Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the rule making procedures for federal agencies and requires a federal agency to make public certain information regarding a proposed rule.

Highlights:

• Requires the head of each federal agency to submit certain information each month for any rule the agency expects to propose or finalize during the following year to the Administrator of the Office of Information and Regulatory Affairs including, but not limited to, the following information (Sec. 102):
• The objectives and legal basis for the issuance of the rule;
• The stage of the rule making at the date of the submission; and
• Whether the legal basis restricts the analysis of the costs or benefits of the proposed rule and if the agency plans to conduct an analysis of the costs and benefits of the proposed rule.

• Requires the head of each federal agency to submit certain information each month for any rule the agency expects to finalize during the following year and has issued a general notice of proposed rulemaking to the Administrator including, but not limited to, the following information (Sec. 102):
• An approximate schedule for completing action on the rule;
• An estimate of the cost of the proposed rule; and
• An estimate of the economic effects of the rule.

• Requires the Administrator to publish all information submitted by the head of each federal agency regarding any rule the agency expects to propose, finalize, or has issued a general notice of proposed rulemaking online not later than 30 days after receiving such information from the agency (Sec. 102).

• Requires the Administrator to publish the cost-benefit analysis for each proposed or finalized rule for the previous year on the Internet no later than October 1 of each year (Sec. 102).

• Requires a federal agency to publish advance notice of proposed rulemaking in the Federal Register at least 90 days before a notice of proposed rulemaking is published in the Federal Register if the rule is a “major rule,” a “high-impact rule,” or a “negative-impact on jobs and wages rule” (Sec. 203).

• Defines “major rule” as a rule that the Administrator determines is likely to have certain effects that include, but are not limited to, the following effects (Sec. 202):
• The rule will impose an economic cost of $100 million or more; or
• The rule will have a significant impact on multiple sectors of the economy. 

• Defines “high-impact rule” as a rule that the Administrator determines is likely to impose an economic cost of $1 billion or more (Sec. 202).

• Defines “negative-impact on jobs and wages rule” as any rule that the federal agency that made the rule or the Administrator determines is likely to have certain effects that include, but are not limited to, the following effects (Sec. 202):
• The rule reduces the employment not related to new regulatory compliance by 1 percent or more annually during the 1-year, 5-year, or 10-year period after implementation in 1 or more sectors of the economy as classified by the North American Industry Classification System; or
• The rule further reduces employment not related to new regulatory compliance during the first year after implementation in an industry area projected to have an employment decrease of 1 percent or more by the Bureau of Labor Statistics.

• Requires an federal agency to adopt a final rule that is considered to be the least costly during the rule making process unless the agency justifies and explains the additional costs based on the interests of public health, safety, or welfare (Sec. 203).

• Establishes a panel to be convened by the Chief Counsel for Advocacy of the Small Business Administration which consists of the following members to review and submit a report on the “economic impact” of a proposed rule on small entities (Sec. 306):
• An employee of the Office of Advocacy of the Small Business Administration;
• An employee of the agency making the rule; and
• An employee of the Office of Information and Regulatory Affairs of the Office of Management and Budget, in the case the agency making the rule is not an independent regulatory agency. 

• Defines “economic impact” as the reasonably foreseeable direct or indirect economic effect on small entities as a result of a proposed federal agency rule (Sec. 302). 

• Requires a federal agency to consider and explain any action taken or not taken in response to a report submitted by the Chief Counsel for Advocacy of the Small Business Administration (Sec. 306).

• Authorizes the Chief Counsel for Advocacy of the Small Business Administration to issue or amend rules governing the analysis of federal agency regulatory functions which include, but are not limited to, the process for calculating the economic impact of a proposed rule (Sec. 305). 

• Requires a federal agency that adopts an interim rule to complete the rule making process as described in this bill within 270 days or 18 months for a major rule or high-impact rule, unless the interim rule is in the interest of national security (Sec. 203).

• Specifies that if a federal agency adopts an interim rule and does not complete the compliance requirements as described in the bill, the interim rule will cease to have the effect of law and an interested party may seek immediate judicial review for a failure to comply with the rule making process (Sec. 206).

• Establishes procedures for a federal agency to issue “guidance” that include, but are not limited to, the following requirements (Sec. 204):
• Summarize the evidence and data on which the agency will base the guidance;
• Identify any alternatives to the proposed guidance and the costs and benefits of the alternatives; and
• Confer with the Administrator to assure the guidance is consistent with relevant regulatory provisions and the proposed guidance does not produce costs that are unjustified by the guidance’s benefits. 

• Defines “guidance” as an federal agency statement that sets forth a future policy on a statutory, regulatory, or technical issue or the interpretation of a statuary or regulatory issue (Sec. 202).

• Specifies that guidance is not legally binding and may not be relied upon by a federal agency as legal grounds for an agency action (Sec. 204).

• Requires a federal agency to publish a notice of intent to sue and a complaint online within 15 days of receiving notice of intent to sue and the compliant in any covered civil suit brought against the agency (Sec. 403).

• Requires a federal agency to publish a covered consent decree and settlement agreement in the Federal Register and online at least 60 days before the agency files the covered consent decree or settlement agreement in court (Sec. 403).

• Requires certain procedures for a federal agency that seeks to reach a settlement agreement for a civil action or covered consent decree including, but not limited to, including a party in the settlement agreement process who intervened in the action (Sec. 403). 

Full Bill Text

Full Bill Text