. Such statement shall, to 
        the extent feasible, provide comparisons with estimates of 
        greater, lesser, and substantially equivalent risks that are 
        familiar to and routinely encountered by the general public as 
        well as other risks, and, where appropriate and meaningful, 
        comparisons of those risks with other similar risks regulated 
        by the Federal agency resulting from comparable activities and 
        exposure pathways. Such comparisons should consider relevant 
        distinctions among risks, such as the voluntary or involuntary 
        nature of risks and the preventability or nonpreventability of 
        risks.
            (4) Substitution risks.--Each significant risk assessment 
        or risk characterization document shall include a statement of 
        any significant substitution risks to human health, where 
        information on such risks has been provided to the agency.
            (5) Summaries of other risk estimates.--If--
                    (A) a commenter provides a covered Federal agency 
                with a relevant risk assessment document or a risk 
                characterization document, and a summary thereof, 
                during a public comment provided by the agency for a 
                significant risk assessment document or a significant 
                risk characterization document, or, where no comment 
                period is provided but a commenter provides the covered 
                Federal agency with the relevant risk assessment 
                document or risk characterization document, and a 
                summary thereof, in a timely fashion, and
                    (B) the risk assessment document or risk 
                characterization document is consistent with the 
                principles and the guidance provided under this title,
        the agency shall, to the extent feasible, present such summary 
        in connection with the presentation of the agency's significant 
        risk assessment document or significant risk characterization 
        document. Nothing in this paragraph shall be construed to limit 
        the inclusion of any comments or material supplied by any 
        person to the administrative record of any proceeding.
A document may satisfy the requirements of paragraph (3), (4) or (5) by 
reference to information or material otherwise available to the public 
if the document provides a brief summary of such information or 
material.

SEC. 416. RECOMMENDATIONS OR CLASSIFICATIONS BY A NON-UNITED STATES-
              BASED ENTITY.

    No covered Federal agency shall automatically incorporate or adopt 
any recommendation or classification made by a non-United States-based 
entity concerning the health effects value of a substance without an 
opportunity for notice and comment, and any risk assessment document or 
risk characterization document adopted by a covered Federal agency on 
the basis of such a recommendation or classification shall comply with 
the provisions of this title. For the purposes of this section, the 
term ``non-United States-based entity'' means--
            (1) any foreign government and its agencies;
            (2) the United Nations or any of its subsidiary 
        organizations;
            (3) any other international governmental body or 
        international standards-making organization; or
            (4) any other organization or private entity without a 
        place of business located in the United States or its 
        territories.

SEC. 417. GUIDELINES AND REPORT.

    (a) Guidelines.--Within 15 months after the date of enactment of 
this Act, the President shall issue guidelines for Federal agencies 
consistent with the risk assessment and characterization principles set 
forth in sections 414 and 415 and shall provide a format for 
summarizing risk assessment results. In addition, such guidelines shall 
include guidance on at least the following subjects: criteria for 
scaling animal studies to assess risks to human health; use of 
different types of dose-response models; thresholds; definitions, use, 
and interpretations of the maximum tolerated dose; weighting of 
evidence with respect to extrapolating human health risks from 
sensitive species; evaluation of benign tumors, and evaluation of 
different human health endpoints.
    (b) Report.--Within 3 years after the date of the enactment of this 
Act, each covered Federal agency shall provide a report to the Congress 
evaluating the categories of policy and value judgments identified 
under subparagraph (C) of section 414(b)(2).
    (c) Public Comment and Consultation.--The guidelines and report 
under this section, shall be developed after notice and opportunity for 
public comment, and after consultation with representatives of 
appropriate State, local, and tribal governments, and such other 
departments and agencies, offices, organizations, or persons as may be 
advisable.
    (d) Review.--The President shall review and, where appropriate, 
revise the guidelines published under this section at least every 4 
years.

SEC. 418. RESEARCH AND TRAINING IN RISK ASSESSMENT.

    (a) Evaluation.--The head of each covered agency shall regularly 
and systematically evaluate risk assessment research and training needs 
of the agency, including, where relevant and appropriate, the 
following:
            (1) Research to reduce generic data gaps, to address 
        modelling needs (including improved model sensitivity), and to 
        validate default options, particularly those common to multiple 
        risk assessments.
            (2) Research leading to improvement of methods to quantify 
        and communicate uncertainty and variability among individuals, 
        species, populations, and, in the case of ecological risk 
        assessment, ecological communities.
            (3) Emerging and future areas of research, including 
        research on comparative risk analysis, exposure to multiple 
        chemicals and other stressors, noncancer endpoints, biological 
        markers of exposure and effect, mechanisms of action in both 
        mammalian and nonmammalian species, dynamics and probabilities 
        of physiological and ecosystem exposures, and prediction of 
        ecosystem-level responses.
            (4) Long-term needs to adequately train individuals in risk 
        assessment and risk assessment application. Evaluations under 
        this paragraph shall include an estimate of the resources 
        needed to provide necessary training.
    (b) Strategy and Actions To Meet Identified Needs.--The head of 
each covered agency shall develop a strategy and schedule for carrying 
out research and training to meet the needs identified in subsection 
(a).
    (c) Report.--Not later than 6 months after the date of the 
enactment of this Act, the head of each covered agency shall submit to 
the Congress a report on the evaluations conducted under subsection (a) 
and the strategy and schedule developed under subsection (b). The head 
of each covered agency shall report to the Congress periodically on the 
evaluations, strategy, and schedule.

SEC. 419. STUDY OF COMPARATIVE RISK ANALYSIS.

    (a) In General.--(1) The Director of the Office of Management and 
Budget, in consultation with the Office of Science and Technology 
Policy, shall conduct, or provide for the conduct of, a study using 
comparative risk analysis to rank health, safety, and environmental 
risks and to provide a common basis for evaluating strategies for 
reducing or preventing those risks. The goal of the study shall be to 
improve methods of comparative risk analysis.
    (2) Not later than 90 days after the date of the enactment of this 
Act, the Director, in collaboration with the heads of appropriate 
Federal agencies, shall enter into a contract with the National 
Research Council to provide technical guidance on approaches to using 
comparative risk analysis and other considerations in setting health, 
safety, and environmental risk reduction priorities.
    (b) Scope of Study.--The study shall have sufficient scope and 
breadth to evaluate comparative risk analysis and to test approaches 
for improving comparative risk analysis and its use in setting 
priorities for health, safety, and environmental risk reduction. The 
study shall compare and evaluate a range of diverse health, safety, and 
environmental risks.
    (c) Study Participants.--In conducting the study, the Director 
shall provide for the participation of a range of individuals with 
varying backgrounds and expertise, both technical and nontechnical, 
comprising broad representation of the public and private sectors.
    (d) Duration.--The study shall begin within 180 days after the date 
of the enactment of this Act and terminate within 2 years after the 
date on which it began.
    (e) Recommendations for Improving Comparative Risk Analysis and Its 
Use.--Not later than 90 days after the termination of the study, the 
Director shall submit to the Congress the report of the National 
Research Council with recommendations regarding the use of comparative 
risk analysis and ways to improve the use of comparative risk analysis 
for decision-making in appropriate Federal agencies.

SEC. 420. DEFINITIONS.

    For purposes of this title:
            (1) Risk assessment document.--The term ``risk assessment 
        document'' means a document containing the explanation of how 
        hazards associated with a substance, activity, or condition 
        have been identified, quantified, and assessed. The term also 
        includes a written statement accepting the findings of any such 
        document.
            (2) Risk characterization document.--The term ``risk 
        characterization document'' means a document quantifying or 
        describing the degree of toxicity, exposure, or other risk 
        posed by hazards associated with a substance, activity, or 
        condition to which individuals, populations, or resources are 
        exposed. The term also includes a written statement accepting 
        the findings of any such document.
            (3) Best estimate.--The term ``best estimate'' means a 
        scientifically appropriate estimate which is based, to the 
        extent feasible, on one of the following:
                    (A) Central estimates of risk using the most 
                plausible assumptions.
                    (B) An approach which combines multiple estimates 
                based on different scenarios and weighs the probability 
                of each scenario.
                    (C) Any other methodology designed to provide the 
                most unbiased representation of the most plausible 
                level of risk, given the current scientific information 
                available to the Federal agency concerned.
            (4) Substitution risk.--The term ``substitution risk'' 
        means a potential risk to human health, safety, or the 
        environment from a regulatory alternative designed to decrease 
        other risks.
            (5) Covered federal agency.--The term ``covered Federal 
        agency'' means each of the following:
                    (A) The Environmental Protection Agency.
                    (B) The Occupational Safety and Health 
                Administration.
                    (C) The Department of Transportation (including the 
                National Highway Transportation Safety Administration).
                    (D) The Food and Drug Administration.
                    (E) The Department of Energy.
                    (F) The Department of the Interior.
                    (G) The Department of Agriculture.
                    (H) The Consumer Product Safety Commission.
                    (I) The National Oceanic and Atmospheric 
                Administration.
                    (J) The United States Army Corps of Engineers.
                    (K) The Mine Safety and Health Administration.
                    (L) The Nuclear Regulatory Commission.
                    (M) Any other Federal agency considered a covered 
                Federal agency pursuant to section 413(b)(2)(E).
            (6) Federal agency.--The term ``Federal agency'' means an 
        executive department, military department, or independent 
        establishment as defined in part I of title 5 of the United 
        States Code, except that such term also includes the Office of 
        Technology Assessment.
            (7) Document.--The term ``document'' includes material 
        stored in electronic or digital form.

        TITLE II--ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS

SEC. 421. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.

    (a) In General.--The President shall require each Federal agency to 
prepare the following for each major rule within a program designed to 
protect human health, safety, or the environment that is proposed or 
promulgated by the agency after the date of enactment of this division:
            (1) An identification of reasonable alternative strategies, 
        including strategies that--
                    (A) require no government action;
                    (B) will accommodate differences among geographic 
                regions and among persons with different levels of 
                resources with which to comply; and
                    (C) employ performance or other market-based 
                mechanisms that permit the greatest flexibility in 
                achieving the identified benefits of the rule.
        The agency shall consider reasonable alternative strategies 
        proposed during the comment period.
            (2) An analysis of the incremental costs and incremental 
        risk reduction or other benefits associated with each 
        alternative strategy identified or considered by the agency. 
        Costs and benefits shall be quantified to the extent feasible 
        and appropriate and may otherwise be qualitatively described.
            (3) A statement that places in context the nature and 
        magnitude of the risks to be addressed and the residual risks 
        likely to remain for each alternative strategy identified or 
        considered by the agency. Such statement shall, to the extent 
        feasible, provide comparisons with estimates of greater, 
        lesser, and substantially equivalent risks that are familiar to 
        and routinely encountered by the general public as well as 
        other risks, and, where appropriate and meaningful, comparisons 
        of those risks with other similar risks regulated by the 
        Federal agency resulting from comparable activities and 
        exposure pathways. Such comparisons should consider relevant 
        distinctions among risks, such as the voluntary or involuntary 
        nature of risks and the preventability or nonpreventability of 
        risks.
            (4) For each final rule, an analysis of whether the 
        identified benefits of the rule are likely to exceed the 
        identified costs of the rule.
            (5) An analysis of the effect of the rule--
                    (A) on small businesses with fewer than 100 
                employees;
                    (B) on net employment; and
                    (C) to the extent practicable, on the cumulative 
                financial burden of compliance with the rule and other 
                existing regulations on persons producing products.
    (b) Publication.--For each major rule referred to in subsection (a) 
each Federal agency shall publish in a clear and concise manner in the 
Federal Register along with the proposed and final regulation, or 
otherwise make publicly available, the information required to be 
prepared under subsection (a).

SEC. 422. DECISION CRITERIA.

    (a) In General.--No final rule subject to the provisions of this 
title shall be promulgated unless the agency certifies the following:
            (1) That the analyses under section 421 are based on 
        objective and unbiased scientific and economic evaluations of 
        all significant and relevant information and risk assessments 
        provided to the agency by interested parties relating to the 
        costs, risks, and risk reduction and other benefits addressed 
        by the rule.
            (2) That the incremental risk reduction or other benefits 
        of any strategy chosen will be likely to justify, and be 
        reasonably related to, the incremental costs incurred by State, 
        local, and tribal governments, the Federal Government, and 
        other public and private entities.
            (3) That other alternative strategies identified or 
        considered by the agency were found either (A) to be less cost-
        effective at achieving a substantially equivalent reduction in 
        risk, or (B) to provide less flexibility to State, local, or 
        tribal governments or regulated entities in achieving the 
        otherwise applicable objectives of the regulation, along with a 
        brief explanation of why alternative strategies that were 
        identified or considered by the agency were found to be less 
        cost-effective or less flexible.
    (b) Effect of Decision Criteria.--
            (1) In general.--Notwithstanding any other provision of 
        Federal law, the decision criteria of subsection (a) shall 
        supplement and, to the extent there is a conflict, supersede 
        the decision criteria for rulemaking otherwise applicable under 
        the statute pursuant to which the rule is promulgated.
            (2) Substantial evidence.--Notwithstanding any other 
        provision of Federal law, no major rule shall be promulgated by 
        any Federal agency pertaining to the protection of health, 
        safety, or the environment unless the requirements of section 
        421 and subsection (a) are met and the certifications required 
        therein are supported by substantial evidence of the rulemaking 
        record.
    (c) Publication.--The agency shall publish in the Federal Register, 
along with the final regulation, the certifications required by 
subsection (a).
    (d) Notice.--Where the agency finds a conflict between the decision 
criteria of this section and the decision criteria of an otherwise 
applicable statute, the agency shall so notify the Congress in writing.

SEC. 423. OFFICE OF MANAGEMENT AND BUDGET GUIDANCE.

    The Office of Management and Budget shall issue guidance consistent 
with this title--
            (1) to assist the agencies, the public, and the regulated 
        community in the implementation of this title, including any 
        new requirements or procedures needed to supplement prior 
        agency practice; and
            (2) governing the development and preparation of analyses 
        of risk reduction benefits and costs.

SEC. 424. ENVIRONMENTAL CLEAN-UP.

    For purposes of this title, any determination by a Federal agency 
to approve or reject any proposed or final environmental clean-up plan 
for a facility the costs of which are likely to exceed $5,000,000 shall 
be treated as major rule subject to the provisions of this title (other 
than the provisions of section 421(a)(5)). As used in this section, the 
term ``environmental clean-up'' means a corrective action under the 
Solid Waste Disposal Act, a remedial action under the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, and 
any other environmental restoration and waste management carried out by 
or on behalf of a Federal agency with respect to any substance other 
than municipal waste.

                         TITLE III--PEER REVIEW

SEC. 431. PEER REVIEW PROGRAM.

    (a) Establishment.--For regulatory programs designed to protect 
human health, safety, or the environment, the head of each Federal 
agency shall develop a systematic program for independent and external 
peer review required by subsection (b). Such program shall be 
applicable across the agency and--
            (1) shall provide for the creation of peer review panels 
        consisting of experts and shall be broadly representative and 
        balanced and to the extent relevant and appropriate, may 
        include representatives of State, local, and tribal 
        governments, small businesses, other representatives of 
        industry, universities, agriculture, labor, consumers, 
        conservation organizations, or other public interest groups and 
        organizations;
            (2) may provide for differing levels of peer review and 
        differing numbers of experts on peer review panels, depending 
        on the significance or the complexity of the problems or the 
        need for expeditiousness;
            (3) shall not exclude peer reviewers with substantial and 
        relevant expertise merely because they represent entities that 
        may have a potential interest in the outcome, provided that 
        interest is fully disclosed to the agency and in the case of a 
        regulatory decision affecting a single entity, no peer reviewer 
        representing such entity may be included on the panel;
            (4) may provide specific and reasonable deadlines for peer 
        review panels to submit reports under subsection (c); and
            (5) shall provide adequate protections for confidential 
        business information and trade secrets, including requiring 
        peer reviewers to enter into confidentiality agreements.
    (b) Requirement for Peer Review.--In connection with any rule that 
is likely to result in an annual increase in costs of $100,000,000 or 
more (other than any rule or other action taken by an agency to 
authorize or approve any individual substance or product), each Federal 
agency shall provide for peer review in accordance with this section of 
any risk assessment or cost analysis which forms the basis for such 
rule or of any analysis under section 431(a). In addition, the Director 
of the Office of Management and Budget may order that peer review be 
provided for any major risk assessment or cost assessment that is 
likely to have a significant impact on public policy decisions.
    (c) Contents.--Each peer review under this section shall include a 
report to the Federal agency concerned with respect to the scientific 
and economic merit of data and methods used for the assessments and 
analyses.
    (d) Response to Peer Review.--The head of the Federal agency shall 
provide a written response to all significant peer review comments.
    (e) Availability to Public.--All peer review comments or 
conclusions and the agency's responses shall be made available to the 
public and shall be made part of the administrative record.
    (f) Previously Reviewed Data and Analysis.--No peer review shall be 
required under this section for any data or method which has been 
previously subjected to peer review or for any component of any 
analysis or assessment previously subjected to peer review.
    (g) National Panels.--The President shall appoint National Peer 
Review Panels to annually review the risk assessment and cost 
assessment practices of each Federal agency for programs designed to 
protect human health, safety, or the environment. The Panel shall 
submit a report to the Congress no less frequently than annually 
containing the results of such review.

                       TITLE IV--JUDICIAL REVIEW

SEC. 441. JUDICIAL REVIEW.

    Compliance or noncompliance by a Federal agency with the 
requirements of this Act shall be reviewable pursuant to the statute 
granting the agency authority to act or, as applicable, that statute 
and the Administrative Procedure Act. The court with jurisdiction to 
review final agency action under the statute granting the agency 
authority to act shall have jurisdiction to review, at the same time, 
the agency's compliance with the requirements of this Act. When a 
significant risk assessment document or risk characterization document 
subject to title I is part of the administrative record in a final 
agency action, in addition to any other matters that the court may 
consider in deciding whether the agency's action was lawful, the court 
shall consider the agency action unlawful if such significant risk 
assessment document or significant risk characterization document does 
not substantially comply with the requirements of sections 444 and 445.

                             TITLE V--PLAN

SEC. 451. PLAN FOR ASSESSING NEW INFORMATION.

    (a) Plan.--Within 18 months after the date of enactment of this 
Act, each covered Federal agency (as defined in title I) shall publish 
a plan to review and, where appropriate revise any significant risk 
assessment document or significant risk characterization document 
published prior to the expiration of such 18-month period if, based on 
information available at the time of such review, the agency head 
determines that the application of the principles set forth in sections 
414 and 415 would be likely to significantly alter the results of the 
prior risk assessment or risk characterization. The plan shall provide 
procedures for receiving and considering new information and risk 
assessments from the public. The plan may set priorities and procedures 
for review and, where appropriate, revision of such risk assessment 
documents and risk characterization documents and of health or 
environmental effects values. The plan may also set priorities and 
procedures for review, and, where appropriate, revision or repeal of 
major rules promulgated prior to the expiration of such period. Such 
priorities and procedures shall be based on the potential to more 
efficiently focus national economic resources within Federal regulatory 
programs designed to protect human health, safety, or the environment 
on the most important priorities and on such other factors as such 
Federal agency considers appropriate.
    (b) Public Comment and Consultation.--The plan under this section, 
shall be developed after notice and opportunity for public comment, and 
after consultation with representatives of appropriate State, local, 
and tribal governments, and such other departments and agencies, 
offices, organizations, or persons as may be advisable.

                          TITLE VI--PRIORITIES

SEC. 461. PRIORITIES.

    (a) Identification of Opportunities.--In order to assist in the 
public policy and regulation of risks to public health, the President 
shall identify opportunities to reflect priorities within existing 
Federal regulatory programs designed to protect human health in a cost-
effective and cost-reasonable manner. The President shall identify each 
of the following:
            (1) The likelihood and severity of public health risks 
        addressed by current Federal programs.
            (2) The number of individuals affected.
            (3) The incremental costs and risk reduction benefits 
        associated with regulatory or other strategies.
            (4) The cost-effectiveness of regulatory or other 
        strategies to reduce risks to public health.
            (5) Intergovernmental relationships among Federal, State, 
        and local governments among programs designed to protect public 
        health.
            (6) Statutory, regulatory, or administrative obstacles to 
        allocating national economic resources based on the most cost-
        effective, cost-reasonable priorities considering Federal, 
        State, and local programs.
    (b) State, Local, and Tribal Priorities.--In identifying national 
priorities, the President shall consider priorities developed and 
submitted by State, local, and tribal governments.
    (c) Biennial Reports.--The President shall issue biennial reports 
to Congress, after notice and opportunity for public comment, to 
recommend priorities for modifications to, elimination of, or 
strategies for existing Federal regulatory programs designed to protect 
public health. Within 6 months after the issuance of the report, the 
President shall notify the Congress in writing of the recommendations 
which can be implemented without further legislative changes and the 
agency shall consider the priorities set forth in the report and 
priorities developed and submitted by State, local, and tribal 
governments when preparing a budget or strategic plan for any such 
regulatory program.

            Passed the House of Representatives March 3, 1995.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.

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HR 9 RFS----5
HR 9 RFS----6
HR 9 RFS----7
HR 9 RFS----8
HR 9 RFS----9