IIA
104TH CONGRESS
1ST SESSION
H.R. 9
IN THE SENATE OF THE UNITED STATES
MARCH 9 (legislative day, MARCH 6), 1995
Received; read twice and referred to the Committee on Governmental Affairs
AN ACT
To create jobs, enhance wages, strengthen property rights,
maintain certain economic liberties, decentralize and re-
duce the power of the Federal Government with respect
to the States, localities, and citizens of the United States,
and to increase the accountability of Federal officials.
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 ‘‘Job Creation and
Wage Enhancement Act of 1995’’.
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DIVISION A
SEC. 101. SHORT TITLE.
This division may be cited as the ‘‘Paperwork Reduc-
tion Act of 1995’’.
SEC. 102. COORDINATION OF FEDERAL INFORMATION POL-
ICY.
Chapter 35 of title 44, United States Code, is amend-
ed to read as follows:
‘‘CHAPTER 35—COORDINATION OF
FEDERAL INFORMATION POLICY
‘‘Sec.
‘‘3501. Purposes.
‘‘3502. Definitions.
‘‘3503. Office of Information and Regulatory Affairs.
‘‘3504. Authority and functions of Director.
‘‘3505. Assignment of tasks and deadlines.
‘‘3506. Federal agency responsibilities.
‘‘3507. Public information collection activities; submission to Director; approval
and delegation.
‘‘3508. Determination of necessity for information; hearing.
‘‘3509. Designation of central collection agency.
‘‘3510. Cooperation of agencies in making information available.
‘‘3511. Establishment and operation of Government Information Locator Serv-
ice.
‘‘3512. Public protection.
‘‘3513. Director review of agency activities; reporting; agency response.
‘‘3514. Responsiveness to Congress.
‘‘3515. Administrative powers.
‘‘3516. Rules and regulations.
‘‘3517. Consultation with other agencies and the public.
‘‘3518. Effect on existing laws and regulations.
‘‘3519. Access to information.
‘‘3520. Authorization of appropriations.
‘‘§ 3501. Purposes
‘‘The purposes of this chapter are to—
‘‘(1) minimize the paperwork burden for indi-
viduals, small businesses, educational and nonprofit
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institutions, Federal contractors, State, local and
tribal governments, and other persons resulting from
the collection of information by or for the Federal
Government;
‘‘(2) ensure the greatest possible public benefit
from and maximize the utility of information cre-
ated, collected, maintained, used, shared and dis-
seminated by or for the Federal Government;
‘‘(3) coordinate, integrate, and to the extent
practicable and appropriate, make uniform Federal
information resources management policies and
practices as a means to improve the productivity, ef-
ficiency, and effectiveness of Government programs,
including the reduction of information collection bur-
dens on the public and the improvement of service
delivery to the public;
‘‘(4) improve the quality and use of Federal in-
formation to strengthen decisionmaking, accountabil-
ity, and openness in Government and society;
‘‘(5) minimize the cost to the Federal Govern-
ment of the creation, collection, maintenance, use,
dissemination, and disposition of information;
‘‘(6) strengthen the partnership between the
Federal Government and State, local, and tribal gov-
ernments by minimizing the burden and maximizing
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the utility of information created, collected, main-
tained, used, disseminated, and retained by or for
the Federal Government;
‘‘(7) provide for the dissemination of public in-
formation on a timely basis, on equitable terms, and
in a manner that promotes the utility of the infor-
mation to the public and makes effective use of
information technology;
‘‘(8) ensure that the creation, collection, main-
tenance, use, dissemination, and disposition of infor-
mation by or for the Federal Government is consist-
ent with applicable laws, including laws relating to—
‘‘(A) privacy and confidentiality, including
section 552a of title 5;
‘‘(B) security of information, including the
Computer Security Act of 1987 (Public Law
100–235); and
‘‘(C) access to information, including sec-
tion 552 of title 5;
‘‘(9) ensure the integrity, quality, and utility of
the Federal statistical system;
‘‘(10) ensure that information technology is ac-
quired, used, and managed to improve performance
of agency missions, including the reduction of infor-
mation collection burdens on the public; and
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‘‘(11) improve the responsibility and account-
ability of the Office of Management and Budget and
all other Federal agencies to Congress and to the
public for implementing the information collection
review process, information resources management,
and related policies and guidelines established under
this chapter.
‘‘§ 3502. Definitions
‘‘As used in this chapter—
‘‘(1) the term ‘agency’ means any executive
department, military department, Government cor-
poration, 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 does not include—
‘‘(A) the General Accounting Office;
‘‘(B) Federal Election Commission;
‘‘(C) the governments of the District of
Columbia and of the territories and possessions
of the United States, and their various subdivi-
sions; or
‘‘(D) Government-owned contractor-oper-
ated facilities, including laboratories engaged in
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national defense research and production activi-
ties;
‘‘(2) the term ‘burden’ means time, effort, or fi-
nancial resources expended by persons to generate,
maintain, or provide information to or for a Federal
agency, including the resources expended for—
‘‘(A) reviewing instructions;
‘‘(B) acquiring, installing, and utilizing
technology and systems;
‘‘(C) adjusting the existing ways to comply
with any previously applicable instructions and
requirements;
‘‘(D) searching data sources;
‘‘(E) completing and reviewing the collec-
tion of information; and
‘‘(F) transmitting, or otherwise disclosing
the information;
‘‘(3) the term ‘collection of information’ means
the obtaining, causing to be obtained, soliciting, or
requiring the disclosure to third parties or the pub-
lic, of facts or opinions by or for an agency, regard-
less of form or format, calling for either—
‘‘(A) answers to identical questions posed
to, or identical reporting or recordkeeping re-
quirements imposed on, ten or more persons,
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other 
than 
agencies, 
instrumentalities, 
or
employees of the United States; or
‘‘(B) answers to questions posed to agen-
cies, instrumentalities, or employees of the
United States which are to be used for general
statistical purposes;
‘‘(4) the term ‘Director’ means the Director of
the Office of Management and Budget;
‘‘(5) the term ‘independent regulatory agency’
means the Board of Governors of the Federal Re-
serve System, the Commodity Futures Trading Com-
mission, the Consumer Product Safety Commission,
the Federal Communications Commission, the Fed-
eral Deposit Insurance Corporation, the Federal En-
ergy Regulatory Commission, the Federal Housing
Finance Board, the Federal Maritime Commission,
the Federal Trade Commission, the Interstate Com-
merce Commission, the Mine Enforcement Safety
and Health Review Commission, the National Labor
Relations Board, the Nuclear Regulatory Commis-
sion, the Occupational Safety and Health Review
Commission, the Postal Rate Commission, the Secu-
rities and Exchange Commission, and any other
similar agency designated by statute as a Federal
independent regulatory agency or commission;
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‘‘(6) the term ‘information resources’ means in-
formation and related resources, such as personnel,
equipment, funds, and information technology;
‘‘(7) the term ‘information resources manage-
ment’ means the process of managing information
resources to accomplish agency missions and to im-
prove agency performance, including through the re-
duction of information collection burdens on the
public;
‘‘(8) the term ‘information system’ means a dis-
crete set of information resources and processes,
automated or manual, organized for the collection,
processing, maintenance, use, sharing, dissemina-
tion, or disposition of information;
‘‘(9) the term ‘information technology’ has the
same meaning as the term ‘automatic data process-
ing equipment’ as defined by section 111(a)(2) of
the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 759(a)(2));
‘‘(10) the term ‘person’ means an individual,
partnership, association, corporation, business trust,
or legal representative, an organized group of indi-
viduals, a State, territorial, or local government or
branch thereof, or a political subdivision of a State,
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territory, or local government or a branch of a politi-
cal subdivision;
‘‘(11) the term ‘practical utility’ means the abil-
ity of an agency to use information, particularly the
capability to process such information in a timely
and useful fashion;
‘‘(12) the term ‘public information’ means any
information, regardless of form or format, that an
agency discloses, disseminates, or makes available to
the public; and
‘‘(13) the term ‘recordkeeping requirement’
means a requirement imposed by or for an agency
on persons to maintain specified records, including a
requirement to—
‘‘(A) retain such records;
‘‘(B) notify third parties or the public of
the existence of such records;
‘‘(C) disclose such records to third parties
or the public; or
‘‘(D) report to third parties or the public
regarding such records.
‘‘§ 3503. Office of Information and Regulatory Affairs
‘‘(a) There is established in the Office of Manage-
ment and Budget an office to be known as the Office of
Information and Regulatory Affairs.
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‘‘(b) There shall be at the head of the Office an Ad-
ministrator who shall be appointed by the President, by
and with the advice and consent of the Senate. The Direc-
tor shall delegate to the Administrator the authority to
administer all functions under this chapter, except that
any such delegation shall not relieve the Director of re-
sponsibility for the administration of such functions. The
Administrator shall serve as principal adviser to the Direc-
tor on Federal information resources management policy.
‘‘§ 3504. Authority and functions of Director
‘‘(a)(1) The Director shall—
‘‘(A) develop, coordinate and oversee the imple-
mentation of Federal information resources manage-
ment policies, principles, standards, and guidelines;
and
‘‘(B) provide direction and oversee—
‘‘(i) the review and approval of the collec-
tion of information and the reduction of the
information collection burden;
‘‘(ii) agency dissemination of and public
access to information;
‘‘(iii) statistical activities;
‘‘(iv) records management activities;
‘‘(v) 
privacy, 
confidentiality, 
security,
disclosure, and sharing of information; and
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‘‘(vi) the acquisition and use of informa-
tion technology.
‘‘(2) The authority of the Director under this chapter
shall be exercised consistent with applicable law.
‘‘(b) With respect to general information resources
management policy, the Director shall—
‘‘(1) develop and oversee the implementation of
uniform information resources management policies,
principles, standards, and guidelines;
‘‘(2) foster greater sharing, dissemination, and
access to public information, including through—
‘‘(A) the use of the Government Informa-
tion Locator Service; and
‘‘(B) the development and utilization of
common standards for information collection,
storage, processing and communication, includ-
ing standards for security, interconnectivity and
interoperability;
‘‘(3) initiate and review proposals for changes
in legislation, regulations, and agency procedures to
improve information resources management prac-
tices;
‘‘(4) oversee the development and implementa-
tion of best practices in information resources man-
agement, including training; and
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‘‘(5) oversee agency integration of program and
management functions with information resources
management functions.
‘‘(c) With respect to the collection of information and
the control of paperwork, the Director shall—
‘‘(1) review and approve proposed agency collec-
tions of information;
‘‘(2) coordinate the review of the collection of
information associated with Federal procurement
and acquisition by the Office of Information and
Regulatory Affairs with the Office of Federal Pro-
curement Policy, with particular emphasis on apply-
ing information technology to improve the efficiency
and effectiveness of Federal procurement, acquisi-
tion, and payment and to reduce information collec-
tion burdens on the public;
‘‘(3) minimize the Federal information collec-
tion burden, with particular emphasis on those indi-
viduals and entities most adversely affected;
‘‘(4) maximize the practical utility of and public
benefit from information collected by or for the
Federal Government;
‘‘(5) establish and oversee standards and guide-
lines by which agencies are to estimate the burden
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to comply with a proposed collection of information;
and
‘‘(6) place an emphasis on minimizing the bur-
den on small businesses with 50 or fewer employees.
‘‘(d) With respect to information dissemination, the
Director shall develop and oversee the implementation of
policies, principles, standards, and guidelines to—
‘‘(1) apply to Federal agency dissemination of
public information, regardless of the form or format
in which such information is disseminated; and
‘‘(2) promote public access to public informa-
tion and fulfill the purposes of this chapter, includ-
ing through the effective use of information tech-
nology.
‘‘(e) With respect to statistical policy and coordina-
tion, the Director shall—
‘‘(1) coordinate the activities of the Federal sta-
tistical system to ensure—
‘‘(A) the efficiency and effectiveness of the
system; and
‘‘(B) the integrity, objectivity, impartiality,
utility, and confidentiality of information col-
lected for statistical purposes;
‘‘(2) ensure that budget proposals of agencies
are consistent with system-wide priorities for main-
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taining and improving the quality of Federal statis-
tics and prepare an annual report on statistical pro-
gram funding;
‘‘(3) develop and oversee the implementation of
Governmentwide policies, principles, standards, and
guidelines concerning—
‘‘(A) statistical collection procedures and
methods;
‘‘(B) statistical data classification;
‘‘(C) statistical information presentation
and dissemination;
‘‘(D) timely release of statistical data; and
‘‘(E) such statistical data sources as may
be required for the administration of Federal
programs;
‘‘(4) evaluate statistical program performance
and agency compliance with Governmentwide poli-
cies, principles, standards and guidelines;
‘‘(5) promote the sharing of information col-
lected for statistical purposes consistent with privacy
rights and confidentiality pledges;
‘‘(6) coordinate the participation of the United
States in international statistical activities, including
the development of comparable statistics;
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‘‘(7) appoint a chief statistician who is a
trained and experienced professional statistician to
carry out the functions described under this sub-
section;
‘‘(8) establish an Interagency Council on Statis-
tical Policy to advise and assist the Director in car-
rying out the functions under this subsection that
shall—
‘‘(A) be headed by the chief statistician;
and
‘‘(B) consist of—
‘‘(i) the heads of the major statistical
programs; and
‘‘(ii) representatives of other statis-
tical agencies under rotating membership;
and
‘‘(9) provide opportunities for training in statis-
tical policy functions to employees of the Federal
Government under which—
‘‘(A) each trainee shall be selected at the
discretion of the Director based on agency re-
quests and shall serve under the chief statisti-
cian for at least 6 months and not more than
1 year; and
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‘‘(B) all costs of the training shall be paid
by the agency requesting training.
‘‘(f) With respect to records management, the Direc-
tor shall—
‘‘(1) provide advice and assistance to the Archi-
vist of the United States and the Administrator of
General Services to promote coordination in the ad-
ministration of chapters 29, 31, and 33 of this title
with the information resources management policies,
principles, standards, and guidelines established
under this chapter;
‘‘(2) review compliance by agencies with—
‘‘(A) the requirements of chapters 29, 31,
and 33 of this title; and
‘‘(B) regulations promulgated by the Ar-
chivist of the United States and the Adminis-
trator of General Services; and
‘‘(3) oversee the application of records manage-
ment policies, principles, standards, and guidelines,
including requirements for archiving information
maintained in electronic format, in the planning and
design of information systems.
‘‘(g) With respect to privacy and security, the Direc-
tor shall—
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‘‘(1) develop and oversee the implementation of
policies, principles, standards, and guidelines on pri-
vacy, confidentiality, security, disclosure and sharing
of information collected or maintained by or for
agencies;
‘‘(2) oversee and coordinate compliance with
sections 552 and 552a of title 5, the Computer Se-
curity Act of 1987 (40 U.S.C. 759 note), and relat-
ed information management laws; and
‘‘(3) require Federal agencies, consistent with
the Computer Security Act of 1987 (40 U.S.C. 759
note), to identify and afford security protections
commensurate with the risk and magnitude of the
harm resulting from the loss, misuse, or unauthor-
ized access to or modification of information col-
lected or maintained by or on behalf of an agency.
‘‘(h) With respect to Federal information technology,
the Director shall—
‘‘(1) in consultation with the Director of the
National Institute of Standards and Technology and
the Administrator of General Services—
‘‘(A) develop and oversee the implementa-
tion of policies, principles, standards, and
guidelines for information technology functions
and activities of the Federal Government, in-
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cluding periodic evaluations of major informa-
tion systems; and
‘‘(B) oversee the development and imple-
mentation of standards under section 111(d) of
the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 759(d));
‘‘(2) monitor the effectiveness of, and compli-
ance with, directives issued under sections 110 and
111 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 757 and 759);
‘‘(3) coordinate the development and review by
the Office of Information and Regulatory Affairs of
policy associated with Federal procurement and ac-
quisition of information technology with the Office of
Federal Procurement Policy;
‘‘(4) ensure, through the review of agency budg-
et proposals, information resources management
plans and other means—
‘‘(A) agency integration of information re-
sources management plans, program plans and
budgets for acquisition and use of information
technology; and
‘‘(B) the efficiency and effectiveness of
inter-agency information technology initiatives
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to improve agency performance and the accom-
plishment of agency missions; and
‘‘(5) promote the use of information technology
by the Federal Government to improve the produc-
tivity, efficiency, and effectiveness of Federal pro-
grams, including through dissemination of public in-
formation and the reduction of information collection
burdens on the public.
‘‘§ 3505. Assignment of tasks and deadlines
‘‘(a) In carrying out the functions under this chapter,
the Director shall—
‘‘(1) in consultation with agency heads, set an
annual Governmentwide goal for the reduction of in-
formation collection burdens by at least 10 percent,
and set annual agency goals to—
‘‘(A) reduce information collection burdens
imposed on the public that—
‘‘(i) represent the maximum prac-
ticable opportunity in each agency; and
‘‘(ii) are consistent with improving
agency management of the process for the
review of collections of information estab-
lished under section 3506(c); and
‘‘(B) improve information resources man-
agement in ways that increase the productivity,
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efficiency and effectiveness of Federal pro-
grams, including service delivery to the public;
‘‘(2) with selected agencies and non-Federal en-
tities on a voluntary basis, initiate and conduct pilot
projects to test alternative policies, practices, regula-
tions, and procedures to fulfill the purposes of this
chapter, particularly with regard to minimizing the
Federal information collection burden; and
‘‘(3) in consultation with the Administrator of
General Services, the Director of the National Insti-
tute of Standards and Technology, the Archivist of
the United States, and the Director of the Office of
Personnel Management, develop and maintain a
Governmentwide strategic plan for information re-
sources management, that shall include—
‘‘(A) a description of the objectives and the
means by which the Federal Government shall
apply information resources to improve agency
and program performance;
‘‘(B) plans for—
‘‘(i) reducing information burdens on
the public, including reducing such bur-
dens through the elimination of duplication
and meeting shared data needs with shared
resources;
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‘‘(ii) enhancing public access to and
dissemination of, information, using elec-
tronic and other formats; and
‘‘(iii) meeting the information tech-
nology needs of the Federal Government in
accordance with the purposes of this chap-
ter; and
‘‘(C) a description of progress in applying
information resources management to improve
agency performance and the accomplishment of
missions.
‘‘(b) For purposes of any pilot project conducted
under subsection (a)(2), the Director may waive the appli-
cation of any regulation or administrative directive issued
by an agency with which the project is conducted, includ-
ing any regulation or directive requiring a collection of in-
formation, after giving timely notice to the public and the
Congress regarding the need for such waiver.
‘‘§ 3506. Federal agency responsibilities
‘‘(a)(1) The head of each agency shall be responsible
for—
‘‘(A) carrying out the agency’s information re-
sources management activities to improve agency
productivity, efficiency, and effectiveness; and
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‘‘(B) complying with the requirements of this
chapter and related policies established by the Direc-
tor.
‘‘(2)(A) Except as provided under subparagraph (B),
the head of each agency shall designate a senior official
who shall report directly to such agency head to carry out
the responsibilities of the agency under this chapter.
‘‘(B) The Secretary of the Department of Defense
and the Secretary of each military department may each
designate a senior official who shall report directly to such
Secretary to carry out the responsibilities of the depart-
ment under this chapter. If more than one official is des-
ignated for the military departments, the respective duties
of the officials shall be clearly delineated.
‘‘(3) The senior official designated under paragraph
(2) shall head an office responsible for ensuring agency
compliance with and prompt, efficient, and effective imple-
mentation of the information policies and information re-
sources management responsibilities established under
this chapter, including the reduction of information collec-
tion burdens on the public. The senior official and employ-
ees of such office shall be selected with special attention
to the professional qualifications required to administer
the functions described under this chapter.
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‘‘(4) Each agency program official shall be respon-
sible and accountable for information resources assigned
to and supporting the programs under such official. In
consultation with the senior official designated under
paragraph (2) and the agency Chief Financial Officer (or
comparable official), each agency program official shall de-
fine program information needs and develop strategies,
systems, and capabilities to meet those needs.
‘‘(b) With respect to general information resources
management, each agency shall—
‘‘(1) manage information resources to—
‘‘(A) reduce information collection burdens
on the public;
‘‘(B) increase program efficiency and effec-
tiveness; and
‘‘(C) improve the integrity, quality, and
utility of information to all users within and
outside the agency, including capabilities for en-
suring dissemination of public information, pub-
lic access to government information, and pro-
tections for privacy and security;
‘‘(2) in accordance with guidance by the Direc-
tor, develop and maintain a strategic information re-
sources management plan that shall describe how in-
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formation resources management activities help ac-
complish agency missions;
‘‘(3) develop and maintain an ongoing process
to—
‘‘(A) ensure that information resources
management operations and decisions are inte-
grated with organizational planning, budget, fi-
nancial management, human resources manage-
ment, and program decisions;
‘‘(B) in cooperation with the agency Chief
Financial Officer (or comparable official), de-
velop a full and accurate accounting of informa-
tion technology expenditures, related expenses,
and results; and
‘‘(C) establish goals for improving informa-
tion resources management’s contribution to
program productivity, efficiency, and effective-
ness, methods for measuring progress towards
those goals, and clear roles and responsibilities
for achieving those goals;
‘‘(4) in consultation with the Director, the Ad-
ministrator of General Services, and the Archivist of
the United States, maintain a current and complete
inventory of the agency’s information resources, in-
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cluding directories necessary to fulfill the require-
ments of section 3511 of this chapter; and
‘‘(5) in consultation with the Director and the
Director of the Office of Personnel Management,
conduct formal training programs to educate agency
program and management officials about informa-
tion resources management.
‘‘(c) With respect to the collection of information and
the control of paperwork, each agency shall—
‘‘(1) establish a process within the office headed
by the official designated under subsection (a), that
is sufficiently independent of program responsibility
to evaluate fairly whether proposed collections of in-
formation should be approved under this chapter,
to—
‘‘(A) review each collection of information
before submission to the Director for review
under this chapter, including—
‘‘(i) an evaluation of the need for the
collection of information;
‘‘(ii) a functional description of the in-
formation to be collected;
‘‘(iii) a plan for the collection of the
information;
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‘‘(iv) a specific, objectively supported
estimate of burden;
‘‘(v) a test of the collection of infor-
mation through a pilot program, if appro-
priate; and
‘‘(vi) a plan for the efficient and effec-
tive management and use of the informa-
tion to be collected, including necessary re-
sources;
‘‘(B) ensure that each information collec-
tion—
‘‘(i) is inventoried, displays a control
number and, if appropriate, an expiration
date;
‘‘(ii) indicates the collection is in ac-
cordance with the clearance requirements
of section 3507; and
‘‘(iii) contains a statement to inform
the person receiving the collection of infor-
mation—
‘‘(I) the reasons the information
is being collected;
‘‘(II) the way such information is
to be used;
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‘‘(III) an estimate, to the extent
practicable, of the burden of the col-
lection; and
‘‘(IV) whether responses to the
collection of information are vol-
untary, required to obtain a benefit,
or mandatory; and
‘‘(C) assess the information collection bur-
den of proposed legislation affecting the agency;
‘‘(2)(A) except for good cause or as provided
under subparagraph (B), provide 60-day notice in
the Federal Register, and otherwise consult with
members of the public and affected agencies con-
cerning each proposed collection of information, to
solicit comment to—
‘‘(i) evaluate whether the proposed collec-
tion of information is necessary for the proper
performance of the functions of the agency, in-
cluding whether the information shall have
practical utility;
‘‘(ii) evaluate the accuracy of the agency’s
estimate of the burden of the proposed collec-
tion of information;
‘‘(iii) enhance the quality, utility, and clar-
ity of the information to be collected; and
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‘‘(iv) minimize the burden of the collection
of information on those who are to respond, in-
cluding through the use of automated collection
techniques or other forms of information tech-
nology; and
‘‘(B) for any proposed collection of information
contained in a proposed rule (to be reviewed by the
Director under section 3507(d)), provide notice and
comment through the notice of proposed rulemaking
for the proposed rule and such notice shall have the
same purposes specified under subparagraph (A) (i)
through (iv);
‘‘(3) certify (and provide a record supporting
such certification, including public comments re-
ceived by the agency) that each collection of infor-
mation submitted to the Director for review under
section 3507—
‘‘(A) is necessary for the proper perform-
ance of the functions of the agency, including
that the information has practical utility;
‘‘(B) is not unnecessarily duplicative of in-
formation otherwise reasonably accessible to the
agency;
‘‘(C) reduces to the extent practicable and
appropriate the burden on persons who shall
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provide information to or for the agency, in-
cluding with respect to small entities, as defined
under section 601(6) of title 5, the use of such
techniques as—
‘‘(i) establishing differing compliance
or reporting requirements or timetables
that take into account the resources avail-
able to those who are to respond;
‘‘(ii) the clarification, consolidation, or
simplification of compliance and reporting
requirements; or
‘‘(iii) an exemption from coverage of
the collection of information, or any part
thereof;
‘‘(D) is written using plain, coherent, and
unambiguous terminology and is understand-
able to those who are to respond;
‘‘(E) is to be implemented in ways consist-
ent and compatible, to the maximum extent
practicable, with the existing reporting and rec-
ordkeeping practices of those who are to re-
spond;
‘‘(F) indicates for each recordkeeping re-
quirement the length of time persons are re-
quired to maintain the records specified;
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‘‘(G) contains the statement required
under paragraph (1)(B)(iii);
‘‘(H) has been developed by an office that
has planned and allocated resources for the effi-
cient and effective management and use of the
information to be collected, including the proc-
essing of the information in a manner which
shall enhance, where appropriate, the utility of
the information to agencies and the public;
‘‘(I) uses effective and efficient statistical
survey methodology appropriate to the purpose
for which the information is to be collected; and
‘‘(J) to the maximum extent practicable,
uses information technology to reduce burden
and improve data quality, agency efficiency and
responsiveness to the public; and
‘‘(4) place an emphasis on minimizing the bur-
den on small businesses with 50 or fewer employees.
‘‘(d) With respect to information dissemination, each
agency shall—
‘‘(1) ensure that the public has timely, equal,
and equitable access to the agency’s public informa-
tion, including ensuring such access through—
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‘‘(A) encouraging a diversity of public and
private sources for information based on gov-
ernment public information,
‘‘(B) in cases in which the agency provides
public information maintained in electronic for-
mat, providing timely, equal, and equitable ac-
cess to the underlying data (in whole or in
part); and
‘‘(C) agency dissemination of public infor-
mation in an efficient, effective, and economical
manner;
‘‘(2) regularly solicit and consider public input
on the agency’s information dissemination activities;
‘‘(3) provide adequate notice when initiating,
substantially modifying, or terminating significant
information dissemination products; and
‘‘(4) not, except where specifically authorized by
statute—
‘‘(A) establish an exclusive, restricted, or
other distribution arrangement that interferes
with timely and equitable availability of public
information to the public;
‘‘(B) restrict or regulate the use, resale, or
redissemination of public information by the
public;
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‘‘(C) charge fees or royalties for resale or
redissemination of public information; or
‘‘(D) establish user fees for public informa-
tion that exceed the cost of dissemination, ex-
cept that the Director may waive the applica-
tion of this subparagraph to an agency, if—
‘‘(i) the head of the agency submits a
written request to the Director, publishes a
notice of the request in the Federal Reg-
ister, and provides a copy of the request to
the public upon request;
‘‘(ii) the Director sets forth in writing
a statement of the scope, conditions, and
duration of the waiver and the reasons for
granting it, and makes such statement
available to the public upon request; and
‘‘(iii) the granting of the waiver would
not materially impair the timely and equi-
table availability of public information to
the public.
‘‘(e) With respect to statistical policy and coordina-
tion, each agency shall—
‘‘(1) ensure the relevance, accuracy, timeliness,
integrity, and objectivity of information collected or
created for statistical purposes;
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‘‘(2) inform respondents fully and accurately
about the sponsors, purposes, and uses of statistical
surveys and studies;
‘‘(3) protect respondents’ privacy and ensure
that disclosure policies fully honor pledges of con-
fidentiality;
‘‘(4) observe Federal standards and practices
for data collection, analysis, documentation, sharing,
and dissemination of information;
‘‘(5) ensure the timely publication of the results
of statistical surveys and studies, including informa-
tion about the quality and limitations of the surveys
and studies; and
‘‘(6) make data available to statistical agencies
and readily accessible to the public.
‘‘(f) With respect to records management, each agen-
cy shall implement and enforce applicable policies and pro-
cedures, including requirements for archiving information
maintained in electronic format, particularly in the plan-
ning, design and operation of information systems.
‘‘(g) With respect to privacy and security, each agen-
cy shall—
‘‘(1) implement and enforce applicable policies,
procedures, standards, and guidelines on privacy,
confidentiality, security, disclosure and sharing of
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information collected or maintained by or for the
agency;
‘‘(2) assume responsibility and accountability
for compliance with and coordinated management of
sections 552 and 552a of title 5, the Computer Se-
curity Act of 1987 (40 U.S.C. 759 note), and relat-
ed information management laws; and
‘‘(3) consistent with the Computer Security Act
of 1987 (40 U.S.C. 759 note), identify and afford
security protections commensurate with the risk and
magnitude of the harm resulting from the loss, mis-
use, or unauthorized access to or modification of in-
formation collected or maintained by or on behalf of
an agency.
‘‘(h) With respect to Federal information technology,
each agency shall—
‘‘(1) implement and enforce applicable Govern-
mentwide and agency information technology man-
agement policies, principles, standards, and guide-
lines;
‘‘(2) assume responsibility and accountability
for information technology investments;
‘‘(3) promote the use of information technology
by the agency to improve the productivity, efficiency,
and effectiveness of agency programs, including the
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reduction of information collection burdens on the
public and improved dissemination of public infor-
mation;
‘‘(4) propose changes in legislation, regulations,
and agency procedures to improve information tech-
nology practices, including changes that improve the
ability of the agency to use technology to reduce
burden; and
‘‘(5) assume responsibility for maximizing the
value and assessing and managing the risks of major
information systems initiatives through a process
that is—
‘‘(A) integrated with budget, financial, and
program management decisions; and
‘‘(B) used to select, control, and evaluate
the results of major information systems initia-
tives.
‘‘§ 3507. Public information collection activities; sub-
mission to Director; approval and delega-
tion
‘‘(a) An agency shall not conduct or sponsor the col-
lection of information unless in advance of the adoption
or revision of the collection of information—
‘‘(1) the agency has—
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‘‘(A) conducted the review established
under section 3506(c)(1);
‘‘(B) evaluated the public comments re-
ceived under section 3506(c)(2);
‘‘(C) submitted to the Director the certifi-
cation required under section 3506(c)(3), the
proposed collection of information, copies of
pertinent statutory authority, regulations, and
other related materials as the Director may
specify; and
‘‘(D) published a notice in the Federal
Register—
‘‘(i) stating that the agency has made
such submission; and
‘‘(ii) setting forth—
‘‘(I) a title for the collection of
information;
‘‘(II) a summary of the collection
of information;
‘‘(III) a brief description of the
need for the information and the pro-
posed use of the information;
‘‘(IV) a description of the likely
respondents and proposed frequency
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of response to the collection of infor-
mation;
‘‘(V) an estimate of the burden
that shall result from the collection of
information; and
‘‘(VI) notice that comments may
be submitted to the agency and Direc-
tor;
‘‘(2) the Director has approved the proposed
collection of information or approval has been in-
ferred, under the provisions of this section; and
‘‘(3) the agency has obtained from the Director
a control number to be displayed upon the collection
of information.
‘‘(b) The Director shall provide at least 30 days for
public comment prior to making a decision under sub-
section (c), (d), or (h), except for good cause or as pro-
vided under subsection (j).
‘‘(c)(1) For any proposed collection of information
not contained in a proposed rule, the Director shall notify
the agency involved of the decision to approve or dis-
approve the proposed collection of information.
‘‘(2) The Director shall provide the notification under
paragraph (1), within 60 days after receipt or publication
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of the notice under subsection (a)(1)(D), whichever is
later.
‘‘(3) If the Director does not notify the agency of a
denial or approval within the 60-day period described
under paragraph (2)—
‘‘(A) the approval may be inferred;
‘‘(B) a control number shall be assigned with-
out further delay; and
‘‘(C) the agency may collect the information for
not more than 1 year.
‘‘(d)(1) For any proposed collection of information
contained in a proposed rule—
‘‘(A) as soon as practicable, but no later than
the date of publication of a notice of proposed rule-
making in the Federal Register, each agency shall
forward to the Director a copy of any proposed rule
which contains a collection of information and any
information requested by the Director necessary to
make the determination required under this sub-
section; and
‘‘(B) within 60 days after the notice of pro-
posed rulemaking is published in the Federal Reg-
ister, the Director may file public comments pursu-
ant to the standards set forth in section 3508 on the
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collection of information contained in the proposed
rule.
‘‘(2) When a final rule is published in the Federal
Register, the agency shall explain—
‘‘(A) how any collection of information con-
tained in the final rule responds to the comments,
if any, filed by the Director or the public; or
‘‘(B) the reasons such comments were rejected.
‘‘(3) If the Director has received notice and failed to
comment on an agency rule within 60 days after the notice
of proposed rulemaking, the Director may not disapprove
any collection of information specifically contained in an
agency rule.
‘‘(4) No provision in this section shall be construed
to prevent the Director, in the Director’s discretion—
‘‘(A) from disapproving any collection of infor-
mation which was not specifically required by an
agency rule;
‘‘(B) from disapproving any collection of infor-
mation contained in an agency rule, if the agency
failed to comply with the requirements of paragraph
(1) of this subsection;
‘‘(C) from disapproving any collection of infor-
mation contained in a final agency rule, if the Direc-
tor finds within 60 days after the publication of the
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final rule, and after considering the agency’s re-
sponse to the Director’s comments filed under para-
graph (2), that the collection of information cannot
be approved under the standards set forth in section
3508; or
‘‘(D) from disapproving any collection of infor-
mation contained in a final rule, if—
‘‘(i) the Director determines that the agen-
cy has substantially modified in the final rule
the collection of information contained in the
proposed rule; and
‘‘(ii) the agency has not given the Director
the information required under paragraph (1)
with respect to the modified collection of infor-
mation, at least 60 days before the issuance of
the final rule.
‘‘(5) This subsection shall apply only when an agency
publishes a notice of proposed rulemaking and requests
public comments.
‘‘(6) The decision by the Director to approve or not
act upon a collection of information contained in an agen-
cy rule shall not be subject to judicial review.
‘‘(e)(1) Any decision by the Director under subsection
(c), (d), (h), or (j) to disapprove a collection of informa-
tion, or to instruct the agency to make substantive or ma-
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terial change to a collection of information, shall be pub-
licly available and include an explanation of the reasons
for such decision.
‘‘(2) Any written communication between the Admin-
istrator of the Office of Information and Regulatory Af-
fairs, or any employee of the Office of Information and
Regulatory Affairs, and an agency or person not employed
by the Federal Government concerning a proposed collec-
tion of information shall be made available to the public.
‘‘(3) This subsection shall not require the disclosure
of—
‘‘(A) any information which is protected at all
times by procedures established for information
which has been specifically authorized under criteria
established by an Executive order or an Act of Con-
gress to be kept secret in the interest of national
defense or foreign policy; or
‘‘(B) any communication relating to a collection
of information, the disclosure of which could lead to
retaliation or discrimination against the communica-
tor.
‘‘(f)(1) An independent regulatory agency which is
administered by 2 or more members of a commission,
board, or similar body, may by majority vote void—
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‘‘(A) any disapproval by the Director, in whole
or in part, of a proposed collection of information
that agency; or
‘‘(B) an exercise of authority under subsection
(d) of section 3507 concerning that agency.
‘‘(2) The agency shall certify each vote to void such
disapproval or exercise to the Director, and explain the
reasons for such vote. The Director shall without further
delay assign a control number to such collection of infor-
mation, and such vote to void the disapproval or exercise
shall be valid for a period of 3 years.
‘‘(g) The Director may not approve a collection of in-
formation for a period in excess of 3 years.
‘‘(h)(1) If an agency decides to seek extension of the
Director’s approval granted for a currently approved col-
lection of information, the agency shall—
‘‘(A) conduct the review established under sec-
tion 3506(c), including the seeking of comment from
the public on the continued need for, and burden im-
posed by the collection of information; and
‘‘(B) after having made a reasonable effort to
seek public comment, but no later than 60 days be-
fore the expiration date of the control number as-
signed by the Director for the currently approved
collection of information, submit the collection of in-
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formation for review and approval under this sec-
tion, which shall include an explanation of how the
agency has used the information that it has col-
lected.
‘‘(2) If under the provisions of this section, the Direc-
tor disapproves a collection of information contained in an
existing rule, or recommends or instructs the agency to
make a substantive or material change to a collection of
information contained in an existing rule, the Director
shall—
‘‘(A) publish an explanation thereof in the Fed-
eral Register; and
‘‘(B) instruct the agency to undertake a rule-
making within a reasonable time limited to consider-
ation of changes to the collection of information con-
tained in the rule and thereafter to submit the col-
lection of information for approval or disapproval
under this chapter.
‘‘(3) An agency may not make a substantive or mate-
rial modification to a collection of information after such
collection has been approved by the Director, unless the
modification has been submitted to the Director for review
and approval under this chapter.
‘‘(i)(1) If the Director finds that a senior official of
an agency designated under section 3506(a) is sufficiently
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independent of program responsibility to evaluate fairly
whether proposed collections of information should be ap-
proved and has sufficient resources to carry out this re-
sponsibility effectively, the Director may, by rule in ac-
cordance with the notice and comment provisions of chap-
ter 5 of title 5, United States Code, delegate to such offi-
cial the authority to approve proposed collections of infor-
mation in specific program areas, for specific purposes,
or for all agency purposes.
‘‘(2) A delegation by the Director under this section
shall not preclude the Director from reviewing individual
collections of information if the Director determines that
circumstances warrant such a review. The Director shall
retain authority to revoke such delegations, both in gen-
eral and with regard to any specific matter. In acting for
the Director, any official to whom approval authority has
been delegated under this section shall comply fully with
the rules and regulations promulgated by the Director.
‘‘(j)(1) The agency head may request the Director to
authorize collection of information prior to expiration of
time periods established under this chapter, if an agency
head determines that—
‘‘(A) a collection of information—
‘‘(i) is needed prior to the expiration of
such time periods; and
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‘‘(ii) is essential to the mission of the agen-
cy; and
‘‘(B) the agency cannot reasonably comply with
the provisions of this chapter within such time peri-
ods because—
‘‘(i) public harm is reasonably likely to re-
sult if normal clearance procedures are fol-
lowed; or
‘‘(ii) an unanticipated event has occurred
and the use of normal clearance procedures is
reasonably likely to prevent or disrupt the col-
lection of information related to the event or is
reasonably likely to cause a statutory or court-
ordered deadline to be missed.
‘‘(2) The Director shall approve or disapprove any
such authorization request within the time requested by
the agency head and, if approved, shall assign the collec-
tion of information a control number. Any collection of
information conducted under this subsection may be con-
ducted without compliance with the provisions of this
chapter for a maximum of 90 days after the date on which
the Director received the request to authorize such collec-
tion.
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‘‘§ 3508. Determination of necessity for information;
hearing
‘‘Before approving a proposed collection of informa-
tion, the Director shall determine whether the collection
of information by the agency is necessary for the proper
performance of the functions of the agency, including
whether the information shall have practical utility. Before
making a determination the Director may give the agency
and other interested persons an opportunity to be heard
or to submit statements in writing. To the extent, if any,
that the Director determines that the collection of infor-
mation by an agency is unnecessary for any reason, the
agency may not engage in the collection of information.
‘‘§ 3509. Designation of central collection agency
‘‘The Director may designate a central collection
agency to obtain information for two or more agencies if
the Director determines that the needs of such agencies
for information will be adequately served by a single collec-
tion agency, and such sharing of data is not inconsistent
with applicable law. In such cases the Director shall pre-
scribe (with reference to the collection of information) the
duties and functions of the collection agency so designated
and of the agencies for which it is to act as agent (includ-
ing reimbursement for costs). While the designation is in
effect, an agency covered by the designation may not ob-
tain for itself information for the agency which is the duty
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of the collection agency to obtain. The Director may mod-
ify the designation from time to time as circumstances re-
quire. The authority to designate under this section is sub-
ject to the provisions of section 3507(f) of this chapter.
‘‘§ 3510. Cooperation of agencies in making informa-
tion available
‘‘(a) The Director may direct an agency to make
available to another agency, or an agency may make avail-
able to another agency, information obtained by a collec-
tion of information if the disclosure is not inconsistent
with applicable law.
‘‘(b)(1) If information obtained by an agency is re-
leased by that agency to another agency, all the provisions
of law (including penalties which relate to the unlawful
disclosure of information) apply to the officers and em-
ployees of the agency to which information is released to
the same extent and in the same manner as the provisions
apply to the officers and employees of the agency which
originally obtained the information.
‘‘(2) The officers and employees of the agency to
which the information is released, in addition, shall be
subject to the same provisions of law, including penalties,
relating to the unlawful disclosure of information as if the
information had been collected directly by that agency.
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‘‘§ 3511. Establishment and operation of Government
Information Locator Service
‘‘In order to assist agencies and the public in locating
information and to promote information sharing and equi-
table access by the public, the Director shall—
‘‘(1) cause to be established and maintained a
distributed agency-based electronic Government In-
formation Locator Service (hereafter in this section
referred to as the ‘Service’), which shall identify the
major information systems, holdings, and dissemina-
tion products of each agency;
‘‘(2) require each agency to establish and main-
tain an agency information locator service as a com-
ponent of, and to support the establishment and op-
eration of the Service;
‘‘(3) in cooperation with the Archivist of the
United States, the Administrator of General Serv-
ices, the Public Printer, and the Librarian of Con-
gress, establish an interagency committee to advise
the Secretary of Commerce on the development of
technical standards for the Service to ensure com-
patibility, promote information sharing, and uniform
access by the public;
‘‘(4) consider public access and other user
needs in the establishment and operation of the
Service;
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‘‘(5) ensure the security and integrity of the
Service, including measures to ensure that only in-
formation which is intended to be disclosed to the
public is disclosed through the Service; and
‘‘(6) periodically review the development and ef-
fectiveness of the Service and make recommenda-
tions for improvement, including other mechanisms
for improving public access to Federal agency public
information.
‘‘§ 3512. Public protection
‘‘(a) Notwithstanding any other provision of law, no
person shall be subject to any penalty for failing to main-
tain or provide information to any agency if the collection
of information involved was made after December 31,
1981, and at the time of the failure did not display a cur-
rent control number assigned by the Director, or fails to
state that such request is not subject to this chapter.
‘‘(b) Actions taken by agencies which are not in com-
pliance with subsection (a) of this section shall give rise
to a complete defense or bar to such action by an agency,
which may be raised at any time during the agency deci-
sion making process or judicial review of the agency deci-
sion under any available process for judicial review.
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‘‘§ 3513. Director review of agency activities; report-
ing; agency response
‘‘(a) In consultation with the Administrator of Gen-
eral Services, the Archivist of the United States, the Di-
rector of the National Institute of Standards and Tech-
nology, and the Director of the Office of Personnel Man-
agement, the Director shall periodically review selected
agency information resources management activities to as-
certain the efficiency and effectiveness of such activities
to improve agency performance and the accomplishment
of agency missions.
‘‘(b) Each agency having an activity reviewed under
subsection (a) shall, within 60 days after receipt of a re-
port on the review, provide a written plan to the Director
describing steps (including milestones) to—
‘‘(1) be taken to address information resources
management problems identified in the report; and
‘‘(2) improve agency performance and the ac-
complishment of agency missions.
‘‘§ 3514. Responsiveness to Congress
‘‘(a)(1) The Director shall—
‘‘(A) keep the Congress and congressional com-
mittees fully and currently informed of the major ac-
tivities under this chapter; and
‘‘(B) submit a report on such activities to the
President of the Senate and the Speaker of the
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House of Representatives annually and at such other
times as the Director determines necessary.
‘‘(2) The Director shall include in any such report
a description of the extent to which agencies have—
‘‘(A) reduced information collection burdens on
the public, including—
‘‘(i) a summary of accomplishments and
planned initiatives to reduce collection of infor-
mation burdens;
‘‘(ii) a list of all violations of this chapter
and of any rules, guidelines, policies, and proce-
dures issued pursuant to this chapter;
‘‘(iii) a list of any increase in the collection
of information burden, including the authority
for each such collection; and
‘‘(iv) a list of agencies that in the preced-
ing year did not reduce information collection
burdens by at least 10 percent pursuant to sec-
tion 3505, a list of the programs and statutory
responsibilities of those agencies that precluded
that reduction, and recommendations to assist
those agencies to reduce information collection
burdens in accordance with that section;
‘‘(B) improved the quality and utility of statis-
tical information;
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‘‘(C) improved public access to Government in-
formation; and
‘‘(D) improved program performance and the
accomplishment of agency missions through informa-
tion resources management.
‘‘(b) The preparation of any report required by this
section shall be based on performance results reported by
the agencies and shall not increase the collection of infor-
mation burden on persons outside the Federal Govern-
ment.
‘‘§ 3515. Administrative powers
‘‘Upon the request of the Director, each agency
(other than an independent regulatory agency) shall, to
the extent practicable, make its services, personnel, and
facilities available to the Director for the performance of
functions under this chapter.
‘‘§ 3516. Rules and regulations
‘‘The Director shall promulgate rules, regulations, or
procedures necessary to exercise the authority provided by
this chapter.
‘‘§ 3517. Consultation with other agencies and the
public
‘‘(a) In developing information resources manage-
ment policies, plans, rules, regulations, procedures, and
guidelines and in reviewing collections of information, the
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Director shall provide interested agencies and persons
early and meaningful opportunity to comment.
‘‘(b) Any person may request the Director to review
any collection of information conducted by or for an agen-
cy to determine, if, under this chapter, the person shall
maintain, provide, or disclose the information to or for the
agency. Unless the request is frivolous, the Director shall,
in coordination with the agency responsible for the collec-
tion of information—
‘‘(1) respond to the request within 60 days
after receiving the request, unless such period is ex-
tended by the Director to a specified date and the
person making the request is given notice of such ex-
tension; and
‘‘(2) take appropriate remedial action, if nec-
essary.
‘‘§ 3518. Effect on existing laws and regulations
‘‘(a) Except as otherwise provided in this chapter, the
authority of an agency under any other law to prescribe
policies, rules, regulations, and procedures for Federal in-
formation resources management activities is subject to
the authority of the Director under this chapter.
‘‘(b) Nothing in this chapter shall be deemed to affect
or reduce the authority of the Secretary of Commerce or
the Director of the Office of Management and Budget pur-
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suant to Reorganization Plan No. 1 of 1977 (as amended)
and Executive order, relating to telecommunications and
information policy, procurement and management of tele-
communications and information systems, spectrum use,
and related matters.
‘‘(c)(1) Except as provided in paragraph (2), this
chapter shall not apply to obtaining, causing to be ob-
tained, soliciting, or requiring the disclosure to third par-
ties or the public, of facts or opinions—
‘‘(A) during the conduct of a Federal criminal
investigation or prosecution, or during the disposi-
tion of a particular criminal matter;
‘‘(B) during the conduct of—
‘‘(i) a civil action to which the United
States or any official or agency thereof is a
party; or
‘‘(ii) an administrative action or investiga-
tion involving an agency against specific indi-
viduals or entities;
‘‘(C) by compulsory process pursuant to the
Antitrust Civil Process Act and section 13 of the
Federal Trade Commission Improvements Act of
1980; or
‘‘(D) during the conduct of intelligence activi-
ties as defined in section 4–206 of Executive Order
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No. 12036, issued January 24, 1978, or successor
orders, or during the conduct of cryptologic activities
that are communications security activities.
‘‘(2) This chapter applies to obtaining, causing to be
obtained, soliciting, or requiring the disclosure to third
parties or the public, of facts or opinions during the con-
duct of general investigations (other than information col-
lected in an antitrust investigation to the extent provided
in subparagraph (C) of paragraph (1)) undertaken with
reference to a category of individuals or entities such as
a class of licensees or an entire industry.
‘‘(d) Nothing in this chapter shall be interpreted as
increasing or decreasing the authority conferred by Public
Law 89–306 on the Administrator of the General Services
Administration, the Secretary of Commerce, or the Direc-
tor of the Office of Management and Budget.
‘‘(e) Nothing in this chapter shall be interpreted as
increasing or decreasing the authority of the President,
the Office of Management and Budget or the Director
thereof, under the laws of the United States, with respect
to the substantive policies and programs of departments,
agencies and offices, including the substantive authority
of any Federal agency to enforce the civil rights laws.
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‘‘§ 3519. Access to information
‘‘Under the conditions and procedures prescribed in
section 716 of title 31, the Director and personnel in the
Office of Information and Regulatory Affairs shall furnish
such information as the Comptroller General may require
for the discharge of the responsibilities of the Comptroller
General. For the purpose of obtaining such information,
the Comptroller General or representatives thereof shall
have access to all books, documents, papers and records,
regardless of form or format, of the Office.
‘‘§ 3520. Authorization of appropriations
‘‘There are authorized to be appropriated to the Of-
fice of Information and Regulatory Affairs to carry out
the provisions of this chapter such sums as may be nec-
essary.’’.
SEC. 103. EFFECTIVE DATE.
The amendments made by this division shall take ef-
fect October 1, 1995.
DIVISION B
SEC. 201. SHORT TITLE.
This division may be cited as the ‘‘Private Property
Protection Act of 1995’’.
SEC. 202. FEDERAL POLICY AND DIRECTION.
(a) GENERAL POLICY.—It is the policy of the Federal
Government that no law or agency action should limit the
use of privately owned property so as to diminish its value.
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(b) APPLICATION TO FEDERAL AGENCY ACTION.—
Each Federal agency, officer, and employee should exer-
cise Federal authority to ensure that agency action will
not limit the use of privately owned property so as to di-
minish its value.
SEC. 203. RIGHT TO COMPENSATION.
(a) IN GENERAL.—The Federal Government shall
compensate an owner of property whose use of any portion
of that property has been limited by an agency action,
under a specified regulatory law, that diminishes the fair
market value of that portion by 20 percent or more. The
amount of the compensation shall equal the diminution in
value that resulted from the agency action. If the diminu-
tion in value of a portion of that property is greater than
50 percent, at the option of the owner, the Federal Gov-
ernment shall buy that portion of the property for its fair
market value.
(b) DURATION OF LIMITATION ON USE.—Property
with respect to which compensation has been paid under
this Act shall not thereafter be used contrary to the limita-
tion imposed by the agency action, even if that action is
later rescinded or otherwise vitiated. However, if that ac-
tion is later rescinded or otherwise vitiated, and the owner
elects to refund the amount of the compensation, adjusted
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for inflation, to the Treasury of the United States, the
property may be so used.
SEC. 204. EFFECT OF STATE LAW.
If a use is a nuisance as defined by the law of a State
or is already prohibited under a local zoning ordinance,
no compensation shall be made under this division with
respect to a limitation on that use.
SEC. 205. EXCEPTIONS.
(a) PREVENTION OF HAZARD TO HEALTH OR SAFE-
TY OR DAMAGE TO SPECIFIC PROPERTY.—No compensa-
tion shall be made under this division with respect to an
agency action the primary purpose of which is to prevent
an identifiable—
(1) hazard to public health or safety; or
(2) damage to specific property other than the
property whose use is limited.
(b) NAVIGATION
SERVITUDE.—No compensation
shall be made under this division with respect to an agency
action pursuant to the Federal navigation servitude, as de-
fined by the courts of the United States, except to the
extent such servitude is interpreted to apply to wetlands.
SEC. 206. PROCEDURE.
(a) REQUEST OF OWNER.—An owner seeking com-
pensation under this division shall make a written request
for compensation to the agency whose agency action re-
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sulted in the limitation. No such request may be made
later than 180 days after the owner receives actual notice
of that agency action.
(b) NEGOTIATIONS.—The agency may bargain with
that owner to establish the amount of the compensation.
If the agency and the owner agree to such an amount,
the agency shall promptly pay the owner the amount
agreed upon.
(c) CHOICE OF REMEDIES.—If, not later than 180
days after the written request is made, the parties do not
come to an agreement as to the right to and amount of
compensation, the owner may choose to take the matter
to binding arbitration or seek compensation in a civil ac-
tion.
(d) ARBITRATION.—The procedures that govern the
arbitration shall, as nearly as practicable, be those estab-
lished under title 9, United States Code, for arbitration
proceedings to which that title applies. An award made
in such arbitration shall include a reasonable attorney’s
fee and other arbitration costs (including appraisal fees).
The agency shall promptly pay any award made to the
owner.
(e) CIVIL ACTION.—An owner who does not choose
arbitration, or who does not receive prompt payment when
required by this section, may obtain appropriate relief in
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a civil action against the agency. An owner who prevails
in a civil action under this section shall be entitled to, and
the agency shall be liable for, a reasonable attorney’s fee
and other litigation costs (including appraisal fees). The
court shall award interest on the amount of any compensa-
tion from the time of the limitation.
(f) SOURCE
OF PAYMENTS.—Any payment made
under this section to an owner, and any judgment obtained
by an owner in a civil action under this section shall, not-
withstanding any other provision of law, be made from the
annual appropriation of the agency whose action occa-
sioned the payment or judgment. If the agency action re-
sulted from a requirement imposed by another agency,
then the agency making the payment or satisfying the
judgment may seek partial or complete reimbursement
from the appropriated funds of the other agency. For this
purpose the head of the agency concerned may transfer
or reprogram any appropriated funds available to the
agency. If insufficient funds exist for the payment or to
satisfy the judgment, it shall be the duty of the head of
the agency to seek the appropriation of such funds for the
next fiscal year.
SEC. 207. LIMITATION.
Notwithstanding any other provision of law, any obli-
gation of the United States to make any payment under
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this division shall be subject to the availability of appro-
priations.
SEC. 208. DUTY OF NOTICE TO OWNERS.
Whenever an agency takes an agency action limiting
the use of private property, the agency shall give appro-
priate notice to the owners of that property directly af-
fected explaining their rights under this division and the
procedures for obtaining any compensation that may be
due to them under this division.
SEC. 209. RULES OF CONSTRUCTION.
(a) EFFECT ON CONSTITUTIONAL RIGHT TO COM-
PENSATION.—Nothing in this division shall be construed
to limit any right to compensation that exists under the
Constitution or under other laws of the United States.
(b) EFFECT OF PAYMENT.—Payment of compensa-
tion under this division (other than when the property is
bought by the Federal Government at the option of the
owner) shall not confer any rights on the Federal Govern-
ment other than the limitation on use resulting from the
agency action.
SEC. 210. DEFINITIONS.
For the purposes of this division—
(1) the term ‘‘property’’ means land and in-
cludes the right to use or receive water;
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(2) a use of property is limited by an agency
action if a particular legal right to use that property
no longer exists because of the action;
(3) the term ‘‘agency action’’ has the meaning
given that term in section 551 of title 5, United
States Code, but also includes the making of a grant
to a public authority conditioned upon an action by
the recipient that would constitute a limitation if
done directly by the agency;
(4) the term ‘‘agency’’ has the meaning given
that term in section 551 of title 5, United States
Code;
(5) 
the 
term 
‘‘specified 
regulatory 
law’’
means—
(A) section 404 of the Federal Water Pol-
lution Control Act (33 U.S.C. 1344);
(B) the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.);
(C) title XII of the Food Security Act of
1985 (16 U.S.C. 3801 et seq.); or
(D) with respect to an owner’s right to use
or receive water only—
(i) the Act of June 17, 1902, and all
Acts amendatory thereof or supplementary
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thereto, popularly called the ‘‘Reclamation
Acts’’ (43 U.S.C. 371 et seq.);
(ii) the Federal Land Policy Manage-
ment Act (43 U.S.C. 1701 et seq.); or
(iii) section 6 of the Forest and
Rangeland Renewable Resources Planning
Act of 1974 (16 U.S.C. 1604);
(6) the term ‘‘fair market value’’ means the
most probable price at which property would change
hands, in a competitive and open market under all
conditions requisite to a fair sale, between a willing
buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable
knowledge of relevant facts, at the time the agency
action occurs;
(7) the term ‘‘State’’ includes the District of
Columbia, Puerto Rico, and any other territory or
possession of the United States; and
(8) the term ‘‘law of the State’’ includes the
law of a political subdivision of a State.
DIVISION C
SEC. 301. SHORT TITLE.
This division may be cited as the ‘‘Regulatory Reform
and Relief Act’’.
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TITLE I—STRENGTHENING
REGULATORY FLEXIBILITY
SEC. 311. JUDICIAL REVIEW.
(a) AMENDMENT.—Section 611 of title 5, United
States Code, is amended to read as follows:
‘‘§ 611. Judicial review
‘‘(a)(1) Except as provided in paragraph (2), not
later than one year, notwithstanding any other provision
of law, after the effective date of a final rule with respect
to which an agency—
‘‘(A) certified, pursuant to section 605(b), that
such rule would not have a significant economic im-
pact on a substantial number of small entities; or
‘‘(B) prepared a final regulatory flexibility anal-
ysis pursuant to section 604,
an affected small entity may petition for the judicial re-
view of such certification or analysis in accordance with
the terms of this subsection. A court having jurisdiction
to review such rule for compliance with the provisions of
section 553 or under any other provision of law shall have
jurisdiction to review such certification or analysis. In the
case where an agency delays the issuance of a final regu-
latory flexibility analysis pursuant to section 608(b), a pe-
tition for judicial review under this subsection shall be
filed not later than one year, notwithstanding any other
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provision of law, after the date the analysis is made avail-
able to the public.
‘‘(2) For purposes of this subsection, the term ‘af-
fected small entity’ means a small entity that is or will
be adversely affected by the final rule.
‘‘(3) Nothing in this subsection shall be construed to
affect the authority of any court to stay the effective date
of any rule or provision thereof under any other provision
of law.
‘‘(4)(A) In the case where the agency certified that
such rule would not have a significant economic impact
on a substantial number of small entities, the court may
order the agency to prepare a final regulatory flexibility
analysis pursuant to section 604 if the court determines,
on the basis of the rulemaking record, that the certifi-
cation was arbitrary, capricious, an abuse of discretion,
or otherwise not in accordance with law.
‘‘(B) In the case where the agency prepared a final
regulatory flexibility analysis, the court may order the
agency to take corrective action consistent with the re-
quirements of section 604 if the court determines, on the
basis of the rulemaking record, that the final regulatory
flexibility analysis was prepared by the agency without ob-
servance of procedure required by section 604.
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‘‘(5) If, by the end of the 90-day period beginning
on the date of the order of the court pursuant to para-
graph (4) (or such longer period as the court may pro-
vide), the agency fails, as appropriate—
‘‘(A) to prepare the analysis required by section
604; or
‘‘(B) to take corrective action consistent with
the requirements of section 604,
the court may stay the rule or grant such other relief as
it deems appropriate.
‘‘(6) In making any determination or granting any
relief authorized by this subsection, the court shall take
due account of the rule of prejudicial error.
‘‘(b) In an action for the judicial review of a rule,
any regulatory flexibility analysis for such rule (including
an analysis prepared or corrected pursuant to subsection
(a)(4)) shall constitute part of the whole record of agency
action in connection with such review.
‘‘(c) Nothing in this section bars judicial review of
any other impact statement or similar analysis required
by any other law if judicial review of such statement or
analysis is otherwise provided by law.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply only to final agency rules issued
after the date of enactment of this division.
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SEC. 312. RULES COMMENTED ON BY SBA CHIEF COUNSEL
FOR ADVOCACY.
(a) IN GENERAL.—Section 612 of title 5, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d) ACTION BY THE SBA CHIEF COUNSEL FOR AD-
VOCACY.—
‘‘(1) TRANSMITTAL OF PROPOSED RULES AND
INITIAL
REGULATORY
FLEXIBILITY
ANALYSIS
TO
SBA CHIEF COUNSEL FOR ADVOCACY.—On or before
the 30th day preceding the date of publication by an
agency of general notice of proposed rulemaking for
a rule, the agency shall transmit to the Chief Coun-
sel for Advocacy of the Small Business Administra-
tion—
‘‘(A) a copy of the proposed rule; and
‘‘(B)(i) a copy of the initial regulatory
flexibility analysis for the rule if required under
section 603; or
‘‘(ii) a determination by the agency that an
initial regulatory flexibility analysis is not re-
quired for the proposed rule under section 603
and an explanation for the determination.
‘‘(2) STATEMENT OF EFFECT.—On or before
the 15th day following receipt of a proposed rule and
initial regulatory flexibility analysis from an agency
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under paragraph (1), the Chief Counsel for Advo-
cacy may transmit to the agency a written statement
of the effect of the proposed rule on small entities.
‘‘(3) RESPONSE.—If the Chief Counsel for Ad-
vocacy transmits to an agency a statement of effect
on a proposed rule in accordance with paragraph
(2), the agency shall publish the statement, together
with the response of the agency to the statement, in
the Federal Register at the time of publication of
general notice of proposed rulemaking for the rule.
‘‘(4) SPECIAL RULE.—Any proposed rules is-
sued by an appropriate Federal banking agency (as
that term is defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)), the Na-
tional Credit Union Administration, or the Office of
Federal Housing Enterprise Oversight, in connection
with the implementation of monetary policy or to en-
sure the safety and soundness of federally insured
depository institutions, any affiliate of such an insti-
tution, credit unions, or government sponsored hous-
ing enterprises or to protect the Federal deposit in-
surance funds shall not be subject to the require-
ments of this subsection.’’.
(b) CONFORMING AMENDMENT.—Section 603(a) of
title 5, United States Code, is amended by inserting ‘‘in
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accordance with section 612(d)’’ before the period at the
end of the last sentence.
SEC. 313. SENSE OF CONGRESS REGARDING SBA CHIEF
COUNSEL FOR ADVOCACY.
It is the sense of Congress that the Chief Counsel
for Advocacy of the Small Business Administration should
be permitted to appear as amicus curiae in any action or
case brought in a court of the United States for the pur-
pose of reviewing a rule.
TITLE II—REGULATORY IMPACT
ANALYSES
SEC. 321. DEFINITIONS.
Section 551 of title 5, United States Code, is amend-
ed by striking ‘‘and’’ at the end of paragraph (13), by
striking the period at the end of paragraph (14) and in-
serting a semicolon, and by adding at the end the follow-
ing:
‘‘(15) ‘major rule’ means any rule subject to
section 553(c) that is likely to result in—
‘‘(A) an annual effect on the economy of
$50,000,000 or more;
‘‘(B) a major increase in costs or prices for
consumers, 
individual 
industries, 
Federal,
State, or local government agencies, or geo-
graphic regions, or
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‘‘(C) significant adverse effects on competi-
tion, employment, investment, productivity, in-
novation, or on the ability of United States-
based enterprises to compete with foreign-based
enterprises in domestic and export markets; and
‘‘(16) ‘Director’ means the Director of the Of-
fice of Management and Budget.’’.
SEC. 322. RULEMAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amend-
ed by adding at the end the following:
‘‘(f)(1) Each agency shall for a proposed major rule
publish in the Federal Register, at least 90 days before
the date of publication of the general notice required
under subsection (b), a notice of intent to engage in rule-
making.
‘‘(2) A notice under paragraph (1) for a proposed
major rule shall include, to the extent possible, the infor-
mation required to be included in a regulatory impact
analysis for the rule under subsection (i)(4)(B) and (D).
‘‘(3) For a major rule proposed by an agency, the
head of the agency shall include in a general notice under
subsection (b), a preliminary regulatory impact analysis
for the rule prepared in accordance with subsection (i).
‘‘(4) For a final major rule, the agency shall include
with the statement of basis and purpose—
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‘‘(A) a summary of a final regulatory impact
analysis of the rule in accordance with subsection
(i); and
‘‘(B) a clear delineation of all changes in the in-
formation included in the final regulatory impact
analysis under subsection (i) from any such informa-
tion that was included in the notice for the rule
under subsection (b).
The agency shall provide the complete text of a final regu-
latory impact analysis upon request.
‘‘(5) The issuance of a notice of intent to engage in
rulemaking under paragraph (1) and the issuance of a
preliminary regulatory impact analysis under paragraph
(3) shall not be considered final agency action for pur-
poses of section 704.
‘‘(6) In a rulemaking involving a major rule, the
agency conducting the rulemaking shall make a written
record describing the subject of all contacts the agency
made with persons outside the agency relating to such
rulemaking. If the contact was made with a non-govern-
mental person, the written record of such contact shall be
made available, upon request to the public.’’.
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SEC. 323. HEARING REQUIREMENT FOR PROPOSED RULES;
AND EXTENSION OF COMMENT PERIOD.
(a) HEARING REQUIREMENT.—Section 553 of title 5,
United States Code, as amended by section 322, is further
amended by adding after subsection (f) the following:
‘‘(g) If more than 100 interested persons acting indi-
vidually submit requests for a hearing to an agency re-
garding any major rule proposed by the agency, the agen-
cy shall hold such a hearing on the proposed rule.’’.
(b) EXTENSION OF COMMENT PERIOD.—Section 553
of title 5, United States Code, as amended by subsection
(a), is further amended by adding after subsection (g) the
following:
‘‘(h) If during the 90-day period beginning on the
date of publication of a notice under subsection (f) for a
proposed major rule, or if during the period beginning on
the date of publication or service of notice required by sub-
section (b) for a proposed major rule, more than 100 per-
sons individually contact the agency to request an exten-
sion of the period for making submissions under sub-
section (c) pursuant to the notice, the agency—
‘‘(1) shall provide an additional 30-day period
for making those submissions; and
‘‘(2) may not adopt the rule until after the ad-
ditional period.’’.
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(c) RESPONSE TO COMMENTS.—Section 553(c) of
title 5, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) Each agency shall publish in the Federal Reg-
ister, with each rule published under section 552(a)(1)(D),
responses to the substance of the comments received by
the agency regarding the rule.’’.
SEC. 324. REGULATORY IMPACT ANALYSIS.
Section 553 of title 5, United States Code, as amend-
ed by section 323, is amended by adding after subsection
(h) the following:
‘‘(i)(1) Each agency shall, in connection with every
major rule, prepare, and, to the extent permitted by law,
consider, a regulatory impact analysis. Such analysis may
be combined with any regulatory flexibility analysis per-
formed under sections 603 and 604.
‘‘(2) Each agency shall initially determine whether a
rule it intends to propose or issue is a major rule. The
Director shall have authority to order a rule to be treated
as a major rule and to require any set of related rules
to be considered together as a major rule.
‘‘(3) Except as provided in subsection (j), agencies
shall prepare—
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‘‘(A) a preliminary regulatory impact analysis,
which shall be transmitted, along with a notice of
proposed rulemaking, to the Director at least 60
days prior to the publication of notice of proposed
rulemaking, and
‘‘(B) a final regulatory impact analysis, which
shall be transmitted along with the final rule at least
30 days prior to the publication of a major rule.
‘‘(4) Each preliminary and final regulatory impact
analysis shall contain the following information:
‘‘(A) A description of the potential benefits of
the rule, including any beneficial effects that cannot
be quantified in monetary terms and the identifica-
tion of those likely to receive the benefits.
‘‘(B) An explanation of the necessity, legal au-
thority, and reasonableness of the rule and a de-
scription of the condition that the rule is to address.
‘‘(C) A description of the potential costs of the
rule, including any adverse effects that cannot be
quantified in monetary terms, and the identification
of those likely to bear the costs.
‘‘(D) An analysis of alternative approaches, in-
cluding market based mechanisms, that could sub-
stantially achieve the same regulatory goal at a
lower cost and an explanation of the reasons why
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such alternative approaches were not adopted, to-
gether with a demonstration that the rule provides
for the least costly approach.
‘‘(E) A statement that the rule does not conflict
with, or duplicate, any other rule or a statement of
the reasons why such a conflict or duplication exists.
‘‘(F) A statement of whether the rule will re-
quire on-site inspections or whether persons will be
required by the rule to maintain any records which
will be subject to inspection, and a statement of
whether the rule will require persons to obtain li-
censes, permits, or other certifications, including
specification of any associated fees or fines.
‘‘(G) An estimate of the costs to the agency for
implementation and enforcement of the rule and of
whether the agency can be reasonably expected to
implement the rule with the current level of appro-
priations.
‘‘(5)(A) the Director is authorized to review and pre-
pare comments on any preliminary or final regulatory im-
pact analysis, notice of proposed rulemaking, or final rule
based on the requirements of this subsection.
‘‘(B) Upon the request of the Director, an agency
shall consult with the Director concerning the review of
a preliminary impact analysis or notice of proposed rule-
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making and shall refrain from publishing its preliminary
regulatory impact analysis or notice of proposed rule-
making until such review is concluded. The Director’s re-
view may not take longer than 90 days after the date of
the request of the Director.
‘‘(6)(A) An agency may not adopt a major rule unless
the final regulatory impact analysis for the rule is ap-
proved or commented upon in writing by the Director or
by an individual designated by the Director for that pur-
pose.
‘‘(B) Upon receiving notice that the Director intends
to comment in writing with respect to any final regulatory
impact analysis or final rule, the agency shall refrain from
publishing its final regulatory impact analysis or final rule
until the agency has responded to the Director’s comments
and incorporated those comments in the agency’s response
in the rulemaking file. If the Director fails to make such
comments in writing with respect to any final regulatory
impact analysis or final rule within 90 days of the date
the Director gives such notice, the agency may adopt such
final regulatory impact analysis or final rule.
‘‘(7) Notwithstanding section 551(16), for purposes
of this subsection with regard to any rule proposed or is-
sued by an appropriate Federal banking agency (as that
term is defined in section 3(q) of the Federal Deposit In-
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surance Act (12 U.S.C. 1813(q)), the National Credit
Union Administration, or the Office of Federal Housing
Enterprise Oversight, the term ‘Director’ means the head
of such agency, Administration, or Office.’’.
SEC. 325. STANDARD OF CLARITY.
Section 553 of title 5, United States Code, as amend-
ed in section 324, is amended by adding after subsection
(i) the following:
‘‘(j) To the extent practicable, the head of an agency
shall seek to ensure that any proposed major rule or regu-
latory impact analysis of such a rule is written in a reason-
ably simple and understandable manner and provides ade-
quate notice of the content of the rule to affected per-
sons.’’.
SEC. 326. EXEMPTIONS.
Section 553 of title 5, United States Code, as amend-
ed by section 325, is further amended by adding after sub-
section (j) the following:
‘‘(k)(1) The provisions of this section regarding
major rules shall not apply to—
‘‘(A) any regulation that responds to an emer-
gency situation if such regulation is reported to the
Director as soon as is practicable;
‘‘(B) any regulation for which consideration
under the procedures of this section would conflict
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with deadlines imposed by statute or by judicial
order;
‘‘(C) any regulation proposed or issued in con-
nection with the implementation of monetary policy
or to ensure the safety and soundness of federally
insured depository institutions, any affiliate of such
institution, credit unions, or government sponsored
housing enterprises regulated by the Office of Fed-
eral Housing Enterprise Oversight;
‘‘(D) any agency action that the head of the
agency certifies is limited to interpreting, implement-
ing, or administering the internal revenue laws of
the United States, including any regulation proposed
or issued in connection with ensuring the collection
of taxes from a subsidiary of a foreign company
doing business in the United States; and
‘‘(E) any regulation proposed or issued pursu-
ant to section 553 of title 5, United States Code, in
connection with imposing trade sanctions against
any country that engages in illegal trade activities
against the United States that are injurious to
American technology, jobs, pensions, or general eco-
nomic well-being.
A regulation described in subparagraph (B) shall be re-
ported to the Director with a brief explanation of the con-
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flict and the agency, in consultation with the Director,
shall, to the extent permitted by statutory or judicial dead-
lines, adhere to the process of this section.
‘‘(2) The Director may in accordance with the pur-
poses of this section exempt any class or category of regu-
lations from any or all requirements of this section.
‘‘(3) For purposes of paragraph (1), the term ‘emer-
gency situation’ means a situation that is—
‘‘(A) immediately impending and extraordinary
in nature, or
‘‘(B) demanding attention due to a condition,
circumstance, or practice reasonably expected to
cause death, serious illness, or severe injury to hu-
mans or substantial endangerment to private prop-
erty or the environment if no action is taken.’’.
SEC. 327. REPORT.
The Director of the Office of Management and Budg-
et shall submit a report to the Congress no later than 24
months after the date of the enactment of this Act con-
taining an analysis of rulemaking procedures of Federal
agencies and an analysis of the impact of those rule-
making procedures on the regulated public and regulatory
process.
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SEC. 328. EFFECTIVE DATE.
The amendment made by this title shall apply only
to final agency rules issued after rulemaking begun after
the date of enactment of this Act.
TITLE III—PROTECTIONS
SEC. 331. PRESIDENTIAL ACTION.
Pursuant to the authority of section 7301 of title 5,
United States Code, the President shall, within 180 days
of the date of the enactment of this Act, prescribe regula-
tions for employees of the executive branch to ensure that
Federal laws and regulations shall be administered con-
sistent with the principle that any person shall, in connec-
tion with the enforcement of such laws and regulations—
(1) be protected from abuse, reprisal, or retalia-
tion, and
(2) be treated fairly, equitably, and with due re-
gard for such person’s rights under the Constitution.
DIVISION D
SEC. 401. SHORT TITLE.
This division may be cited as the ‘‘Risk Assessment
and Cost-Benefit Act of 1995’’.
SEC. 402. FINDINGS.
The Congress finds that:
(1) Environmental, health, and safety regula-
tions have led to dramatic improvements in the envi-
ronment and have significantly reduced human
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health risk; however, the Federal regulations that
have led to these improvements have been more cost-
ly and less effective than they could have been; too
often, regulatory priorities have not been based upon
a realistic consideration of risk, risk reduction op-
portunities, and costs.
(2) The public and private resources available
to address health, safety, and environmental con-
cerns are not unlimited; those resources need to be
allocated to address the greatest needs in the most
cost-effective manner and so that the incremental
costs of regulatory alternatives are reasonably relat-
ed to the incremental benefits.
(3) To provide more cost-effective and cost-rea-
sonable protection to human health and the environ-
ment, regulatory priorities should be based upon re-
alistic consideration of risk; the priority setting proc-
ess must include scientifically sound, objective, and
unbiased risk assessments, comparative risk analy-
sis, and risk management choices that are grounded
in cost-benefit principles.
(4) Risk assessment has proven to be a useful
decision making tool; however, improvements are
needed in both the quality of assessments and the
characterization and communication of findings; sci-
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entific and other data must be better collected, orga-
nized, and evaluated; most importantly, the critical
information resulting from a risk assessment must
be effectively communicated in an objective and un-
biased manner to decision makers, and from decision
makers to the public.
(5) The public stake holders must be fully in-
volved in the risk-decision making process. They
have the right-to-know about the risks addressed by
regulation, the amount of risk to be reduced, the
quality of the science used to support decisions, and
the cost of implementing and complying with regula-
tions. This knowledge will allow for public scrutiny
and promote quality, integrity, and responsiveness of
agency decisions.
(6) Although risk assessment is one important
method to improve regulatory decision-making, other
approaches to secure prompt relief from the burden
of unnecessary and overly complex regulations will
also be necessary.
SEC. 403. COVERAGE OF DIVISION.
This division does not apply to any of the following:
(1) A situation that the head of an affected
Federal agency determines to be an emergency. In
such circumstance, the head of the agency shall com-
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ply with the provisions of this division within as rea-
sonable a time as is practical.
(2) Activities necessary to maintain military
readiness.
(3) Any individual food, drug, or other product
label, or to any risk characterization appearing on
any such label, if the individual product label is re-
quired by law to be approved by a Federal depart-
ment or agency prior to use.
(4) Approval of State programs or plans by
Federal agencies.
SEC. 404. UNFUNDED MANDATES.
Nothing in this division itself shall, without Federal
funding and further Federal agency action, create any new
obligation or burden on any State or local government or
otherwise impose any financial burden on any State or
local government in the absence of Federal funding, except
with respect to routine information requests.
SEC. 405. DEFINITIONS.
For purposes of this division:
(1) COSTS.—The term ‘‘costs’’ includes the di-
rect and indirect costs to the United States Govern-
ment, to State, local, and tribal governments, and to
the private sector, wage earners, consumers, and the
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economy, of implementing and complying with a rule
or alternative strategy.
(2) BENEFIT.—The term ‘‘benefit’’ means the
reasonably identifiable significant health, safety, en-
vironmental, social and economic benefits that are
expected to result directly or indirectly from imple-
mentation of a rule or alternative strategy.
(3) MAJOR
RULE.—The term ‘‘major rule’’
means any regulation that is likely to result in an
annual increase in costs of $25,000,000 or more.
Such term does not include any regulation or other
action taken by an agency to authorize or approve
any individual substance or product.
(4) PROGRAM DESIGNED TO PROTECT HUMAN
HEALTH.—The term ‘‘program designed to protect
human health’’ does not include regulatory programs
concerning health insurance, health provider serv-
ices, or health care diagnostic services.
(5) EMERGENCY.—As used in this division, the
term ‘‘emergency’’ means a situation that is imme-
diately impending and extraordinary in nature, de-
manding attention due to a condition, circumstance,
or practice reasonably expected to cause death, seri-
ous illness, or severe injury to humans, or substan-
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tial endangerment to private property or the envi-
ronment if no action is taken.
SEC. 406. AVAILABILITY OF INFORMATION AMONG FED-
ERAL AGENCIES.
Covered Federal agencies shall make existing
databases and information developed under this division
available to other Federal agencies, subject to applicable
confidentiality requirements, for the purpose of meeting
the requirements of this division. Within 15 months after
the date of enactment of this division, the President shall
issue guidelines for Federal agencies to comply with this
section.
TITLE I—RISK ASSESSMENT AND
COMMUNICATION
SEC. 411. SHORT TITLE.
This title may be cited as the ‘‘Risk Assessment and
Communication Act of 1995’’.
SEC. 412. PURPOSES.
The purposes of this title are—
(1) to present the public and executive branch
with the most scientifically objective and unbiased
information concerning the nature and magnitude of
health, safety, and environmental risks in order to
provide for sound regulatory decisions and public
education;
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(2) to provide for full consideration and discus-
sion of relevant data and potential methodologies;
(3) to require explanation of significant choices
in the risk assessment process which will allow for
better peer review and public understanding; and
(4) to improve consistency within the executive
branch in preparing risk assessments and risk char-
acterizations.
SEC. 413. EFFECTIVE DATE; APPLICABILITY; SAVINGS PRO-
VISIONS.
(a) EFFECTIVE DATE.—Except as otherwise specifi-
cally provided in this title, the provisions of this title shall
take effect 18 months after the date of enactment of this
Act.
(b) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (3), this title applies to all significant risk as-
sessment documents and significant risk character-
ization documents, as defined in paragraph (2).
(2) SIGNIFICANT RISK ASSESSMENT DOCUMENT
OR
SIGNIFICANT
RISK
CHARACTERIZATION
DOCU-
MENT.—(A) As used in this title, the terms ‘‘signifi-
cant risk assessment document’’ and ‘‘significant
risk characterization document’’ include, at a mini-
mum, risk assessment documents or risk character-
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ization documents prepared by or on behalf of a cov-
ered Federal agency in the implementation of a reg-
ulatory program designed to protect human health,
safety, or the environment, used as a basis for one
of the items referred to in subparagraph (B), and—
(i) included by the agency in that item; or
(ii) inserted by the agency in the adminis-
trative record for that item.
(B) The items referred to in subparagraph (A)
are the following:
(i) Any proposed or final major rule, in-
cluding any analysis or certification under title
II, promulgated as part of any Federal regu-
latory program designed to protect human
health, safety, or the environment.
(ii) Any proposed or final environmental
clean-up plan for a facility or Federal guidelines
for the issuance of any such plan. As used in
this clause, the term ‘‘environmental clean-up’’
means a corrective action under the Solid
Waste Disposal Act, a removal or remedial ac-
tion under the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980, and any other environmental restoration
and waste management carried out by or on be-
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half of a covered Federal agency with respect to
any substance other than municipal waste.
(iii) Any proposed or final permit condition
placing a restriction on facility siting or oper-
ation under Federal laws administered by the
Environmental Protection Agency or the De-
partment of the Interior. Nothing in this sec-
tion (iii) shall apply to the requirements of sec-
tion 404 of the Clean Water Act.
(iv) Any report to Congress.
(v) Any regulatory action to place a sub-
stance on any official list of carcinogens or
toxic or hazardous substances or to place a new
health effects value on such list, including the
Integrated Risk Information System Database
maintained by the Environmental Protection
Agency.
(vi) Any guidance, including protocols of
general applicability, establishing policy regard-
ing risk assessment or risk characterization.
(C) The terms ‘‘significant risk assessment doc-
ument’’ and ‘‘significant risk characterization docu-
ment’’ shall also include the following:
(i) Any such risk assessment and risk
characterization documents provided by a cov-
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ered Federal agency to the public and which are
likely to result in an annual increase in costs of
$25,000,000 or more.
(ii) Environmental restoration and waste
management carried out by or on behalf of the
Department of Defense with respect to any sub-
stance other than municipal waste.
(D) Within 15 months after the date of the en-
actment of this Act, each covered Federal agency ad-
ministering a regulatory program designed to protect
human health, safety, or the environment shall pro-
mulgate a rule establishing those additional cat-
egories, if any, of risk assessment and risk charac-
terization documents prepared by or on behalf of the
covered Federal agency that the agency will consider
significant risk assessment documents or significant
risk characterization documents for purposes of this
title. In establishing such categories, the head of the
agency shall consider each of the following:
(i) The benefits of consistent compliance
by documents of the covered Federal agency in
the categories.
(ii) The administrative burdens of includ-
ing documents in the categories.
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(iii) The need to make expeditious admin-
istrative decisions regarding documents in the
categories.
(iv) The possible use of a risk assessment
or risk characterization in any compilation of
risk hazards or health or environmental effects
prepared by an agency and commonly made
available to, or used by, any Federal, State, or
local government agency.
(v) Such other factors as may be appro-
priate.
(E)(i) Not later than 18 months after the date
of the enactment of this Act, the President, acting
through the Director of the Office of Management
and Budget, shall determine whether any other Fed-
eral agencies should be considered covered Federal
agencies for purposes of this title. Such determina-
tion, with respect to a particular Federal agency,
shall be based on the impact of risk assessment doc-
uments and risk characterization documents on—
(I) regulatory programs administered by
that agency; and
(II) the communication of risk information
by that agency to the public.
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The effective date of such a determination shall be
no later than 6 months after the date of the deter-
mination.
(ii) Not later than 15 months after the Presi-
dent, acting through the Director of the Office of
Management and Budget, determines pursuant to
clause (i) that a Federal agency should be consid-
ered a covered Federal agency for purposes of this
title, the head of that agency shall promulgate a rule
pursuant to subparagraph (D) to establish addi-
tional categories of risk assessment and risk charac-
terization documents described in that subpara-
graph.
(3) EXCEPTIONS.—(A) This title does not apply
to risk assessment or risk characterization docu-
ments containing risk assessments or risk character-
izations performed with respect to the following:
(i) A screening analysis, where appro-
priately labeled as such, including a screening
analysis for purposes of product regulation or
premanufacturing notices.
(ii) Any health, safety, or environmental
inspections.
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(iii) The sale or lease of Federal resources
or regulatory activities that directly result in
the collection of Federal receipts.
(B) No analysis shall be treated as a screening
analysis for purposes of subparagraph (A) if the re-
sults of such analysis are used as the basis for im-
posing restrictions on substances or activities.
(C) The risk assessment principle set forth in
section 414(b)(1) need not apply to any risk assess-
ment or risk characterization document described in
clause (iii) of paragraph (2)(B). The risk character-
ization and communication principle set forth in sec-
tion 415(4) need not apply to any risk assessment
or risk characterization document described in
clause (v) or (vi) of paragraph (2)(B).
(c) SAVINGS PROVISIONS.—The provisions of this
title shall be supplemental to any other provisions of law
relating to risk assessments and risk characterizations, ex-
cept that nothing in this title shall be construed to modify
any statutory standard or statutory requirement designed
to protect health, safety, or the environment. Nothing in
this title shall be interpreted to preclude the consideration
of any data or the calculation of any estimate to more
fully describe risk or provide examples of scientific uncer-
tainty or variability. Nothing in this title shall be con-
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strued to require the disclosure of any trade secret or
other confidential information.
SEC. 414. PRINCIPLES FOR RISK ASSESSMENT.
(a) IN GENERAL.—The head of each covered Federal
agency shall apply the principles set forth in subsection
(b) in order to assure that significant risk assessment doc-
uments and all of their components distinguish scientific
findings from other considerations and are, to the extent
feasible, scientifically objective, unbiased, and inclusive of
all relevant data and rely, to the extent available and prac-
ticable, on scientific findings. Discussions or explanations
required under this section need not be repeated in each
risk assessment document as long as there is a reference
to the relevant discussion or explanation in another agency
document which is available to the public.
(b) PRINCIPLES.—The principles to be applied are as
follows:
(1) When discussing human health risks, a sig-
nificant risk assessment document shall contain a
discussion of both relevant laboratory and relevant
epidemiological data of sufficient quality which finds,
or fails to find, a correlation between health risks
and a potential toxin or activity. Where conflicts
among such data appear to exist, or where animal
data is used as a basis to assess human health, the
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significant risk assessment document shall, to the
extent feasible and appropriate, include discussion of
possible reconciliation of conflicting information, and
as relevant, differences in study designs, compara-
tive physiology, routes of exposure, bioavailability,
pharmacokinetics, and any other relevant factor, in-
cluding the sufficiency of basic data for review. The
discussion of possible reconciliation should indicate
whether there is a biological basis to assume a re-
sulting harm in humans. Animal data shall be re-
viewed with regard to its relevancy to humans.
(2) Where a significant risk assessment docu-
ment involves selection of any significant assump-
tion, inference, or model, the document shall, to the
extent feasible—
(A) present a representative list and expla-
nation of plausible and alternative assumptions,
inferences, or models;
(B) explain the basis for any choices;
(C) identify any policy or value judgments;
(D) fully describe any model used in the
risk assessment and make explicit the assump-
tions incorporated in the model; and
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multiple best estimates based on assumptions, infer-
ences, or models which are equally plausible, given
current scientific understanding. To the extent prac-
tical and appropriate, the document shall provide de-
scriptions of the distribution and probability of risk
estimates to reflect differences in exposure varia-
bility or sensitivity in populations and attendant un-
certainties. Sensitive subpopulations or highly ex-
posed subpopulations include, where relevant and
appropriate, children, the elderly, pregnant women,
and disabled persons.
(2) EXPOSURE SCENARIOS.—The risk charac-
terization document shall explain the exposure sce-
narios used in any risk assessment, and, to the ex-
tent feasible, provide a statement of the size of the
corresponding population at risk and the likelihood
of such exposure scenarios.
(3) COMPARISONS.—The document shall con-
tain a statement that places the nature and mag-
nitude of risks to human health, safety, or the envi-
ronment in context. Such statement shall, to the ex-
tent feasible, provide comparisons with estimates of
greater, lesser, and substantially equivalent risks
that are familiar to and routinely encountered by the
general public as well as other risks, and, where ap-
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propriate and meaningful, comparisons of those risks
with other similar risks regulated by the Federal
agency resulting from comparable activities and ex-
posure pathways. Such comparisons should consider
relevant distinctions among risks, such as the vol-
untary or involuntary nature of risks and the pre-
ventability or nonpreventability of risks.
(4) SUBSTITUTION
RISKS.—Each significant
risk assessment or risk characterization document
shall include a statement of any significant substi-
tution risks to human health, where information on
such risks has been provided to the agency.
(5) SUMMARIES OF OTHER RISK ESTIMATES.—
If—
(A) a commenter provides a covered Fed-
eral agency with a relevant risk assessment doc-
ument or a risk characterization document, and
a summary thereof, during a public comment
provided by the agency for a significant risk as-
sessment document or a significant risk charac-
terization document, or, where no comment pe-
riod is provided but a commenter provides the
covered Federal agency with the relevant risk
assessment document or risk characterization
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document, and a summary thereof, in a timely
fashion, and
(B) the risk assessment document or risk
characterization document is consistent with the
principles and the guidance provided under this
title,
the agency shall, to the extent feasible, present such
summary in connection with the presentation of the
agency’s significant risk assessment document or
significant risk characterization document. Nothing
in this paragraph shall be construed to limit the in-
clusion of any comments or material supplied by any
person to the administrative record of any proceed-
ing.
A document may satisfy the requirements of paragraph
(3), (4) or (5) by reference to information or material oth-
erwise available to the public if the document provides a
brief summary of such information or material.
SEC. 416. RECOMMENDATIONS OR CLASSIFICATIONS BY A
NON-UNITED STATES-BASED ENTITY.
No covered Federal agency shall automatically incor-
porate or adopt any recommendation or classification
made by a non-United States-based entity concerning the
health effects value of a substance without an opportunity
for notice and comment, and any risk assessment docu-
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ment or risk characterization document adopted by a cov-
ered Federal agency on the basis of such a recommenda-
tion or classification shall comply with the provisions of
this title. For the purposes of this section, the term ‘‘non-
United States-based entity’’ means—
(1) any foreign government and its agencies;
(2) the United Nations or any of its subsidiary
organizations;
(3) any other international governmental body
or international standards-making organization; or
(4) any other organization or private entity
without a place of business located in the United
States or its territories.
SEC. 417. GUIDELINES AND REPORT.
(a) GUIDELINES.—Within 15 months after the date
of enactment of this Act, the President shall issue guide-
lines for Federal agencies consistent with the risk assess-
ment and characterization principles set forth in sections
414 and 415 and shall provide a format for summarizing
risk assessment results. In addition, such guidelines shall
include guidance on at least the following subjects: criteria
for scaling animal studies to assess risks to human health;
use of different types of dose-response models; thresholds;
definitions, use, and interpretations of the maximum toler-
ated dose; weighting of evidence with respect to extrapo-
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lating human health risks from sensitive species; evalua-
tion of benign tumors, and evaluation of different human
health endpoints.
(b) REPORT.—Within 3 years after the date of the
enactment of this Act, each covered Federal agency shall
provide a report to the Congress evaluating the categories
of policy and value judgments identified under subpara-
graph (C) of section 414(b)(2).
(c) PUBLIC COMMENT
AND CONSULTATION.—The
guidelines and report under this section, shall be developed
after notice and opportunity for public comment, and after
consultation with representatives of appropriate State,
local, and tribal governments, and such other departments
and agencies, offices, organizations, or persons as may be
advisable.
(d) REVIEW.—The President shall review and, where
appropriate, revise the guidelines published under this sec-
tion at least every 4 years.
SEC. 418. RESEARCH AND TRAINING IN RISK ASSESSMENT.
(a) EVALUATION.—The head of each covered agency
shall regularly and systematically evaluate risk assessment
research and training needs of the agency, including,
where relevant and appropriate, the following:
(1) Research to reduce generic data gaps, to
address modelling needs (including improved model
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sensitivity), and to validate default options, particu-
larly those common to multiple risk assessments.
(2) Research leading to improvement of meth-
ods to quantify and communicate uncertainty and
variability among individuals, species, populations,
and, in the case of ecological risk assessment, eco-
logical communities.
(3) Emerging and future areas of research, in-
cluding research on comparative risk analysis, expo-
sure to multiple chemicals and other stressors,
noncancer endpoints, biological markers of exposure
and effect, mechanisms of action in both mammalian
and nonmammalian species, dynamics and prob-
abilities of physiological and ecosystem exposures,
and prediction of ecosystem-level responses.
(4) Long-term needs to adequately train indi-
viduals in risk assessment and risk assessment appli-
cation. Evaluations under this paragraph shall in-
clude an estimate of the resources needed to provide
necessary training.
(b) STRATEGY AND ACTIONS TO MEET IDENTIFIED
NEEDS.—The head of each covered agency shall develop
a strategy and schedule for carrying out research and
training to meet the needs identified in subsection (a).
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(c) REPORT.—Not later than 6 months after the date
of the enactment of this Act, the head of each covered
agency shall submit to the Congress a report on the eval-
uations conducted under subsection (a) and the strategy
and schedule developed under subsection (b). The head of
each covered agency shall report to the Congress periodi-
cally on the evaluations, strategy, and schedule.
SEC. 419. STUDY OF COMPARATIVE RISK ANALYSIS.
(a) IN GENERAL.—(1) The Director of the Office of
Management and Budget, in consultation with the Office
of Science and Technology Policy, shall conduct, or pro-
vide for the conduct of, a study using comparative risk
analysis to rank health, safety, and environmental risks
and to provide a common basis for evaluating strategies
for reducing or preventing those risks. The goal of the
study shall be to improve methods of comparative risk
analysis.
(2) Not later than 90 days after the date of the enact-
ment of this Act, the Director, in collaboration with the
heads of appropriate Federal agencies, shall enter into a
contract with the National Research Council to provide
technical guidance on approaches to using comparative
risk analysis and other considerations in setting health,
safety, and environmental risk reduction priorities.
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(b) SCOPE OF STUDY.—The study shall have suffi-
cient scope and breadth to evaluate comparative risk anal-
ysis and to test approaches for improving comparative risk
analysis and its use in setting priorities for health, safety,
and environmental risk reduction. The study shall com-
pare and evaluate a range of diverse health, safety, and
environmental risks.
(c) STUDY PARTICIPANTS.—In conducting the study,
the Director shall provide for the participation of a range
of individuals with varying backgrounds and expertise,
both technical and nontechnical, comprising broad rep-
resentation of the public and private sectors.
(d) DURATION.—The study shall begin within 180
days after the date of the enactment of this Act and termi-
nate within 2 years after the date on which it began.
(e) RECOMMENDATIONS FOR IMPROVING COMPARA-
TIVE RISK ANALYSIS AND ITS USE.—Not later than 90
days after the termination of the study, the Director shall
submit to the Congress the report of the National Re-
search Council with recommendations regarding the use
of comparative risk analysis and ways to improve the use
of comparative risk analysis for decision-making in appro-
priate Federal agencies.
SEC. 420. DEFINITIONS.
For purposes of this title:
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(1) RISK ASSESSMENT DOCUMENT.—The term
‘‘risk assessment document’’ means a document con-
taining the explanation of how hazards associated
with a substance, activity, or condition have been
identified, quantified, and assessed. The term also
includes a written statement accepting the findings
of any such document.
(2) RISK CHARACTERIZATION DOCUMENT.—The
term ‘‘risk characterization document’’ means a doc-
ument quantifying or describing the degree of tox-
icity, exposure, or other risk posed by hazards asso-
ciated with a substance, activity, or condition to
which individuals, populations, or resources are ex-
posed. The term also includes a written statement
accepting the findings of any such document.
(3) BEST
ESTIMATE.—The term ‘‘best esti-
mate’’ means a scientifically appropriate estimate
which is based, to the extent feasible, on one of the
following:
(A) Central estimates of risk using the
most plausible assumptions.
(B) An approach which combines multiple
estimates based on different scenarios and
weighs the probability of each scenario.
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(C) Any other methodology designed to
provide the most unbiased representation of the
most plausible level of risk, given the current
scientific information available to the Federal
agency concerned.
(4) SUBSTITUTION
RISK.—The term ‘‘substi-
tution risk’’ means a potential risk to human health,
safety, or the environment from a regulatory alter-
native designed to decrease other risks.
(5) COVERED
FEDERAL
AGENCY.—The term
‘‘covered Federal agency’’ means each of the follow-
ing:
(A) The Environmental Protection Agency.
(B) The Occupational Safety and Health
Administration.
(C) The Department of Transportation
(including the National Highway Transpor-
tation Safety Administration).
(D) The Food and Drug Administration.
(E) The Department of Energy.
(F) The Department of the Interior.
(G) The Department of Agriculture.
(H) The Consumer Product Safety Com-
mission.
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(I) The National Oceanic and Atmospheric
Administration.
(J) The United States Army Corps of En-
gineers.
(K) The Mine Safety and Health Adminis-
tration.
(L) The Nuclear Regulatory Commission.
(M) Any other Federal agency considered
a covered Federal agency pursuant to section
413(b)(2)(E).
(6) FEDERAL
AGENCY.—The term ‘‘Federal
agency’’ means an executive department, military de-
partment, or independent establishment as defined
in part I of title 5 of the United States Code, except
that such term also includes the Office of Tech-
nology Assessment.
(7) DOCUMENT.—The term ‘‘document’’ in-
cludes material stored in electronic or digital form.
TITLE II—ANALYSIS OF RISK RE-
DUCTION 
BENEFITS 
AND
COSTS
SEC. 421. ANALYSIS OF RISK REDUCTION BENEFITS AND
COSTS.
(a) IN GENERAL.—The President shall require each
Federal agency to prepare the following for each major
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rule within a program designed to protect human health,
safety, or the environment that is proposed or promul-
gated by the agency after the date of enactment of this
division:
(1) An identification of reasonable alternative
strategies, including strategies that—
(A) require no government action;
(B) will accommodate differences among
geographic regions and among persons with dif-
ferent levels of resources with which to comply;
and
(C) employ performance or other market-
based mechanisms that permit the greatest
flexibility in achieving the identified benefits of
the rule.
The agency shall consider reasonable alternative
strategies proposed during the comment period.
(2) An analysis of the incremental costs and in-
cremental risk reduction or other benefits associated
with each alternative strategy identified or consid-
ered by the agency. Costs and benefits shall be
quantified to the extent feasible and appropriate and
may otherwise be qualitatively described.
(3) A statement that places in context the na-
ture and magnitude of the risks to be addressed and
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the residual risks likely to remain for each alter-
native strategy identified or considered by the agen-
cy. Such statement shall, to the extent feasible, pro-
vide comparisons with estimates of greater, lesser,
and substantially equivalent risks that are familiar
to and routinely encountered by the general public
as well as other risks, and, where appropriate and
meaningful, comparisons of those risks with other
similar risks regulated by the Federal agency result-
ing from comparable activities and exposure path-
ways. Such comparisons should consider relevant
distinctions among risks, such as the voluntary or
involuntary nature of risks and the preventability or
nonpreventability of risks.
(4) For each final rule, an analysis of whether
the identified benefits of the rule are likely to exceed
the identified costs of the rule.
(5) An analysis of the effect of the rule—
(A) on small businesses with fewer than
100 employees;
(B) on net employment; and
(C) to the extent practicable, on the cumu-
lative financial burden of compliance with the
rule and other existing regulations on persons
producing products.
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(b) PUBLICATION.—For each major rule referred to
in subsection (a) each Federal agency shall publish in a
clear and concise manner in the Federal Register along
with the proposed and final regulation, or otherwise make
publicly available, the information required to be prepared
under subsection (a).
SEC. 422. DECISION CRITERIA.
(a) IN GENERAL.—No final rule subject to the provi-
sions of this title shall be promulgated unless the agency
certifies the following:
(1) That the analyses under section 421 are
based on objective and unbiased scientific and eco-
nomic evaluations of all significant and relevant in-
formation and risk assessments provided to the
agency by interested parties relating to the costs,
risks, and risk reduction and other benefits ad-
dressed by the rule.
(2) That the incremental risk reduction or other
benefits of any strategy chosen will be likely to jus-
tify, and be reasonably related to, the incremental
costs incurred by State, local, and tribal govern-
ments, the Federal Government, and other public
and private entities.
(3) That other alternative strategies identified
or considered by the agency were found either (A)
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to be less cost-effective at achieving a substantially
equivalent reduction in risk, or (B) to provide less
flexibility to State, local, or tribal governments or
regulated entities in achieving the otherwise applica-
ble objectives of the regulation, along with a brief
explanation of why alternative strategies that were
identified or considered by the agency were found to
be less cost-effective or less flexible.
(b) EFFECT OF DECISION CRITERIA.—
(1) IN GENERAL.—Notwithstanding any other
provision of Federal law, the decision criteria of sub-
section (a) shall supplement and, to the extent there
is a conflict, supersede the decision criteria for rule-
making otherwise applicable under the statute pur-
suant to which the rule is promulgated.
(2) SUBSTANTIAL EVIDENCE.—Notwithstanding
any other provision of Federal law, no major rule
shall be promulgated by any Federal agency pertain-
ing to the protection of health, safety, or the envi-
ronment unless the requirements of section 421 and
subsection (a) are met and the certifications re-
quired therein are supported by substantial evidence
of the rulemaking record.
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(c) PUBLICATION.—The agency shall publish in the
Federal Register, along with the final regulation, the cer-
tifications required by subsection (a).
(d) NOTICE.—Where the agency finds a conflict be-
tween the decision criteria of this section and the decision
criteria of an otherwise applicable statute, the agency shall
so notify the Congress in writing.
SEC. 423. OFFICE OF MANAGEMENT AND BUDGET GUID-
ANCE.
The Office of Management and Budget shall issue
guidance consistent with this title—
(1) to assist the agencies, the public, and the
regulated community in the implementation of this
title, including any new requirements or procedures
needed to supplement prior agency practice; and
(2) governing the development and preparation
of analyses of risk reduction benefits and costs.
SEC. 424. ENVIRONMENTAL CLEAN-UP.
For purposes of this title, any determination by a
Federal agency to approve or reject any proposed or final
environmental clean-up plan for a facility the costs of
which are likely to exceed $5,000,000 shall be treated as
major rule subject to the provisions of this title (other
than the provisions of section 421(a)(5)). As used in this
section, the term ‘‘environmental clean-up’’ means a cor-
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rective action under the Solid Waste Disposal Act, a reme-
dial action under the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980, and any
other environmental restoration and waste management
carried out by or on behalf of a Federal agency with re-
spect to any substance other than municipal waste.
TITLE III—PEER REVIEW
SEC. 431. PEER REVIEW PROGRAM.
(a) ESTABLISHMENT.—For regulatory programs de-
signed to protect human health, safety, or the environ-
ment, the head of each Federal agency shall develop a sys-
tematic program for independent and external peer review
required by subsection (b). Such program shall be applica-
ble across the agency and—
(1) shall provide for the creation of peer review
panels consisting of experts and shall be broadly rep-
resentative and balanced and to the extent relevant
and appropriate, may include representatives of
State, local, and tribal governments, small busi-
nesses, other representatives of industry, univer-
sities, agriculture, labor, consumers, conservation or-
ganizations, or other public interest groups and or-
ganizations;
(2) may provide for differing levels of peer re-
view and differing numbers of experts on peer review
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panels, depending on the significance or the com-
plexity of the problems or the need for expeditious-
ness;
(3) shall not exclude peer reviewers with sub-
stantial and relevant expertise merely because they
represent entities that may have a potential interest
in the outcome, provided that interest is fully dis-
closed to the agency and in the case of a regulatory
decision affecting a single entity, no peer reviewer
representing such entity may be included on the
panel;
(4) may provide specific and reasonable dead-
lines for peer review panels to submit reports under
subsection (c); and
(5) shall provide adequate protections for con-
fidential business information and trade secrets, in-
cluding requiring peer reviewers to enter into con-
fidentiality agreements.
(b) REQUIREMENT FOR PEER REVIEW.—In connec-
tion with any rule that is likely to result in an annual
increase in costs of $100,000,000 or more (other than any
rule or other action taken by an agency to authorize or
approve any individual substance or product), each Fed-
eral agency shall provide for peer review in accordance
with this section of any risk assessment or cost analysis