I
103D CONGRESS
2D SESSION
H. R. 4949
To amend title 5, United States Code, to reform Federal administrative
procedures and improve the regulatory process.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 12, 1994
Mr. FRANKS of New Jersey (for himself, Mr. MEEHAN, Mr. GALLO, and Mr.
DELAY) introduced the following bill; which was referred to the Commit-
tee on the Judiciary
A BILL
To amend title 5, United States Code, to reform Federal
administrative procedures and improve the regulatory
process.
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 ‘‘Administrative Proce-
dure Reform Act of 1994’’.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) The cost and burden of regulations have
risen to historic highs.
(2) The number of people writing Federal regu-
lations has grown dramatically from 106,000 in
1989 to 122,440 in 1992—a 15 percent increase in
just 3 years.
(3) The Federal Government currently has
125,000 bureaucrats working on 5,000 regulations
promulgated by 59 different Federal agencies.
(4) The 1993 regulatory output of the Federal
Government numbered 69,688 pages of regulations,
with the Code of Federal Regulations taking up 21
feet of shelf space.
(5) The Office of the Federal Register, the pub-
lisher of the journal of Federal agency rule making,
now teaches classes to assist manufacturers in read-
ing new regulations and proposals.
(6) The total cost of administering the Federal
regulatory apparatus in fiscal year 1993 was
$11,300,000,000.
(7) It is estimated that the total cost of regula-
tion of manufacturing approximated, and in some
studies exceeded, aggregate after-tax manufacturing
profits.
(8) The cost of regulatory compliance drains
funds for research, job creation, training, wages, and
employment benefits.
(9) In a February 1993 survey of leading man-
ufacturing chief executive officers, government man-
dates, including regulations, were identified as the
government policies which have done the most to
harm United States manufacturing employment in
the past 5 years.
(10) The vast scope, rigid construction, and
costly impact of State and Federal regulatory
schemes has created the perception of a hostile cli-
mate for manufacturing.
SEC. 3. RULE MAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amend-
ed by adding at the end the following:
‘‘(f)(1)(A) The head of an agency shall publish in the
Federal Register, at least 90 days before the date of publi-
cation of general notice under subsection (b) for a pro-
posed major rule, a notice of intent to engage in rule mak-
ing.
‘‘(B) A notice under subparagraph (A) 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 section 5(c) (1), (2), and (8)
of the Administrative Procedure Reform Act of 1994.
‘‘(2) The head of an agency shall include in a general
notice under subsection (b) for a major rule proposed by
the agency—
‘‘(A) a final Regulatory Impact Analysis for the
rule prepared in accordance with section 5 of the
Administrative Procedure Reform Act of 1994; and
‘‘(B) clear delineation of all changes in the in-
formation included in the final Regulatory Impact
Analysis under section 5(c)(1) and (2) of the Admin-
istrative Procedure Reform Act of 1994 from any
such information that was included in the notice for
the rule under paragraph (1)(B) of this subsection.
‘‘(3) In this subsection, the term ‘major rule’ has the
meaning given that term in section 5(b) of the Administra-
tive Procedure Reform Act of 1994.’’.
SEC. 4. HEARING REQUIREMENT FOR PROPOSED RULES;
EXTENSION OF COMMENT PERIOD.
(a) HEARING REQUIREMENT.—Section 553 of title 5,
United States Code, is further amended—
(1) in subsection (b), in the matter following
paragraph (3), by inserting ‘‘(except subsection
(g))’’ after ‘‘this subsection’’; and
(2) by adding after subsection (f) (as added by
section 3 of this Act) the following:
‘‘(g) If more than 100 interested persons acting indi-
vidually submit comments to an agency regarding any rule
proposed by the agency, the agency shall hold a public
hearing on the proposed rule.’’.
(b) EXTENSION OF COMMENT PERIOD.—Section 553
of title 5, United States Code, is further amended by add-
ing after subsection (g) (as added by subsection (a)(2) of
this section) the following:
‘‘(h) If during the 30-day period beginning on the
date of publication of notice under subsection (f)(1)(A) for
a proposed major rule, or if during the 30-day period be-
ginning on the date of publication or service of notice re-
quired by subsection (b) for a proposed rule, more than
100 persons individually contact the agency to request an
extension 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 that ad-
ditional period.’’.
(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) The head of an agency shall publish in the Fed-
eral Register with each rule published under section
552(a)(1)(D) of this title, responses to the substance of
all comments received by the agency regarding the rule.’’.
SEC. 5. REGULATORY IMPACT ANALYSIS.
(a) APPLICATION OF EXECUTIVE ORDER AS STATU-
TORY REQUIREMENT.—Except as otherwise provided in
this section, Executive Order 12866 (relating to Federal
regulation requirements and regulatory impact analysis),
as in effect on September 30, 1993, shall apply to each
agency in accordance with the provisions of the Order.
(b) DEFINITION OF MAJOR RULE IN ORDER.—Not-
withstanding section 1(b) of the Order, for purposes of
subsection (a) of this section, the term ‘‘major rule’’
means any proposed regulatory action—
(1) which affects more than 100 persons; or
(2) compliance with which will require the ex-
penditure of more than $1,000,000 by any person
which is not a Federal agency.
(c) CONTENTS
OF REGULATORY IMPACT ANALY-
SES.—In lieu of the information specified in section 3(d)
of the Order, each preliminary and final Regulatory Im-
pact Analysis required under section 3 of the Order for
a rule shall contain the following:
(10) An estimate of the costs that will be in-
curred by persons in complying with the rule.
(11) An evaluation of the costs versus the bene-
fits derived from the rule, including evaluation of
how those benefits outweigh the cost.
(12) Whether the rule will require onsite inspec-
tions.
(13) An estimate of the paperwork burden on
persons regulated or affected by the rule, such as
the number of forms, impact statements, surveys,
and other documents required to be completed by
the person under the rule.
(14) Whether persons will be required by the
rule to maintain any records which will be subject to
inspection.
(15) Whether persons will be required by the
rule to obtain licenses, permits, or other certifi-
cations, and the fees and fines associated therewith.
(16) Whether persons will be required by the
rule to appear before the agency.
(17) Whether persons will be required by the
rule to disclose information on materials or proc-
esses, including trade secrets.
(18) Whether persons will be required by the
rule to report any particular type of incidents.
(19) Whether persons will be required by the
rule to adhere to design or performance standards.
(20) Whether persons may need to retain or
utilize any lawyer, accountant, engineer, or other
professional consultant in order to comply with the
regulations.
(21) An estimate of the costs to the agency for
implementation and enforcement of the regulations.
(22) Whether the agency can be reasonably ex-
pected to implement the rule with the current level
of appropriations.
(23) A statement that any person may submit
comments on the Regulatory Impact Analysis to the
Administrator of the Office of Information and Reg-
ulatory Affairs.
(d) DEFINITIONS.—In this section—
(1) the term ‘‘Order’’ means Executive Order
12866, as in effect on September 30, 1993; and
(2) each of the terms ‘‘agency’’, ‘‘regulation’’,
and ‘‘rule’’ has the meaning given that term in sec-
tion 1 of the Order.
SEC. 6. ADDITIONAL RESPONSIBILITIES OF DIRECTOR OF
THE OFFICE OF MANAGEMENT AND BUDGET.
An agency may not adopt a major rule unless the
final Regulatory Impact Analysis for the rule is approved
in writing by the Director of the Office of Management
and Budget or by an individual designated by the Director
for that purpose.
SEC. 7. STANDARD OF CLARITY.
The head of an agency may not publish in the Fed-
eral Register any proposed major rule, summary of a pro-
posed major rule, or Regulatory Impact Analysis unless
the Director of the Office of Management and Budget cer-
tifies that the proposed major rule, summary, or Analy-
sis—
(1) is written in a reasonably simple and under-
standable manner and is easily readable;
(2) is written to provide adequate notice of the
content of the rule, summary, or Analysis to affected
persons and interested persons that have some sub-
ject matter expertise;
(3) conforms to commonly accepted principles
of grammar;
(4) contains only sentences that are as short as
practical and organized in a sensible manner; and
(5) does not contain any double negatives, con-
fusing cross references, convoluted phrasing, unrea-
sonably complex language, or term of art or word
with multiple meanings that may be misinterpreted
and is not defined in the rule, summary, or analysis,
respectively.
SEC. 8. REPORT BY OIRA.
The Administrator of the Office of Information and
Regulatory Affairs shall submit a report to the Congress
no later than 12 months after the date of the enactment
of this Act containing an analysis of rule making proce-
dures of Federal agencies and an analysis of the impact
of those rule making procedures on the regulated public
and regulatory process.
SEC. 9. DEFINITIONS.
For purposes of this Act—
(1) except as provided in section 5(d)(2), each
of the terms ‘‘agency’’, ‘‘rule’’, and ‘‘rule making’’
has the meaning given that term in section 551 of
title 5, United States Code; and
(2) the term ‘‘major rule’’ has the meaning
given that term in section 5(b).
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