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103D CONGRESS

2D SESSION H. R. 4006

To provide statements of the economic and employment impacts of Federal

legislation and regulation on the private sector and State and local

governments.

IN THE HOUSE OF REPRESENTATIVES

MARCH 10, 1994

Mr. COX introduced the following bill; which was referred jointly to the

Committees on Rules and Government Operations

A BILL

To provide statements of the economic and employment impacts of Federal legislation and regulation on the private

sector and State and local governments.

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

3 SECTION 1. ECONOMIC AND EMPLOYMENT IMPACT ACT.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Economic and Employment Impact Act’’.

6 (b) FINDINGS AND PURPOSES.—

7 (1) FINDINGS.—The Congress finds that—

8 (A) compliance with Federal regulations

9 is estimated to cost the private sector and
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1 State and local governments as much as

2 $850,000,000,000 a year;

3 (B) excessive Federal regulation and man4 dates increase the cost of doing business and

5 thus hinder economic growth and employment

6 opportunities;

7 (C) State and local governments are forced

8 to absorb the cost of unfunded Federal man9 dates; and

10 (D) in addition to budget and deficit esti11 mates, Congress and the executive branch deci12 sion makers need to be aware of regulatory cost

13 impacts of proposed Federal actions on the pri14 vate sector and State, local, and tribal govern15 ments.

16 (2) PURPOSES.—The purposes of this section

17 are—

18 (A) to ensure that the people of the United

19 States are fully apprised of the impact of Fed20 eral legislative and regulatory activity on eco21 nomic growth and employment;

22 (B) to require both the Congress and the

23 executive branch to acknowledge and to take re24 sponsibility for the fiscal and economic effects
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1 of legislative and regulatory actions and activi2 ties;

3 (C) to provide a means to ensure that con4 gressional and executive branch action are fo5 cused on enhancing economic growth and pro6 viding increased job opportunities for the people

7 of the United States; and

8 (D) to protect against congressional or ex9 ecutive branch actions which hinder economic

10 growth or eliminate jobs for the people of the

11 United States.

12 (c) ECONOMIC AND EMPLOYMENT IMPACT STATE13 MENTS FOR LEGISLATION.—

14 (1) PREPARATION.—The Director of the Con15 gressional Budget Office (referred to as the ‘‘Direc16 tor’’) shall prepare an economic and employment im17 pact statement, as described in paragraph (2), to ac18 company each bill or joint resolution reported by any

19 committee (except the Committee on Appropriations)

20 of the House of Representatives or the Senate or

21 considered on the floor of either House.

22 (2) CONTENTS.—The economic and employ23 ment impact statement required by paragraph (1)

24 shall include the following:
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1 (A) An estimate of the numbers of individ2 uals and businesses who would be regulated by

3 the bill or joint resolution and a determination

4 of the groups and classes of such individuals

5 and businesses;

6 (B) A determination of the economic im7 pact of such regulation on individuals, consum8 ers, and businesses affected.

9 (C)(i) An estimate of the costs which

10 would be incurred by the private sector in car11 rying out or complying with such bill or joint

12 resolution in the fiscal year in which it is to be13 come effective, and in each of the 4 fiscal years

14 following such fiscal year, together with the

15 basis for each such estimate.

16 (ii) Estimates required by this subpara17 graph shall include specific data on costs im18 posed on groups and classes of individuals and

19 businesses, including small business and con20 sumers, and employment impacts on those indi21 viduals and businesses.

22 (D) An estimate of the costs that would be

23 incurred by State and local governments, which

24 shall include—
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1 (i) the estimates required by section

2 403 of the Congressional Budget Act of

3 1974; and

4 (ii) an evaluation of the extent of the

5 costs of the Federal mandates arising from

6 such bill or joint resolution in comparison

7 with funding assistance provided by the

8 Federal Government to address the costs

9 of complying with such mandates.

10 (3) REPORT NOT AVAILABLE.—If compliance

11 with the requirements of paragraph (1) is imprac12 ticable, the Director shall submit a statement setting

13 forth the reasons for noncompliance.

14 (4) STATEMENT TO ACCOMPANY COMMITTEE

15 REPORTS.—The economic and employment impact

16 statement required by this subsection shall accom17 pany each bill or joint resolution reported or other18 wise considered on the floor of either House. Such

19 statement shall be printed in the committee report

20 upon timely submission to the committee. If not

21 timely filed or otherwise unavailable for publication

22 in the committee report, the economic and regu23 latory statement shall be published in the Congres24 sional Record not less than 2 calendar days prior to

25 any floor consideration of a bill or joint resolution
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1 subject to the provisions of this subsection by either

2 House.

3 (5) COMMITTEE STATEMENTS OPTIONAL.—

4 Nothing in this subsection shall be construed to

5 modify or otherwise affect the requirements of para6 graph 11(b) of rule XXVI of the Standing Rules of

7 the Senate, regarding preparation of an evaluation

8 of regulatory impact.

9 (d) ECONOMIC AND EMPLOYMENT IMPACT STATE10 MENT FOR EXECUTIVE BRANCH REGULATIONS.—

11 (1) PREPARATION.—Each Federal department

12 or executive branch agency shall prepare an eco13 nomic and employment impact statement, as de14 scribed in paragraph (2), to accompany regulatory

15 actions.

16 (2) CONTENTS.—The economic and employ17 ment impact statement required by paragraph (1)

18 shall include the following:

19 (A) An estimate of the numbers of individ20 uals and businesses who would be regulated by

21 the regulatory action and a determination of

22 the groups and classes of such individuals and

23 businesses.
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1 (B) A determination of the economic im2 pact of such regulation on individuals, consum3 ers, and businesses affected.

4 (C)(i) An estimate of the costs which

5 would be incurred by the private sector in car6 rying out or complying with such regulatory ac7 tion in the fiscal year in which it is to become

8 effective and in each of the 4 fiscal years follow9 ing such fiscal year, together with the basis for

10 each such estimate.

11 (ii) The estimate required by this subpara12 graph shall include specific data on costs on

13 groups and classes of individuals and busi14 nesses, including small business and consumers,

15 and employment impacts on those individuals

16 and businesses.

17 (D) An estimate of the costs that would be

18 incurred by State and local governments, which

19 shall include—

20 (i) an estimate of cost which would be

21 incurred by State and local governments in

22 carrying out or complying with the regu23 latory action in the fiscal year in which it

24 is to become effective and in each of the 4
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1 fiscal years following such fiscal year, to2 gether with the basis for such estimate;

3 (ii) a comparison of the estimates of

4 costs described in clause (i), with any

5 available estimates of costs made by any

6 Federal or State agency;

7 (iii) if the agency determines that the

8 regulatory action is likely to result in an9 nual cost to State and local governments of

10 $200,000,000 or more, or is likely to have

11 exceptional fiscal consequences for a geo12 graphic region or a particular level of gov13 ernment, a statement by the agency detail14 ing such results or consequences; and

15 (iv) an evaluation of the extent of the

16 costs of the Federal mandates arising from

17 the regulatory action in comparison with

18 funding assistance provided by the Federal

19 Government to address the costs of com20 plying with such mandates.

21 (4) REPORT NOT AVAILABLE.—If compliance

22 with the requirements of paragraph (1) is imprac23 ticable, the agency or department shall submit a

24 statement setting forth the reasons for noncompli25 ance.
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1 (5) STATEMENT TO ACCOMPANY FEDERAL REG2 ULATORY ACTIONS.—The economic and employment

3 impact statement with respect to a regulatory action

4 required by this subsection shall be published in the

5 Federal Register together with the publication of

6 such regulatory action. If the regulatory action is

7 not published in the Federal Register, the economic

8 and employment impact statement shall be made

9 available to the public in a timely manner.

10 (6) DEFINITION OF ‘‘REGULATORY ACTION’’.—

11 For purposes of this subsection, the term ‘‘regu12 latory action’’ means any substantive action by a

13 Federal agency (required to be or customarily pub14 lished in the Federal Register) that promulgates or

15 is expected to lead to the promulgation of a final

16 rule or regulation, including notices of inquiry, ad17 vance notices of proposed rulemaking, notices of pro18 posed rulemaking, interim final rules, and final rules

19 and regulations.

20 (e) PROVISION FOR NATIONAL SECURITY EMER21 GENCY WAIVER.—

22 (1) CONGRESSIONAL ECONOMIC IMPACT STATE23 MENTS.—The Congress may waive the requirements

24 of subsection (c) at any time in which a declaration
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1 of war is in effect, or in response to a national secu2 rity emergency at the request of the President.

3 (2) EXECUTIVE REGULATIONS ECONOMIC IM4 PACT STATEMENTS.—The President may waive the

5 requirements of subsection (d) at any time in which

6 a declaration of war is in effect, or in response to

7 a national security emergency as determined by the

8 President in consultation with Congress.

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