I
103D CONGRESS
1ST SESSION
H. R. 3005
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.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 6, 1993
Mr. SMITH of Texas (for himself, Mr. KASICH, Mr. COX, and Mr. FRANKS
of New Jersey) introduced the following bill; which was referred jointly
to the Committees on Government Operations, Rules, and the Judiciary
A BILL
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Regulation
Reduction, Reform, and Budget Act of 1993’’.
SEC. 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 by inserting before section 300 the fol-
lowing new center heading ‘‘PART A—GENERAL
PROVISIONS’’ and by adding at the end the following
new part:
‘‘PART B—FEDERAL REGULATORY BUDGET COST
CONTROL
SEC. 321. OMB-CBO REPORTS.
‘‘(a) OMB-CBO INITIAL REPORT.—Within 1 year
after the date of enactment of this section, OMB and CBO
shall jointly issue a report to the President and each
House of Congress that contains the following:
‘‘(1) For the first budget year beginning after
the issuance of this report, a projection of the aggre-
gate direct cost to the private sector of complying
with all Federal regulations in effect immediately be-
fore issuance of the report containing the projection
for that budget year of the effect of current-year
Federal regulations into the budget year and the
outyears based on those regulations.
‘‘(2) A calculation of the estimated aggregate
direct cost to the private sector of compliance with
all Federal regulations as a percentage of the gross
domestic product (GDP).
‘‘(3) The estimated marginal cost (measured as
a reduction in estimated gross domestic product) to
the private sector of compliance with all Federal reg-
ulations in excess of 5 percent of the gross domestic
product.
‘‘(4) The effect on the domestic economy of dif-
ferent types of Federal regulation.
‘‘(5) The appropriate level of personnel, admin-
istrative overhead, and programmatic savings that
should be achieved on a fiscal year by fiscal year
basis by Federal agencies that issue regulations with
direct costs to the private sector through the reduc-
tion of such aggregate costs to the private sector by
equal percentage increments in the 6 years following
the budget year until the aggregate level of such
costs does not exceed 5 percent of the estimated
gross domestic product for the same fiscal year as
the estimated costs that will be incurred.
‘‘(6) Recommendations for budgeting, technical,
and estimating changes to improve the Federal regu-
latory budgeting process.
‘‘(b) UPDATE REPORTS.—OMB and CBO shall issue
update reports on September 15th of the fifth year begin-
ning after issuance of the initial report and at 5-year in-
tervals thereafter containing all the information required
in the initial report, but based upon all Federal regula-
tions in effect immediately before issuance of the most
recent update report.
‘‘(c) INITIAL BASELINE REPORT.—Within 30 days
after the date of enactment of this section, OMB and CBO
shall jointly issue a report to the President and each
House of Congress that contains an initial aggregate regu-
latory baseline for the first budget year that begins at
least 120 days after that date of enactment. That baseline
will be a projection of the aggregate direct cost to the pri-
vate sector of complying with all Federal regulations in
effect immediately before issuance of the report containing
the projection for that budget year of the effect of current-
year Federal regulations into the budget year and the out-
years based on those regulations.
‘‘SEC. 322. AGGREGATE REGULATORY BASELINE.
‘‘(a) IN GENERAL.—For the first budget year begin-
ning after the date of enactment of this section and for
every other fiscal year thereafter, the aggregate regulatory
baseline refers to a projection of the aggregate direct cost
to the private sector of complying with all Federal regula-
tions in effect immediately before issuance of the report
containing the projection for that budget year of the effect
of current-year Federal regulations into the budget year
and the outyears based on those regulations. However, in
the case of each of the succeeding fiscal years, the baseline
shall be adjusted for the estimated growth during that
year in the gross domestic product (GDP)
‘‘(b) OMB-CBO AGGREGATE REGULATORY BASE-
LINE REPORTS.—(1) The first budget year for which there
shall be an aggregate regulatory baseline shall be the
budget year to which the initial OMB-CBO baseline report
issued under section 321(c) pertains.
‘‘(2) In the case of each budget year after the budget
year referred to in paragraph (1), not later than Septem-
ber 15 of the current year, OMB and CBO shall jointly
issue a report containing the baseline referred to in sub-
section (a) for that budget year.
‘‘SEC. 323. RECONCILIATION AND ALLOCATIONS.
‘‘(a) RECONCILIATION DIRECTIVES.—In addition to
the requirements of section 310, a concurrent resolution
on the budget for any fiscal year shall specify—
‘‘(1) changes in laws and regulations necessary
to reduce the aggregate direct cost to the private
sector of complying with all Federal regulations by
6.5 percent for the budget year (as measured
against the aggregate regulatory baseline for the
first budget year to which this part applies) and by
equal percentage increments for each of the outyears
(until the aggregate level of such costs does not ex-
ceed 5 percent of the estimated gross domestic prod-
uct for the same fiscal year as the estimated costs
that will be incurred) for Federal agencies that issue
regulations producing direct costs to the private sec-
tor; and
‘‘(2) changes in laws necessary to achieve re-
ductions in the level of personnel and administrative
overhead and to achieve programmatic savings for
the budget year and the outyears for those agencies
of the following:
‘‘(A) In the first outyear, one-fourth of the
percent of reduction in regulatory authority
from the aggregate regulatory base.
‘‘(B) In the second outyear, one-third of
the percent of reduction in regulatory authority
from the aggregate regulatory base.
‘‘(C) In the third, fourth, fifth, and sixth
years following the budget year, one-half of the
percent of reduction in regulatory authority
from the aggregate regulatory base.
Section 310(c) shall not apply with respect to directions
made under this section.
‘‘(b) ALLOCATION OF TOTALS.—(1) The Committees
on the Budget of the House or Representatives and the
Senate shall each allocate aggregate 2-year regulatory au-
thority among each committee of its House and by major
functional category for the first budget year beginning
after the date of enactment of this section and for the
second, fourth, and sixth years following the budget year
and then every other year thereafter.
‘‘(2) As soon as practicable after receiving an alloca-
tion under paragraph (1), each committee shall subdivide
its allocation among its subcommittees or among pro-
grams over which it has jurisdiction.
‘‘(c) POINT OF ORDER.—(1) It shall not be in order
in the House of Representatives or the Senate to consider
any bill or resolution, or amendment thereto, which would
cause the appropriate allocation made under subsection
(b) for a fiscal year of regulatory authority to be exceeded.
‘‘(2) WAIVER.—The point of order set forth in para-
graph (1) may only be waived by the affirmative vote of
at least three-fifths of the Members voting, a quorum
being present.
‘‘(d) DETERMINATIONS BY BUDGET COMMITTEES.—
For purposes of this section, the level of regulatory au-
thority for a fiscal year shall be determined by the Com-
mittee on the Budget of the House of Representatives or
the Senate, as the case may be.
‘‘(e) EXCEEDING ALLOCATION TOTALS.—Whenever
any Committee of the House of Representatives exceeds
its allocation of aggregate 2-year regulatory authority
under subsection (b)(1), any Member of the House of Rep-
resentatives may offer a bill in the House (which shall be
highly privileged, unamendable, and debateable for 30
minutes) which shall only prohibit the issuance of regula-
tions by any agency under the jurisdiction of that commit-
tee for the fiscal years covered by that allocation until that
committee eliminates its breach.
‘‘SEC. 324. ANALYSIS OF REGULATORY COSTS BY CONGRES-
SIONAL BUDGET OFFICE.
‘‘CBO shall prepare for each bill or resolution of a
public character reported by any committee of the House
of Representatives or the Senate (except the Committee
on Appropriations of each House), and submit to such
committee—
‘‘(1) an estimate of the costs which would be in-
curred by the private sector in carrying out or com-
plying 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, together
with the basis of each such estimate; and
‘‘(2) a comparison of the estimate of costs de-
scribed in paragraph (1) with any available esti-
mates of costs made by such committee or by any
Federal agency.
‘‘SEC. 325. DEFINITIONS.
‘‘As used in this part:
‘‘(1) The term ‘CBO’ refers to the Director of
the Congressional Budget Office.
‘‘(2) The term ‘OMB’ refers to the Director of
the Office of Management and Budget.
‘‘(3) The term ‘regulatory authority’ or ‘regu-
latory cost’ means the direct cost to the private sec-
tor of complying with Federal regulations.
‘‘(4) The term ‘direct costs’ means (recognizing
that direct costs are not the only costs associated
with Federal regulation) all expenditures occurring
as a direct result of complying with Federal regula-
tion, rule, statement, or legislation, except those ap-
plying to the military or agency organization, man-
agement, and personnel.’’.
SEC. 3. PRESIDENT’S ANNUAL BUDGET SUBMISSIONS.
Section 1105(a) of title 31, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(29) a regulatory authority budget analysis of
the aggregate direct cost to the private sector of
complying with all current and proposed Federal
regulations and proposals for complying with section
323 of the Congressional Budget Act of 1974 for the
budget year and the outyears.’’
SEC. 4. ESTIMATION AND DISCLOSURE OF COSTS OF FED-
ERAL REGULATION.
(a) COSTS TO PRIVATE SECTOR OF NEW FEDERAL
REGULATIONS.—Chapter 6 of title 5, United States Code,
popularly known as the ‘‘Regulatory Flexibility Act’’, is
amended—
(1) in section 603(a) in the second sentence by
inserting before the period the following: ‘‘and the
monetary costs to small entities, other businesses,
and individuals of complying with the proposed
rule’’;
(2) by adding at the end of section 603 the
following:
‘‘(d) 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.’’;
(3) in section 604(a)—
(A) in paragraph (2) by striking ‘‘and’’
after the semicolon;
(B) in paragraph (3) by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) a statement of the nature and amount of
monetary costs that will be incurred by small enti-
ties, other businesses, and individuals in complying
with the rule.’’; and
(4) in section 607 by inserting before the period
the following: ‘‘, except that estimates of monetary
costs under sections 603(d) and 604(a)(4) 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
of title 5, United States Code, shall, at the same time sub-
mit to each House of Congress and to CBO and OMB
a cost estimate and cost benefit analysis of any new pro-
posed regulations that would have an aggregate direct cost
to the private sector of at least $10,000,000 for any fiscal
year.
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