Article I Regulatory Budget Act

I 117TH CONGRESS 1ST SESSION H. R. 2577 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 APRIL 15, 2021 Mr. GOOD of Virginia (for himself, Ms. MACE, and Mr. WEBER of Texas) in- troduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committees on Rules, the Judiciary, Over- sight and Reform, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provi- sions 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Article I Regulatory 4 Budget Act’’. 5 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 2577 IH SEC. 2. PRESIDENT’S ANNUAL BUDGET SUBMISSIONS. 1 Section 1105(a) of title 31, United States Code, is 2 amended by adding at the end the following: 3 ‘‘(40)(A) for the first fiscal year that begins at 4 least 120 days after the date of enactment of this 5 paragraph, and every fiscal year thereafter until the 6 fifth fiscal year that begins after the date of enact- 7 ment of this paragraph, a projection of the Federal 8 regulatory cost of any proposed Federal regulation, 9 rule, or statement (as such terms are defined in sec- 10 tion 321 of the Congressional Budget Act of 1974) 11 for the fiscal year and at least each of the 4 ensuing 12 fiscal years, which shall include— 13 ‘‘(i) the projection of the Federal regu- 14 latory cost by agency and program; and 15 ‘‘(ii) any changes in a Federal regulation, 16 rule, or statement in the Unified Agenda of 17 Federal Regulatory and Deregulatory Actions, 18 compiled by the Regulatory Information Service 19 Center of the General Services Administration; 20 and 21 ‘‘(B) for the fifth fiscal year that begins after 22 the date of enactment of this paragraph, and every 23 fiscal year thereafter, a regulatory authority budget 24 analysis of the Federal regulatory cost of complying 25 with all current and proposed Federal regulations, 26 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 2577 IH rules, and statements and proposals (as such terms 1 are defined in section 321 of the Congressional 2 Budget Act of 1974) for complying with section 322 3 of the Congressional Budget Act of 1974 for the fis- 4 cal year for which the budget is submitted and the 5 4 fiscal years after that year, which shall include a 6 regulatory authority budget analysis of the Federal 7 regulatory cost by agency and program.’’. 8 SEC. 3. ESTIMATION AND DISCLOSURE OF COSTS OF FED- 9 ERAL REGULATION. 10 (a) COSTS TO PRIVATE SECTOR OF NEW FEDERAL 11 REGULATIONS.—Chapter 6 of title 5, United States Code, 12 popularly known as the ‘‘Regulatory Flexibility Act’’, is 13 amended— 14 (1) in section 603— 15 (A) in subsection (a), in the second sen- 16 tence, by inserting before the period the fol- 17 lowing: ‘‘and shall discuss in detail whether the 18 cost to businesses of complying with the pro- 19 posed rule will vary depending on the size of the 20 business and, if so, to what extent the cost will 21 vary and what factors contribute to the vari- 22 ation’’; 23 (B) in subsection (c)— 24 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 2577 IH (i) by redesignating paragraphs (1), 1 (2), (3), and (4) as subparagraphs (A), 2 (B), (C), and (D), respectively, and adjust- 3 ing the margin accordingly; 4 (ii) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 5 (iii) by striking ‘‘Consistent with the’’ 6 and inserting the following: 7 ‘‘(2) The analysis of significant alternatives to the 8 proposed rule shall include a detailed analysis of the costs 9 and benefits of the proposed rule and each alternative, 10 which shall separately address the costs and benefits for 11 each industry. 12 ‘‘(3) Consistent with the’’; and 13 (C) by adding at the end the following: 14 ‘‘(e) Each initial regulatory flexibility analysis shall 15 also contain a description of the nature and amount of 16 monetary costs that will be incurred by small entities, 17 other businesses, and individuals in complying with the 18 proposed rule.’’; 19 (2) in section 604(a)— 20 (A) in the first paragraph designated as 21 paragraph (6) (relating to minimization of sig- 22 nificant economic impacts), by striking ‘‘and’’ 23 at the end; 24 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 2577 IH (B) by redesignating the second paragraph 1 (6) (relating to covered agencies), as paragraph 2 (8); and 3 (C) by inserting after paragraph (6) the 4 following: 5 ‘‘(7) a statement of the nature and amount of 6 monetary costs that will be incurred by small enti- 7 ties, other businesses, and individuals in complying 8 with the rule; and’’; and 9 (3) in section 607, by inserting before the pe- 10 riod the following: ‘‘, except that estimates of mone- 11 tary costs under sections 603(d) and 604(a)(7) shall 12 only be in the form of a numerical description’’. 13 (b) AGENCY REPORTS.—Each agency that prepares 14 an initial regulatory flexibility analysis under chapter 6 15 of title 5, United States Code, shall, at the same time sub- 16 mit to each House of Congress, the Congressional Budget 17 Office, and the Office of Management and Budget a cost 18 estimate and cost benefit analysis of any new proposed 19 regulations, rules, or statements that would have a Fed- 20 eral regulatory cost (as defined in section 321 of the Con- 21 gressional Budget Act of 1974, as added by this Act) of 22 at least $100,000,000 for any fiscal year. 23 SEC. 4. GUIDANCE DOCUMENTS. 24 (a) DEFINITIONS.—In this section— 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 2577 IH (1) the terms ‘‘agency’’ and ‘‘rule’’ have the 1 meanings given such terms in section 551 of title 5, 2 United States Code; 3 (2) the term ‘‘guidance document’’ means an 4 agency statement of general applicability and future 5 effect, other than a rule, that sets forth a policy on 6 a statutory, regulatory, or technical issue or an in- 7 terpretation of a statutory or regulatory issue; and 8 (3) the term ‘‘significant guidance document’’— 9 (A) means a guidance document that the 10 Office of Management and Budget determines 11 will be disseminated to regulated entities or the 12 general public and may reasonably be antici- 13 pated to— 14 (i) lead to an annual effect of not less 15 than $100,000,000 on, or adversely affect 16 in a material way, the economy, a sector of 17 the economy, productivity, competition, 18 jobs, the environment, public health or 19 safety, or State, local, or tribal govern- 20 ments or communities; 21 (ii) create a serious inconsistency or 22 otherwise interfere with an action taken or 23 planned by an agency other than the agen- 24 cy issuing the guidance document; 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 2577 IH (iii) materially alter the budgetary im- 1 pact of entitlements, grants, user fees, or 2 loan programs or the rights or obligations 3 of recipients thereof; or 4 (iv) raise novel legal or policy issues 5 arising out of legal mandates, the priorities 6 of the President, or the principles set forth 7 in Executive Order 12866 (5 U.S.C. 601 8 note; relating to regulatory planning and 9 review); and 10 (B) does not include a guidance document 11 that the Office of Management and Budget de- 12 termines— 13 (i) relates to regulations issued in ac- 14 cordance with the formal rulemaking provi- 15 sions of sections 556 and 557 of title 5, 16 United States Code; 17 (ii) pertains to a military or foreign 18 affairs function of the United States, other 19 than procurement regulations and regula- 20 tions involving the import or export of non- 21 defense articles and services; 22 (iii) relates to regulations that are 23 limited to agency organization, manage- 24 ment, or personnel matters; or 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 2577 IH (iv) is within a category of guidance 1 documents exempted by the Administrator 2 of the Office of Information and Regu- 3 latory Affairs. 4 (b) LIMITATION ON GUIDANCE DOCUMENTS.—An 5 agency may not issue a significant guidance document un- 6 less the agency issues the significant guidance document 7 after notice and an opportunity for comment in accord- 8 ance with the requirements for the promulgation of a rule 9 under chapter 5 of title 5, United States Code. 10 (c) PRIVATE RIGHT OF ACTION.—Any person ag- 11 grieved of an action taken or failed to be taken under a 12 guidance document that was not issued in accordance with 13 subsection (b) may bring a civil action in an appropriate 14 district court of the United States alleging that the guid- 15 ance document should have been treated as a significant 16 guidance document. 17 SEC. 5. AMENDMENTS TO THE CONGRESSIONAL BUDGET 18 ACT OF 1974. 19 (a) FEDERAL REGULATORY BUDGET COST CONTROL 20 SYSTEM.—Title III of the Congressional Budget Act of 21 1974 is amended— 22 (1) by inserting before section 300 the fol- 23 lowing: 24 VerDate Sep 11 2014 02:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 2577 IH ‘‘PART A—GENERAL PROVISIONS’’; 1 and 2 (2) by adding at the end the following: 3 ‘‘PART B—FEDERAL REGULATORY BUDGET COST 4 CONTROL 5 ‘‘SEC. 321. DEFINITIONS. 6 ‘‘In this part— 7 ‘‘(1) the term ‘CBO’ means the Congressional 8 Budget Office; 9 ‘‘(2) the term ‘direct cost of Federal regulation’ 10 means all costs incurred by, and expenditures re- 11 quired of, the Federal Government in issuing and 12 enforcing Federal regulations, rules, and statements 13 and Federal statutes; 14 ‘‘(3) the term ‘Federal regulation, rule, or 15 statement’— 16 ‘‘(A) includes any guidance document 17 issued after notice and an opportunity for com- 18 ment in accordance with the requirements for 19 the promulgation of a rule under chapter 5 of 20 title 5, United States Code; and 21 ‘‘(B) does not include— 22 ‘‘(i) a Federal regulation, rule, or 23 statement applying to— 24 ‘‘(I) the military; or 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 2577 IH ‘‘(II) agency organization, man- 1 agement, or personnel; or 2 ‘‘(ii) a Federal regulation, rule, or 3 statement designated by the President as 4 being— 5 ‘‘(I) necessary because of an im- 6 minent threat to health or safety or 7 other emergency; 8 ‘‘(II) necessary for the enforce- 9 ment of criminal laws; or 10 ‘‘(III) necessary for national se- 11 curity; 12 ‘‘(4) the term ‘Federal regulatory cost’— 13 ‘‘(A) means all costs incurred by, and ex- 14 penditures required of, the private sector, 15 States, or local governments in complying with 16 any Federal regulation, rule, or statement or 17 any Federal statute; and 18 ‘‘(B) does not include the value of any ben- 19 efit under the Federal regulation, rule, or state- 20 ment or the Federal statute; 21 ‘‘(5) the term ‘gross domestic product’ means 22 the gross domestic product of the United States dur- 23 ing a fiscal year, consistent with Department of 24 Commerce definitions; 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 2577 IH ‘‘(6) the term ‘OMB’ means the Office of Man- 1 agement and Budget; and 2 ‘‘(7) the term ‘regulatory baseline’ means the 3 projection described in section 326(a) of the Federal 4 regulatory cost for the fiscal year after the date of 5 the projection and the outyears. 6 ‘‘SEC. 322. ESTABLISHMENT OF LEVEL AND ALLOCATIONS. 7 ‘‘(a) ESTABLISHMENT OF LEVEL.— 8 ‘‘(1) IN GENERAL.—In addition to the require- 9 ments under section 301, a concurrent resolution on 10 the budget for a fiscal year shall set forth the appro- 11 priate level for the Federal regulatory cost for the 12 fiscal year and for at least each of the 4 ensuing fis- 13 cal years. 14 ‘‘(2) TRANSITION PERIOD.— 15 ‘‘(A) IN GENERAL.—For the first fiscal 16 year that begins at least 120 days after the 17 date of enactment of this section, and each fis- 18 cal year thereafter until the fiscal year de- 19 scribed in section 326(a), the Committee on the 20 Budget of the Senate and the Committee on the 21 Budget of the House of Representatives shall 22 include in the concurrent resolution on the 23 budget for the fiscal year as the appropriate 24 level for the Federal regulatory cost for the fis- 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2577.IH H2577 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 2577 IH cal year and any other fiscal year covered by 1 the resolution the proposed levels submitted by 2 the President under section 1105(a)(40) of title 3 31, United States Code. 4 ‘‘(B) AMENDMENTS.— 5 ‘‘(i) IN GENERAL.—In the Senate and 6 the House of Representatives, it shall not 7 be in order to consider an amendment to 8 a concurrent resolution on the budget that, 9 if agreed to, would result in a net increase 10 in a level included pursuant to subpara- 11 graph (A). 12 ‘‘(ii) WAIVER AND APPEAL.—A point 13 of order under clause (i) may only be 14 waived by the affirmative vote of three- 15 fifths of the Members, duly chosen and 16 sworn. An affirmative vote of three-fifths 17 of Members, duly chosen and sworn, shall 18 be required to sustain an appeal of the rul- 19 ing of the Chair on a point of order raised 20 under clause (i). 21 ‘‘(3) DEFAULT TOTAL.—If there is not a level 22 for the Federal regulatory cost that is in effect for 23 a fiscal year under a concurrent resolution on the 24 budget— 25 VerDate Sep 11 2014 05:04 Jun 02, 2021 Jkt 019200 PO 000 [Text truncated for display. Full text available on Congress.gov.]