[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 343 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 343

       To reform the regulatory process, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 2 (legislative day, January 30), 1995

   Mr. Dole (for himself, Mr. Nickles, Mr. Bond, Mrs. Hutchison, Mr. 
    Murkowski, Mr. Lott, Mr. Cochran, Mr. Hatch, Mr. Domenici, Mrs. 
Kassebaum, Mr. Coats, Mr. Abraham, Mr. Inhofe, Mr. Smith, Mr. Santorum, 
 Mr. Thompson, Mr. Warner, and Mr. Kyl) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
       To reform the regulatory process, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Comprehensive Regulatory Reform Act 
of 1995''.

SEC. 2. ANALYSIS OF AGENCY PROPOSALS.

    (a) In General.--Chapter 6 of title 5, United States Code, is 
amended by adding at the end the following:

             ``SUBCHAPTER II--ANALYSIS OF AGENCY PROPOSALS

``Sec. 621. Definitions
    ``For purposes of this subchapter and subchapter III of this 
chapter--
            ``(1) the term `agency' has the same meaning as in section 
        551(1) of this title;
            ``(2) the term `person' has the same meaning as in section 
        551(2) of this title;
            ``(3) the term `rule' has the same meaning as in section 
        551(4) of this title;
            ``(4)(A) the term `major rule' means--
                    ``(i) a rule or a group of closely related rules 
                that the agency proposing the rule or the President 
                reasonably determines is likely to have a gross annual 
                effect on the economy of $50,000,000 or more in 
                reasonably quantifiable increased direct and indirect 
                costs, or has a significant impact on a sector of the 
                economy; or
                    ``(ii) a rule or a group of closely related rules 
                that is otherwise designated a major rule by the agency 
                proposing the rule, or by the President on the ground 
                that the rule is likely to result in--
                            ``(I) a substantial increase in costs or 
                        prices for wage earners, consumers, individual 
                        industries, nonprofit organizations, Federal, 
                        State, or local government agencies, or 
                        geographic regions; or
                            ``(II) significant adverse effects on 
                        competition, employment, investment, 
                        productivity, innovation, the environment, 
                        public health or safety, or the ability of 
                        enterprises whose principal places of business 
                        are in the United States to compete in domestic 
                        or export markets;
            ``(B) the term `major rule' does not include--
                    ``(i) a rule that involves the internal revenue 
                laws of the United States; or
                    ``(ii) a rule that authorizes the introduction into 
                commerce, or recognizes the marketable status, of a 
                product;
            ``(5) the term `benefit' means the reasonably identifiable 
        significant benefits, including social and economic benefits, 
        that are expected to result directly or indirectly from 
        implementation of a rule or an alternative to a rule;
            ``(6) the term `cost' means the reasonably identifiable 
        significant costs and adverse effects, including social and 
        economic costs, reduced consumer choice, substitution effects, 
        and impeded technological advancement, that are expected to 
        result directly or indirectly from implementation of, or 
        compliance with, a rule or an alternative to a rule; and
            ``(7) the term `market-based mechanism' means a regulatory 
        program that--
                    ``(A) imposes legal accountability for the 
                achievement of an explicit regulatory objective on each 
                regulated person;
                    ``(B) affords maximum flexibility to each regulated 
                person in complying with mandatory regulatory 
                objectives, which flexibility shall, where feasible and 
                appropriate, include, but not be limited to, the 
                opportunity to transfer to, or receive from, other 
                persons, including for cash or other legal 
                consideration, increments of compliance responsibility 
                established by the program; and
                    ``(C) permits regulated persons to respond 
                automatically to changes in general economic conditions 
                and in economic circumstances directly pertinent to the 
                regulatory program without affecting the achievement of 
                the program's explicit regulatory mandates.
``Sec. 622. Rulemaking cost-benefit analysis
    ``(a)(1) Prior to publishing notice of a proposed rulemaking for 
any rule (or, in the case of a notice of a proposed rulemaking that has 
been published on or before the date of enactment of this subchapter, 
not later than 30 days after such date of enactment), each agency shall 
determine whether the rule is or is not a major rule within the meaning 
of section 621(4)(A)(i) and, if it is not, whether it should be 
designated a major rule under section 621(4)(A)(ii). For the purpose of 
any such determination or designation, a group of closely related rules 
shall be considered as one rule.
    ``(2) Each notice of proposed rulemaking shall include a succinct 
statement and explanation of the agency's determination under paragraph 
(1).
    ``(b)(1) If an agency has determined that a rule is not a major 
rule within the meaning of section 621(4)(A)(i) and has not designated 
the rule a major rule within the meaning of section 621(4)(A)(ii), the 
President may, as appropriate, determine that the rule is a major rule 
or designate the rule a major rule not later than 30 days after the 
publication of the notice of proposed rulemaking for the rule (or, in 
the case of a notice of proposed rulemaking that has been published on 
or before the date of enactment of this subchapter, not later than 60 
days after such date of enactment).
    ``(2) Such determination or designation shall be published in the 
Federal Register, together with a succinct statement of the basis for 
the determination or designation.
    ``(c)(1)(A) When the agency publishes a notice of proposed 
rulemaking for a major rule, the agency shall issue and place in the 
rulemaking record a draft cost-benefit analysis, and shall include a 
summary of such analysis in the notice of proposed rulemaking.
    ``(B)(i) When the President has published a determination or 
designation that a rule is a major rule after the publication of the 
notice of proposed rulemaking for the rule, the agency shall promptly 
issue and place in the rulemaking file a draft cost-benefit analysis 
for the rule and shall publish in the Federal Register a summary of 
such analysis.
    ``(ii) Following the issuance of a draft cost-benefit analysis 
under clause (i), the agency shall give interested persons an 
opportunity to comment pursuant to section 553 of this title in the 
same manner as if the draft cost-benefit analysis had been issued with 
the notice of proposed rulemaking.
    ``(2) Each draft cost-benefit analysis shall contain--
            ``(A) an analysis of the benefit of the proposed rule, and 
        an explanation of how the agency anticipates each benefit will 
        be achieved by the proposed rule;
            ``(B) an analysis of the costs of the proposed rule, and an 
        explanation of how the agency anticipates each such cost will 
        result from the proposed rule;
            ``(C) an identification (including an analysis of the costs 
        and benefits) of reasonable alternatives for achieving the 
        identified benefits of the proposed rule, including 
        alternatives that--
                    ``(i) require no Government action;
                    ``(ii) will accommodate differences among 
                geographic regions and among persons with differing 
                levels of resources with which to comply; and
                    ``(iii) employ performance or other market-based 
                standards that permit the greatest flexibility in 
                achieving the identified benefits of the proposed rule 
                and that comply with the requirements of subparagraph 
                (D);
            ``(D) an assessment of the feasibility of establishing a 
        regulatory program that operates through the application of 
        market-based mechanisms;
            ``(E) in any case in which the proposed rule is based on 
        one or more scientific evaluations or information or is subject 
        to the risk assessment requirements of subchapter III, a 
        description of actions undertaken by the agency to verify the 
        quality, reliability, and relevance of such scientific 
        evaluations or scientific information in accordance with the 
        risk assessment requirements of subchapter III;
            ``(F) an assessment of the aggregate effect of the rule on 
        small businesses with fewer than 100 employees, including an 
        assessment of the net employment effect of the rule; and
            ``(G) an analysis of whether the identified benefits of the 
        proposed rule are likely to exceed the identified costs of the 
        proposed rule, and an analysis of whether the proposed rule 
        will provide greater net benefits to society than any of the 
        alternatives to the proposed rule, including alternatives 
        identified in accordance with subparagraph (C).
    ``(d)(1) When the agency publishes a final major rule, the agency 
shall also issue and place in the rulemaking record a final cost-
benefit analysis, and shall include a summary of the analysis in the 
statement of basis and purpose.
    ``(2) Each final cost-benefit analysis shall contain--
            ``(A) a description and comparison of the benefits and 
        costs of the rule and of the reasonable alternatives to the 
        rule described in the rulemaking, including the market-based 
        mechanisms identified pursuant to subsection (c)(2)(D); and
            ``(B) an analysis, based upon the rulemaking record 
        considered as a whole, of--
                    ``(i) whether the benefits of the rule outweigh the 
                costs of the rule; and
                    ``(ii) whether the rule will provide greater net 
                benefits to society than any of the alternatives 
                described in the rulemaking, including the market-based 
                incentives identified pursuant to subsection (c)(2)(D).
    ``(e)(1)(A) The description of the benefits and costs of a proposed 
and a final rule required under this section shall include, to the 
extent feasible, a quantification or numerical estimate of the 
quantifiable benefits and costs. Such quantification or numerical 
estimate shall be made in the most appropriate unit of measurement, 
using comparable assumptions, including time periods, and shall specify 
the ranges of predictions and shall explain the margins of error 
involved in the quantification methods and in the estimates used. An 
agency shall describe the nature and extent of the nonquantifiable 
benefits and costs of a final rule pursuant to this section in as 
precise and succinct a manner as possible.
    ``(B) Where practicable, the description of the benefits and costs 
of a proposed and final rule required under this section shall describe 
such benefits and costs on an industry by industry basis.
    ``(2)(A) In evaluating and comparing costs and benefits and in 
evaluating the risk assessment information developed pursuant to 
subchapter III, the agency shall not rely on cost, benefit, or risk 
assessment information that is not accompanied by data, analysis, or 
other supporting materials that would enable the agency and other 
persons interested in the rulemaking to assess the accuracy, 
reliability, and uncertainty factors applicable to such information.
    ``(B) The agency evaluations of the relationships of the benefits 
of a proposed and final rule to its costs shall be clearly articulated 
in accordance with this section.
``Sec. 623. Decisional criteria
    ``(a) No final rule subject to this subchapter shall be promulgated 
unless the agency finds that--
            ``(1) the potential benefits to society from the rule 
        outweigh the potential costs of the rule to society, as 
        determined by the analysis required by section 622(d)(2)(B); 
        and
            ``(2) the rule will provide greater net benefits to society 
        than any of the reasonable alternatives identified pursuant to 
        section 622(c)(2)(C), including the market-based mechanisms 
        identified pursuant to section 622(c)(2)(D).
    ``(b) The requirements of this section shall supplement the 
decisional criteria for rulemaking otherwise applicable under the 
statute granting the rulemaking authority, except when such statute 
contains explicit textual language prohibiting the consideration of the 
criteria set forth in this section. Where the agency finds that 
consideration of the criteria set forth in this section is prohibited 
by explicit statutory language, the agency shall transmit its finding 
to Congress, along with the final cost-benefit analysis required by 
section 622(d)(2)(B).
``Sec. 624. Judicial review
    ``(a) Compliance or noncompliance by an agency with the provisions 
of this subchapter shall be subject to judicial review in accordance 
with this section.
    ``(b)(1) Each of the following shall be subject to judicial review:
            ``(A) A determination by an agency or by the President that 
        a rule is or is not a major rule within the meaning of section 
        621(4).
            ``(B) A designation by an agency or by the President of a 
        rule as a major rule.
            ``(C) A decision by an agency or by the President not to 
        designate a rule a major rule.
    ``(2) A determination by an agency or by the President that a rule 
is not a major rule within the meaning of section 621(4), or the 
decision by an agency or by the President not to designate a rule a 
major rule, shall be set aside by a reviewing court only upon a showing 
of clear and convincing evidence that the determination or decision not 
to designate is erroneous in light of the information available to the 
agency at the time the determination or decision not to designate was 
made.
    ``(3) An action to review a determination that a rule is not a 
major rule or to review a decision not to designate shall be filed not 
later than 30 days after the date of publication of such determination 
or failure to designate.
    ``(c) If a court of the United States finds that a rule should have 
been reviewed pursuant to this subchapter, such rule shall have no 
force or effect until such time as the requirements of this subchapter 
are met.
    ``(d) Each court with jurisdiction to review final agency action 
under the statute granting the agency authority to conduct the 
rulemaking shall have jurisdiction to review findings by any agency 
under this subchapter and shall set aside agency action that fails to 
satisfy the decisional criteria of section 623. The court shall apply 
the same standards of judicial review that apply to the review of 
agency findings under the statute granting the agency authority to 
conduct the rulemaking.
``Sec. 625. Petition for cost-benefit analysis
    ``(a)(1) Any person subject to a major rule may petition the 
relevant agency or the President to perform a cost-benefit analysis 
under this subchapter for the major rule, including a major rule in 
effect on the date of enactment of this subchapter for which a cost-
benefit analysis pursuant to such subchapter has not been performed, 
regardless of whether a cost-benefit analysis was previously performed 
to meet requirements imposed before the date of enactment of this 
subchapter.
    ``(2) The petition shall identify with reasonable specificity the 
major rule to be reviewed.
    ``(3) The agency or the President shall grant the petition if the 
petition shows that there is a reasonable likelihood that the costs of 
the major rule outweigh the benefits, or that reasonable questions 
exist as to whether the rule provides greater net benefits to society 
than any reasonable alternative to the rule that may be more clearly 
resolved through examination pursuant to this subchapter and subchapter 
III.
    ``(4) A decision to grant or deny a petition under this subsection 
shall be made not later than 180 days after submittal. A decision to 
deny a petition shall be subject to judicial review immediately upon 
denial as final agency action under the statute granting the agency 
authority to conduct the rulemaking.
    ``(b) For each major rule for which a petition has been granted 
under subsection (a), the agency shall conduct a cost-benefit analysis 
in accordance with this subchapter, and shall determine whether the 
rule satisfies the decisional criteria set forth in section 623. If the 
rule does not satisfy the decisional criteria, then the agency shall 
take immediate action to either revoke or amend the rule to conform the 
rule to the requirements of this subchapter and the decisional criteria 
under section 623.
    ``(c) For purposes of this section, the term `major rule' means any 
major rule or portion thereof.
    ``(d)(1) Any person may petition the relevant agency to withdraw, 
as contrary to this subchapter, any agency guidance or general 
statement of policy that would be a major rule if the guidance or 
general statement of policy had been adopted as a rule.
    ``(2) The petition shall identify with reasonable specificity why 
the guidance or general statement of policy would be major if adopted 
as a rule.
    ``(3) The agency shall grant the petition if the petition shows 
that there is a reasonable likelihood that the guidance or general 
statement of policy would be major if adopted as a rule.
    ``(4) A decision to grant or deny a petition under this subsection 
shall be made not later than 180 days after the petition is submitted. 
If the agency fails to act by such date, the petition shall be deemed 
to have been granted. A decision to deny a petition shall be subject to 
judicial review immediately upon denial as final agency action under 
the statute under which the agency has issued the guidance or general 
statement of policy.
    ``(e) For each petition granted under subsection (d), the agency 
shall be prohibited from enforcing against any person the regulatory 
standards or criteria contained in such guidance or policy unless 
included in a rule proposed and promulgated in accordance with this 
subchapter.
``Sec. 626. Effective date of final regulations
    ``(a)(1) Beginning on the date of enactment of this section, all 
deadlines in statutes that require agencies to propose or promulgate 
any rule subject to this subchapter are suspended until such time as 
the requirements of this subchapter are satisfied.
    ``(2) Beginning on the date of enactment of this section, the 
jurisdiction of any court of the United States to enforce any deadline 
that would require an agency to propose or promulgate a rule subject to 
subchapter II of chapter 5 of title 5, United States Code (as added by 
this section), is suspended until such time as the requirements of this 
subchapter are satisfied.
    ``(3) In any case in which the failure to promulgate a rule by a 
deadline would create an obligation to regulate through individual 
adjudications, the obligation to conduct individual adjudications shall 
be suspended to allow the requirements of this subchapter to be 
satisfied.
    ``(b)(1) Before a major rule takes effect as a final rule, the 
agency promulgating such rule shall submit to the Congress a copy of 
such rule and a report containing a concise general statement relating 
to the rule, including a complete copy of the cost-benefit analysis, 
and the proposed effective date of the rule.
    ``(2) A major rule relating to a report submitted under paragraph 
(1) shall take effect as a final rule, the latest of--
            ``(A) the later of the date occurring 45 days after the 
        date on which--
                    ``(i) the Congress receives the report submitted 
                under paragraph (1); or
                    ``(ii) the rule is published in the Federal 
                Register;
            ``(B) if the Congress passes a joint resolution of 
        disapproval described under subsection (h) relating to the 
        rule, and the President signs a veto of such resolution, the 
        earlier date--
                    ``(i) on which either House of Congress votes and 
                fails to override the veto of the President; or
                    ``(ii) occurring 30 session days after the date on 
                which the Congress received the veto and objections of 
                the President; or
            ``(C) the date the rule would have otherwise taken effect, 
        if not for this section (unless a joint resolution of 
        disapproval under subsection (h) is enacted).
    ``(c) A rule shall not take effect as a final rule if the Congress 
passes a joint resolution of disapproval described under subsection 
(h).
    ``(d)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (3)), a rule that would not take effect by 
reason of this section may take effect if the President makes a 
determination under paragraph (2) and submits written notice of such 
determination to the Congress.
    ``(2) Paragraph (1) applies to a determination made by the 
President by Executive order that the rule should take effect because 
such rule is--
            ``(A) necessary because of an imminent threat to health or 
        safety or other emergency;
            ``(B) necessary for the enforcement of criminal laws; or
            ``(C) necessary for national security.
    ``(3) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under subsection (h) 
or the effect of a joint resolution of disapproval under this section.
    ``(4) This subsection and an Executive order issued by the 
President under this subsection shall not be subject to judicial review 
by a court of the United States.
    ``(e)(1) Subsection (h) shall apply to any rule that is published 
in the Federal Register (as a rule that shall take effect as a final 
rule) during the period beginning on the date occurring 60 days before 
the date the Congress adjourns sine die through the date on which the 
succeeding Congress first convenes.
    ``(2) For purposes of subsection (h), a rule described under 
paragraph (1) shall be treated as though such rule were published in 
the Federal Register (as a rule that shall take effect as a final rule) 
on the date the succeeding Congress first convenes.
    ``(3) During the period between the date the Congress adjourns sine 
die through the date on which the succeeding Congress first convenes, a 
rule described under paragraph (1) shall take effect as a final rule as 
otherwise provided by law.
    ``(f) Any rule that takes effect and later is made of no force or 
effect by the enactment of a joint resolution under subsection (h) 
shall be treated as though such rule had never taken effect.
    ``(g) If the Congress does not enact a joint resolution of 
disapproval under subsection (h), no court or agency may infer any 
intent of the Congress from any action or inaction of the Congress with 
regard to such rule, related statute, or joint resolution of 
disapproval.
    ``(h)(1) For purposes of this subsection, the term `joint 
resolution' means only a joint resolution introduced after the date on 
which the report referred to in subsection (b) is received by Congress 
the matter after the resolving clause of which is as follows: `That 
Congress disapproves the rule submitted by the ________ relating to 
________, and such rule shall have no force or effect. (The blank 
spaces being appropriately filled in.)'.
    ``(2)(A) A resolution described in paragraph (1) shall be referred 
to the committees in each House of Congress with jurisdiction. Such a 
resolution shall not be reported before the eighth day after its 
submission or publication date.
    ``(B) For purposes of this subsection the term `submission or 
publication date' means the later of the date on which--
            ``(i) the Congress receives the report submitted under 
        subsection (b)(1); or
            ``(ii) the rule is published in the Federal Register.
    ``(3) If the committee to which a resolution described in paragraph 
(1) is referred has not reported such resolution (or an identical 
resolution) at the end of 20 calendar days after its submission or 
publication date, such committee may be discharged by the Majority 
Leader of the Senate or the Majority Leader of the House of 
Representatives, as the case may be, from further consideration of such 
resolution and such resolution shall be placed on the appropriate 
calendar of the House involved.
    ``(4)(A) When the committee to which a resolution is referred has 
reported, or when a committee is discharged (under paragraph (3)) from 
further consideration of, a resolution described in paragraph (1), it 
shall at any time thereafter be in order (even though a previous motion 
to the same effect has been disagreed to) for any Member of the 
respective House to move to proceed to the consideration of the 
resolution, and all points of order against the resolution (and against 
consideration of the resolution) shall be waived. The motion shall be 
highly privileged in the House of Representatives and shall be 
privileged in the Senate and shall not be debatable. The motion shall 
not subject to amendment, or to a motion to postpone, or to a motion to 
proceed to the consideration of other business. A motion to reconsider 
the vote by which the motion is agreed to or disagreed to shall not be 
in order. If a motion to proceed to the consideration of the resolution 
is agreed to, the resolution shall remain the unfinished business of 
the respective House until disposed of.
    ``(B) Debate on the resolution, and on all debatable motions and 
appeals in connection therewith, shall be limited to not more than 10 
hours, which shall be divided equally between those favoring and those 
opposing the resolution. A motion further to limit debate shall be in 
order and shall not be debatable. An amendment to, or a motion to 
postpone, or a motion to proceed to the consideration of other 
business, or a motion to recommit the resolution shall not be in order. 
A motion to reconsider the vote by which the resolution is agreed to or 
disagreed to shall not be in order.
    ``(C) Immediately following the conclusion of the debate on a 
resolution described in paragraph (1), and a single quorum call at the 
conclusion of the debate if requested in accordance with the rules of 
the appropriate House, the vote on final passage of the resolution 
shall occur.
    ``(D) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate or the House of Representatives, 
as the case may be, to the procedure relating to a resolution described 
in paragraph (1) shall be decided without debate.
    ``(5) If, before the passage by one House of a resolution of that 
House described in paragraph (1), that House receives from the other 
House a resolution described in paragraph (1), then the following 
procedures shall apply:
            ``(A) The resolution of the other House shall not be 
        referred to a committee.
            ``(B) With respect to a resolution described in paragraph 
        (1) of the House receiving the resolution--
                    ``(i) the procedure in that House shall be the same 
                as if no resolution had been received from the other 
                House; but
                    ``(ii) the vote on final passage shall be on the 
                resolution of the other House.
    ``(6) This subsection is enacted by Congress--
            ``(A) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed to be a part of the rules of each House, respectively, 
        but applicable only with respect to the procedure to be 
        followed in that House in the case of a resolution described in 
        paragraph (1), and it supersedes other rules only to the extent 
        that it is inconsistent with such rules; and
            ``(B) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
``Sec. 627. Unauthorized rulemakings
    ``(a) Notwithstanding any other provision of law, beginning on July 
1, 1995, any rule that expands Federal power or jurisdiction beyond the 
level of regulatory action needed to satisfy statutory requirements 
shall be prohibited.
    ``(b) Nothing in this section shall be construed to prevent any 
agency from promulgating a rule that repeals, narrows, or streamlines a 
rule, regulation, or administrative process, or from issuing or 
promulgating a rule providing for tax relief or clarification or 
reducing regulatory burdens.
``Sec. 628. Standard for review of agency interpretations of an 
              enabling statute
    ``(a) In reviewing a final agency action under section 706 of this 
title, or under a statute that provides for review of a final agency 
action, the reviewing court shall affirm the agency's interpretation of 
the statute granting authority to promulgate the rule if, applying 
traditional principles of statutory construction, the reviewing court 
finds that the interpretation is clearly the interpretation of the 
statute intended by Congress.
    ``(b) If the reviewing court, applying traditional principles of 
statutory construction, finds that an interpretation other than the 
interpretation applied by the agency is clearly the interpretation of 
the statute intended by Congress, the reviewing court shall find that 
the agency's interpretation is erroneous and contrary to law.
    ``(c)(1) If the reviewing court, applying established principles of 
statutory construction, finds that the statute gives the agency 
discretion to choose from among a range of permissible statutory 
constructions, the reviewing court shall affirm the agency's 
interpretation where the record on review establishes that--
            ``(A) the agency has correctly identified the range of 
        permissible statutory constructions;
            ``(B) the interpretation chosen is one that is within that 
        range; and
            ``(C) the agency has engaged in reasoned decisionmaking in 
        determining that the interpretation, rather than other 
        permissible constructions of the statute, is the one that 
        maximizes net benefits to society.
    ``(2) If an agency's interpretation of a statute cannot be affirmed 
under paragraph (1), the reviewing court shall find that the agency's 
interpretation is arbitrary and capricious.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``Sec. 651. Procedures
    ``The President shall--
            ``(1) establish procedures for agency compliance with 
        subchapters II and III; and
            ``(2) monitor, review, and ensure agency implementation of 
        such procedures.
``Sec. 652. Promulgation and adoption
    ``(a) Procedures established pursuant to section 651 shall only be 
implemented after opportunity for public comment. Any such procedures 
shall be consistent with the prompt completion of rulemaking 
proceedings.
    ``(b)(1) If procedures established pursuant to section 651 include 
review of preliminary or final regulatory analyses to ensure that they 
comply with subchapters II and III, the time for any such review of a 
preliminary regulatory analysis shall not exceed 30 days following the 
receipt of the analysis by the President or by an officer to whom the 
authority granted under section 651 has been delegated pursuant to 
section 653.
    ``(2) The time for review of a final regulatory analysis shall not 
exceed 30 days following the receipt of the analysis by the President 
or such officer.
    ``(3)(A) The times for each such review may be extended for good 
cause by the President or such officer for an additional 30 days.
    ``(B) Notice of any such extension, together with a succinct 
statement of the reasons therefor, shall be inserted in the rulemaking 
file.
``Sec. 653. Delegation of authority
    ``(a) The President may delegate the authority granted by this 
subchapter to the Vice President or to an officer within the Executive 
Office of the President whose appointment has been subject to the 
advice and consent of the Senate.
    ``(b)(1) Notice of any delegation, or any revocation or 
modification thereof, shall be published in the Federal Register.
    ``(2) Any notice with respect to a delegation to the Vice President 
shall contain a statement by the Vice President that the Vice President 
will make every reasonable effort to respond to congressional inquiries 
concerning the exercise of the authority delegated under this section.
``Sec. 654. Applicability
    ``The authority granted under this subchapter shall not apply to 
rules issued by the Nuclear Regulatory Commission.
``Sec. 655. Judicial review
    ``The exercise of the authority granted under this subchapter by 
the President or by an officer to whom such authority has been 
delegated under section 653 shall not be subject to judicial review in 
any manner under this chapter.''.
    (b) Judicial Review of Regulatory Flexibility Analysis.--
            (1) 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 1 year 
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 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 this subsection. A court 
having jurisdiction to review such rule for compliance with section 553 
of this title or under any other provision of law shall have 
jurisdiction to review such certification or analysis.
    ``(2)(A) Except as provided in subparagraph (B), in the case of a 
provision of law that requires that an action challenging a final 
agency regulation be commenced before the expiration of the 1-year 
period provided in paragraph (1), such lesser period shall apply to a 
petition for the judicial review under this subsection.
    ``(B) In a case in which 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--
            ``(i) 1 year; or
            ``(ii) in a case in which a provision of law requires that 
        an action challenging a final agency regulation be commenced 
        before the expiration of the 1-year period provided in 
        paragraph (1), the number of days specified in such provision 
        of law,
after the date the analysis is made available to the public.
    ``(3) 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.
    ``(4) 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.
    ``(5)(A) In a case in which an agency certifies 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 a case in which the agency prepared a final regulatory 
flexibility analysis, the court may order the agency to take corrective 
action consistent with 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 complying with section 604.
    ``(6) If, by the end of the 90-day period beginning on the date of 
the order of the court pursuant to paragraph (5) (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 section 604 
        of this title,
the court may stay the rule or grant such other relief as it deems 
appropriate.
    ``(7) 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)(5)) 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.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of enactment of this Act, except 
        that the judicial review authorized by section 611(a) of title 
        5, United States Code (as added by subsection (a)), shall apply 
        only to final agency rules issued after the date of enactment 
        of this Act.
    (c) Presidential Authority.--Nothing in this Act shall limit the 
exercise by the President of the authority and responsibility that the 
President otherwise possesses under the Constitution and other laws of 
the United States with respect to regulatory policies, procedures, and 
programs of departments, agencies, and offices.
    (d) Technical and Conforming Amendments.--(1) Part I of title 5, 
United States Code, is amended by striking out the chapter heading and 
table of sections for chapter 6 and inserting in lieu thereof the 
following:

           ``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS

                  ``SUBCHAPTER I--REGULATORY ANALYSIS

``Sec.
``601.  Definitions.
``602.  Regulatory agenda.
``603.  Initial regulatory flexibility analysis.
``604.  Final regulatory flexibility analysis.
``605.  Avoidance of duplicative or unnecessary analyses.
``606.  Effect on other law.
``607.  Preparation of analyses.
``608.  Procedure for waiver or delay of completion.
``609.  Procedures for gathering comments.
``610.  Periodic review of rules.
``611.  Judicial review.
``612.  Reports and intervention rights.
             ``SUBCHAPTER II--ANALYSIS OF AGENCY PROPOSALS

``621.  Definitions.
``622.  Rulemaking cost-benefit analysis.
``623.  Decisional criteria.
``624.  Judicial review.
``625.  Petition for cost-benefit analysis.
``626.  Effective date of final regulations.
``627.  Unauthorized rulemakings.
``628.  Standard for review of agency interpretations of an enabling 
                            statute.
                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631.  Definitions.
``632.  Applicability.
``633.  Rule of construction.
``634.  Requirement to prepare risk assessments.
``635.  Principles for risk assessment.
``636.  Principles for risk characterization and communication.
``637.  Regulations; plan for assessing new information.
``638.  Decisional criteria.
``639.  Regulatory priorities.
``640.  Establishment of program.
                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``651.  Procedures.
``652.  Promulgation and adoption.
``653.  Delegation of authority.
``654.  Applicability.
``655.  Judicial review.''.
    (2) Chapter 6 of title 5, United States Code, is amended by 
inserting immediately before section 601, the following subchapter 
heading:

                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.

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