Regulatory Cost Assessment Act of 2014

To amend the Congressional Budget Act of 1974 to establish a Federal regulatory budget and to impose cost controls on that budget, and for other purposes. 1. Short title This Act may be cited as the Regulatory Cost Assessment Act of 2014 2. Amendments to the Congressional Budget Act of 1974 (a) Federal regulatory budget cost control system Title III of the Congressional Budget Act of 1974 is amended— (1) by inserting before section 300 the following: A General provisions ; and (2) by adding at the end the following new part: B Federal regulatory budget cost control 321. Definitions In this part— (1) the term CBO (2) the term direct cost of Federal regulation (3) the term Federal regulation, rule, statement, or legislation (A) includes any guidance document issued after notice and an opportunity for comment in accordance with the requirements for the promulgation of a rule under chapter 5 of title 5, United States Code; and (B) does not include a Federal regulation, rule, statement, or legislation applying to— (i) the military; or (ii) agency organization, management, or personnel; (4) the term Federal regulatory cost (A) means all costs incurred by, and expenditures required of, the private sector in complying with any Federal regulation, rule, statement, or legislation; and (B) does not include the value of any benefit under the Federal regulation, rule, statement, or legislation; (5) the term gross domestic product (6) the term OMB (7) the term regulatory baseline 322. OMB–CBO reports Not later than 1 year after the date of enactment of this section, and not later than September 15th of each odd-numbered year thereafter, OMB and CBO shall jointly submit to the President, the Senate, and the House of Representatives a report that includes— (1) a projection of the direct cost of Federal regulation and the Federal regulatory cost for the first fiscal year beginning after the date of the report and at least each of the 4 ensuing fiscal years; (2) a calculation of the estimated direct cost of Federal regulation and Federal regulatory cost as a percentage of the gross domestic product; (3) the reduction in estimated gross domestic product attributable to private sector compliance with all Federal regulations, rules, statements, or legislation; (4) a detailed description of the effect on the economy of the United States of Federal regulations, rules, statements, and legislation, which shall be categorized as relating to— (A) regulation of the economy; (B) security, including homeland security; (C) the environment; (D) health and safety; or (E) the Federal budget; (5) a discussion of the expected reduction in personnel, administrative overhead, and programmatic costs that would be achieved by Federal agencies that issue regulations, rules, or statements with a Federal regulatory cost if the Federal agencies reduced the Federal regulatory cost by 5 percent; and (6) recommendations for budgeting, technical, and estimating changes to improve the Federal regulatory budgeting process. 323. Regulatory baseline (a) In general For the first fiscal year that begins at least 120 days after the date of enactment of this section and for every second fiscal year thereafter, CBO, in consultation with OMB, shall submit to the President, the Senate, and the House of Representatives a regulatory baseline, consisting of a projection of the Federal regulatory cost for the fiscal year and at least each of the 4 ensuing fiscal years. In preparing the projection of the regulatory baseline under this subsection, for the second fiscal year covered under the projection and each fiscal year thereafter, CBO shall adjust the baseline for the estimated growth during that fiscal year in the gross domestic product. (b) Deadlines The CBO shall submit the regulatory baselines required under subsection (a)— (1) for the first regulatory baseline, not later than 30 days after the date of enactment of this section; and (2) for the second regulatory baseline and each regulatory baseline thereafter, not later than September 15 of the fiscal year before the first fiscal year covered under the regulatory baseline. 324. Establishment of level and allocations (a) Establishment of level (1) In general In addition to the requirements under section 301, a concurrent resolution on the budget for a fiscal year shall set forth the appropriate level for the Federal regulatory cost for the fiscal year and for at least each of the 4 ensuing fiscal years. (2) Default total If there is not a level for the Federal regulatory cost that is in effect for a fiscal year under a concurrent resolution on the budget— (A) for the first fiscal year that begins at least 120 days after the date of enactment of this section, the appropriate level for the Federal regulatory cost for the fiscal year shall be the amount of the first regulatory baseline submitted under section 323; and (B) for each fiscal year after the fiscal year described in subparagraph (A), the appropriate level for the Federal regulatory cost for the fiscal year shall be the level for the most recent fiscal year for which such a level was in effect (under subparagraph (A), this subparagraph, or a concurrent resolution on the budget). (b) Allocation of totals (1) In general For the first fiscal year that begins at least 120 days after the date of enactment of this section, and each fiscal year thereafter, the Committee on the Budget of the Senate and the Committee on the Budget of the House of Representatives shall each allocate among each committee of its House and by major functional category the Federal regulatory cost in effect under subsection (a) for such fiscal year and at least each of the 4 ensuing fiscal years. (2) Suballocations As soon as practicable after receiving an allocation under paragraph (1), each committee shall subdivide its allocation among its subcommittees or among programs over which the committee has jurisdiction. (c) Point of order (1) In general It shall not be in order in the Senate or the House of Representatives to consider any bill or resolution, or amendment thereto, which would cause an allocation or suballocation of the Federal regulatory cost made under subsection (b) for a fiscal year to be exceeded. (2) Waiver A point of order under paragraph (1) may only be waived by the affirmative vote of three-fifths of the Members, duly chosen and sworn. (d) Determinations by budget committees For purposes of this section, the amount of the Federal regulatory cost for a fiscal year and the amount of the Federal regulatory cost of a bill or resolution, or amendment thereto, shall be determined by the Committee on the Budget of the Senate or the Committee on the Budget of the House of Representatives, as the case may be. 325. Analysis of Federal regulatory cost by congressional budget office (a) In general CBO shall prepare for each bill or resolution of a public character reported by any committee of the Senate or the House of Representatives (except the Committee on Appropriations of each House), and submit to such committee— (1) an estimate of the costs which would be incurred by the private sector in carrying out or complying with such bill or resolution in the fiscal year in which it is to become effective and in each of the 4 fiscal years following such fiscal year, which shall include a discussion of the methodology used to prepare, and the basis for, each such estimate; and (2) a comparison of the estimate of costs described in paragraph (1) with any available estimates of costs made by such committee or by any Federal agency. (b) Look-Back reviews CBO shall periodically submit to Congress a report that— (1) reviews a sample of laws of a public character for which an estimate was prepared under subsection (a)(1); and (2) compares the estimates of the costs described in paragraphs (1) and (2) of subsection (a) and the actual costs incurred by the private sector in carrying out or complying with the law in the fiscal year in which it took effect and in each of the 4 fiscal years following such fiscal year. . 3. President's annual budget submissions Section 1105(a) (1) by redesignating the second paragraph designated as paragraph (37), relating to outdated or duplicative plans and reports, as added by section 11 of the GPRA Modernization Act of 2010 ( Public Law 111–352 (2) by adding at the end the following: (40) a regulatory authority budget analysis of the Federal regulatory cost (as defined in section 321 of the Congressional Budget Act of 1974) of complying with all current and proposed Federal regulations and proposals for complying with section 324 of the Congressional Budget Act of 1974 for the fiscal year for which the budget is submitted and the 4 fiscal years after that year. . 4. Estimation and disclosure of costs of federal regulation (a) Costs to private sector of new federal regulations Chapter 6 Regulatory Flexibility Act (1) in section 603— (A) in subsection (a), in the second sentence, by inserting before the period the following: and shall discuss in detail whether the cost to businesses of complying with the proposed rule will vary depending on the size of the business and, if so, to what extent the cost will vary and what factors contribute to the variation (B) in subsection (c)— (i) by redesignating paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D), respectively, and adjusting the margin accordingly; (ii) by inserting (1) (c) (iii) by striking Consistent with the (2) The analysis of significant alternatives to the proposed rule shall include a detailed analysis of the costs and benefits of the proposed rule and each alternative, which shall separately address the costs and benefits for each industry. (3) Consistent with the ; and (C) by adding at the end the following: (e) Each initial regulatory flexibility analysis shall also contain a description of the nature and amount of monetary costs that will be incurred by small entities, other businesses, and individuals in complying with the proposed rule. ; (2) in section 604(a)— (A) in the first paragraph designated as paragraph (6) (relating to minimization of significant economic impacts), by striking and (B) by redesignating the second paragraph (6) (relating to covered agencies), as paragraph (8); and (C) by inserting after paragraph (6) the following: (7) a statement of the nature and amount of monetary costs that will be incurred by small entities, other businesses, and individuals in complying with the rule; and ; and (3) in section 607, by inserting before the period the following: , except that estimates of monetary costs under sections 603(d) and 604(a)(7) shall only be in the form of a numerical description (b) Agency reports Each agency that prepares an initial regulatory flexibility analysis under chapter 6 5. Guidance documents (a) Definitions In this section— (1) the terms agency rule section 551 (2) the term guidance document (b) Limitation on guidance documents An agency may not issue a guidance document unless the agency— (1) issues the guidance document after notice and an opportunity for comment in accordance with the requirements for the promulgation of a rule under chapter 5 (2) before the effective date of the guidance document, submits to Congress a report that— (A) certifies that the guidance document is not a rule; and (B) explains in detail why the guidance document does not satisfy the definition of a rule. 6. Study of nonmajor rules (a) Definitions In this section— (1) the term agency section 551 (2) the term covered guidance document (3) the term covered nonmajor rule (4) the term guidance document (5) the term Federal regulatory cost (6) the term rule section 804 (b) Reports Not later than 120 days after the date of enactment of this Act and every 2 years thereafter, the Comptroller General of the United States shall submit to Congress a report regarding covered nonmajor rules and covered guidance documents, which shall include, for the 4-year period immediately preceding the report— (1) the number of covered nonmajor rules promulgated; (2) the number of covered nonmajor rules implemented; (3) the number of covered guidance documents developed; (4) the number of covered guidance documents issued; (5) the Federal regulatory cost of each covered nonmajor rule implemented; (6) the Federal regulatory cost of each covered guidance document issued; (7) the aggregate Federal regulatory cost of all covered nonmajor rules implemented; (8) the aggregate Federal regulatory cost of all covered guidance documents issued; and (9) a discussion of any covered nonmajor rule for which an initial regulatory flexibility analysis was prepared under section 603 section 604

Summary: Regulatory Cost Assessment Act of 2014 - Amends the Congressional Budget Act of 1974 to establish and enforce a federal regulatory budget. Requires the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) to submit jointly to the President and Congress an analysis of the cost and economic effects of federal regulations, including recommendations for improvements to the regulatory budgeting process. Requires CBO to submit: (1) a baseline projecting the federal regulatory cost over at least five fiscal years, (2) analysis of the regulatory cost of legislation reported by congressional committees, and (3) look-back reviews comparing CBO estimates with actual costs. Requires a concurrent resolution on the budget to include levels for the federal regulatory cost for at least five fiscal years. Establishes a process for allocating the totals among congressional committees and subcommittees, programs, and major functional categories. Establishes a point of order against legislation that would cause the allocations to be exceeded and specifies requirements for waiving the point of order. Requires the President's budget to include an analysis of the cost of compliance with current and proposed federal regulations and proposals for complying with the levels and allocations established under this Act. Amends the Regulatory Flexibility Act to require agencies to provide additional analysis of the private sector costs for compliance with new regulations. Requires federal agencies and the Government Accountability Office to provide reports and cost estimates for specified regulations.