SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Regulatory Cost Assessment Act of 
2014''.

SEC. 2. 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 new part:

            ``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, statements, and legislation;
            ``(3) the term `Federal regulation, rule, statement, or 
        legislation'--
                    ``(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 a Federal regulation, rule, 
                statement, or legislation applying to--
                            ``(i) the military; or
                            ``(ii) agency organization, management, or 
                        personnel;
            ``(4) the term `Federal regulatory cost'--
                    ``(A) means all costs incurred by, and expenditures 
                required of, the private sector in complying with any 
                Federal regulation, rule, statement, or legislation; 
                and
                    ``(B) does not include the value of any benefit 
                under the Federal regulation, rule, statement, or 
                legislation;
            ``(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 323(a) of the Federal regulatory cost for 
        the fiscal year after the date of the projection and the 
        outyears.

``SEC. 322. OMB-CBO REPORTS.

    ``Not later than 1 year 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, statements, or legislation;
            ``(4) a detailed description of the effect on the economy 
        of the United States of Federal regulations, rules, statements, 
        and legislation, 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; and
            ``(6) recommendations for budgeting, technical, and 
        estimating changes to improve the Federal regulatory budgeting 
        process.

``SEC. 323. REGULATORY BASELINE.

    ``(a) In General.--For the first fiscal year that begins at least 
120 days 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) Deadlines.--The CBO shall submit the regulatory baselines 
required under subsection (a)--
            ``(1) for the first regulatory baseline, not later than 30 
        days after the date of enactment of this section; and
            ``(2) for the second regulatory baseline and each 
        regulatory baseline thereafter, not later than September 15 of 
        the fiscal year before the first fiscal year covered under the 
        regulatory baseline.

``SEC. 324. 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) 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, the appropriate level for the Federal 
                regulatory cost for the fiscal year shall be the amount 
                of the first regulatory baseline submitted under 
                section 323; and
                    ``(B) for each fiscal year after the fiscal year 
                described in subparagraph (A), 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 
                (A), 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 Committee on the Budget of the 
        Senate and the Committee on the Budget of the House of 
        Representatives shall each allocate among each committee of its 
        House and by major functional category the Federal regulatory 
        cost in effect under subsection (a) for such fiscal year and at 
        least each of the 4 ensuing fiscal years.
            ``(2) Suballocations.--As soon as practicable after 
        receiving an allocation under paragraph (1), each committee 
        shall subdivide its allocation among its subcommittees or among 
        programs over which the committee has jurisdiction.
    ``(c) Point of Order.--
            ``(1) In general.--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 a fiscal year to be exceeded.
            ``(2) Waiver.--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.
    ``(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. 325. 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 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 Federal agency.
    ``(b) Look-Back Reviews.--CBO shall periodically submit to Congress 
a report 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. 3. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.

    Section 1105(a) of title 31, United States Code, is amended--
            (1) by redesignating the second paragraph designated as 
        paragraph (37), relating to outdated or duplicative plans and 
        reports, as added by section 11 of the GPRA Modernization Act 
        of 2010 (Public Law 111-352; 124 Stat. 3881), as paragraph 
        (39); and
            (2) by adding at the end the following:
            ``(40) a regulatory authority budget analysis of the 
        Federal regulatory cost (as defined in section 321 of the 
        Congressional Budget Act of 1974) of complying with all current 
        and proposed Federal regulations and proposals for complying 
        with section 324 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.''.

SEC. 4. 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 $10,000,000 for any fiscal 
year.

SEC. 5. 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; 
        and
            (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.
    (b) Limitation on Guidance Documents.--An agency may not issue a 
guidance document unless the agency--
            (1) issues the 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; or
            (2) before the effective date of the guidance document, 
        submits to Congress a report that--
                    (A) certifies that the guidance document is not a 
                rule; and
                    (B) explains in detail why the guidance document 
                does not satisfy the definition of a rule.

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 section 2 of 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.
Regulatory Cost Assessment Act of 2014 - Amends the Congressional Budget Act of 1974 to establish and enforce a federal regulatory budget.  Requires the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) to submit jointly to the President and Congress an analysis of the cost and economic effects of federal regulations, including recommendations for improvements to the regulatory budgeting process.  Requires CBO to submit: (1) a baseline projecting the federal regulatory cost over at least five fiscal years, (2) analysis of the regulatory cost of legislation reported by congressional committees, and (3) look-back reviews comparing CBO estimates with actual costs. Requires a concurrent resolution on the budget to include levels for the federal regulatory cost for at least five fiscal years. Establishes a process for allocating the totals among congressional committees and subcommittees, programs, and major functional categories. Establishes a point of order against legislation that would cause the allocations to be exceeded and specifies requirements for waiving the point of order.  Requires the President's budget to include an analysis of the cost of compliance with current and proposed federal regulations and proposals for complying with the levels and allocations established under this Act.  Amends the Regulatory Flexibility Act to require agencies to provide additional analysis of the private sector costs for compliance with new regulations.  Requires federal agencies and the Government Accountability Office to provide reports and cost estimates for specified regulations. 
Regulatory Cost Assessment Act of 2014