What This Bill Does
This bill requires government agencies to repeal or amend at least 2 existing rules before they can issue or amend rules that create new financial or administrative burdens. The cost of any new rule must be equal to or less than the cost of the rules being removed. The bill applies to most government regulations, though some exceptions exist.
Who It Affects
Government agencies that issue rules and regulations, businesses in the United States, and the American people who are subject to those rules.
Key Provisions
* Before issuing a brand new rule that creates financial or administrative burden, an agency must first repeal at least 2 existing rules that create similar burdens, and the new rule must cost the same or less (Sec. 2(b)(1)(A)).
* Before amending an existing rule that creates new financial or administrative burden, an agency must first repeal or amend at least 2 other existing rules that create similar burdens, and the amended rule must cost the same or less (Sec. 2(b)(1)(B)).
* Agencies must consider whether old rules still work, whether costs outweigh benefits, whether rules became outdated, and whether rules overlap with new ones before deciding which rules to repeal (Sec. 2(c)).
* Every 6 months, agencies must submit a list to the Office of Information and Regulatory Affairs showing which rules they plan to issue, repeal or amend, and the cost of each rule (Sec. 2(d)(1)).
* Rules about an agency's own internal policies, hiring practices or purchasing do not have to follow these requirements (Sec. 2(b)(2)(A)).
What Changes
Agencies can no longer create new rules or expand existing rules without first removing other rules of equal or greater cost. Agencies must publicly report their planned rule changes every 6 months. Rules designed to reduce burden and compliance costs are exempt from this requirement.
Important Definitions
* "Covered rule" means any rule that creates new financial or administrative burden on businesses or people in the United States, as decided by the agency leader.
* "Rule" includes regulations issued by agencies and rules created because of executive orders, presidential memorandums, guidance documents, bulletins or press releases.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 674
To require each agency to repeal or amend 2 or more rules before issuing
or amending a rule.
IN THE SENATE OF THE UNITED STATES
MARCH 7, 2023
Mr. SULLIVAN (for himself and Mr. DAINES) introduced the following bill;
which was read twice and referred to the Committee on Homeland Secu-
rity and Governmental Affairs
A BILL
To require each agency to repeal or amend 2 or more rules
before issuing or amending a rule.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Regulations Endanger
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Democracy Act of 2023’’ or the ‘‘RED Tape Act of 2023’’.
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SEC. 2. REPEAL OF RULES REQUIRED BEFORE ISSUING OR
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AMENDING RULE.
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(a) DEFINITIONS.—In this section—
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•S 674 IS
(1) the term ‘‘agency’’ has the meaning given
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the term in section 551 of title 5, United States
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Code;
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(2) the term ‘‘covered rule’’ means a rule of an
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agency that causes a new financial or administrative
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burden on businesses in the United States or on the
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people of the United States, as determined by the
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head of the agency;
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(3) the term ‘‘rule’’—
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(A) has the meaning given the term in sec-
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tion 551 of title 5, United States Code; and
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(B) includes—
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(i) any rule issued by an agency pur-
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suant to an Executive order or Presidential
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memorandum; and
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(ii) any rule issued by an agency due
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to the issuance of a memorandum, guid-
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ance document, bulletin, or press release
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issued by an agency; and
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(4) the term ‘‘Unified Agenda’’ means the Uni-
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fied Agenda of Federal Regulatory and Deregulatory
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Actions.
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(b) PROHIBITION
ON
ISSUANCE
OF
CERTAIN
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RULES.—
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(1) IN GENERAL.—An agency may not—
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•S 674 IS
(A) issue a covered rule that does not
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amend or modify an existing rule of the agency,
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unless—
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(i) the agency has repealed 2 or more
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existing covered rules of the agency; and
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(ii) the cost of the covered rule to be
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issued is less than or equal to the cost of
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the covered rules repealed under clause (i),
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as determined and certified by the head of
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the agency; or
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(B) issue a covered rule that amends or
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modifies an existing rule of the agency, un-
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less—
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(i) the agency has repealed or amend-
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ed 2 or more existing covered rules of the
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agency; and
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(ii) the cost of the covered rule to be
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issued is less than or equal to the cost of
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the covered rules repealed or amended
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under clause (i), as determined and cer-
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tified by the head of the agency.
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(2) APPLICATION.—Paragraph (1) shall not
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apply to the issuance of a covered rule by an agency
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that—
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•S 674 IS
(A) relates to the internal policy or prac-
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tice of the agency or procurement by the agen-
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cy; or
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(B) is being revised to be less burdensome
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to decrease requirements imposed by the cov-
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ered rule or the cost of compliance with the cov-
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ered rule.
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(c) CONSIDERATIONS FOR REPEALING RULES.—In
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determining whether to repeal a covered rule under sub-
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paragraph (A)(i) or (B)(i) of subsection (b)(1), the head
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of the agency that issued the covered rule shall consider—
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(1) whether the covered rule achieved, or has
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been ineffective in achieving, the original purpose of
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the covered rule;
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(2) any adverse effects that could materialize if
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the covered rule is repealed, in particular if those
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adverse effects are the reason the covered rule was
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originally issued;
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(3) whether the costs of the covered rule out-
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weigh any benefits of the covered rule to the United
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States;
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(4) whether the covered rule has become obso-
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lete due to changes in technology, economic condi-
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tions, market practices, or any other factors; and
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•S 674 IS
(5) whether the covered rule overlaps with a
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covered rule to be issued by the agency.
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(d) PUBLICATION OF COVERED RULES IN UNIFIED
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AGENDA.—
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(1) REQUIREMENTS.—Each agency shall, on a
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semiannual basis, submit jointly and without delay
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to the Office of Information and Regulatory Affairs
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for publication in the Unified Agenda a list con-
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taining—
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(A) each covered rule that the agency in-
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tends to issue during the 6-month period fol-
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lowing the date of submission;
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(B) each covered rule that the agency in-
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tends to repeal or amend in accordance with
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subsection (b) during the 6-month period fol-
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lowing the date of submission; and
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(C) the cost of each covered rule described
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in subparagraphs (A) and (B).
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(2) PROHIBITION.—An agency may not issue a
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covered rule unless the agency complies with the re-
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quirements under paragraph (1).
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Æ
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