tive branch agency under paragraph (4), the 
Director shall publish an initial regulatory anal-
ysis. 
‘‘(B) REVISED REGULATORY ANALYSIS.— 
The Director may publish a revised regulatory 
analysis at any time. 
‘‘(4) NOTICE TO DIRECTOR OF PROPOSED COV-
ERED FEDERAL RULE.—The head of an Executive 
branch agency shall provide a copy of each proposed 
covered Federal rule to the Director in a manner 
prescribed by the Director. 
‘‘(c) EFFECTIVE DATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a covered Federal rule may not take ef-
fect earlier than 75 days after the date on which the 
head of the Executive branch agency proposing the 
covered Federal rule submits a copy of the proposed 
covered Federal rule to the Director in the manner 
prescribed by the Director under subsection (b)(4). 
‘‘(2) EXCEPTION.—If the head of the Executive 
branch agency proposing a covered Federal rule de-
termines that the public health or safety or national 
security requires that the covered Federal rule be 
promulgated earlier than the date specified under 
paragraph (1), the head of the Executive branch 
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agency may promulgate the covered Federal rule 
without regard to paragraph (1). 
‘‘§ 654. Public disclosure of estimate methodology and 
data; privacy 
‘‘(a) PRIVACY.—The Director shall comply with all 
relevant privacy laws, including— 
‘‘(1) the Confidential Information Protection 
and Statistical Efficiency Act of 2002 (44 U.S.C. 
3501 note); 
‘‘(2) section 9 of title 13; and 
‘‘(3) section 6103 of the Internal Revenue Code 
of 1986. 
‘‘(b) DISCLOSURE.— 
‘‘(1) IN
GENERAL.—To the maximum extent 
permitted by law, the Director shall disclose, by pub-
lication in the Federal Register and on the website 
of the Office of Regulatory Analysis, the method-
ology and data used to generate the estimates in the 
report on national regulatory costs required pursu-
ant to section 653. 
‘‘(2) GOAL OF DISCLOSURE.—In disclosing the 
methodology and data under paragraph (1), the Di-
rector shall seek to provide sufficient information so 
that outside researchers may replicate the results 
contained in the report on national regulatory costs. 
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‘‘§ 655. National Regulatory Budget; timeline 
‘‘(a) DEFINITION.—In this section: 
‘‘(1) ANNUAL
AGENCY
REGULATORY
COST 
CAP.—The term ‘annual agency regulatory cost cap’ 
means the maximum amount of regulatory costs that 
an Executive branch agency may impose in a fiscal 
year. 
‘‘(2) ANNUAL
OVERALL
REGULATORY
COST 
CAP.—The term ‘annual overall regulatory cost cap’ 
means the maximum amount of regulatory costs that 
all Executive branch agencies combined may impose 
in a fiscal year. 
‘‘(3) NATIONAL
REGULATORY
BUDGET.—The 
term ‘National Regulatory Budget’ means an Act of 
Congress that establishes, for a fiscal year— 
‘‘(A) the annual overall regulatory cost 
cap; and 
‘‘(B) an annual agency regulatory cost cap 
for each Executive branch agency. 
‘‘(b) COMMITTEE DEADLINES.— 
‘‘(1) REFERRAL.—Not later than March 31 of 
each year— 
‘‘(A) the Committee on Small Business 
and Entrepreneurship of the Senate shall refer 
to the Committee on Homeland Security and 
Governmental Affairs of the Senate a bill that 
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sets forth a National Regulatory Budget for the 
fiscal year beginning on October 1 of that year; 
and 
‘‘(B) the Committee on Small Business of 
the House of Representatives shall refer to the 
Committee on Oversight and Government Re-
form of the House of Representatives a bill that 
sets forth a National Regulatory Budget for the 
fiscal year beginning on October 1 of that year. 
‘‘(2) REPORTING.—Not later than May 31 of 
each year— 
‘‘(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate shall 
report a bill establishing a National Regulatory 
Budget for the fiscal year beginning on October 
1 of that year; and 
‘‘(B) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives shall report a bill establishing a National 
Regulatory Budget for the fiscal year beginning 
on October 1 of that year. 
‘‘(c) PASSAGE.—Not later than July 31 of each year, 
the House of Representatives and the Senate shall each 
pass a bill establishing a National Regulatory Budget for 
the fiscal year beginning on October 1 of that year. 
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‘‘(d) PRESENTMENT.—Not later than September 15 
of each year, Congress shall pass and present to the Presi-
dent a National Regulatory Budget for the fiscal year be-
ginning on October 1 of that year. 
‘‘(e) DEFAULT BUDGET.— 
‘‘(1) IN GENERAL.—If a National Regulatory 
Budget is not enacted with respect to a fiscal year, 
the most recently enacted National Regulatory 
Budget shall apply to that fiscal year. 
‘‘(2) DEFAULT INITIAL BUDGET.— 
‘‘(A) CALCULATION.—If a National Regu-
latory Budget is not enacted with respect to a 
fiscal year, and no National Regulatory Budget 
has previously been enacted— 
‘‘(i) the annual agency regulatory cost 
cap for an Executive branch agency for the 
fiscal year shall be equal to the amount of 
regulatory costs imposed by that Executive 
branch agency on regulated entities during 
the preceding fiscal year, as estimated by 
the Director in the annual report sub-
mitted to Congress under section 653(a); 
and 
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‘‘(ii) the annual overall regulatory cost 
cap for the fiscal year shall be equal to the 
sum of the amounts described in clause (i). 
‘‘(B) EFFECT.—For purposes of section 
657, an annual agency regulatory cost cap de-
scribed in subparagraph (A) that applies to a 
fiscal year shall have the same effect as if the 
annual agency regulatory cost cap were part of 
a National Regulatory Budget applicable to 
that fiscal year. 
‘‘(f) INITIAL BUDGET.—The first National Regu-
latory Budget shall be with respect to fiscal year 2016. 
‘‘§ 656. Executive branch agency cooperation manda-
tory; information sharing 
‘‘(a) EXECUTIVE BRANCH AGENCY COOPERATION 
MANDATORY.—Not later than 45 days after the date on 
which the Director requests any information from an Ex-
ecutive branch agency, the Executive branch agency shall 
provide the Director with the information. 
‘‘(b) MEMORANDA OF UNDERSTANDING REGARDING 
CONFIDENTIALITY.— 
‘‘(1) IN GENERAL.—An Executive branch agen-
cy may require the Director to enter into a memo-
randum of understanding regarding the confiden-
tiality of information provided by the Executive 
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branch agency to the Director under subsection (a) 
as a condition precedent to providing any requested 
information. 
‘‘(2) DEGREE OF CONFIDENTIALITY OR DATA 
PROTECTION.—An Executive branch agency may not 
require a greater degree of confidentiality or data 
protection from the Director in a memorandum of 
understanding entered into under paragraph (1) 
than the Executive branch agency itself must adhere 
to. 
‘‘(3) SCOPE.—A memorandum of understanding 
entered into by the Director and an Executive 
branch agency under paragraph (1) shall— 
‘‘(A) be general in scope; and 
‘‘(B) govern all pending and future re-
quests made to the Executive branch agency by 
the Director. 
‘‘(c) SANCTIONS FOR NON-COOPERATION.— 
‘‘(1) IN
GENERAL.—Any discretionary appro-
priations made available to an Executive branch 
agency for a fiscal year shall be reduced pursuant to 
paragraph (2) if, during that fiscal year, the Direc-
tor finds that— 
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‘‘(3) APPEALS.— 
‘‘(A) IN GENERAL.—The Director of the 
Office of Management and Budget may reduce 
the amount of the rescission under paragraph 
(2), or except as provided in subparagraph (B), 
waive, a sanction imposed under paragraph (1) 
if the Director finds that— 
‘‘(i) the sanction is unwarranted; 
‘‘(ii) the sanction is disproportionate 
to the gravity of the failure; 
‘‘(iii) the failure has been cured; or 
‘‘(iv) providing the requested informa-
tion would adversely affect national secu-
rity. 
‘‘(B) NO WAIVER FOR HISTORICALLY NON- 
COMPLIANT
AGENCIES.—The Director of the 
Office of Management and Budget may not 
waive a sanction imposed on an Executive 
branch agency under paragraphs (1) and (2) if 
the Executive branch agency has a history of 
non-compliance with requests for information 
by the Director of the Office of Regulatory 
Analysis under subsection (a). 
‘‘(d) NATIONAL SECURITY.—The Director may not 
require an Executive branch agency to provide information 
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under subsection (a) that would adversely affect national 
security. 
‘‘§ 657. Enforcement 
‘‘(a) EXCEEDING ANNUAL AGENCY REGULATORY 
COST CAP.—An Executive branch agency that exceeds the 
annual agency regulatory cost cap imposed by the Na-
tional Regulatory Budget for a fiscal year may not pro-
mulgate a new covered Federal rule that increases regu-
latory costs until the Executive branch agency no longer 
exceeds the annual agency regulatory cost cap imposed by 
the applicable National Regulatory Budget. 
‘‘(b) DETERMINATION OF DIRECTOR.— 
‘‘(1) IN GENERAL.—An Executive branch agen-
cy may not promulgate a covered Federal rule unless 
the Director determines, in conducting the regu-
latory analysis of the covered Federal rule under 
section 653(b)(3)(A) that, after the Executive 
branch agency promulgates the covered Federal rule, 
the Executive branch agency will not exceed the an-
nual agency regulatory cost cap for that Executive 
branch agency. 
‘‘(2) TIMING.—The Director shall make a de-
termination under paragraph (1) with respect to a 
proposed covered Federal rule not later than 60 
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days after the Director receives a copy of the pro-
posed covered Federal rule under section 653(b)(4). 
‘‘(c) EFFECT OF VIOLATION OF THIS SECTION.— 
‘‘(1) NO FORCE OR EFFECT.—A covered Fed-
eral rule that is promulgated in violation of this sec-
tion shall have no force or effect. 
‘‘(2) JUDICIAL
ENFORCEMENT.—Any party 
may bring an action in a district court of the United 
States to declare that a covered Federal rule has no 
force or effect because the covered Federal rule was 
promulgated in violation of this section. 
‘‘§ 658. Regulatory Analysis Advisory Board 
‘‘(a) ESTABLISHMENT
OF BOARD.—In accordance 
with the Federal Advisory Committee Act (5 U.S.C. App.), 
the Director shall— 
‘‘(1) establish a Regulatory Analysis Advisory 
Board; and 
‘‘(2) appoint not fewer than 9 and not more 
than 15 individuals as members of the Regulatory 
Analysis Advisory Board. 
‘‘(b) QUALIFICATIONS.—The Director shall appoint 
individuals with technical and practical expertise in eco-
nomics, law, accounting, science, management, and other 
areas that will aid the Director in preparing the annual 
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report on national regulatory costs required under section 
653.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) TABLE OF CHAPTERS.—The table of chap-
ters for part I of title 5, United States Code, is 
amended by inserting after the item relating to 
chapter 6 the following: 
‘‘6A. National Regulatory Budget and Office of Regulatory Analysis 
651’’. 
(2) INTERNAL REVENUE CODE OF 1986.—Sec-
tion 6103(j) of the Internal Revenue Code of 1986 
is amended by adding at the end the following: 
‘‘(7) OFFICE
OF
REGULATORY
ANALYSIS.— 
Upon written request by the Director of the Office 
of Regulatory Analysis established under section 652 
of title 5, United States Code, the Secretary shall 
furnish to officers and employees of the Office of 
Regulatory Analysis return information for the pur-
pose of, but only to the extent necessary for, an 
analysis of regulatory costs.’’. 
SEC. 3. REPORT ON DUPLICATIVE PERSONNEL; REPORT ON 
REGULATORY ANALYSIS. 
(a) REPORT
ON DUPLICATIVE PERSONNEL.—Not 
later than December 31, 2014, the Director shall submit 
to Congress a report determining positions in the Federal 
Government that are— 
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(1) duplicative of the work performed by the 
Office of Regulatory Analysis established under sec-
tion 652 of title 5, United States Code; or 
(2) otherwise rendered cost ineffective by the 
work of the Office of Regulatory Analysis. 
(b) REPORT ON REGULATORY ANALYSIS.— 
(1) REPORT REQUIRED.—Not later than June 
30, 2015, the Director shall provide to Congress a 
report analyzing the practice with respect to, and 
the effectiveness of— 
(A) chapter 6 of title 5, United States 
Code (commonly known as the ‘‘Regulatory 
Flexibility Act’’); 
(B) the Small Business Regulatory En-
forcement Fairness Act of 1996 (5 U.S.C. 601 
note); 
(C) chapter 35 of title 44, United States 
Code (commonly known as the ‘‘Paperwork Re-
duction Act’’); 
(D) each Executive order that mandates 
economic analysis of Federal regulations; and 
(E) Office of Management and Budget cir-
culars, directives, and memoranda that mandate 
the economic analysis of Federal regulation. 
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(2) RECOMMENDATIONS.—The report under 
paragraph (1) shall include recommendations about 
how Federal regulatory analysis may be improved. 
SEC. 4. ADMINISTRATIVE PROCEDURE. 
(a) DEFINITION OF ‘‘RULE’’.—Section 551(4) of title 
5, United States Code, is amended by inserting after ‘‘re-
quirements of an agency’’ the following: ‘‘, whether or not 
the agency statement amends the Code of Federal Regula-
tions and including, without limitation, a statement de-
scribed by the agency as a regulation, rule, directive, or 
guidance,’’. 
(b) NOTICE OF PROPOSED RULEMAKING.—Section 
553(b) of title 5, United States Code, is amended, fol-
lowing the flush text, in subparagraph (A) by striking ‘‘in-
terpretative rules, general statements of policy, or’’. 
Æ 
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