[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 575 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 575

  To provide for a method by which the economic costs of significant 
  regulatory actions may be offset by the repeal of other regulatory 
                    actions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2019

 Mr. Meadows (for himself, Mr. Walker, Mr. Hice of Georgia, Mr. Gaetz, 
Mr. Budd, Mr. Mooney of West Virginia, Mr. Norman, Mr. Jordan, and Mr. 
   Duncan) introduced the following bill; which was referred to the 
Committee on Oversight and Reform, and in addition to the Committee on 
   the Judiciary, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To provide for a method by which the economic costs of significant 
  regulatory actions may be offset by the repeal of other regulatory 
                    actions, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Lessening 
Regulatory Costs and Establishing a Federal Regulatory Budget Act of 
2019''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress; purpose.
Sec. 3. Establishing regulatory reform capacity.
Sec. 4. Accountability.
Sec. 5. Regulatory planning and budget.
Sec. 6. Waiver.
Sec. 7. Definitions.

SEC. 2. SENSE OF CONGRESS; PURPOSE.

    (a) Sense of Congress.--It is the sense of Congress that the 
Federal Government should be prudent and financially responsible in the 
expenditure of funds, from both public and private sources. In addition 
to the management of the direct expenditure of taxpayer dollars through 
the budgeting process, it is essential to manage the costs associated 
with the governmental imposition of private expenditures required to 
comply with Federal regulations.
    (b) Purpose.--The purpose of this Act is--
            (1) to remove unnecessary or outdated regulations when a 
        new significant regulation is issued; and
            (2) to prudently manage and control the cost of planned 
        regulations through an annual budgeting process.

SEC. 3. ESTABLISHING REGULATORY REFORM CAPACITY.

    (a) Regulatory Reform Officers.--
            (1) In general.--Except as provided for under section 6, 
        not later than 60 days after the date of the enactment of this 
        Act, the head of each agency shall designate an employee or 
        officer of the agency as the Regulatory Reform Officer (in this 
        Act referred to as the ``agency RRO'').
            (2) Duties.--In accordance with applicable law and in 
        consultation with relevant senior agency officials, each agency 
        RRO shall oversee--
                    (A) the implementation of regulatory reform 
                initiatives and policies for the agency to ensure that 
                the agency effectively carries out regulatory reforms; 
                and
                    (B) the termination of programs and activities that 
                derive from or implement statutes, Executive orders, 
                guidance documents, policy memoranda, rule 
                interpretations, and similar documents, or relevant 
                portions thereof, that have been repealed or rescinded.
    (b) Regulatory Reform Task Forces.--
            (1) Establishment of agency task force; membership.--Except 
        as provided under section 6, not later than 60 days after the 
        date of the enactment of this Act, the head of each agency 
        shall appoint and may remove members to the regulatory reform 
        task force (in this section referred to as the ``Task Force'') 
        of the agency, which shall be composed of the following 
        members:
                    (A) The agency RRO.
                    (B) A senior agency official from each relevant 
                component or office of the agency with significant 
                authority for issuing or repealing regulatory actions.
                    (C) Additional senior agency officials involved in 
                the development of rulemaking or other regulatory 
                action at the agency, as determined by the head of the 
                agency.
            (2) Chair.--Unless otherwise designated by the head of the 
        agency, the agency RRO shall chair the Task Force of the 
        agency.
            (3) Joint task forces.--For the consideration of a joint 
        rulemaking, the Director may form a joint regulatory reform 
        task force composed of at least one member from the Task Force 
        of each relevant agency. Any joint regulatory reform task force 
        formed under this paragraph shall consult with each relevant 
        Task Force.
            (4) Duties.--Each Task Force shall conduct ongoing 
        evaluations of regulations and other regulatory actions and 
        make recommendations that are consistent with and that could be 
        implemented in accordance with applicable law to the head of 
        the agency regarding repeal, replacement, or modification of 
        regulations and regulatory actions. To the extent practicable, 
        each Task Force shall--
                    (A) not later than 5 years after the date of the 
                enactment of this Act, complete a review of each 
                regulation issued by the agency;
                    (B) for each regulation or regulatory action 
                reviewed and identified for repeal, replacement, or 
                modification, estimate the cost savings of such repeal, 
                replacement, or modification, as applicable; and
                    (C) identify regulations that are appropriate for 
                repeal, replacement, or modification, and prioritize 
                the evaluation of regulations that--
                            (i) eliminate or have eliminated jobs or 
                        inhibit or have inhibited job creation;
                            (ii) are outdated, unnecessary, or 
                        ineffective;
                            (iii) impose costs that exceed benefits;
                            (iv) create a serious inconsistency or 
                        otherwise interfere with regulatory reform 
                        initiatives and policies;
                            (v) were issued or are maintained in a 
                        manner that is inconsistent with the 
                        requirements of section 515 of the Treasury and 
                        General Government Appropriations Act, 2001 
                        (Public Law 106-554; 44 U.S.C. 3516 note), or 
                        the guidance issued pursuant to that section, 
                        including any rule that relies in whole or in 
                        part on data, information, or methods that are 
                        not publicly available or that are 
                        insufficiently transparent to meet the standard 
                        for reproducibility; or
                            (vi) were made pursuant to or to implement 
                        statutes, Executive orders, or other 
                        Presidential directives that have been 
                        subsequently rescinded or substantially 
                        modified.
    (c) Consultation With Stakeholders.--In performing the tasks under 
this section, each agency RRO and Task Force shall seek input and other 
assistance from the public and from entities significantly affected by 
regulations, including State, local, and Tribal governments, small 
businesses, consumers, non-governmental organizations, and trade 
associations. Each agency RRO and Task Force may--
            (1) incorporate specific suggestions from stakeholders in 
        identifying the list of deregulatory actions to recommend to 
        the head of the agency; and
            (2) accept or solicit input from the public in any manner, 
        if--
                    (A) the process is transparent to the public and 
                Congress;
                    (B) a list of each meeting, a list of each 
                stakeholder that submitted a comment, and a copy of 
                each written comment are made publicly available 
                online; and
                    (C) the Task Force issues a public notice of any 
                public meeting to solicit input not less than 7 days 
                before the public meeting and makes detailed minutes of 
                the meeting available online not less than 7 days after 
                the date of the meeting.
    (d) Transparent Regulatory Reform.--
            (1) Website.--To the extent practicable, the head of each 
        agency shall publish information about the Task Force of the 
        agency and other regulatory reform initiatives on the website 
        of the agency--
                    (A) which shall include--
                            (i) a list of the members of the Task Force 
                        of the agency;
                            (ii) a copy of each report issued under 
                        this subsection; and
                            (iii) a link to or copy of each notice of a 
                        meeting or solicitation of public comments 
                        issued by the Task Force of the agency; and
                    (B) which may include--
                            (i) an online forum to receive comments 
                        from the public; and
                            (ii) any other information about the Task 
                        Force or other regulatory reform initiatives at 
                        the agency.
            (2) Report.--Not less than twice a year, each agency RRO 
        shall submit to the head of the agency a report on the 
        activities performed under this section and any recommendations 
        resulting from such activities (which shall be posted by the 
        head of the agency on a publicly accessible website), and shall 
        include the following:
                    (A) A description of any improvement made toward 
                implementation of regulatory reform initiatives and 
                policies.
                    (B) For each regulation or other regulatory action 
                reviewed by the Task Force, a detailed description of 
                the review.
                    (C) An inventory of each regulation or regulatory 
                action the Task Force recommends the agency consider 
                for repeal, replacement, or modification.
                    (D) A list of all activities conducted under 
                subsection (c), a summary of all comments received, and 
                a hyperlink to copies of each public comment received.

SEC. 4. ACCOUNTABILITY.

    (a) Incorporation in Performance Plans.--
            (1) In general.--Each agency listed in section 901(b)(1) of 
        title 31, United States Code, shall incorporate in the annual 
        performance plan of the agency (required under section 1115(b) 
        of title 31, United States Code) performance indicators that 
        measure progress implementing this Act.
            (2) OMB guidance.--The Director shall issue, and update as 
        necessary, guidance regarding the implementation of this 
        subsection.
    (b) Performance Assessment.--The head of each agency shall consider 
the progress implementing this Act in assessing the performance of the 
Task Force of the agency and those individuals responsible for 
developing and issuing agency rules.

SEC. 5. REGULATORY PLANNING AND BUDGET.

    (a) Unified Agenda and Annual Regulatory Plan.--
            (1) Unified regulatory agenda.--During the months of April 
        and October of each year, the Director shall publish a unified 
        regulatory agenda, which shall include--
                    (A) regulatory and deregulatory actions under 
                development or review at agencies;
                    (B) a Federal regulatory plan of all significant 
                regulatory actions and associated deregulatory actions 
                that agencies reasonably expect to issue in proposed or 
                final form in the current and following fiscal year; 
                and
                    (C) all information required to be included in the 
                regulatory flexibility agenda under section 602 of 
                title 5, United States Code.
            (2) Agency submissions.--In accordance with guidance issued 
        by the Director and not less than 60 days before each date of 
        publication for the unified regulatory agenda under paragraph 
        (1), the head of each agency shall submit to the Director an 
        agenda of all regulatory actions and deregulatory actions under 
        development at the agency, including the following:
                    (A) For each regulatory action and deregulatory 
                action:
                            (i) A regulation identifier number.
                            (ii) A brief summary of the action.
                            (iii) The legal authority for the action.
                            (iv) Any legal deadline for the action.
                            (v) The name and contact information for a 
                        knowledgeable agency official.
                            (vi) Any other information as required by 
                        the Director.
                    (B) An annual regulatory plan, which shall include 
                a list of each significant regulatory action the agency 
                reasonably expects to issue in proposed or final form 
                in the current and following fiscal year, including for 
                each significant regulatory action:
                            (i) A summary, including the following:
                                    (I) A statement of the regulatory 
                                objectives.
                                    (II) The legal authority for the 
                                action.
                                    (III) A statement of the need for 
                                the action.
                                    (IV) The agency's schedule for the 
                                action.
                            (ii) The estimated cost.
                            (iii) The estimated benefits.
                            (iv) Any deregulatory action identified to 
                        offset the estimated cost of such significant 
                        regulatory action and an explanation of how the 
                        agency will continue to achieve regulatory 
                        objectives if the deregulatory action is taken.
                            (v) A best approximation of the total cost 
                        or savings and any cost or savings associated 
                        with a deregulatory action.
                            (vi) An estimate of the economic effects, 
                        including any estimate of the net effect that 
                        such action will have on the number of jobs in 
                        the United States, that was considered in 
                        drafting the action, or, if such estimate is 
                        not available, a statement affirming that no 
                        information on the economic effects, including 
                        the effect on the number of jobs, of the action 
                        has been considered.
                    (C) Information required under section 602 of title 
                5, United States Code.
                    (D) Information required under any other law to be 
                reported by agencies about significant regulatory 
                actions, as determined by the Director.
    (b) Federal Regulatory Budget.--
            (1) Establishment.--In the April unified regulatory agenda 
        described under subsection (a), the Director shall establish 
        the annual Federal Regulatory Budget, which specifies the net 
        amount of incremental regulatory costs allowed by the Federal 
        Government and at each agency for the next fiscal year. The 
        Director may set the incremental regulatory cost allowance to 
        allow an increase, prohibit an increase, or require a decrease 
        of incremental regulatory costs.
            (2) Default net incremental regulatory cost.--If the 
        Director does not set a net amount of incremental regulatory 
        costs allowed for an agency, the net incremental regulatory 
        cost allowed shall be zero.
            (3) Balance rollover of incremental regulatory cost 
        allowance.--If an agency does not exhaust all of the 
        incremental regulatory cost allowance for a fiscal year, the 
        balance may be added to the incremental regulatory cost 
        allowance for the subsequent fiscal year, without increasing 
        the incremental regulatory costs allowed for the Federal 
        Government for the subsequent fiscal year. The Director must 
        identify the total carryover incremental regulatory cost 
        allowance available to an agency in the Federal Regulatory 
        Budget.
    (c) Significant Regulatory Action Requirements.--Except as 
otherwise required by law, a significant regulatory action shall have 
no effect unless--
            (1) the--
                    (A) head of the agency identifies not less than 2 
                deregulatory actions to offset the costs of such 
                significant regulatory action, and to the extent 
                feasible, issues such deregulatory actions before or on 
                the same schedule as the significant regulatory action;
                    (B) incremental costs of such significant 
                regulatory action as offset by any deregulatory action 
                issued before or on the same schedule as the 
                significant regulatory action do not cause the agency 
                to exceed or contribute to the agency exceeding the 
                incremental regulatory cost allowance of the agency for 
                that fiscal year; and
                    (C) significant regulatory action was included on 
                the most recent version or update of the published 
                unified regulatory agenda; or
            (2) the issuance of the significant regulatory action was 
        approved in advance in writing by the Director and the written 
        approval is publicly available online prior to the issuance of 
        such significant regulatory action.
    (d) Guidance by OMB.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Director shall establish and 
        issue guidance on how agencies should comply with the 
        requirements of this section. Such guidance shall include the 
        following:
                    (A) A process for standardizing the measurement and 
                estimation of regulatory costs, including cost savings 
                associated with deregulatory actions.
                    (B) Standards for determining what qualifies as a 
                deregulatory action.
                    (C) Standards for determining the costs of existing 
                regulatory actions that are considered for repeal, 
                replacement, or modification.
                    (D) A process for accounting for costs in different 
                fiscal years.
                    (E) Methods to oversee the issuance of significant 
                regulatory actions offset by cost savings achieved at 
                different times or by different agencies.
                    (F) Emergencies and other circumstances that may 
                justify individual waivers of the requirements of this 
                section.
                    (G) Standards by which the Director will determine 
                whether a regulatory action or a collection of 
                regulatory actions qualifies as a significant 
                regulatory action.
            (2) Updates to guidance.--The Director shall update the 
        guidance issued pursuant to this section as necessary.

SEC. 6. WAIVER.

    (a) Waiver Authority.--Upon the written request of the head of an 
agency, the Director may issue a written waiver of the requirements of 
section 3 if the Director determines that the agency generally issues 
very few or no rules.
    (b) Revocation of Waiver.--The Director may revoke at any time a 
waiver issued under this section.
    (c) Public Availability of Waivers.--The Director shall maintain a 
publicly available list of each agency that is operating under a waiver 
issued under this section.
    (d) Requirement for Waiver.--A waiver shall not be effective unless 
the written waiver and the written request of the agency are publicly 
available on the website of the Office of Management and Budget.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551 of title 5, United States Code.
            (2) Costs.--The term ``costs'' means opportunity cost to 
        society.
            (3) Cost savings.--The term ``cost savings'' means the cost 
        imposed by a regulatory action that is eliminated by the 
        repeal, replacement, or modification of such regulatory action.
            (4) Deregulatory action.--The term ``deregulatory action'' 
        means the repeal, replacement, or modification of an existing 
        regulatory action.
            (5) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (6) Incremental regulatory cost.--The term ``incremental 
        regulatory cost'' means the difference between the estimated 
        cost of issuing a significant regulatory action and the 
        estimated cost saved by issuing any deregulatory action.
            (7) Regulation; rule.--The term ``regulation'' or ``rule'' 
        has the meaning given the term ``rule'' in section 551 of title 
        5, United States Code.
            (8) Regulatory action.--The term ``regulatory action'' 
        means--
                    (A) any regulation; and
                    (B) any other regulatory guidance, statement of 
                policy, information collection request, form, or 
                reporting, recordkeeping, or disclosure requirements 
                that imposes a burden on the public or governs agency 
                operations.
            (9) Significant regulatory action.--The term ``significant 
        regulatory action'' means any regulatory action, other than 
        monetary policy proposed or implemented by the Board of 
        Governors of the Federal Reserve System or the Federal Open 
        Market Committee, that is likely to--
                    (A) have an annual effect on the economy of 
                $100,000,000 or more or adversely affect in a material 
                way the economy, a sector of the economy, productivity, 
                competition, jobs, the environment, public health or 
                safety, or State, local, or Tribal governments or 
                communities;
                    (B) create a serious inconsistency or otherwise 
                interfere with an action taken or planned by another 
                agency;
                    (C) materially alter the budgetary impact of 
                entitlements, grants, user fees, or loan programs or 
                the rights and obligations of recipients thereof; or
                    (D) raise a novel legal or policy issue.
            (10) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and each territory or 
        possession of the United States.
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