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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2161 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Regulatory Right-to-Know Act of 
1998''.

SEC. 2. PURPOSES.

    The purposes of this Act are to--
            (1) promote the public right-to-know about the costs and 
        benefits of Federal regulatory programs and rules;
            (2) improve the quality of Federal regulatory programs and 
        rules;
            (3) increase Government accountability; and
            (4) encourage open communication among Federal agencies, 
        the public, the President, and Congress regarding regulatory 
        priorities.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency'' means any executive 
        department, military department, Government corporation, 
        Government controlled corporation, or other establishment in 
        the executive branch of the Government (including the Executive 
        Office of the President), or any independent regulatory agency, 
        but shall not include--
                    (A) the General Accounting Office;
                    (B) the Federal Election Commission;
                    (C) the governments of the District of Columbia and 
                of the territories and possessions of the United 
                States, and their various subdivisions; or
                    (D) Government-owned contractor-operated 
                facilities, including laboratories engaged in national 
                defense research and production activities.
            (2) Benefit.--The term ``benefit'' means the reasonably 
        identifiable significant favorable effects, quantifiable and 
        nonquantifiable, including social, health, safety, 
        environmental, economic, and distributional effects, that are 
        expected to result from implementation of, or compliance with, 
        a rule.
            (3) Cost.--The term ``cost'' means the reasonably 
        identifiable significant adverse effects, quantifiable and 
        nonquantifiable, including social, health, safety, 
        environmental, economic, and distributional effects, that are 
        expected to result from implementation of, or compliance with, 
        a rule.
            (4) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget, acting through the 
        Administrator of the Office of Information and Regulatory 
        Affairs.
            (5) Major rule.--The term ``major rule'' means a rule 
        that--
                    (A) the agency proposing the rule or the Director 
                reasonably determines is likely to have an annual 
                effect on the economy of $100,000,000 or more in 
                reasonably quantifiable costs; or
                    (B) is otherwise designated a major rule by the 
                Director on the ground that the rule is likely to 
                adversely affect, in a material way, the economy, a 
                sector of the economy, including small business, 
                productivity, competition, jobs, the environment, 
                public health or safety, or State, local, or tribal 
                governments, or communities.
            (6) Program element.--The term ``program element'' means a 
        rule or related set of rules.
            (7) Rule.--The term ``rule'' has the same meaning given 
        such term in section 551(4) of title 5, United States Code, 
        except that such term shall not include--
                    (A) administrative actions governed by sections 556 
                and 557 of title 5, United States Code;
                    (B) rules issued with respect to a military or 
                foreign affairs function of the United States; or
                    (C) rules related to agency organization, 
                management, or personnel.

SEC. 4. ACCOUNTING STATEMENT.

    (a) In General.--
            (1) Administration.--The President, acting through the 
        Director, shall be responsible for implementing and 
        administering the requirements of this Act.
            (2) Accounting statement.--Not later than January 2000, and 
        each January every 2 years thereafter, the President shall 
        prepare and submit to Congress an accounting statement that 
        estimates the costs and corresponding benefits of Federal 
        regulatory programs and program elements in accordance with 
        this section.
    (b) Years Covered by Accounting Statement.--Each accounting 
statement (other than the initial accounting statement) submitted under 
this Act shall cover, at a minimum, the costs and corresponding 
benefits for each of the 5 fiscal years preceding October 1 of the year 
in which the report is submitted. Each statement shall also contain, at 
a minimum, a projection of the costs and corresponding benefits for 
each of the next 10 fiscal years, based on rules in effect or projected 
to take effect. The statement may cover any fiscal year preceding such 
fiscal years for the purpose of revising previous estimates.
    (c) Timing and Procedures.--
            (1) Notice and comment.--The President shall provide notice 
        and opportunity for comment, including consultation with the 
        Comptroller General of the United States, for each accounting 
        statement.
            (2) Timing.--The President shall propose the first 
        accounting statement under this section no later than 1 year 
        after the date of enactment of this Act. Such statement shall 
        cover, at a minimum, each of the preceding fiscal years 
        beginning with fiscal year 1997.
    (d) Contents of Accounting Statement.--
            (1) Estimates of costs.--An accounting statement shall 
        estimate the costs of all Federal regulatory programs and 
        program elements, including paperwork costs, by setting forth, 
        for each year covered by the statement--
                    (A) the annual expenditure of national economic 
                resources for each regulatory program and program 
                elements; and
                    (B) such other quantitative and qualitative 
                measures of costs as the President considers 
                appropriate.
            (2) Estimates of benefits.--An accounting statement shall 
        estimate the corresponding benefits of Federal regulatory 
        programs and program elements by setting forth, for each year 
        covered by the statement, such quantitative and qualitative 
        measures of benefits as the President considers appropriate. 
        Any estimates of benefits concerning reduction in health, 
        safety, or environmental risks shall be based on sound and 
        objective scientific practices and shall present the most 
        plausible level of risk practical, along with a statement of 
        the reasonable degree of scientific certainty.
            (3) Presentation of results.--
                    (A) Costs and benefits categories.--To the extent 
                feasible, the costs and benefits under this subsection 
                shall be listed under the following categories:
                            (i) In the aggregate.
                            (ii) By agency, agency program, and program 
                        element.
                            (iii) By major rule.
                    (B) Quantification.--To the extent feasible, the 
                Director shall quantify the net benefits or net costs 
                under subparagraph (A).
                    (C) Cost estimates.--In presenting estimates of 
                costs in the accounting statement, the Director shall 
                provide estimates for the following sectors:
                            (i) Private sector costs.
                            (ii) Federal sector administrative costs.
                            (iii) Federal sector compliance costs.
                            (iv) State and local government 
                        administrative costs.
                            (v) State and local government compliance 
                        costs.

SEC. 5. ASSOCIATED REPORT TO CONGRESS.

    (a) In General.--
            (1) Submission.--In each year following the year in which 
        the President submits an accounting statement under section 4, 
        the President, acting through the Director, shall, after notice 
        and opportunity for comment, submit to Congress a report 
        associated with the accounting statement (hereinafter referred 
        to as an ``associated report'').
            (2) Content.--The associated report shall contain, in 
        accordance with this section--
                    (A) analyses of impacts;
                    (B) identification and analysis of jurisdictional 
                overlaps, duplications, and potential inconsistencies 
                among Federal regulatory programs; and
                    (C) recommendations for reform.
    (b) Analyses of Impacts.--The President shall include in the 
associated report the following:
            (1) Analyses.--Analyses prepared by the president of the 
        cumulative impact of Federal regulatory programs covered in the 
        accounting statement. Factors to be considered in such report 
        shall include impacts on the following:
                    (A) The ability of State and local governments to 
                provide essential services, including police, fire 
                protection, and education.
                    (B) Small business.
                    (C) Productivity.
                    (D) Wages.
                    (E) Economic growth.
                    (F) Technological innovation.
                    (G) Employment and income distribution.
                    (H) Consumer prices for goods and services.
                    (I) Such other factors considered appropriate by 
                the President.
            (2) Summary.--A summary of any independent analyses of 
        impacts prepared by persons commenting during the comment 
        period on the accounting statement.
    (c) Recommendations for Reform.--The President shall include in the 
associated report the following:
            (1) Presidential recommendations.--A summary of 
        recommendations of the President for reform or elimination of 
        any Federal regulatory program or program element that does not 
        represent sound use of national economic resources or otherwise 
        is inefficient.
            (2) Recommendations from commenters.--A summary of any 
        recommendations for such reform or elimination of Federal 
        regulatory programs or program elements prepared by persons 
        commenting during the comment period on the accounting 
        statement.

SEC. 6. GUIDANCE FROM OFFICE OF MANAGEMENT AND BUDGET.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Director shall, in consultation with the 
Council of Economic Advisers, issue guidelines to agencies--
            (1) to standardize measures of costs and benefits in 
        accounting statements prepared pursuant to this Act, including 
        guidance on estimating the costs and corresponding benefits of 
        regulatory programs and program elements; and
            (2) to standardize the format of the accounting statements.
    (b) Review.--The Director shall review submissions from agencies to 
assure consistency with the guidelines under this section.

SEC. 7. PEER REVIEW.

    (a) In General.--
            (1) Scope.--The Director shall provide for independent and 
        external peer review of--
                    (A) the guidelines issued under section 6; and
                    (B) each accounting statement and associated 
                report.
            (2) Use of comments.--The Director shall use the peer 
        review comments in preparing the final statement and report.
    (b) Review.--Peer review under subsection (a) shall--
            (1) involve participants who--
                    (A) have expertise in the economic and technical 
                issues germane to regulatory accounting and economic 
                and scientific analysis; and
                    (B) are independent of the Government;
            (2) be completed in a timely manner, consistent with 
        applicable deadlines;
            (3) provide written comments to the Director containing a 
        balanced presentation of all considerations; and
            (4) not be subject to the Federal Advisory Committee Act (5 
        U.S.C. App.).
    (c) Response.--The Director shall provide a written response to all 
significant peer review comments. Such comments and responses shall be 
made available to the public.

SEC. 8. RECOMMENDATIONS FROM CONGRESSIONAL BUDGET OFFICE.

    After each accounting statement and associated report is submitted 
to Congress, the Director of the Congressional Budget Office shall make 
recommendations to the President--
            (1) for improving agency compliance with this Act and the 
        guidelines under section 6; and
            (2) for improving accounting statements and associated 
        reports prepared under this Act, including recommendations on 
        level of detail, accuracy, and quality of analysis.
                                 <all>
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