SEC. 2. DEFINITIONS. 
Section 551 of title 5, United States Code, is amend-
ed— 
(1) in paragraph (13), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (14), by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(15) ‘negative-impact on jobs and wages rule’ 
means any rule that the agency that made the rule 
or the Administrator of the Office of Information 
and Regulatory Affairs determines is likely to— 
‘‘(A) in one or more sectors of the economy 
that has a 6-digit code under the North Amer-
ican Industry Classification System, reduce em-
ployment not related to new regulatory compli-
ance by 1 percent or more annually during the 
1-year, 5-year, or 10-year period after imple-
mentation; 
‘‘(B) in one or more sectors of the econ-
omy that has a 6-digit code under the North 
American Industry Classification System, re-
duce average weekly wages for employment not 
related to new regulatory compliance by 1 per-
cent or more annually during the 1-year, 5- 
year, or 10-year period after implementation; 
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‘‘(C) in any industry area (as such term is 
defined in the Current Population Survey con-
ducted by the Bureau of Labor Statistics) in 
which the most recent annual unemployment 
rate for the industry area is greater than 5 per-
cent, as determined by the Bureau of Labor 
Statistics in the Current Population Survey, re-
duce employment not related to new regulatory 
compliance during the first year after imple-
mentation; or 
‘‘(D) in any industry area in which the Bu-
reau of Labor Statistics projects in the Occupa-
tional Employment Statistics program that the 
employment level will decrease by 1 percent or 
more, further reduce employment not related to 
new regulatory compliance during the first year 
after implementation.’’. 
SEC. 3. RULE MAKING. 
(a) Section 553(a) of title 5, United States Code, is 
amended by striking ‘‘(a) This section applies’’ and insert-
ing ‘‘(a) APPLICABILITY.—This section applies’’. 
(b) Section 553 of title 5, United States Code, is 
amended by striking subsection (b) and inserting the fol-
lowing: 
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‘‘(b) RULE MAKING CONSIDERATIONS.—In a rule 
making, an agency shall make all preliminary and final 
factual determinations based on evidence and consider, in 
addition to other applicable considerations, the following: 
‘‘(1) The legal authority under which a rule 
may be proposed, including whether a rule making 
is required by statute, and if so, whether by a spe-
cific date, or whether the agency has discretion to 
commence a rule making. 
‘‘(2) Other statutory considerations applicable 
to whether the agency can or should propose a rule 
or undertake other agency action. 
‘‘(3) The specific nature and significance of the 
problem the agency may address with a rule (includ-
ing the degree and nature of risks the problem poses 
and the priority of addressing those risks compared 
to other matters or activities within the agency’s ju-
risdiction), whether the problem warrants new agen-
cy action, and the countervailing risks that may be 
posed by alternatives for new agency action. 
‘‘(4) Whether existing rules have created or 
contributed to the problem the agency may address 
with a rule and whether those rules could be amend-
ed or rescinded to address the problem in whole or 
part. 
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‘‘(5) Any reasonable alternatives for a new rule 
or other response identified by the agency or inter-
ested persons, including not only responses that 
mandate particular conduct or manners of compli-
ance, but also— 
‘‘(A) the alternative of no Federal re-
sponse; 
‘‘(B) amending or rescinding existing 
rules; 
‘‘(C) potential regional, State, local, or 
tribal regulatory action or other responses that 
could be taken in lieu of agency action; and 
‘‘(D) potential responses that— 
‘‘(i) specify performance objectives 
rather than conduct or manners of compli-
ance; 
‘‘(ii) establish economic incentives to 
encourage desired behavior; 
‘‘(iii) provide information upon which 
choices can be made by the public; or 
‘‘(iv) incorporate other innovative al-
ternatives rather than agency actions that 
specify conduct or manners of compliance. 
‘‘(6) Notwithstanding any other provision of 
law— 
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‘‘(A) the potential costs and benefits asso-
ciated with potential alternative rules and other 
responses considered under section 553(b)(5), 
including direct, indirect, and cumulative costs 
and benefits and estimated impacts on jobs (in-
cluding an estimate of the net gain or loss in 
domestic jobs), wages, economic growth, innova-
tion, economic competitiveness, and impacts on 
low income populations; 
‘‘(B) means to increase the cost-effective-
ness of any Federal response; and 
‘‘(C) incentives for innovation, consistency, 
predictability, lower costs of enforcement and 
compliance (to government entities, regulated 
entities, and the public), and flexibility.’’. 
Æ 
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