II

105TH CONGRESS

2D SESSION S. 2161

To provide Government-wide accounting of regulatory costs and benefits,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 11, 1998

Mr. THOMPSON (for himself and Mr. BREAUX) introduced the following bill;

which was read twice and referred to the Committee on Governmental Affairs

A BILL

To provide Government-wide accounting of regulatory costs

and benefits, 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 Right-to5 Know Act of 1998’’.

6 SEC. 2. PURPOSES.

7 The purposes of this Act are to—

8 (1) promote the public right-to-know about the

9 costs and benefits of Federal regulatory programs

10 and rules;
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1 (2) improve the quality of Federal regulatory

2 programs and rules;

3 (3) increase Government accountability; and

4 (4) encourage open communication among Fed5 eral agencies, the public, the President, and Con6 gress regarding regulatory priorities.

7 SEC. 3. DEFINITIONS.

8 In this Act:

9 (1) AGENCY.—The term ‘‘agency’’ means any

10 executive department, military department, Govern11 ment corporation, Government controlled corpora12 tion, or other establishment in the executive branch

13 of the Government (including the Executive Office of

14 the President), or any independent regulatory agen15 cy, but shall not include—

16 (A) the General Accounting Office;

17 (B) the Federal Election Commission;

18 (C) the governments of the District of Co19 lumbia and of the territories and possessions of

20 the United States, and their various subdivi21 sions; or

22 (D) Government-owned contractor-oper23 ated facilities, including laboratories engaged in

24 national defense research and production activi25 ties.
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1 (2) BENEFIT.—The term ‘‘benefit’’ means the

2 reasonably identifiable significant favorable effects,

3 quantifiable and nonquantifiable, including social,

4 health, safety, environmental, economic, and dis5 tributional effects, that are expected to result from

6 implementation of, or compliance with, a rule.

7 (3) COST.—The term ‘‘cost’’ means the reason8 ably identifiable significant adverse effects, quantifi9 able and nonquantifiable, including social, health,

10 safety, environmental, economic, and distributional

11 effects, that are expected to result from implementa12 tion of, or compliance with, a rule.

13 (4) DIRECTOR.—The term ‘‘Director’’ means

14 the Director of the Office of Management and Budg15 et, acting through the Administrator of the Office of

16 Information and Regulatory Affairs.

17 (5) MAJOR RULE.—The term ‘‘major rule’’

18 means a rule that—

19 (A) the agency proposing the rule or the

20 Director reasonably determines is likely to have

21 an annual effect on the economy of

22 $100,000,000 or more in reasonably quantifi23 able costs; or

24 (B) is otherwise designated a major rule by

25 the Director on the ground that the rule is like-
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1 ly to adversely affect, in a material way, the

2 economy, a sector of the economy, including

3 small business, productivity, competition, jobs,

4 the environment, public health or safety, or

5 State, local, or tribal governments, or commu6 nities.

7 (6) PROGRAM ELEMENT.—The term ‘‘program

8 element’’ means a rule or related set of rules.

9 (7) RULE.—The term ‘‘rule’’ has the same

10 meaning given such term in section 551(4) of title

11 5, United States Code, except that such term shall

12 not include—

13 (A) administrative actions governed by sec14 tions 556 and 557 of title 5, United States

15 Code;

16 (B) rules issued with respect to a military

17 or foreign affairs function of the United States;

18 or

19 (C) rules related to agency organization,

20 management, or personnel.

21 SEC. 4. ACCOUNTING STATEMENT.

22 (a) IN GENERAL.—

23 (1) ADMINISTRATION.—The President, acting

24 through the Director, shall be responsible for imple-
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1 menting and administering the requirements of this

2 Act.

3 (2) ACCOUNTING STATEMENT.—Not later than

4 January 2000, and each January every 2 years

5 thereafter, the President shall prepare and submit to

6 Congress an accounting statement that estimates the

7 costs and corresponding benefits of Federal regu8 latory programs and program elements in accord9 ance with this section.

10 (b) YEARS COVERED BY ACCOUNTING STATE11 MENT.—Each accounting statement (other than the initial

12 accounting statement) submitted under this Act shall

13 cover, at a minimum, the costs and corresponding benefits

14 for each of the 5 fiscal years preceding October 1 of the

15 year in which the report is submitted. Each statement

16 shall also contain, at a minimum, a projection of the costs

17 and corresponding benefits for each of the next 10 fiscal

18 years, based on rules in effect or projected to take effect.

19 The statement may cover any fiscal year preceding such

20 fiscal years for the purpose of revising previous estimates.

21 (c) TIMING AND PROCEDURES.—

22 (1) NOTICE AND COMMENT.—The President

23 shall provide notice and opportunity for comment,

24 including consultation with the Comptroller General

25 of the United States, for each accounting statement.
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1 (2) TIMING.—The President shall propose the

2 first accounting statement under this section no

3 later than 1 year after the date of enactment of this

4 Act. Such statement shall cover, at a minimum, each

5 of the preceding fiscal years beginning with fiscal

6 year 1997.

7 (d) CONTENTS OF ACCOUNTING STATEMENT.—

8 (1) ESTIMATES OF COSTS.—An accounting

9 statement shall estimate the costs of all Federal reg10 ulatory programs and program elements, including

11 paperwork costs, by setting forth, for each year cov12 ered by the statement—

13 (A) the annual expenditure of national eco14 nomic resources for each regulatory program

15 and program elements; and

16 (B) such other quantitative and qualitative

17 measures of costs as the President considers

18 appropriate.

19 (2) ESTIMATES OF BENEFITS.—An accounting

20 statement shall estimate the corresponding benefits

21 of Federal regulatory programs and program ele22 ments by setting forth, for each year covered by the

23 statement, such quantitative and qualitative meas24 ures of benefits as the President considers appro25 priate. Any estimates of benefits concerning reduc-
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1 tion in health, safety, or environmental risks shall be

2 based on sound and objective scientific practices and

3 shall present the most plausible level of risk prac4 tical, along with a statement of the reasonable de5 gree of scientific certainty.

6 (3) PRESENTATION OF RESULTS.—

7 (A) COSTS AND BENEFITS CATEGORIES.—

8 To the extent feasible, the costs and benefits

9 under this subsection shall be listed under the

10 following categories:

11 (i) In the aggregate.

12 (ii) By agency, agency program, and

13 program element.

14 (iii) By major rule.

15 (B) QUANTIFICATION.—To the extent fea16 sible, the Director shall quantify the net bene17 fits or net costs under subparagraph (A).

18 (C) COST ESTIMATES.—In presenting esti19 mates of costs in the accounting statement, the

20 Director shall provide estimates for the follow21 ing sectors:

22 (i) Private sector costs.

23 (ii) Federal sector administrative

24 costs.

25 (iii) Federal sector compliance costs.
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1 (iv) State and local government ad2 ministrative costs.

3 (v) State and local government com4 pliance costs.

5 SEC. 5. ASSOCIATED REPORT TO CONGRESS.

6 (a) IN GENERAL.—

7 (1) SUBMISSION.—In each year following the

8 year in which the President submits an accounting

9 statement under section 4, the President, acting

10 through the Director, shall, after notice and oppor11 tunity for comment, submit to Congress a report as12 sociated with the accounting statement (hereinafter

13 referred to as an ‘‘associated report’’).

14 (2) CONTENT.—The associated report shall

15 contain, in accordance with this section—

16 (A) analyses of impacts;

17 (B) identification and analysis of jurisdic18 tional overlaps, duplications, and potential in19 consistencies among Federal regulatory pro20 grams; and

21 (C) recommendations for reform.

22 (b) ANALYSES OF IMPACTS.—The President shall in23 clude in the associated report the following:

24 (1) ANALYSES.—Analyses prepared by the

25 president of the cumulative impact of Federal regu-
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1 latory programs covered in the accounting state2 ment. Factors to be considered in such report shall

3 include impacts on the following:

4 (A) The ability of State and local govern5 ments to provide essential services, including

6 police, fire protection, and education.

7 (B) Small business.

8 (C) Productivity.

9 (D) Wages.

10 (E) Economic growth.

11 (F) Technological innovation.

12 (G) Employment and income distribution.

13 (H) Consumer prices for goods and serv14 ices.

15 (I) Such other factors considered appro16 priate by the President.

17 (2) SUMMARY.—A summary of any independent

18 analyses of impacts prepared by persons commenting

19 during the comment period on the accounting state20 ment.

21 (c) RECOMMENDATIONS FOR REFORM.—The Presi22 dent shall include in the associated report the following:

23 (1) PRESIDENTIAL RECOMMENDATIONS.—A

24 summary of recommendations of the President for

25 reform or elimination of any Federal regulatory pro-
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1 gram or program element that does not represent

2 sound use of national economic resources or other3 wise is inefficient.

4 (2) RECOMMENDATIONS FROM COMMENTERS.—

5 A summary of any recommendations for such reform

6 or elimination of Federal regulatory programs or

7 program elements prepared by persons commenting

8 during the comment period on the accounting state9 ment.

10 SEC. 6. GUIDANCE FROM OFFICE OF MANAGEMENT AND

11 BUDGET.

12 (a) IN GENERAL.—Not later than 180 days after the

13 date of enactment of this Act, the Director shall, in con14 sultation with the Council of Economic Advisers, issue

15 guidelines to agencies—

16 (1) to standardize measures of costs and bene17 fits in accounting statements prepared pursuant to

18 this Act, including guidance on estimating the costs

19 and corresponding benefits of regulatory programs

20 and program elements; and

21 (2) to standardize the format of the accounting

22 statements.

23 (b) REVIEW.—The Director shall review submissions

24 from agencies to assure consistency with the guidelines

25 under this section.
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1 SEC. 7. PEER REVIEW.

2 (a) IN GENERAL.—

3 (1) SCOPE.—The Director shall provide for

4 independent and external peer review of—

5 (A) the guidelines issued under section 6;

6 and

7 (B) each accounting statement and associ8 ated report.

9 (2) USE OF COMMENTS.—The Director shall

10 use the peer review comments in preparing the final

11 statement and report.

12 (b) REVIEW.—Peer review under subsection (a)

13 shall—

14 (1) involve participants who—

15 (A) have expertise in the economic and

16 technical issues germane to regulatory account17 ing and economic and scientific analysis; and

18 (B) are independent of the Government;

19 (2) be completed in a timely manner, consistent

20 with applicable deadlines;

21 (3) provide written comments to the Director

22 containing a balanced presentation of all consider23 ations; and

24 (4) not be subject to the Federal Advisory Com25 mittee Act (5 U.S.C. App.).
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1 (c) RESPONSE.—The Director shall provide a written

2 response to all significant peer review comments. Such

3 comments and responses shall be made available to the

4 public.

5 SEC. 8. RECOMMENDATIONS FROM CONGRESSIONAL BUDG6 ET OFFICE.

7 After each accounting statement and associated re8 port is submitted to Congress, the Director of the Con9 gressional Budget Office shall make recommendations to

10 the President—

11 (1) for improving agency compliance with this

12 Act and the guidelines under section 6; and

13 (2) for improving accounting statements and

14 associated reports prepared under this Act, including

15 recommendations on level of detail, accuracy, and

16 quality of analysis.

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