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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2153 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2153

   To establish a National Regulatory Budget, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2014

   Mr. Rubio introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
   To establish a National Regulatory Budget, 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 ``National Regulatory Budget Act of 
2014''.

SEC. 2. ESTABLISHMENT OF THE OFFICE OF REGULATORY ANALYSIS.

    (a) In General.--Part I of title 5, United States Code, is amended 
by inserting after chapter 6 the following:

   ``CHAPTER 6A--NATIONAL REGULATORY BUDGET AND OFFICE OF REGULATORY 
                                ANALYSIS

``Sec.
``613. Definitions.
``614. Office of Regulatory Analysis; establishment; powers.
``615. Functions of Office of Regulatory Analysis; Executive branch 
                            agency compliance.
``616. Public disclosure of estimate methodology and data; privacy.
``617. National Regulatory Budget; timeline.
``618. Executive branch agency cooperation mandatory; information 
                            sharing.
``619. Enforcement.
``620. Regulatory Analysis Advisory Board.
``Sec. 613. Definitions
    ``In this chapter--
            ``(1) the term `aggregate costs', with respect to a covered 
        Federal rule, means the sum of--
                    ``(A) the direct costs of the covered Federal rule; 
                and
                    ``(B) the regulatory costs of the covered Federal 
                rule;
            ``(2) the term `covered Federal rule' means--
                    ``(A) a rule (as defined in section 551);
                    ``(B) an information collection requirement given a 
                control number by the Office of Management and Budget; 
                or
                    ``(C) guidance or a directive that--
                            ``(i) is not described in subparagraph (A) 
                        or (B);
                            ``(ii)(I) is mandatory in its application 
                        to regulated entities; or
                            ``(II) represents a statement of agency 
                        position that regulated entities would 
                        reasonably construe as reflecting the 
                        enforcement or litigation position of the 
                        agency; and
                            ``(iii) imposes not less than $25,000,000 
                        in annual costs on regulated entities;
            ``(3) the term `direct costs' means--
                    ``(A) expenditures made by an Executive branch 
                agency that relate to the promulgation, administration, 
                or enforcement of a covered Federal rule; or
                    ``(B) costs incurred by an Executive branch agency, 
                a Government corporation, the United States Postal 
                Service, or any other instrumentality of the Federal 
                Government because of a covered Federal rule;
            ``(4) the term `Director' means the Director of the Office 
        of Regulatory Analysis established under section 614(b);
            ``(5) the term `Executive branch agency' means--
                    ``(A) an Executive department (as defined in 
                section 101); and
                    ``(B) an independent establishment (as defined in 
                section 104);
            ``(6) the term `regulated entity' means--
                    ``(A) a for-profit private sector entity (including 
                an individual who is in business as a sole proprietor);
                    ``(B) a not-for-profit private sector entity; or
                    ``(C) a State or local government; and
            ``(7) the term `regulatory costs' means all costs incurred 
        by a regulated entity because of covered Federal rules.
``Sec. 614. Office of Regulatory Analysis; establishment; powers
    ``(a) Establishment.--There is established in the executive branch 
an independent establishment to be known as the `Office of Regulatory 
Analysis'.
    ``(b) Director.--
            ``(1) Establishment of position.--There shall be at the 
        head of the Office of Regulatory Analysis a Director, who shall 
        be appointed by the President, by and with the advice and 
        consent of the Senate.
            ``(2) Term.--
                    ``(A) In general.--The term of office of the 
                Director shall--
                            ``(i) be 4 years; and
                            ``(ii) expire on the last day of February 
                        following each Presidential election.
                    ``(B) Appointments prior to expiration of term.--
                Subject to subparagraph (C), an individual appointed as 
                Director to fill a vacancy prior to the expiration of a 
                term shall serve only for the unexpired portion of the 
                term.
                    ``(C) Service until appointment of successor.--An 
                individual serving as Director at the expiration of a 
                term may continue to serve until a successor is 
                appointed.
            ``(3) Powers.--
                    ``(A) Appointment of deputy directors, officers, 
                and employees.--
                            ``(i) In general.--The Director may appoint 
                        Deputy Directors, officers, and employees, 
                        including attorneys, in accordance with chapter 
                        51 and subchapter III of chapter 53.
                            ``(ii) Term of deputy directors.--A Deputy 
                        Director shall serve until the expiration of 
                        the term of office of the Director who 
                        appointed the Deputy Director (and until a 
                        successor to that Director is appointed), 
                        unless sooner removed by the Director.
                    ``(B) Contracting.--
                            ``(i) In general.--The Director may 
                        contract for financial and administrative 
                        services (including those related to budget and 
                        accounting, financial reporting, personnel, and 
                        procurement) with the General Services 
                        Administration, or such other Federal agency as 
                        the Director determines appropriate, for which 
                        payment shall be made in advance, or by 
                        reimbursement, from funds of the Office of 
                        Regulatory Analysis in such amounts as may be 
                        agreed upon by the Director and the head of the 
                        Federal agency providing the services.
                            ``(ii) Subject to appropriations.--Contract 
                        authority under clause (i) shall be effective 
                        for any fiscal year only to the extent that 
                        appropriations are available for that purpose.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Office of Regulatory Analysis for each fiscal year 
such sums as may be necessary to enable the Office of Regulatory 
Analysis to carry out its duties and functions.
``Sec. 615. Functions of Office of Regulatory Analysis; Executive 
              branch agency compliance
    ``(a) Annual Report Required.--
            ``(1) In general.--Not later than January 30 of each year, 
        the Director shall submit to the Committee on Homeland Security 
        and Governmental Affairs of the Senate, the Committee on Small 
        Business and Entrepreneurship of the Senate, the Committee on 
        Oversight and Government Reform of the House of 
        Representatives, and the Committee on Small Business of the 
        House of Representatives a Report on National Regulatory Costs 
        (referred to in this section as the `Report') that includes the 
        information specified under paragraph (2).
            ``(2) Contents.--Each Report shall include-
                    ``(A) an estimate, for the fiscal year during which 
                the Report is submitted and for the preceding fiscal 
                year, of--
                            ``(i) the regulatory costs imposed by each 
                        Executive branch agency on regulated entities;
                            ``(ii) the aggregate costs imposed by each 
                        Executive branch agency;
                            ``(iii) the aggregate costs imposed by all 
                        Executive branch agencies combined;
                            ``(iv) the direct costs incurred by the 
                        Federal Government because of covered Federal 
                        rules issued by each Executive branch agency;
                            ``(v) the sum of the costs described in 
                        clauses (iii) and (iv);
                            ``(vi) the regulatory costs imposed by each 
                        Executive branch agency on small businesses, 
                        small organizations, and small governmental 
                        jurisdictions (as those terms are defined in 
                        section 601); and
                            ``(vii) the sum of the costs described in 
                        clause (vi);
                    ``(B) an analysis of any major changes in 
                estimation methodology used by the Office of Regulatory 
                Analysis since the previous annual report;
                    ``(C) an analysis of any major estimate changes 
                caused by improved or inadequate data since the 
                previous annual report;
                    ``(D) recommendations, both general and specific, 
                regarding--
                            ``(i) how regulations may be streamlined, 
                        simplified, and modernized;
                            ``(ii) regulations that should be repealed; 
                        and
                            ``(iii) how the Federal Government may 
                        reduce the costs of regulations without 
                        diminishing the effectiveness of regulations; 
                        and
                    ``(E) any other information that the Director 
                determines may be of assistance to Congress in 
                determining the National Regulatory Budget required 
                under section 617.
    ``(b) Regulatory Analysis of New Rules.--
            ``(1) Requirement.--The Director shall publish in the 
        Federal Register and on the website of the Office of Regulatory 
        Analysis a regulatory analysis of each proposed covered Federal 
        rule issued by an Executive branch agency, and each proposed 
        withdrawal or modification of a covered Federal rule by an 
        Executive branch agency, that--
                    ``(A) imposes costs on a regulated entity; or
                    ``(B) reduces costs imposed on a regulated entity.
            ``(2) Contents.--Each regulatory analysis published under 
        paragraph (1) shall include--
                    ``(A) an estimate of the change in regulatory cost 
                of each proposed covered Federal rule (or proposed 
                withdrawal or modification of a covered Federal rule); 
                and
                    ``(B) any other information or recommendation that 
                the Director may choose to provide.
            ``(3) Timing of regulatory analysis.--
                    ``(A) Initial regulatory analysis.--Not later than 
                60 days after the date on which the Director receives a 
                copy of a proposed covered Federal rule from the head 
                of an Executive branch agency under paragraph (4), the 
                Director shall publish an initial regulatory analysis.
                    ``(B) Revised regulatory analysis.--The Director 
                may publish a revised regulatory analysis at any time.
            ``(4) Notice to director of proposed covered federal 
        rule.--The head of an Executive branch agency shall provide a 
        copy of each proposed covered Federal rule to the Director in a 
        manner prescribed by the Director.
    ``(c) Effective Dates.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        covered Federal rule may not take effect earlier than 75 days 
        after the date on which the head of the Executive branch agency 
        proposing the covered Federal rule submits a copy of the 
        proposed covered Federal rule to the Director in the manner 
        prescribed by the Director under subsection (b)(4).
            ``(2) Exception.--If the head of the Executive branch 
        agency proposing a covered Federal rule determines that the 
        public health or safety or national security requires that the 
        covered Federal rule be promulgated earlier than the date 
        specified under paragraph (1), the head of the Executive branch 
        agency may promulgate the covered Federal rule without regard 
        to paragraph (1).
``Sec. 616. Public disclosure of estimate methodology and data; privacy
    ``(a) Privacy.--The Director shall comply with all relevant privacy 
laws, including--
            ``(1) the Confidential Information Protection and 
        Statistical Efficiency Act of 2002 (44 U.S.C. 3501 note);
            ``(2) section 9 of title 13; and
            ``(3) section 6103 of the Internal Revenue Code of 1986.
    ``(b) Disclosure.--
            ``(1) In general.--To the maximum extent permitted by law, 
        the Director shall disclose, by publication in the Federal 
        Register and on the website of the Office of Regulatory 
        Analysis, the methodology and data used to generate the 
        estimates in the Report on National Regulatory Costs required 
        under section 615.
            ``(2) Goal of disclosure.--In disclosing the methodology 
        and data under paragraph (1), the Director shall seek to 
        provide sufficient information so that outside researchers may 
        replicate the results contained in the Report on National 
        Regulatory Costs.
``Sec. 617. National Regulatory Budget; timeline
    ``(a) Definition.--In this section--
            ``(1) the term `annual overall regulatory cost cap' means 
        the maximum amount of regulatory costs that all Executive 
        branch agencies combined may impose in a fiscal year;
            ``(2) the term `annual agency regulatory cost cap' means 
        the maximum amount of regulatory costs that an Executive branch 
        agency may impose in a fiscal year; and
            ``(3) the term `National Regulatory Budget' means an Act of 
        Congress that establishes, for a fiscal year--
                    ``(A) the annual overall regulatory cost cap; and
                    ``(B) an annual agency regulatory cost cap for each 
                Executive branch agency.
    ``(b) Committee Deadlines.--
            ``(1) Referral.--Not later than March 31 of each year--
                    ``(A) the Committee on Small Business and 
                Entrepreneurship of the Senate shall refer to the 
                Committee on Homeland Security and Governmental Affairs 
                of the Senate a bill that sets forth a National 
                Regulatory Budget for the fiscal year beginning on 
                October 1 of that year; and
                    ``(B) the Committee on Small Business of the House 
                of Representatives shall refer to the Committee on 
                Oversight and Government Reform of the House of 
                Representatives a bill that sets forth a National 
                Regulatory Budget for the fiscal year beginning on 
                October 1 of that year.
            ``(2) Reporting.--Not later than May 31 of each year--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate shall report a bill 
                establishing a National Regulatory Budget for the 
                fiscal year beginning on October 1 of that year; and
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives shall report a 
                bill establishing a National Regulatory Budget for the 
                fiscal year beginning on October 1 of that year.
    ``(c) Passage.--Not later than July 31 of each year, the House of 
Representatives and the Senate shall each pass a bill establishing a 
National Regulatory Budget for the fiscal year beginning on October 1 
of that year.
    ``(d) Presentment.--Not later than September 15 of each year, 
Congress shall pass and present to the President a National Regulatory 
Budget for the fiscal year beginning on October 1 of that year.
    ``(e) Default Budget.--
            ``(1) In general.--If a National Regulatory Budget is not 
        enacted with respect to a fiscal year, the most recently 
        enacted National Regulatory Budget shall apply to that fiscal 
        year.
            ``(2) Default initial budget.--
                    ``(A) Calculation.--If a National Regulatory Budget 
                is not enacted with respect to a fiscal year, and no 
                National Regulatory Budget has previously been 
                enacted--
                            ``(i) the annual agency regulatory cost cap 
                        for an Executive branch agency for the fiscal 
                        year shall be equal to the amount of regulatory 
                        costs imposed by that Executive branch agency 
                        on regulated entities during the preceding 
                        fiscal year, as estimated by the Director in 
                        the annual report submitted to Congress under 
                        section 615(a); and
                            ``(ii) the annual overall regulatory cost 
                        cap for the fiscal year shall be equal to the 
                        sum of the amounts described in clause (i).
                    ``(B) Effect.--For purposes of section 619, an 
                annual agency regulatory cost cap described in 
                subparagraph (A) that applies to a fiscal year shall 
                have the same effect as if the annual agency regulatory 
                cost cap were part of a National Regulatory Budget 
                applicable to that fiscal year.
    ``(f) Initial Budget.--The first National Regulatory Budget shall 
be with respect to fiscal year 2016.
``Sec. 618. Executive branch agency cooperation mandatory; information 
              sharing
    ``(a) Executive Branch Agency Cooperation Mandatory.--Not later 
than 45 days after the date on which the Director requests any 
information from an Executive branch agency, the Executive branch 
agency shall provide the Director with the information.
    ``(b) Memoranda of Understanding Regarding Confidentiality.--
            ``(1) In general.--An Executive branch agency may require 
        the Director to enter into a memorandum of understanding 
        regarding the confidentiality of information provided by the 
        Executive branch agency to the Director under subsection (a) as 
        a condition precedent to providing any requested information.
            ``(2) Degree of confidentiality or data protection.--An 
        Executive branch agency may not require a greater degree of 
        confidentiality or data protection from the Director in a 
        memorandum of understanding entered into under paragraph (1) 
        than the Executive branch agency itself must adhere to.
            ``(3) Scope.--A memorandum of understanding entered into by 
        the Director and an Executive branch agency under paragraph (1) 
        shall--
                    ``(A) be general in scope; and
                    ``(B) govern all pending and future requests made 
                to the Executive branch agency by the Director.
    ``(c) Sanctions for Non-Cooperation.--
            ``(1) In general.--The appropriations of an Executive 
        branch agency for a fiscal year shall be reduced by one-half of 
        1 percent if, during that fiscal year, the Director finds 
        that--
                    ``(A) the Executive branch agency has failed to 
                timely provide information that the Director requested 
                under subsection (a);
                    ``(B) the Director has provided notice of the 
                failure described in subparagraph (A) to the Executive 
                branch agency;
                    ``(C) the Executive branch agency has failed to 
                cure the failure described in subparagraph (A) within 
                30 days of being notified under subparagraph (B); and
                    ``(D) the information that the Director requested 
                under subsection (a)--
                            ``(i) is in the possession of the Executive 
                        branch agency; or
                            ``(ii) may reasonably be developed by the 
                        Executive branch agency.
            ``(2) Sequestration.--The Office of Management and Budget, 
        in consultation with the Office of Federal Financial Management 
        and Financial Management Service, shall enforce a reduction in 
        appropriations under paragraph (1) by sequestering the 
        appropriate amount of funds and returning the funds to the 
        Treasury.
            ``(3) Appeals.--
                    ``(A) In general.--The Director of the Office of 
                Management and Budget may reduce the amount of, or 
                except as provided in subparagraph (B), waive, a 
                sanction imposed under paragraph (1) if the Director of 
                the Office of Management and Budget finds that--
                            ``(i) the sanction is unwarranted;
                            ``(ii) the sanction is disproportionate to 
                        the gravity of the failure;
                            ``(iii) the failure has been cured; or
                            ``(iv) providing the requested information 
                        would adversely affect national security.
                    ``(B) No waiver for historically non-compliant 
                agencies.--The Director of the Office of Management and 
                Budget may not waive a sanction imposed on an Executive 
                branch agency under paragraph (1) if the Executive 
                branch agency has a history of non-compliance with 
                requests for information by the Director of the Office 
                of Regulatory Analysis under subsection (a).
    ``(d) National Security.--The Director may not require an Executive 
branch agency to provide information under subsection (a) that would 
adversely affect national security.
``Sec. 619. Enforcement
    ``(a) Exceeding Annual Agency Regulatory Cost Cap.--An Executive 
branch agency that exceeds the annual agency regulatory cost cap 
imposed by the National Regulatory Budget for a fiscal year may not 
promulgate a new covered Federal rule that increases regulatory costs 
until the Executive branch agency no longer exceeds the annual agency 
regulatory cost cap imposed by the applicable National Regulatory 
Budget.
    ``(b) Determination of Director.--
            ``(1) In general.--An Executive branch agency may not 
        promulgate a covered Federal rule unless the Director 
        determines, in conducting the regulatory analysis of the 
        covered Federal rule under section 615(b)(3)(A) that, after the 
        Executive branch agency promulgates the covered Federal rule, 
        the Executive branch agency will not exceed the annual agency 
        regulatory cost cap for that Executive branch agency.
            ``(2) Timing.--The Director shall make a determination 
        under paragraph (1) with respect to a proposed covered Federal 
        rule not later than 60 days after the Director receives a copy 
        of the proposed covered Federal rule under section 615(b)(4).
    ``(c) Effect of Violation of This Section.--
            ``(1) No force or effect.--A covered Federal rule that is 
        promulgated in violation of this section shall have no force or 
        effect.
            ``(2) Judicial enforcement.--Any party may bring an action 
        in a district court of the United States to declare that a 
        covered Federal rule has no force or effect because the covered 
        Federal rule was promulgated in violation of this section.
``Sec. 620. Regulatory Analysis Advisory Board
    ``(a) Establishment of Board.--In accordance with the Federal 
Advisory Committee Act (5 U.S.C. App.), the Director shall--
            ``(1) establish a Regulatory Analysis Advisory Board; and
            ``(2) appoint not fewer than 9 and not more than 15 
        individuals as members of the Regulatory Analysis Advisory 
        Board.
    ``(b) Qualifications.--The Director shall appoint individuals with 
technical and practical expertise in economics, law, accounting, 
science, management, and other areas that will aid the Director in 
preparing the annual Report on National Regulatory Costs required under 
section 615.''.
    (b) Technical and Conforming Amendments.--
            (1) Table of chapters.--The table of chapters for part I of 
        title 5, United States Code, is amended by inserting after the 
        item relating to chapter 6 the following:

``6A.  National Regulatory Budget and Office of Regulatory       613''.
                            Analysis.
            (2) Internal revenue code of 1986.--Section 6103(j) of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following:
            ``(7) Office of regulatory analysis.--Upon written request 
        by the Director of the Office of Regulatory Analysis 
        established under section 614 of title 5, United States Code, 
        the Secretary shall furnish to officers and employees of the 
        Office of Regulatory Analysis return information for the 
        purpose of, but only to the extent necessary for, an analysis 
        of regulatory costs.''.

SEC. 3. REPORT ON DUPLICATIVE PERSONNEL; REPORT ON REGULATORY ANALYSIS.

    (a) Report on Duplicative Personnel.--Not later than December 31, 
2014, the Director shall submit to Congress a report determining 
positions in the Federal Government that are--
            (1) duplicative of the work performed by the Office of 
        Regulatory Analysis established under section 614 of title 5, 
        United States Code; or
            (2) otherwise rendered cost ineffective by the work of the 
        Office of Regulatory Analysis.
    (b) Report on Regulatory Analysis.--
            (1) Report required.--Not later than June 30, 2015, the 
        Director shall provide to Congress a report analyzing the 
        practice with respect to, and the effectiveness of--
                    (A) chapter 6 of this title (commonly known as the 
                ``Regulatory Flexibility Act'');
                    (B) the Small Business Regulatory Enforcement 
                Fairness Act of 1996 (5 U.S.C. 601 note);
                    (C) chapter 35 of title 44 (commonly known as the 
                ``Paperwork Reduction Act'';
                    (D) each Executive order that mandates economic 
                analysis of Federal regulations; and
                    (E) Office of Management and Budget circulars, 
                directives, and memoranda that mandate the economic 
                analysis of Federal regulation.
            (2) Recommendations.--The report under paragraph (1) shall 
        include recommendations about how Federal regulatory analysis 
        may be improved.

SEC. 4. ADMINISTRATIVE PROCEDURE.

    (a) Definition of ``Rule''.--Section 551(4) of title 5, United 
States Code, is amended by inserting after ``requirements of an 
agency'' the following: ``, whether or not the agency statement amends 
the Code of Federal Regulations and including, without limitation, a 
statement described by the agency as a regulation, rule, directive, or 
guidance,''.
    (b) Notice of Proposed Rulemaking.--Section 553(b) of title 5, 
United States Code, is amended, following the flush text, in 
subparagraph (A) by striking ``interpretative rules, general statements 
of policy, or''.
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