[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 261 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 261
To amend the Congressional Budget Act of 1974 to establish a Federal
regulatory budget and to impose cost controls on that budget, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 10, 2023
Mr. Good of Virginia (for himself, Ms. Mace, Mrs. Miller of Illinois,
and Mr. Moore of Alabama) introduced the following bill; which was
referred to the Committee on the Budget, and in addition to the
Committees on Rules, the Judiciary, Oversight and Accountability, and
Small Business, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Congressional Budget Act of 1974 to establish a Federal
regulatory budget and to impose cost controls on that budget, 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 ``Article I Regulatory Budget Act''.
SEC. 2. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.
Section 1105(a) of title 31, United States Code, is amended by
adding at the end the following:
``(40)(A) for the first fiscal year that begins at least
120 days after the date of enactment of this paragraph, and
every fiscal year thereafter until the fifth fiscal year that
begins after the date of enactment of this paragraph, a
projection of the Federal regulatory cost of any proposed
Federal regulation, rule, or statement (as such terms are
defined in section 321 of the Congressional Budget Act of 1974)
for the fiscal year and at least each of the 4 ensuing fiscal
years, which shall include--
``(i) the projection of the Federal regulatory cost
by agency and program; and
``(ii) any changes in a Federal regulation, rule,
or statement in the Unified Agenda of Federal
Regulatory and Deregulatory Actions, compiled by the
Regulatory Information Service Center of the General
Services Administration; and
``(B) for the fifth fiscal year that begins after the date
of enactment of this paragraph, and every fiscal year
thereafter, a regulatory authority budget analysis of the
Federal regulatory cost of complying with all current and
proposed Federal regulations, rules, and statements and
proposals (as such terms are defined in section 321 of the
Congressional Budget Act of 1974) for complying with section
322 of the Congressional Budget Act of 1974 for the fiscal year
for which the budget is submitted and the 4 fiscal years after
that year, which shall include a regulatory authority budget
analysis of the Federal regulatory cost by agency and
program.''.
SEC. 3. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL REGULATION.
(a) Costs to Private Sector of New Federal Regulations.--Chapter 6
of title 5, United States Code, popularly known as the ``Regulatory
Flexibility Act'', is amended--
(1) in section 603--
(A) in subsection (a), in the second sentence, by
inserting before the period the following: ``and shall
discuss in detail whether the cost to businesses of
complying with the proposed rule will vary depending on
the size of the business and, if so, to what extent the
cost will vary and what factors contribute to the
variation'';
(B) in subsection (c)--
(i) by redesignating paragraphs (1), (2),
(3), and (4) as subparagraphs (A), (B), (C),
and (D), respectively, and adjusting the margin
accordingly;
(ii) by inserting ``(1)'' after ``(c)'';
and
(iii) by striking ``Consistent with the''
and inserting the following:
``(2) The analysis of significant alternatives to the proposed rule
shall include a detailed analysis of the costs and benefits of the
proposed rule and each alternative, which shall separately address the
costs and benefits for each industry.
``(3) Consistent with the''; and
(C) by adding at the end the following:
``(e) Each initial regulatory flexibility analysis shall also
contain a description of the nature and amount of monetary costs that
will be incurred by small entities, other businesses, and individuals
in complying with the proposed rule.'';
(2) in section 604(a)--
(A) in the first paragraph designated as paragraph
(6) (relating to minimization of significant economic
impacts), by striking ``and'' at the end;
(B) by redesignating the second paragraph (6)
(relating to covered agencies), as paragraph (8); and
(C) by inserting after paragraph (6) the following:
``(7) a statement of the nature and amount of monetary
costs that will be incurred by small entities, other
businesses, and individuals in complying with the rule; and'';
and
(3) in section 607, by inserting before the period the
following: ``, except that estimates of monetary costs under
sections 603(d) and 604(a)(7) shall only be in the form of a
numerical description''.
(b) Agency Reports.--Each agency that prepares an initial
regulatory flexibility analysis under chapter 6 of title 5, United
States Code, shall, at the same time submit to each House of Congress,
the Congressional Budget Office, and the Office of Management and
Budget a cost estimate and cost benefit analysis of any new proposed
regulations, rules, or statements that would have a Federal regulatory
cost (as defined in section 321 of the Congressional Budget Act of
1974, as added by this Act) of at least $100,000,000 for any fiscal
year.
SEC. 4. GUIDANCE DOCUMENTS.
(a) Definitions.--In this section--
(1) the terms ``agency'' and ``rule'' have the meanings
given such terms in section 551 of title 5, United States Code;
(2) the term ``guidance document'' means an agency
statement of general applicability and future effect, other
than a rule, that sets forth a policy on a statutory,
regulatory, or technical issue or an interpretation of a
statutory or regulatory issue; and
(3) the term ``significant guidance document''--
(A) means a guidance document that the Office of
Management and Budget determines will be disseminated
to regulated entities or the general public and may
reasonably be anticipated to--
(i) lead to an annual effect of not less
than $100,000,000 on, 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;
(ii) create a serious inconsistency or
otherwise interfere with an action taken or
planned by an agency other than the agency
issuing the guidance document;
(iii) materially alter the budgetary impact
of entitlements, grants, user fees, or loan
programs or the rights or obligations of
recipients thereof; or
(iv) raise novel legal or policy issues
arising out of legal mandates, the priorities
of the President, or the principles set forth
in Executive Order 12866 (5 U.S.C. 601 note;
relating to regulatory planning and review);
and
(B) does not include a guidance document that the
Office of Management and Budget determines--
(i) relates to regulations issued in
accordance with the formal rulemaking
provisions of sections 556 and 557 of title 5,
United States Code;
(ii) pertains to a military or foreign
affairs function of the United States, other
than procurement regulations and regulations
involving the import or export of nondefense
articles and services;
(iii) relates to regulations that are
limited to agency organization, management, or
personnel matters; or
(iv) is within a category of guidance
documents exempted by the Administrator of the
Office of Information and Regulatory Affairs.
(b) Limitation on Guidance Documents.--An agency may not issue a
significant guidance document unless the agency issues the significant
guidance document after notice and an opportunity for comment in
accordance with the requirements for the promulgation of a rule under
chapter 5 of title 5, United States Code.
(c) Private Right of Action.--Any person aggrieved of an action
taken or failed to be taken under a guidance document that was not
issued in accordance with subsection (b) may bring a civil action in an
appropriate district court of the United States alleging that the
guidance document should have been treated as a significant guidance
document.
SEC. 5. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 1974.
(a) Federal Regulatory Budget Cost Control System.--Title III of
the Congressional Budget Act of 1974 is amended--
(1) by inserting before section 300 the following:
``PART A--GENERAL PROVISIONS'';
and
(2) by adding at the end the following:
``PART B--FEDERAL REGULATORY BUDGET COST CONTROL
``SEC. 321. DEFINITIONS.
``In this part--
``(1) the term `CBO' means the Congressional Budget Office;
``(2) the term `direct cost of Federal regulation' means
all costs incurred by, and expenditures required of, the
Federal Government in issuing and enforcing Federal
regulations, rules, and statements and Federal statutes;
``(3) the term `Federal regulation, rule, or statement'--
``(A) includes any guidance document issued after
notice and an opportunity for comment in accordance
with the requirements for the promulgation of a rule
under chapter 5 of title 5, United States Code; and
``(B) does not include--
``(i) a Federal regulation, rule, or
statement applying to--
``(I) the military; or
``(II) agency organization,
management, or personnel; or
``(ii) a Federal regulation, rule, or
statement designated by the President as
being--
``(I) necessary because of an
imminent threat to health or safety or
other emergency;
``(II) necessary for the
enforcement of criminal laws; or
``(III) necessary for national
security;
``(4) the term `Federal regulatory cost'--
``(A) means all costs incurred by, and expenditures
required of, the private sector, States, or local
governments in complying with any Federal regulation,
rule, or statement or any Federal statute; and
``(B) does not include the value of any benefit
under the Federal regulation, rule, or statement or the
Federal statute;
``(5) the term `gross domestic product' means the gross
domestic product of the United States during a fiscal year,
consistent with Department of Commerce definitions;
``(6) the term `OMB' means the Office of Management and
Budget; and
``(7) the term `regulatory baseline' means the projection
described in section 326(a) of the Federal regulatory cost for
the fiscal year after the date of the projection and the
outyears.
``SEC. 322. ESTABLISHMENT OF LEVEL AND ALLOCATIONS.
``(a) Establishment of Level.--
``(1) In general.--In addition to the requirements under
section 301, a concurrent resolution on the budget for a fiscal
year shall set forth the appropriate level for the Federal
regulatory cost for the fiscal year and for at least each of
the 4 ensuing fiscal years.
``(2) Transition period.--
``(A) In general.--For the first fiscal year that
begins at least 120 days after the date of enactment of
this section, and each fiscal year thereafter until the
fiscal year described in section 326(a), the Committee
on the Budget of the Senate and the Committee on the
Budget of the House of Representatives shall include in
the concurrent resolution on the budget for the fiscal
year as the appropriate level for the Federal
regulatory cost for the fiscal year and any other
fiscal year covered by the resolution the proposed
levels submitted by the President under section
1105(a)(40) of title 31, United States Code.
``(B) Amendments.--
``(i) In general.--In the Senate and the
House of Representatives, it shall not be in
order to consider an amendment to a concurrent
resolution on the budget that, if agreed to,
would result in a net increase in a level
included pursuant to subparagraph (A).
``(ii) Waiver and appeal.--A point of order
under clause (i) may only be waived by the
affirmative vote of three-fifths of the
Members, duly chosen and sworn. An affirmative
vote of three-fifths of Members, duly chosen
and sworn, shall be required to sustain an
appeal of the ruling of the Chair on a point of
order raised under clause (i).
``(3) Default total.--If there is not a level for the
Federal regulatory cost that is in effect for a fiscal year
under a concurrent resolution on the budget--
``(A) for the first fiscal year that begins at
least 120 days after the date of enactment of this
section, and every fiscal year thereafter until the
fiscal year described in subparagraph (B), the
appropriate level for the Federal regulatory cost for
the fiscal year shall be the proposed level submitted
by the President under section 1105(a)(40) of title 31,
United States Code;
``(B) for the fifth fiscal year that begins after
the date of enactment of this section, the appropriate
level for the Federal regulatory cost for the fiscal
year shall be the amount of the first regulatory
baseline submitted under section 326; and
``(C) for each fiscal year after the fiscal year
described in subparagraph (B), the appropriate level
for the Federal regulatory cost for the fiscal year
shall be the level for the most recent fiscal year for
which such a level was in effect (under subparagraph
(B), this subparagraph, or a concurrent resolution on
the budget).
``(b) Allocation of Totals.--
``(1) In general.--For the first fiscal year that begins at
least 120 days after the date of enactment of this section, and
each fiscal year thereafter, the joint explanatory statement
accompanying the conference report on a concurrent resolution
on the budget for such fiscal year shall include allocations of
the Federal regulatory cost in effect under subsection (a) for
such fiscal year and at least each of the 4 ensuing fiscal
years--
``(A) among each committee of the Senate and each
committee of the House of Representatives;
``(B) by major functional category; and
``(C) by agency.
``(2) Suballocations.--As soon as practicable after
receiving an allocation under paragraph (1), each committee
shall--
``(A) suballocate its allocation--
``(i) among its subcommittees;
``(ii) among programs over which the
committee has jurisdiction; and
``(iii) by agency; and
``(B) submit for printing in the Congressional
Record a statement detailing each suballocation made by
the committee under subparagraph (A).
``(c) Point of Order.--
``(1) In general.--If a concurrent resolution on the budget
setting forth the appropriate level for the Federal regulatory
cost for a fiscal year has been agreed to, it shall not be in
order in the Senate or the House of Representatives to consider
any bill or resolution, or amendment thereto, which would cause
an allocation or suballocation of the Federal regulatory cost
made under subsection (b) for that fiscal year to be exceeded.
``(2) Waiver and appeal.--A point of order under paragraph
(1) may only be waived by the affirmative vote of three-fifths
of the Members, duly chosen and sworn. An affirmative vote of
three-fifths of Members, duly chosen and sworn, shall be
required to sustain an appeal of the ruling of the Chair on a
point of order raised under paragraph (1).
``(d) Determinations by Budget Committees.--For purposes of this
section, the amount of the Federal regulatory cost for a fiscal year
and the amount of the Federal regulatory cost of a bill or resolution,
or amendment thereto, shall be determined by the Committee on the
Budget of the Senate or the Committee on the Budget of the House of
Representatives, as the case may be.
``SEC. 323. ANALYSIS OF FEDERAL REGULATORY COST BY CONGRESSIONAL BUDGET
OFFICE.
``(a) In General.--CBO shall prepare for each bill or resolution of
a public character reported by any committee of the Senate or the House
of Representatives (except the Committee on Appropriations of each
House), and submit to such committee--
``(1) an estimate of the costs which would be incurred by
the private sector in carrying out or complying with such bill
or resolution in the fiscal year in which it is to become
effective and in each of the 4 fiscal years following such
fiscal year, which shall include--
``(A) a net present value estimate of the cost of
compliance by the private sector with such bill or
resolution; and
``(B) a discussion of the methodology used to
prepare, and the basis for, each such estimate; and
``(2) a comparison of the estimate of costs described in
paragraph (1) with any available estimates of costs made by
such committee or by any agency.
``(b) Look-Back Reviews.--CBO shall periodically submit to Congress
a report, prepared in consultation with the Chairman of the
Administrative Conference of the United States, that--
``(1) reviews a sample of laws of a public character for
which an estimate was prepared under subsection (a)(1); and
``(2) compares the estimates of the costs described in
paragraphs (1) and (2) of subsection (a) and the actual costs
incurred by the private sector in carrying out or complying
with the law in the fiscal year in which it took effect and in
each of the 4 fiscal years following such fiscal year.
``SEC. 324. ENFORCEMENT.
``(a) Enforcement Language Required in Appropriation Acts.--If a
concurrent resolution on the budget that includes levels and
allocations of the Federal regulatory cost for a fiscal year has been
agreed to, it shall not be in order in the Senate or the House of
Representatives to consider a bill, joint resolution, amendment between
the Houses, or conference report making appropriations for the fiscal
year that does not include a provision prohibiting amounts made
available under the measure from being obligated or expended to enforce
a Federal regulation, rule, or statement that would cause a breach of
any level or allocation of the Federal regulatory cost in effect for a
fiscal year.
``(b) Waiver and Appeal.--Subsection (a) may be waived or suspended
in the Senate only by an affirmative vote of two-thirds of the Members,
duly chosen and sworn. An affirmative vote of two-thirds of the Members
of the Senate, duly chosen and sworn, shall be required to sustain an
appeal of the ruling of the Chair on a point of order raised under
subsection (a).
``(c) Review of Cost.--
``(1) Determinations of cost.--
``(A) BEA determination.--The Bureau of Economic
Analysis of the Department of Commerce shall determine
the change in the Federal regulatory cost attributable
to each newly promulgated, or amendment to a, Federal
regulation, rule, or statement.
``(B) Guidance for agencies.--The Bureau of
Economic Analysis of the Department of Commerce shall
issue guidance to agencies regarding the methodology to
be used to determine the amount of, and any change in,
the Federal regulatory cost attributable to each newly
promulgated, or amendment to a, Federal regulation,
rule, or statement.
``(C) Mandatory use by agencies.--For purposes of
any analysis conducted by an agency (without regard to
whether the analysis is conducted for purposes of this
Act), each agency shall determine the amount of, and
any change in, the Federal regulatory cost attributable
to each newly promulgated, or amendment to a, Federal
regulation, rule, or statement in accordance with the
guidance issued under subparagraph (B).
``(2) OMB determination.--The OMB shall determine whether
the change in the Federal regulatory cost determined under
paragraph (1) would cause a breach of any level or allocation
of the Federal regulatory cost in effect for a fiscal year,
which shall incorporate any reduction to the level or
allocation of the Federal regulatory cost attributable to a
revision of a Federal regulation, rule, or statement during the
fiscal year.
``(3) CBO review.--The CBO shall--
``(A) review the methodology used by the Bureau of
Economic Analysis and the OMB for each determination
under paragraphs (1) and (2); and
``(B) issue an opinion on whether the change in the
Federal regulatory cost attributable to the applicable
newly promulgated, or amendment to a, Federal
regulation, rule, or statement would cause a breach of
any level or allocation of the Federal regulatory cost
in effect for a fiscal year.
``(d) Implementation.--The OMB shall issue a directive prohibiting
funds from being obligated or expended to enforce a newly promulgated,
or amendment to a, Federal regulation, rule, or statement during a
fiscal year if--
``(1) the OMB determines that change in the Federal
regulatory cost attributable to the newly promulgated, or
amendment to a, Federal regulation, rule, or statement, as
determined by the Bureau of Economic Analysis under subsection
(c)(1), would cause a breach of any level or allocation of the
Federal regulatory cost in effect for the fiscal year; and
``(2) the appropriation Act making the applicable
appropriations for the fiscal year contains a provision
described in subsection (a).
``(e) Offsetting Savings.--In making determinations under this
section with respect to a newly promulgated, or amendment to a, Federal
regulation, rule, or statement, the Bureau of Economic Analysis, the
CBO, and the OMB shall subtract from the amount of the Federal
regulatory cost, and any applicable allocation thereof, any reduction
to the Federal regulatory cost that is attributable to a revision of
another Federal regulation, rule, or statement made as part of the same
rulemaking.
``(f) Private Right of Action.--Any person aggrieved of an action
taken or failed to be taken under a Federal regulation, rule, or
statement for which the OMB has issued a directive prohibiting
enforcement under subsection (d) may bring a civil action in an
appropriate district court of the United States alleging that the
Federal regulation, rule, or statement should not have been enforced.
``SEC. 325. OMB-CBO REPORTS.
``Not later than 5 years after the date of enactment of this
section, and not later than September 15th of each odd-numbered year
thereafter, OMB and CBO shall jointly submit to the President, the
Senate, and the House of Representatives a report that includes--
``(1) a projection of the direct cost of Federal regulation
and the Federal regulatory cost for the first fiscal year
beginning after the date of the report and at least each of the
4 ensuing fiscal years;
``(2) a calculation of the estimated direct cost of Federal
regulation and Federal regulatory cost as a percentage of the
gross domestic product;
``(3) the reduction in estimated gross domestic product
attributable to private sector compliance with all Federal
regulations, rules, or statements and all Federal statutes;
``(4) a detailed description of the effect on the economy
of the United States of Federal regulations, rules, and
statements and Federal statutes, which shall be categorized as
relating to--
``(A) regulation of the economy;
``(B) security, including homeland security;
``(C) the environment;
``(D) health and safety; or
``(E) the Federal budget;
``(5) a discussion of the expected reduction in personnel,
administrative overhead, and programmatic costs that would be
achieved by Federal agencies that issue regulations, rules, or
statements with a Federal regulatory cost if the Federal
agencies reduced the Federal regulatory cost by 5 percent;
``(6) recommendations for budgeting, technical, and
estimating changes to improve the Federal regulatory budgeting
process;
``(7) the Federal regulatory cost imposed by each Executive
branch agency on regulated entities;
``(8) the direct cost of Federal regulation attributable to
each Executive branch agency;
``(9) the Federal regulatory costs imposed by each
Executive branch agency on small businesses, small
organizations, and small governmental jurisdictions (as those
terms are defined in section 601 of title 5, United States
Code); and
``(10) the sum of the costs described in paragraph (9).
``SEC. 326. REGULATORY BASELINE.
``(a) In General.--For the fifth fiscal year that begins after the
date of enactment of this section and for every second fiscal year
thereafter, CBO, in consultation with OMB, shall submit to the
President, the Senate, and the House of Representatives a regulatory
baseline, consisting of a projection of the Federal regulatory cost for
the fiscal year and at least each of the 4 ensuing fiscal years. In
preparing the projection of the regulatory baseline under this
subsection, for the second fiscal year covered under the projection and
each fiscal year thereafter, CBO shall adjust the baseline for the
estimated growth during that fiscal year in the gross domestic product.
``(b) Deadline.--The CBO shall submit a regulatory baseline
required under subsection (a) for a fiscal year not later than the date
on which the CBO submits the report required under section 202(e)(1)
with respect to that fiscal year.
``(c) Regular Updates on Development of Regulatory Baseline.--Not
later than the date on which the CBO submits the report required under
section 202(e)(1) with respect to each fiscal year during the period
beginning on the date of enactment of this section and ending on the
date on which the CBO submits the first projection of the Federal
regulatory cost under subsection (a), the CBO shall submit to the
Committee on the Budget of the Senate and the Committee on the Budget
of the House of Representatives an annual update on the progress of the
CBO in developing the regulatory baseline.''.
(b) Technical and Conforming Amendment.--The table of contents set
forth in section 1(b) of the Congressional Budget and Impoundment
Control Act of 1974 is amended--
(1) by inserting before the item relating to section 300
the following:
``Part A. General Provisions'';
and
(2) by inserting after the item relating to section 315 the
following:
``Part B. Federal Regulatory Budget Cost Control
``Sec. 321. Definitions.
``Sec. 322. Establishment of level and allocations.
``Sec. 323. Analysis of Federal regulatory cost by Congressional Budget
Office.
``Sec. 324. Enforcement.
``Sec. 325. OMB-CBO reports.
``Sec. 326. Regulatory baseline.''.
SEC. 6. STUDY OF NONMAJOR RULES.
(a) Definitions.--In this section--
(1) the term ``agency'' has the meaning given that term in
section 551 of title 5, United States Code;
(2) the term ``covered guidance document'' means any
guidance document that has resulted or is likely to result in
an annual effect on the economy of not less than $10,000,000;
(3) the term ``covered nonmajor rule'' means any rule that
has resulted in or is likely to result in an annual effect on
the economy of not less than $10,000,000 and not more than
$100,000,000;
(4) the term ``guidance document'' means an agency
statement of general applicability and future effect, other
than a rule, that sets forth a policy on a statutory,
regulatory, or technical issue or an interpretation of a
statutory or regulatory issue;
(5) the term ``Federal regulatory cost'' has the meaning
given that term under section 321 of the Congressional Budget
Act of 1974, as added by this Act; and
(6) the term ``rule'' has the meaning given that term in
section 804 of title 5, United States Code.
(b) Reports.--Not later than 120 days after the date of enactment
of this Act and every 2 years thereafter, the Comptroller General of
the United States shall submit to Congress a report regarding covered
nonmajor rules and covered guidance documents, which shall include, for
the 4-year period immediately preceding the report--
(1) the number of covered nonmajor rules promulgated;
(2) the number of covered nonmajor rules implemented;
(3) the number of covered guidance documents developed;
(4) the number of covered guidance documents issued;
(5) the Federal regulatory cost of each covered nonmajor
rule implemented;
(6) the Federal regulatory cost of each covered guidance
document issued;
(7) the aggregate Federal regulatory cost of all covered
nonmajor rules implemented;
(8) the aggregate Federal regulatory cost of all covered
guidance documents issued; and
(9) a discussion of any covered nonmajor rule for which an
initial regulatory flexibility analysis was prepared under
section 603 of title 5, United States Code, a final regulatory
flexibility analysis was prepared under section 604 of title 5,
United States Code, or a cost benefit analysis was prepared
that underestimated the actual Federal regulatory cost of
implementing the covered nonmajor rule.
<all>