I 

112TH CONGRESS 

2D SESSION H. R. 4116 

To provide for regulatory accountability and for the revision of economically 

burdensome regulations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2012 

Mr. LATHAM introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Rules, the 

Budget, and Oversight and Government Reform, 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 provide for regulatory accountability and for the revision 

of economically burdensome regulations, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Regulatory Account5 ability and Economic Freedom Act of 2012’’. 


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1 TITLE I—REGULATORY 

2 ACCOUNTABILITY 

3 SEC. 101. DEFINITIONS. 

4 Section 551 of title 5, United States Code, is amend5 ed— 

6 (1) in paragraph (13), by striking ‘‘and’’ at the 

7 end; 

8 (2) in paragraph (14), by striking the period at 

9 the end and inserting a semicolon; and 

10 (3) by adding at the end the following: 

11 ‘‘(15) ‘major rule’ means any rule that the Ad12 ministrator of the Office of Information and Regu13 latory Affairs determines is likely to impose— 

14 ‘‘(A) an annual effect on the economy of 

15 $100,000,000 or more, adjusted annually for 

16 inflation; 

17 ‘‘(B) a major increase in costs or prices for 

18 consumers, individual industries, Federal, 

19 State, local, or tribal government agencies, or 

20 geographic regions; 

21 ‘‘(C) significant adverse effects on competi22 tion, employment, investment, productivity, in23 novation, or on the ability of United States24 based enterprises to compete with foreign-based 

25 enterprises in domestic and export markets; or 


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1 ‘‘(D) significant impacts on multiple sec2 tors of the economy; and 

3 ‘‘(16) ‘high-impact rule’ means any rule that 

4 the Administrator of the Office of Information and 

5 Regulatory Affairs determines is likely to impose an 

6 annual cost on the economy of $1,000,000,000 or 

7 more, adjusted annually for inflation.’’. 

8 SEC. 102. RULE MAKING. 

9 (a) Section 553(a) of title 5, United States Code, is 

10 amended by striking ‘‘(a) This section applies’’ and insert11 ing ‘‘(a) APPLICABILITY.—This section applies’’. 

12 (b) Section 553 of title 5, United States Code, is 

13 amended by striking subsections (b) through (c) and in14 serting the following: 

15 ‘‘(b) RULE MAKING CONSIDERATIONS.—In a rule 

16 making, an agency shall make all preliminary and final 

17 factual determinations based on evidence and consider, in 

18 addition to other applicable considerations, the following: 

19 ‘‘(1) The legal authority under which a rule 

20 may be proposed, including whether a rule making 

21 is required by statute, and if so, whether by a spe22 cific date, or whether the agency has discretion to 

23 commence a rule making. 


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1 ‘‘(2) Other statutory considerations applicable 

2 to whether the agency can or should propose a rule 

3 or undertake other agency action. 

4 ‘‘(3) The specific nature and significance of the 

5 problem the agency may address with a rule (includ6 ing the degree and nature of risks the problem poses 

7 and the priority of addressing those risks compared 

8 to other matters or activities within the agency’s ju9 risdiction), whether the problem warrants new agen10 cy action, and the countervailing risks that may be 

11 posed by alternatives for new agency action. 

12 ‘‘(4) Whether existing rules have created or 

13 contributed to the problem the agency may address 

14 with a rule and whether those rules could be amend15 ed or rescinded to address the problem in whole or 

16 part. 

17 ‘‘(5) Any reasonable alternatives for a new rule 

18 or other response identified by the agency or inter19 ested persons, including not only responses that 

20 mandate particular conduct or manners of compli21 ance, but also— 

22 ‘‘(A) the alternative of no Federal re23 sponse; 

24 ‘‘(B) amending or rescinding existing 

25 rules; 


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1 ‘‘(C) potential regional, State, local, or 

2 tribal regulatory action or other responses that 

3 could be taken in lieu of agency action; and 

4 ‘‘(D) potential responses that— 

5 ‘‘(i) specify performance objectives 

6 rather than conduct or manners of compli7 ance; 

8 ‘‘(ii) establish economic incentives to 

9 encourage desired behavior; 

10 ‘‘(iii) provide information upon which 

11 choices can be made by the public; or 

12 ‘‘(iv) incorporate other innovative al13 ternatives rather than agency actions that 

14 specify conduct or manners of compliance. 

15 ‘‘(6) Notwithstanding any other provision of 

16 law— 

17 ‘‘(A) the potential costs and benefits asso18 ciated with potential alternative rules and other 

19 responses considered under section 553(b)(5), 

20 including direct, indirect, and cumulative costs 

21 and benefits and estimated impacts on jobs (in22 cluding an estimate of the net gain or loss in 

23 domestic jobs), economic growth, innovation, 

24 and economic competitiveness; 


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1 ‘‘(B) means to increase the cost-effective2 ness of any Federal response; and 

3 ‘‘(C) incentives for innovation, consistency, 

4 predictability, lower costs of enforcement and 

5 compliance (to Government entities, regulated 

6 entities, and the public), and flexibility. 

7 ‘‘(c) ADVANCE NOTICE OF PROPOSED RULE MAKING

8 FOR MAJOR RULES, HIGH-IMPACT RULES, AND RULES

9 INVOLVING NOVEL LEGAL OR POLICY ISSUES.—In the 

10 case of a rule making for a major rule or high-impact rule 

11 or a rule that involves a novel legal or policy issue arising 

12 out of statutory mandates, not later than 90 days before 

13 a notice of proposed rule making is published in the Fed14 eral Register, an agency shall publish advance notice of 

15 proposed rule making in the Federal Register. In pub16 lishing such advance notice, the agency shall— 

17 ‘‘(1) include a written statement identifying, at 

18 a minimum— 

19 ‘‘(A) the nature and significance of the 

20 problem the agency may address with a rule, in21 cluding data and other evidence and informa22 tion on which the agency expects to rely for the 

23 proposed rule; 

24 ‘‘(B) the legal authority under which a rule 

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1 ing is required by statute, and if so, whether by 

2 a specific date, or whether the agency has dis3 cretion to commence a rule making; 

4 ‘‘(C) preliminary information available to 

5 the agency concerning the other considerations 

6 specified in subsection (b); 

7 ‘‘(D) an explanation of how addressing the 

8 problem will help the agency meet its perform9 ance goals reported to Congress under the Gov10 ernment Performance and Results Act; and 

11 ‘‘(E) in the case of a rule that involves a 

12 novel legal or policy issue arising out of statu13 tory mandates, the nature of and potential rea14 sons to adopt the novel legal or policy position 

15 upon which the agency may base a proposed 

16 rule; 

17 ‘‘(2) make publicly available any data used in 

18 any cost-benefit analysis conducted by the agency 

19 for purposes of the rule making; 

20 ‘‘(3) solicit written data, views or argument 

21 from interested persons concerning the information 

22 and issues addressed in the advance notice; and 

23 ‘‘(4) provide for a period of not fewer than 60 

24 days for interested persons to submit such written 

25 data, views, or argument to the agency.’’. 


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1 SEC. 103. EFFECTIVE DATE. 

2 The amendments made by this Act to sections 553 

3 of title 5, United States Code, shall not apply to any rule 

4 makings pending or completed on the date of enactment 

5 of this Act. 

6 TITLE II—CONGRESSIONAL RE7 VIEW OF AGENCY RULE MAK8 ING 

9 SEC. 201. PURPOSE. 

10 The purpose of this Act is to increase accountability 

11 for and transparency in the Federal regulatory process. 

12 Section 1 of article I of the United States Constitution 

13 grants all legislative powers to Congress. Over time, Con14 gress has excessively delegated its constitutional charge 

15 while failing to conduct appropriate oversight and retain 

16 accountability for the content of the laws it passes. By 

17 requiring a vote in Congress, the REINS Act will result 

18 in more carefully drafted and detailed legislation, an im19 proved regulatory process, and a legislative branch that 

20 is truly accountable to the American people for the laws 

21 imposed upon them. 

22 SEC. 202. CONGRESSIONAL REVIEW OF AGENCY RULE MAK23 ING. 

24 Chapter 8 of title 5, United States Code, is amended 

25 to read as follows: 


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1 ‘‘CHAPTER 8—CONGRESSIONAL REVIEW 

2 OF AGENCY RULE MAKING 

‘‘Sec. 

‘‘801. Congressional review. 

‘‘802. Congressional approval procedure for major rules. 

‘‘803. Congressional disapproval procedure for nonmajor rules. 

‘‘804. Definitions. 

‘‘805. Judicial review. 

‘‘806. Exemption for monetary policy. 

‘‘807. Effective date of certain rules. 

3 ‘‘§ 801. Congressional review 

4 ‘‘(a)(1)(A) Before a rule may take effect, the Federal 

5 agency promulgating such rule shall submit to each House 

6 of the Congress and to the Comptroller General a report 

7 containing— 

8 ‘‘(i) a copy of the rule; 

9 ‘‘(ii) a concise general statement relating to the 

10 rule; 

11 ‘‘(iii) a classification of the rule as a major or 

12 nonmajor rule, including an explanation of the clas13 sification specifically addressing each criteria for a 

14 major rule contained within sections 804(2)(A), 

15 804(2)(B), and 804(2)(C); 

16 ‘‘(iv) a list of any other related regulatory ac17 tions intended to implement the same statutory pro18 vision or regulatory objective as well as the indi19 vidual and aggregate economic effects of those ac20 tions; and 

21 ‘‘(v) the proposed effective date of the rule. 


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1 ‘‘(B) On the date of the submission of the report 

2 under subparagraph (A), the Federal agency promulgating 

3 the rule shall submit to the Comptroller General and make 

4 available to each House of Congress— 

5 ‘‘(i) a complete copy of the cost-benefit analysis 

6 of the rule, if any, including an analysis of any jobs 

7 added or lost, differentiating between public and pri8 vate sector jobs; 

9 ‘‘(ii) the agency’s actions pursuant to sections 

10 603, 604, 605, 607, and 609 of this title; 

11 ‘‘(iii) the agency’s actions pursuant to sections 

12 202, 203, 204, and 205 of the Unfunded Mandates 

13 Reform Act of 1995; and 

14 ‘‘(iv) any other relevant information or require15 ments under any other Act and any relevant Execu16 tive orders. 

17 ‘‘(C) Upon receipt of a report submitted under sub18 paragraph (A), each House shall provide copies of the re19 port to the chairman and ranking member of each stand20 ing committee with jurisdiction under the rules of the 

21 House of Representatives or the Senate to report a bill 

22 to amend the provision of law under which the rule is 

23 issued. 

24 ‘‘(2)(A) The Comptroller General shall provide a re25 port on each major rule to the committees of jurisdiction 


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1 by the end of 15 calendar days after the submission or 

2 publication date as provided in section 802(b)(2). The re3 port of the Comptroller General shall include an assess4 ment of the agency’s compliance with procedural steps re5 quired by paragraph (1)(B). 

6 ‘‘(B) Federal agencies shall cooperate with the Comp7 troller General by providing information relevant to the 

8 Comptroller General’s report under subparagraph (A). 

9 ‘‘(3) A major rule relating to a report submitted 

10 under paragraph (1) shall take effect upon enactment of 

11 a joint resolution of approval described in section 802 or 

12 as provided for in the rule following enactment of a joint 

13 resolution of approval described in section 802, whichever 

14 is later. 

15 ‘‘(4) A nonmajor rule shall take effect as provided 

16 by section 803 after submission to Congress under para17 graph (1). 

18 ‘‘(5) If a joint resolution of approval relating to a 

19 major rule is not enacted within the period provided in 

20 subsection (b)(2), then a joint resolution of approval relat21 ing to the same rule may not be considered under this 

22 chapter in the same Congress by either the House of Rep23 resentatives or the Senate. 


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1 ‘‘(b)(1) A major rule shall not take effect unless the 

2 Congress enacts a joint resolution of approval described 

3 under section 802. 

4 ‘‘(2) If a joint resolution described in subsection (a) 

5 is not enacted into law by the end of 70 session days or 

6 legislative days, as applicable, beginning on the date on 

7 which the report referred to in section 801(a)(1)(A) is re8 ceived by Congress (excluding days either House of Con9 gress is adjourned for more than 3 days during a session 

10 of Congress), then the rule described in that resolution 

11 shall be deemed not to be approved and such rule shall 

12 not take effect. 

13 ‘‘(c)(1) Notwithstanding any other provision of this 

14 section (except subject to paragraph (3)), a major rule 

15 may take effect for one 90-calendar-day period if the 

16 President makes a determination under paragraph (2) and 

17 submits written notice of such determination to the Con18 gress. 

19 ‘‘(2) Paragraph (1) applies to a determination made 

20 by the President by Executive order that the major rule 

21 should take effect because such rule is— 

22 ‘‘(A) necessary because of an imminent threat 

23 to health or safety or other emergency; 

24 ‘‘(B) necessary for the enforcement of criminal 

25 laws; 


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1 ‘‘(C) necessary for national security; or 

2 ‘‘(D) issued pursuant to any statute imple3 menting an international trade agreement. 

4 ‘‘(3) An exercise by the President of the authority 

5 under this subsection shall have no effect on the proce6 dures under section 802. 

7 ‘‘(d)(1) In addition to the opportunity for review oth8 erwise provided under this chapter, in the case of any rule 

9 for which a report was submitted in accordance with sub10 section (a)(1)(A) during the period beginning on the date 

11 occurring— 

12 ‘‘(A) in the case of the Senate, 60 session days, 

13 or 

14 ‘‘(B) in the case of the House of Representa15 tives, 60 legislative days, 

16 before the date the Congress is scheduled to adjourn a 

17 session of Congress through the date on which the same 

18 or succeeding Congress first convenes its next session, sec19 tions 802 and 803 shall apply to such rule in the suc20 ceeding session of Congress. 

21 ‘‘(2)(A) In applying sections 802 and 803 for pur22 poses of such additional review, a rule described under 

23 paragraph (1) shall be treated as though— 

24 ‘‘(i) such rule were published in the Federal 

25 Register on— 


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1 ‘‘(I) in the case of the Senate, the 15th 

2 session day, or 

3 ‘‘(II) in the case of the House of Rep4 resentatives, the 15th legislative day, 

5 after the succeeding session of Congress first con6 venes; and 

7 ‘‘(ii) a report on such rule were submitted to 

8 Congress under subsection (a)(1) on such date. 

9 ‘‘(B) Nothing in this paragraph shall be construed 

10 to affect the requirement under subsection (a)(1) that a 

11 report shall be submitted to Congress before a rule can 

12 take effect. 

13 ‘‘(3) A rule described under paragraph (1) shall take 

14 effect as otherwise provided by law (including other sub15 sections of this section). 

16 ‘‘§ 802. Congressional approval procedure for major 

17 rules 

18 ‘‘(a)(1) For purposes of this section, the term ‘joint 

19 resolution’ means only a joint resolution addressing a re20 port classifying a rule as major pursuant to section 

21 801(a)(1)(A)(iii) that— 

22 ‘‘(A) bears no preamble; 

23 ‘‘(B) bears the following title (with blanks filled 

24 as appropriate): ‘Approving the rule submitted by 

25 lll relating to lll.’; 


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1 ‘‘(C) includes after its resolving clause only the 

2 following (with blanks filled as appropriate): ‘That 

3 Congress approves the rule submitted by lll re4 lating to lll.’; and 

5 ‘‘(D) is introduced pursuant to paragraph (2). 

6 ‘‘(2) After a House of Congress receives a report 

7 classifying a rule as major pursuant to section 

8 801(a)(1)(A)(iii), the majority leader of that House (or 

9 his or her respective designee) shall introduce (by request, 

10 if appropriate) a joint resolution described in paragraph 

11 (1)— 

12 ‘‘(A) in the case of the House of Representa13 tives, within three legislative days; and 

14 ‘‘(B) in the case of the Senate, within three ses15 sion days. 

16 ‘‘(3) A joint resolution described in paragraph (1) 

17 shall not be subject to amendment at any stage of pro18 ceeding. 

19 ‘‘(b) A joint resolution described in subsection (a) 

20 shall be referred in each House of Congress to the commit21 tees having jurisdiction over the provision of law under 

22 which the rule is issued. 

23 ‘‘(c) In the Senate, if the committee or committees 

24 to which a joint resolution described in subsection (a) has 

25 been referred have not reported it at the end of 15 session 


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1 days after its introduction, such committee or committees 

2 shall be automatically discharged from further consider3 ation of the resolution and it shall be placed on the cal4 endar. A vote on final passage of the resolution shall be 

5 taken on or before the close of the 15th session day after 

6 the resolution is reported by the committee or committees 

7 to which it was referred, or after such committee or com8 mittees have been discharged from further consideration 

9 of the resolution. 

10 ‘‘(d)(1) In the Senate, when the committee or com11 mittees to which a joint resolution is referred have re12 ported, or when a committee or committees are discharged 

13 (under subsection (c)) from further consideration of a 

14 joint resolution described in subsection (a), it is at any 

15 time thereafter in order (even though a previous motion 

16 to the same effect has been disagreed to) for a motion 

17 to proceed to the consideration of the joint resolution, and 

18 all points of order against the joint resolution (and against 

19 consideration of the joint resolution) are waived. The mo20 tion is not subject to amendment, or to a motion to post21 pone, or to a motion to proceed to the consideration of 

22 other business. A motion to reconsider the vote by which 

23 the motion is agreed to or disagreed to shall not be in 

24 order. If a motion to proceed to the consideration of the 

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1 main the unfinished business of the Senate until disposed 

2 of. 

3 ‘‘(2) In the Senate, debate on the joint resolution, 

4 and on all debatable motions and appeals in connection 

5 therewith, shall be limited to not more than 2 hours, which 

6 shall be divided equally between those favoring and those 

7 opposing the joint resolution. A motion to further limit 

8 debate is in order and not debatable. An amendment to, 

9 or a motion to postpone, or a motion to proceed to the 

10 consideration of other business, or a motion to recommit 

11 the joint resolution is not in order. 

12 ‘‘(3) In the Senate, immediately following the conclu13 sion of the debate on a joint resolution described in sub14 section (a), and a single quorum call at the conclusion of 

15 the debate if requested in accordance with the rules of the 

16 Senate, the vote on final passage of the joint resolution 

17 shall occur. 

18 ‘‘(4) Appeals from the decisions of the Chair relating 

19 to the application of the rules of the Senate to the proce20 dure relating to a joint resolution described in subsection 

21 (a) shall be decided without debate. 

22 ‘‘(e) In the House of Representatives, if any com23 mittee to which a joint resolution described in subsection 

24 (a) has been referred has not reported it to the House 

25 at the end of 15 legislative days after its introduction, 


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1 such committee shall be discharged from further consider2 ation of the joint resolution, and it shall be placed on the 

3 appropriate calendar. On the second and fourth Thursdays 

4 of each month it shall be in order at any time for the 

5 Speaker to recognize a Member who favors passage of a 

6 joint resolution that has appeared on the calendar for at 

7 least 5 legislative days to call up that joint resolution for 

8 immediate consideration in the House without intervention 

9 of any point of order. When so called up a joint resolution 

10 shall be considered as read and shall be debatable for 1 

11 hour equally divided and controlled by the proponent and 

12 an opponent, and the previous question shall be considered 

13 as ordered to its passage without intervening motion. It 

14 shall not be in order to reconsider the vote on passage. 

15 If a vote on final passage of the joint resolution has not 

16 been taken by the third Thursday on which the Speaker 

17 may recognize a Member under this subsection, such vote 

18 shall be taken on that day. 

19 ‘‘(f)(1) If, before passing a joint resolution described 

20 in subsection (a), one House receives from the other a 

21 joint resolution having the same text, then— 

22 ‘‘(A) the joint resolution of the other House 

23 shall not be referred to a committee; and 

24 ‘‘(B) the procedure in the receiving House shall 

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1 ceived from the other House until the vote on pas2 sage, when the joint resolution received from the 

3 other House shall supplant the joint resolution of 

4 the receiving House. 

5 ‘‘(2) This subsection shall not apply to the House of 

6 Representatives if the joint resolution received from the 

7 Senate is a revenue measure. 

8 ‘‘(g) If either House has not taken a vote on final 

9 passage of the joint resolution by the last day of the period 

10 described in section 801(b)(2), then such vote shall be 

11 taken on that day. 

12 ‘‘(h) This section and section 803 are enacted by 

13 Congress— 

14 ‘‘(1) as an exercise of the rule making power of 

15 the Senate and House of Representatives, respec16 tively, and as such is deemed to be part of the rules 

17 of each House, respectively, but applicable only with 

18 respect to the procedure to be followed in that 

19 House in the case of a joint resolution described in 

20 subsection (a) and superseding other rules only 

21 where explicitly so; and 

22 ‘‘(2) with full recognition of the Constitutional 

23 right of either House to change the rules (so far as 

24 they relate to the procedure of that House) at any 


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1 time, in the same manner and to the same extent as 

2 in the case of any other rule of that House. 

3 ‘‘§ 803. Congressional disapproval procedure for 

4 nonmajor rules 

5 ‘‘(a) For purposes of this section, the term ‘joint res6 olution’ means only a joint resolution introduced in the 

7 period beginning on the date on which the report referred 

8 to in section 801(a)(1)(A) is received by Congress and 

9 ending 60 days thereafter (excluding days either House 

10 of Congress is adjourned for more than 3 days during a 

11 session of Congress), the matter after the resolving clause 

12 of which is as follows: ‘That Congress disapproves the 

13 nonmajor rule submitted by the lll relating to 

14 lll, and such rule shall have no force or effect.’ (The 

15 blank spaces being appropriately filled in). 

16 ‘‘(b)(1) A joint resolution described in subsection (a) 

17 shall be referred to the committees in each House of Con18 gress with jurisdiction. 

19 ‘‘(2) For purposes of this section, the term submis20 sion or publication date means the later of the date on 

21 which— 

22 ‘‘(A) the Congress receives the report submitted 

23 under section 801(a)(1); or 

24 ‘‘(B) the nonmajor rule is published in the Fed25 eral Register, if so published. 


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1 ‘‘(c) In the Senate, if the committee to which is re2 ferred a joint resolution described in subsection (a) has 

3 not reported such joint resolution (or an identical joint 

4 resolution) at the end of 15 session days after the date 

5 of introduction of the joint resolution, such committee may 

6 be discharged from further consideration of such joint res7 olution upon a petition supported in writing by 30 Mem8 bers of the Senate, and such joint resolution shall be 

9 placed on the calendar. 

10 ‘‘(d)(1) In the Senate, when the committee to which 

11 a joint resolution is referred has reported, or when a com12 mittee is discharged (under subsection (c)) from further 

13 consideration of a joint resolution described in subsection 

14 (a), it is at any time thereafter in order (even though a 

15 previous motion to the same effect has been disagreed to) 

16 for a motion to proceed to the consideration of the joint 

17 resolution, and all points of order against the joint resolu18 tion (and against consideration of the joint resolution) are 

19 waived. The motion is not subject to amendment, or to 

20 a motion to postpone, or to a motion to proceed to the 

21 consideration of other business. A motion to reconsider the 

22 vote by which the motion is agreed to or disagreed to shall 

23 not be in order. If a motion to proceed to the consideration 

24 of the joint resolution is agreed to, the joint resolution 


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1 shall remain the unfinished business of the Senate until 

2 disposed of. 

3 ‘‘(2) In the Senate, debate on the joint resolution, 

4 and on all debatable motions and appeals in connection 

5 therewith, shall be limited to not more than 10 hours, 

6 which shall be divided equally between those favoring and 

7 those opposing the joint resolution. A motion to further 

8 limit debate is in order and not debatable. An amendment 

9 to, or a motion to postpone, or a motion to proceed to 

10 the consideration of other business, or a motion to recom11 mit the joint resolution is not in order. 

12 ‘‘(3) In the Senate, immediately following the conclu13 sion of the debate on a joint resolution described in sub14 section (a), and a single quorum call at the conclusion of 

15 the debate if requested in accordance with the rules of the 

16 Senate, the vote on final passage of the joint resolution 

17 shall occur. 

18 ‘‘(4) Appeals from the decisions of the Chair relating 

19 to the application of the rules of the Senate to the proce20 dure relating to a joint resolution described in subsection 

21 (a) shall be decided without debate. 

22 ‘‘(e) In the Senate the procedure specified in sub23 section (c) or (d) shall not apply to the consideration of 

24 a joint resolution respecting a nonmajor rule— 


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1 ‘‘(1) after the expiration of the 60 session days 

2 beginning with the applicable submission or publica3 tion date, or 

4 ‘‘(2) if the report under section 801(a)(1)(A) 

5 was submitted during the period referred to in sec6 tion 801(d)(1), after the expiration of the 60 session 

7 days beginning on the 15th session day after the 

8 succeeding session of Congress first convenes. 

9 ‘‘(f) If, before the passage by one House of a joint 

10 resolution of that House described in subsection (a), that 

11 House receives from the other House a joint resolution 

12 described in subsection (a), then the following procedures 

13 shall apply: 

14 ‘‘(1) The joint resolution of the other House 

15 shall not be referred to a committee. 

16 ‘‘(2) With respect to a joint resolution described 

17 in subsection (a) of the House receiving the joint 

18 resolution— 

19 ‘‘(A) the procedure in that House shall be 

20 the same as if no joint resolution had been re21 ceived from the other House; but 

22 ‘‘(B) the vote on final passage shall be on 

23 the joint resolution of the other House. 

24 ‘‘§ 804. Definitions 

25 ‘‘For purposes of this chapter— 


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1 ‘‘(1) The term ‘Federal agency’ means any 

2 agency as that term is defined in section 551(1). 

3 ‘‘(2) The term ‘major rule’ means any rule, in4 cluding an interim final rule, that the Administrator 

5 of the Office of Information and Regulatory Affairs 

6 of the Office of Management and Budget finds has 

7 resulted in or is likely to result in— 

8 ‘‘(A) an annual effect on the economy of 

9 $100,000,000 or more; 

10 ‘‘(B) a major increase in costs or prices for 

11 consumers, individual industries, Federal, 

12 State, or local government agencies, or geo13 graphic regions; or 

14 ‘‘(C) significant adverse effects on competi15 tion, employment, investment, productivity, in16 novation, or on the ability of United States17 based enterprises to compete with foreign-based 

18 enterprises in domestic and export markets. 

19 ‘‘(3) The term ‘nonmajor rule’ means any rule 

20 that is not a major rule. 

21 ‘‘(4) The term ‘rule’ has the meaning given 

22 such term in section 551, except that such term does 

23 not include— 

24 ‘‘(A) any rule of particular applicability, 

25 including a rule that approves or prescribes for 


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1 the future rates, wages, prices, services, or al2 lowances therefore, corporate or financial struc3 tures, reorganizations, mergers, or acquisitions 

4 thereof, or accounting practices or disclosures 

5 bearing on any of the foregoing; 

6 ‘‘(B) any rule relating to agency manage7 ment or personnel; or 

8 ‘‘(C) any rule of agency organization, pro9 cedure, or practice that does not substantially 

10 affect the rights or obligations of non-agency 

11 parties. 

12 ‘‘§ 805. Judicial review 

13 ‘‘(a) No determination, finding, action, or omission 

14 under this chapter shall be subject to judicial review. 

15 ‘‘(b) Notwithstanding subsection (a), a court may de16 termine whether a Federal agency has completed the nec17 essary requirements under this chapter for a rule to take 

18 effect. 

19 ‘‘(c) The enactment of a joint resolution of approval 

20 under section 802 shall not be interpreted to serve as a 

21 grant or modification of statutory authority by Congress 

22 for the promulgation of a rule, shall not extinguish or af23 fect any claim, whether substantive or procedural, against 

24 any alleged defect in a rule, and shall not form part of 

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1 cerning a rule except for purposes of determining whether 

2 or not the rule is in effect. 

3 ‘‘§ 806. Exemption for monetary policy 

4 ‘‘Nothing in this chapter shall apply to rules that con5 cern monetary policy proposed or implemented by the 

6 Board of Governors of the Federal Reserve System or the 

7 Federal Open Market Committee. 

8 ‘‘§ 807. Effective date of certain rules 

9 ‘‘Notwithstanding section 801— 

10 ‘‘(1) any rule that establishes, modifies, opens, 

11 closes, or conducts a regulatory program for a com12 mercial, recreational, or subsistence activity related 

13 to hunting, fishing, or camping; or 

14 ‘‘(2) any rule other than a major rule which an 

15 agency for good cause finds (and incorporates the 

16 finding and a brief statement of reasons therefore in 

17 the rule issued) that notice and public procedure 

18 thereon are impracticable, unnecessary, or contrary 

19 to the public interest, 

20 shall take effect at such time as the Federal agency pro21 mulgating the rule determines.’’. 


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1 SEC. 203. BUDGETARY EFFECTS OF RULES SUBJECT TO 

2 SECTION 802 OF TITLE 5, UNITED STATES 

3 CODE. 

4 Section 257(b)(2) of the Balanced Budget and Emer5 gency Deficit Control Act of 1985 is amended by adding 

6 at the end the following new subparagraph: 

7 ‘‘(E) BUDGETARY EFFECTS OF RULES

8 SUBJECT TO SECTION 802 OF TITLE 5, UNITED

9 STATES CODE.—Any rules subject to the con10 gressional approval procedure set forth in sec11 tion 802 of chapter 8 of title 5, United States 

12 Code, affecting budget authority, outlays, or re13 ceipts shall be assumed to be effective unless it 

14 is not approved in accordance with such sec15 tion.’’. 

16 TITLE III—ELIMINATION OF 

17 BURDENSOME RULES 

18 SEC. 301. RED TAPE REDUCTION COMMISSION. 

19 (a) ESTABLISHMENT.—There is established a com20 mission to be known as the ‘‘United States Red Tape Re21 duction Commission’’ (in this section referred to as the 

22 ‘‘Commission’’). 

23 (b) DUTIES OF COMMISSION.— 

24 (1) IN GENERAL.—The Commission shall advise 

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1 quirements to reduce direct or indirect burdens on 

2 businesses in the United States. 

3 (2) PUBLIC COMMENT.—The Commission shall 

4 conduct public hearings at locations throughout the 

5 United States and establish a Web site that allows 

6 the public to submit comments on hardships in com7 plying with rules and proposals for modification, 

8 consolidation, or elimination of such rules. 

9 (3) PRIORITIZATION OF RULES FOR REVIEW.— 

10 The Commission shall develop criteria to prioritize 

11 rules for review, including the number and nature of 

12 public request for review of rules. 

13 (4) REVIEW OF RULES.—The Commission shall 

14 review rules according to criteria developed by the 

15 Commission to meet each of the following goals: 

16 (A) A reduction of the burdens of compli17 ance with Federal rules, especially those rules 

18 which would have an effect on small businesses. 

19 (B) Elimination of rules or regulatory re20 quirements that have a measurable detrimental 

21 effect on growth, innovation, job-creating abil22 ity, and global competitiveness of businesses in 

23 the United States. 

24 (C) Modification of rules to simplify and 

25 clarify regulatory requirements. 


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1 (D) Removal of barriers to the entry of 

2 new competitors in the marketplace. 

3 (E) Elimination of rules for which ongoing 

4 costs exceed the ongoing benefits. 

5 (F) Increasing regulatory flexibility by re6 placement of command and control rules with 

7 alternatives, such as performance standards. 

8 (c) MEMBERSHIP.— 

9 (1) NUMBER AND APPOINTMENT.—The Com10 mission shall be composed of 8 members appointed 

11 by the President by and with the advise and consent 

12 of the Senate, 4 of which shall represent private in13 dustry, including small business interests. 

14 (2) TERMS.—Each member shall be appointed 

15 for a term of one year that may be renewed by the 

16 President without the advise and consent of the Sen17 ate. 

18 (3) RATES OF PAY.—The Comptroller General 

19 of the United States is authorized to determine rates 

20 of pay, not to exceed limits under the Federal Advi21 sory Committee Act, for members for each day (in22 cluding travel time) during which the member is en23 gaged in the actual performance of the duties vested 

24 in the Commission. 


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1 (4) TRAVEL EXPENSES.—Members shall receive 

2 travel expenses, including per diem in lieu of subsist3 ence, in accordance with sections 5702 and 5703 of 

4 title 5, United States Code. 

5 (5) CHAIRPERSON.—The Chairperson of the 

6 Commission shall be elected by the members. The 

7 term of office of the Chairperson shall be one year. 

8 (d) STAFF OF COMMISSION.—The Chairperson of the 

9 Commission may hire staff, without regard to the provi10 sions of title 5, United States Code, governing appoint11 ments in the competitive service, and without regard to 

12 the provisions of chapter 51 and subchapter III of chapter 

13 53 of such title relating to classification and General 

14 Schedule pay rates, except that no rate of pay fixed under 

15 this subsection may exceed the limits under the Federal 

16 Advisory Committee Act. The Chairperson of the Commis17 sion may fix the compensation of Commission staff with18 out regard to the provisions of chapter 51 and subchapter 

19 III of chapter 53 of title 5, United States Code, relating 

20 to classification of positions and General Schedule pay 

21 rates, except that the rate of pay may not exceed the limits 

22 under the Federal Advisory Committee Act. 

23 (e) EXPERTS AND CONSULTANTS.—The Commission 

24 may procure the services of experts and consultants in ac25 cordance with the provisions of section 3109(b) of title 5, 


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1 United States Code, but at rates for individuals not to 

2 exceed the daily equivalent of the highest rate payable 

3 under section 5332 of such title. 

4 (f) CONTRACT AUTHORITY.—The Commission may— 

5 (1) procure supplies, services, and property by 

6 contract in accordance with applicable laws and reg7 ulations and to the extent or in such amounts as are 

8 provided in appropriations Acts; and 

9 (2) enter into contracts with departments, 

10 agencies, and instrumentalities of the Federal Gov11 ernment, State agencies, and private firms, institu12 tions, and agencies, for the conduct of research or 

13 surveys, the preparation of reports, and other activi14 ties necessary for the discharge of the duties of the 

15 Commission, to the extent or in such amounts as are 

16 provided in appropriations Acts. 

17 (g) RELATIONSHIP TO EXECUTIVE BRANCH.— 

18 (1) INFORMATION REQUESTS.—The Commis19 sion is authorized to secure information, data, esti20 mates, and statistics directly from the various de21 partments, agencies, and establishments of the exec22 utive branch of Government, including the Office of 

23 Management and Budget, and the regulatory agen24 cies and commissions of the Government. All such 

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1 latory agencies and commissions shall promptly fur2 nish the Commission any available material which 

3 the Chairperson of the Commission determines to be 

4 necessary in the performance of the Commission’s 

5 duties and functions (other than material the disclo6 sure of which would be a violation of law). 

7 (2) USE OF SERVICES, FACILITIES, AND PER8 SONNEL.—The Commission is authorized, upon 

9 agreement with the head of any such department, 

10 agency, establishment, or regulatory agency or com11 mission, to use its services, facilities, and personnel 

12 with or without reimbursement, and the head of 

13 each such department, agency, establishment, or 

14 regulatory agency or commission is authorized to 

15 provide the Commission such services, facilities, and 

16 personnel. 

17 (h) RELATIONSHIP TO OTHER AGENCIES OF CON18 GRESS.—In carrying out the duties and functions of the 

19 Commission, and for the purpose of coordinating the oper20 ations of the Commission with those of other congressional 

21 agencies with a view to using most effectively the informa22 tion, services, and capabilities of all such agencies in car23 rying out the various responsibilities assigned to each, the 

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1 countability Office, the Congressional Budget Office, and 

2 the Congressional Research Service, and upon agreement 

3 with the Comptroller General, the Director of the Congres4 sional Budget Office, or the Director of the Congressional 

5 Research Service to use their services, facilities, and per6 sonnel without reimbursement. The Comptroller General 

7 and such Directors are authorized to provide the Commis8 sion with the information, data, estimates, and statistics, 

9 and the services, facilities, and personnel, referred to in 

10 the preceding sentence. 

11 (i) ASSISTANCE TO THE CONGRESS.—The Commis12 sion shall provide to the Committee on Oversight and Gov13 ernment Reform of the House of Representatives and the 

14 Committee on Homeland Security and Governmental Af15 fairs of the Senate, information that will assist the com16 mittee in the discharge of all matters within its jurisdic17 tion, including information with respect to its jurisdiction 

18 over authorization and oversight of the Office of Informa19 tion and Regulatory Affairs of the Office of Management 

20 and Budget. 

21 (j) REPORTS.— 

22 (1) ANNUAL REPORTS.—Not later than one 

23 year after the date of the enactment of this Act, and 

24 annually thereafter for each of the following five 

25 years, the Commission, with an affirmative vote of 


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1 a majority of the members of the Commission, shall 

2 submit to the President and the Congress a report 

3 on the findings and conclusions of the Commission 

4 under subsection (b), together with its recommenda5 tions for legislation. 

6 (2) CONGRESSIONAL REVIEW.— 

7 (A) HOUSE OF REPRESENTATIVES.—Not 

8 later than three days after receiving the report 

9 pursuant to paragraph (1), in the House of 

10 Representatives, the majority leader of the 

11 House of Representatives (or his designee) and 

12 the minority leader of the House of Representa13 tives (or his designee) shall introduce (by re14 quest), a joint resolution implementing the rec15 ommendations in the report. 

16 (B) SENATE.—Not later than three days 

17 after receiving the report pursuant to para18 graph (1), in the Senate, the majority leader of 

19 the Senate (or his designee) and the minority 

20 leader of the Senate (or his designee) shall in21 troduce a joint resolution described in subpara22 graph (A) (by request). 

23 (C) APPLICABLE PROCEDURES.—Such 

24 joint resolution shall be deemed to be a joint 

25 resolution described under section 802(a) of 


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1 title 5, United States Code, for purposes of con2 sideration by either House. 

3 (3) PRESIDENTIAL REVIEW.—Not later than 30 

4 days after receiving the report pursuant to para5 graph (1), the President shall submit a review on 

6 such report to the Congress. 

7 (4) PUBLIC AVAILABILITY OF COMMISSION RE8 PORTS.—The Commission shall publish its reports 

9 on a public Internet Web site maintained by the 

10 Commission. 

11 (k) TERMINATION.—The Commission shall terminate 

12 on the day after the final report is published in the Fed13 eral Register pursuant to subsection (i)(4). 

14 (l) APPLICATION OF FACA.—The provisions of the 

15 Federal Advisory Committee Act (5 U.S.C. App) shall 

16 apply to the Commission, except as otherwise provided in 

17 this Act. 

Æ 


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