I 
108TH CONGRESS 
1ST SESSION H. R. 2432
To amend the Paperwork Reduction Act and titles 5 and 31, United States 
Code, to reform Federal paperwork and regulatory processes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 11, 2003
Mr. OSE (for himself, Mr. TANNER, Mr. TOM DAVIS of Virginia, Mr. MOORE, 
Mr. JANKLOW, Mr. MATHESON, and Mr. RYAN of Wisconsin) introduced 
the following bill; which was referred to the Committee on Government 
Reform, and in addition to the Committee on the Budget, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Paperwork Reduction Act and titles 5 and 
31, United States Code, to reform Federal paperwork 
and regulatory processes.
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 ‘‘Paperwork and Regu-
latory Improvements Act of 2003’’. 
SEC. 2. FINDINGS. 
Congress finds the following:
(1) In 1980, in the Paperwork Reduction Act, 
Congress established the Office of Information and 
Regulatory Affairs (OIRA) in the Office of Manage-
ment and Budget. OIRA’s principal responsibility is 
to reduce the paperwork burden on the public that 
results from the collection of information by or for 
the Federal Government. In 2002, OIRA estimated 
that the paperwork burden imposed on the public 
was 7.7 billion hours, at a cost of $230 billion. The 
Internal Revenue Service accounted for 83 percent 
of the paperwork burden. 
(2) In 1995, Congress amended the Paperwork 
Reduction Act and established annual government-
wide paperwork reduction goals of 10 percent for 
each of fiscal years 1996 and 1997, and 5 percent 
for each of fiscal years 1998 through 2001, but the 
paperwork burden increased, rather than decreased, 
in each of those fiscal years and fiscal year 2002. 
Both the Office of Management and Budget and the 
Internal Revenue Service need to devote additional 
attention to paperwork reduction. 
(3) In 2002, the House Report accompanying 
the Treasury and General Government Appropria-
tions Act, 2003 (House Report 107–575) stated, 
‘‘The Office of Management and Budget has re-
ported that paperwork burdens on Americans have 
increased in each of the last six years. Since the In-
ternal Revenue Service imposes over 80 percent of 
these paperwork burdens, the Committee believes 
that OMB should work to identify and review pro-
posed and existing IRS paperwork.’’. 
(4) One key to success in paperwork reduction 
is the Office of Management and Budget’s system-
atic review of every new and revised agency paper-
work proposal. Recent statutory exemptions from 
that office’s review responsibility, especially those 
without any stated justification, should be removed. 
(5) In 2000, researchers Mark Crain of George 
Mason University and Thomas Hopkins of the Roch-
ester Institute of Technology, in their October 2001 
publication titled ‘‘The Impact of Regulatory Costs 
on Small Firms’’, estimated that Americans spend 
$843 billion annually to comply with Federal regula-
tions. Congress has a responsibility to review major 
rules (as defined by section 804 of title 5, United 
States Code) proposed by agencies, especially regu-
latory alternatives and the costs and benefits associ-
ated with each of them. In 2000, in the Truth in 
Regulating Act, Congress established new responsi-
bility within the General Accounting Office to assist 
Congress with this responsibility. 
(6) In 1996, because of the increasing costs and 
incompletely estimated benefits of Federal rules and 
paperwork, Congress required the Office of Manage-
ment and Budget for the first time to submit an an-
nual report to Congress on the total costs and bene-
fits to the public of Federal rules and paperwork re-
quirements, including an assessment of the effects of 
Federal rules on the private sector and State and 
local governments. In 1998, Congress changed the 
annual report’s due date to coincide with the due 
date of the President’s budget, so that Congress and 
the public could be given an opportunity to simulta-
neously review both the on-budget and off-budget 
costs associated with the regulatory and paperwork 
requirements of each Federal agency. In 2000, Con-
gress made this a permanent annual reporting re-
quirement. 
(7) The Office of Management and Budget re-
quires agencies to submit annual budget and paper-
work burden estimates in order to prepare certain 
required reports for Congress, but it does not re-
quire agencies to submit estimates on costs and ben-
efits of agency rules and paperwork. The Office of
Management and Budget needs to require agencies 
to submit such estimates on costs and benefits to 
help prepare the annual accounting statement and 
associated report required under section 624 of the 
Treasury and General Government Appropriations 
Act, 2001. 
SEC. 3. REDUCTION OF TAX PAPERWORK. 
Section 3504 of title 44, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(i) In carrying out subsection (c)(3), the Director 
shall assign, at a minimum, the equivalent of at least 2 
fulltime staffers to review the Federal information collec-
tion burden on the public imposed by the Internal Revenue 
Service.’’. 
SEC. 4. REPEAL OF EXEMPTIONS FROM PAPERWORK RE-
DUCTION ACT, ETC. 
The following provisions of the Farm Security and 
Rural Investment Act of 2002 (Public Law 107–171) are 
repealed: 
(1) Subparagraphs (A) and (C) of section 
1601(c)(2). 
(2) Section 1601(c)(3). 
(3) Section 2702(b)(1)(A). 
(4) Section 2702(b)(2)(A).
(5) Section 2702(c). 
(6) Subparagraphs (A) and (C) of section 
6103(b)(2). 
(7) Section 6103(b)(3). 
(8) Subparagraphs (A) and (C) of section 
10105(d)(2). 
(9) Section 10105(d)(3). 
SEC. 5. AMENDMENT OF TRUTH IN REGULATING ACT TO 
MAKE PERMANENT PILOT PROJECT FOR RE-
PORT ON RULES. 
The purpose of this section is to make permanent the 
authority to request the performance of regulatory anal-
ysis to enhance Congressional responsibility for regulatory 
decisions developed under the laws enacted by Congress. 
The Truth in Regulating Act of 2000 (Public Law 106–
312; 5 U.S.C. 801 note) is amended—
(1) in the heading for section 4, by striking 
‘‘PILOT PROJECT FOR’’; 
(2) by striking section 5 and redesignating sec-
tion 6 as section 5; and 
(3) in section 5 (as redesignated by paragraph 
(2))—
(A) in the heading, by striking ‘‘AND DU-
RATION OF PILOT PROJECT’’;
(B) in subsection (a), by striking ‘‘(a) EF-
FECTIVE DATE.—’’; and 
(C) by striking subsections (b) and (c). 
SEC. 6. IMPROVED REGULATORY ACCOUNTING. 
(a) REQUIREMENT FOR AGENCIES TO SUBMIT IN-
FORMATION
ON
REGULATIONS
AND
PAPERWORK
TO 
OMB.—Section 624 of the Treasury and General Govern-
ment Appropriations Act, 2001 (as enacted into law by 
Public Law 106–554; 114 Stat. 2763A–161), is amend-
ed—
(1) by redesignating subsections (b), (c), and 
(d) as subsections (e), (f), and (g), respectively, and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) AGENCY SUBMISSIONS TO OMB.—To carry out 
subsection (a), the Director of the Office of Management 
and Budget shall require each agency annually to submit 
to the Office of Management and Budget an estimate of 
the total annual costs and benefits of Federal rules and 
paperwork—
‘‘(1) for the agency in the aggregate; and 
‘‘(2) for each agency program.’’.
(b) REQUIREMENT FOR OMB ACCOUNTING STATE-
MENT TO COVER SAME YEARS COVERED BY BUDGET.—
Section 624 of the Treasury and General Government Ap-
propriations Act, 2001 (as enacted into law by Public Law 
106–554; 114 Stat. 2763A–161), is further amended by 
inserting after subsection (b), as added by subsection (a), 
the following new subsection: 
‘‘(c) YEARS
COVERED
BY
ACCOUNTING
STATE-
MENT.—Each accounting statement submitted under this 
section shall, at a minimum—
‘‘(1) cover the fiscal year for which the state-
ment is submitted and each of the 4 fiscal years 
after that fiscal year; and 
‘‘(2) cover the current fiscal year and the fiscal 
year prior to the current fiscal year.’’. 
(c) INTEGRATION
OF OMB ACCOUNTING STATE-
MENT AND REPORT INTO PRESIDENT’S BUDGET.—Sec-
tion 624 of the Treasury and General Government Appro-
priations Act, 2001 (as enacted into law by Public Law 
106–554; 114 Stat. 2763A–161) is further amended— 
(1) in subsection (a), by striking ‘‘with the 
budget’’ and inserting ‘‘as part of the budget’’; and 
(2) by inserting after subsection (c), as added 
by subsection (b), the following new subsection: 
‘‘(d) FORM OF SUBMISSION.—The accounting state-
ment and associated report required by subsection (a) 
shall be included in the budget documents submitted 
under section 1105 of title 31, United States Code, in a
form that allows direct comparison of the budget for ac-
tivities and functions of the Government with the costs 
and benefits to the public of Federal rules and paperwork 
associated with those activities and functions.’’. 
(d) PILOT PROJECTS
FOR REGULATORY BUDG-
ETING.—(1) Chapter 11 of title 31, United States Code, 
is amended by adding at the end the following new section:
‘‘§ 1120 Pilot projects for regulatory budgeting 
‘‘(a) The Director of the Office of Management and 
Budget, after consultation with the head of each agency, 
shall designate not less than five agencies as pilot projects 
in regulatory budgeting for fiscal years 2006 and 2007. 
The designated agencies shall reflect a representative 
range of Federal regulatory programs, and shall include 
at least the Department of Labor, the Department of 
Transportation, and the Environmental Protection Agen-
cy. 
‘‘(b) Pilot projects in the designated agencies shall 
cover the preparation of regulatory budgets. Such budgets 
shall present, for one or more of the major regulatory pro-
grams of the agency, the varying levels of costs and bene-
fits to the public that would result from different budgeted 
amounts. 
‘‘(c) The Director of the Office of Management and 
Budget shall include, as an alternative budget presen-
tation in the budget submitted under section 1105 for fis-
cal year 2007, the regulatory budgets of the designated 
agencies for that fiscal year. 
‘‘(d) No later than the first Monday in February of 
2009, the Director of the Office of Management and 
Budget shall transmit to the President and to Congress 
a report on the regulatory budgeting pilot projects. The 
report shall—
‘‘(1) assess the feasibility and advisability of in-
cluding a regulatory budget as part of the annual 
budget submitted under section 1105; 
‘‘(2) describe any difficulties encountered by the 
pilot agencies in preparing a regulatory budget; and 
‘‘(3) recommend whether legislation requiring 
regulatory budgets should be proposed and the gen-
eral provisions of any legislation. 
‘‘(e) After receipt of the report required under sub-
section (d), Congress may specify that a regulatory budget 
be submitted as part of the annual budget submitted 
under section 1105.’’.
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item:
‘‘1120. Pilot projects for regulatory budgeting.’’.
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