IB
Union Calendar No. 165
104TH CONGRESS
1ST SESSION
H. R. 994
[Report No. 104–284, Parts I and II]
To require the periodic review and automatic termination of Federal
regulations.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 21, 1995
Mr. CHAPMAN (for himself, Mr. MICA, Mr. DELAY, Mr. DEAL of Georgia, and
Mr. PETE GEREN of Texas) introduced the following bill; which was re-
ferred to the Committee on Government Reform and Oversight and, in
addition, to the Committee on the Judiciary, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
OCTOBER 19, 1995
Reported from the Committee on Government Reform and Oversight with an
amendment
[Strike out all after the enacting clause and insert the part printed in italic]
OCTOBER 19, 1995
Referral to the Committee on the Judiciary extended for a period ending not
later than November 3, 1995
OCTOBER 26, 1995
The amendment recommended by the Committee on Government Reform and
Oversight referred to the Committee on Commerce for a period not to
exceed November 3, 1995, for consideration of such provisions of the
amendment as fall within the jurisdiction of that committee pursuant to
clause 1(e), rule x
NOVEMBER 3, 1995
The Committee on Commerce discharged from further consideration. Referral
to the Committee on the Judiciary extended for a period ending not later
than November 7, 1995
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NOVEMBER 7, 1995
Additional sponsors: Mr. CALVERT, Mr. TANNER, Mr. BENTSEN, Mr. GENE
GREEN of Texas, Mr. JOHNSON of South Dakota, Mr. LATHAM, Mr.
WILSON, Mr. CUNNINGHAM, Mr. FROST, Mr. INGLIS of South Carolina,
Mr. RADANOVICH, Mr. WELLER, Mr. TORKILDSEN, Mr. CANADY of Flor-
ida, Mr. EHRLICH, Mr. SCARBOROUGH, Mr. ZELIFF, Mr. DAVIS, Mr.
SHADEGG, Mr. BURTON of Indiana, Mr. LAUGHLIN, Mr. HOEKSTRA, Mr.
EDWARDS, Mr. CHAMBLISS, Mr. HASTINGS of Washington, Mr. HERGER,
Mr. ROYCE, Mr. SOUDER, Mr. SALMON, Mr. LARGENT, Mr. BREWSTER,
Mr. MCINTOSH, Mr. PETERSON of Minnesota, Mr. MCHUGH, Mr. FOX
of Pennsylvania, Mr. GUTKNECHT, Mr. TATE, Mr. CONDIT, Mr. BONO,
Mr. LUCAS of Oklahoma, Mr. SAXTON, Mr. BARTLETT of Maryland, Mr.
PICKETT, and Mr. UNDERWOOD
NOVEMBER 7, 1995
Reported from the Committee on the Judiciary with an amendment
[Strike out all after the enacting clause and insert the part printed in boldface roman]
[For text of introduced bill, see copy of bill as introduced on February 21, 1995]
A BILL
To require the periodic review and automatic termination
of Federal regulations.
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 ‘‘Regulatory Sunset and
Review Act of 1995’’.
SEC. 2. PURPOSE.
The purposes of this Act are—
(1) to require agencies to regularly review their
significant rules to determine whether they should be
continued without change, modified, consolidated with
another rule, or allowed to terminate;
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(2) to require agencies to consider the comments
of the public, the regulated community, and the Con-
gress regarding the actual costs and burdens of rules
being reviewed under this Act, and whether the rules
are obsolete, unnecessary, duplicative, conflicting, or
otherwise inconsistent;
(3) to require that any rules continued in effect
meet all the legal requirements that would apply to
the issuance of a new rule, including any applicable
Federal cost/benefit and risk assessment requirements;
(4) to provide for the automatic termination of
significant rules that are not continued in effect as a
result of sunset reviews;
(5) to provide for a petition process that allows
the public and appropriate committees of the Congress
to request that other rules that are not significant be
reviewed in the same manner as significant rules;
and
(6) to require the Administrator to coordinate
and be responsible for sunset reviews conducted by the
agencies.
SEC. 3. REVIEW AND TERMINATION OF REGULATIONS.
The effectiveness of a covered rule shall terminate on
the applicable termination date specified in section 7 (a)
or (b), unless the rule is reviewed in accordance with the
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procedures in section 6 before that termination date and
complies with section 5.
SEC. 4. RULES COVERED.
(a) COVERED RULES.—For purposes of this Act, a cov-
ered rule is a rule that—
(1) is determined by the Administrator to be a
significant rule under subsection (b); or
(2) is any other rule designated by the Adminis-
trator under this Act for sunset review.
(b) SIGNIFICANT RULES.—For purposes of this Act, a
significant rule is a rule that the Administrator deter-
mines—
(1) has resulted in or is likely to result in an an-
nual effect on the economy of $100,000,000 or more;
(2) is a major rule, as that term is defined in
Executive Order 12291 (as in effect on the first date
that Executive order was in effect); or
(3) was issued pursuant to a significant regu-
latory action, as that term is defined in Executive
Order 12866 (as in effect on the first date that Execu-
tive order was in effect).
(c) PUBLIC PETITIONS.—
(1) IN GENERAL.—Any person adversely affected
by a rule that is not a significant rule may submit
a petition to the Administrator requesting that the
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Administrator designate the rule for sunset review.
The Administrator shall designate the rule for sunset
review unless the Administrator determines that it
would be unreasonable to conduct a sunset review of
the rule. In making such determination, the Adminis-
trator shall take into account the number and nature
of other petitions received on the same rule, whether
or not they have already been denied.
(2) FORM AND CONTENT OF PETITION.—A peti-
tion under paragraph (1)—
(A) shall be in writing, but is not otherwise
required to be in any particular form;
(B) shall identify the rule for which sunset
review is requested with reasonable specificity
and state on its face that the petition seeks sun-
set review or a similar review of the rule; and
(C) shall be accompanied by a $20 process-
ing fee.
(3) RESPONSE
REQUIRED
FOR
NONCOMPLYING
PETITIONS.—If the Administrator determines that a
petition does not meet the requirements of this sub-
section, the Administrator shall provide a response to
the petitioner within 30 days after receiving the peti-
tion, notifying the petitioner of the problem and pro-
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viding information on how to formulate a petition
that meets those requirements.
(4) DECISION WITHIN 90 DAYS.—Within the 90-
day period beginning on the date of receiving a peti-
tion that meets the requirements of this subjection, the
Administrator shall transmit a response to the peti-
tioner stating whether the petition was granted or de-
nied, except that the Administrator may extend such
period by a total of not more than 30 days.
(5) PETITIONS DEEMED GRANTED FOR SUBSTAN-
TIAL INEXCUSABLE DELAY.—A petition for sunset re-
view of a rule is deemed to have been granted by the
Administrator, and the Administrator is deemed to
have designated the rule for sunset review, if a court
finds there is a substantial and inexcusable delay, be-
yond the period specified in paragraph (4), in notify-
ing the petitioner of the Administrator’s determina-
tion to grant or deny the petition.
(6) PUBLIC
LOG.—The Administrator shall
maintain a public log of petitions submitted under
this subsection, that includes the status or disposition
of each petition.
(d) CONGRESSIONAL REQUESTS.—
(1) IN GENERAL.—An appropriate committee of
the Congress, or a majority of the majority party
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members or a majority of nonmajority party members
of such a committee, may request in writing that the
Administrator designate any rule that is not a sig-
nificant rule for sunset review. The Administrator
shall designate such rule for sunset review within 30
days after receipt of such a request unless the Admin-
istrator determines that it would be unreasonable to
conduct a sunset review of the rule.
(2) NOTICE OF DENIAL.—If the Administrator
denies a congressional request under this subsection,
the Administrator shall transmit to the congressional
committee making the request a notice stating the
reasons for the denial.
(e) PUBLICATION OF NOTICE OF DESIGNATION FOR
SUNSET REVIEW.—After designating a rule under this Act
for sunset review, the Administrator shall promptly publish
a notice of that designation in the Federal Register.
SEC. 5. CRITERIA FOR SUNSET REVIEW.
(a) COMPLIANCE WITH OTHER LAWS.—In order to
continue without change, modify, or consolidate any rule
subject to sunset review, the continued, modified, or consoli-
dated rule must be authorized by law and meet all applica-
ble requirements that would apply under other laws or Ex-
ecutive orders if it were issued as a new rule. For purposes
of this section, applicable requirements include any require-
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ments for cost/benefit analysis and any requirements for
standardized risk analysis and risk assessment.
(b) GOVERNING LAW.—If there is an irreconcilable
conflict between such applicable requirements and an Act
under which a rule was issued, the conflict shall be resolved
in the same manner as such conflict would be resolved if
the agency were issuing a new rule.
SEC. 6. SUNSET REVIEW PROCEDURES.
(a) FUNCTIONS OF THE ADMINISTRATOR.—
(1) NOTICE OF RULES SUBJECT TO REVIEW.—
(A) INVENTORY AND FIRST LIST.—Within 6
months after the date of the enactment of this
Act, the Administrator shall conduct an inven-
tory of existing rules and publish a first list of
covered rules. The list shall—
(i) specify the particular group to
which each significant rule is assigned
under paragraph (2), and state the termi-
nation date for all significant rules in each
such group; and
(ii) include other rules subject to sunset
review for any other reason, and state the
termination date for each such rule.
(B) SUBSEQUENT LISTS.—After publication
of the first list under subparagraph (A), the Ad-
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ministrator shall publish an updated list of cov-
ered rules at least annually, specifying the ter-
mination date for each rule on the list.
(2) GROUPING OF SIGNIFICANT RULES IN FIRST
LIST.—
(A) STAGGERED
REVIEW.—The Adminis-
trator shall assign each significant rule in effect
on the date of enactment of this Act to one of 4
groups established by the Administrator to per-
mit orderly and prioritized sunset reviews, and
specify for each group a termination date in ac-
cordance with section 7(a)(1).
(B) 
PRIORITIZATIONS.—In 
determining
which rules shall be given priority in time in
that assignment, the Administrator shall consult
with appropriate agencies, and shall prioritize
rules based on—
(i) the grouping of related rules in ac-
cordance with paragraph (3);
(ii) the extent of the cost of each rule
on the regulated community and the public,
with priority in time given to those rules
that impose the greatest cost;
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(iii) consideration of the views of regu-
lated persons, including State and local
governments;
(iv) whether a particular rule has re-
cently been subject to cost/benefit analysis
and risk assessment, with priority in time
given to those rules that have not been sub-
ject to such analysis and assessment;
(v) whether a particular rule was is-
sued under a statutory provision that pro-
vides relatively greater discretion to an offi-
cial in issuing the rule, with priority in
time given to those rules that were issued
under provisions that provide relatively
greater discretion;
(vi) the burden of reviewing each rule
on the reviewing agency; and
(vii) the need for orderly processing
and the timely completion of the sunset re-
views of existing rules.
(3) GROUPING OF RELATED RULES.—The Ad-
ministrator shall group related rules (and designate
other rules) for simultaneous sunset review based
upon their subject matter similarity, functional inter-
relationships, and other relevant factors to ensure
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comprehensive and coordinated review of redundant,
overlapping, and conflicting rules and requirements.
The Administrator shall ensure simultaneous sunset
reviews of covered rules without regard to whether
they were issued by the same agency, and shall des-
ignate any other rule for sunset review that is nec-
essary for a comprehensive sunset review whether or
not such other rule is otherwise a covered rule under
this Act.
(d) GUIDANCE.—The Administrator shall provide
timely guidance to agencies on the conduct of sunset reviews
and the preparation of sunset review notices and reports
required by this Act to ensure uniform, complete, and time-
ly sunset reviews and to ensure notice and opportunity for
public comment.
(5) REVIEW AND EVALUATION OF REPORTS.—The
Administrator shall review and evaluate each pre-
liminary and final report submitted by the head of
an agency pursuant to this section. Within 90 days
after receiving a preliminary report, the Adminis-
trator shall transmit comments to the head of the
agency regarding—
(A) the quality of the analysis in the report,
including whether the agency has properly ap-
plied section 5;
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(B) the consistency of the agency’s proposed
action with actions of other agencies; and
(C) whether the rule should be continued
without change, modified, consolidated with an-
other rule, or allowed to terminate.
(b) AGENCY SUNSET REVIEW PROCEDURE.—
(1) SUNSET REVIEW NOTICE.—At least 21⁄2 years
before the termination date under section 7(a) for a
covered rule issued by an agency, the head of the
agency shall—
(A) publish a sunset review notice in ac-
cordance with section 8(a) in the Federal Reg-
ister and, to the extent reasonable and prac-
ticable, in other publications or media that are
designed to reach those persons most affected by
the covered rule; and
(B) request the views of the Administrator
and the appropriate committees of the Congress
on whether to continue without change, modify,
consolidate, or terminate the covered rule.
(2) PRELIMINARY REPORT.—In reviewing a cov-
ered rule, the head of an agency shall—
(A) consider public comments and other rec-
ommendations generated by a sunset review no-
tice under paragraph (1); and
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(B) at least 1 year before the termination
date under section 7(a) for the covered rule, pub-
lish in the Federal Register and transmit to the
Administrator and the appropriate committees
of the Congress a preliminary report in accord-
ance with section 8(b).
(3) FINAL REPORT.—The head of an agency shall
consider the public comments and other recommenda-
tions generated by the preliminary report under
paragraph (2) for a covered rule, and shall consult
with the appropriate committees of the Congress be-
fore issuing a final report. At least 90 days before the
termination date of the covered rule, the head of the
agency shall publish in the Federal Register and
transmit to the Administrator and the appropriate
committees of the Congress a final report in accord-
ance with section 8(c).
(c) EFFECTIVENESS OF AGENCY RECOMMENDATION.—
If a final report under subsection (b)(3) recommends that
a covered rule should be continued without change, modi-
fied, or consolidated with another rule, the rule is contin-
ued, modified, or consolidated in accordance with the rec-
ommendation effective 60 days after publication of the final
report, unless the Administrator or another officer des-
ignated by the President publishes a notice within that 60-
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day period stating that the rule shall not be so continued
without change, modified, or consolidated. The Adminis-
trator or other officer designated by the President shall state
in the notice the reasons for such action.
(d) REISSUANCE.—If a covered rule terminates for any
reason pursuant to this Act, it shall not be reissued in sub-
stantially the same form unless the rule complies with sec-
tion 5 and the Administrator or other officer designated by
the President approves the rule.
(e) PRESERVATION OF INDEPENDENCE OF FEDERAL
BANK REGULATORY AGENCIES.—The head of any appro-
priate 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 Federal Housing Finance Board, the National
Credit Union Administration, and the Office of Federal
Housing Enterprise Oversight shall have the authority with
respect to that agency that would otherwise be granted
under subsections (c) and (d) of this section, section
7(a)(2)(B), and section 7(c) to the Administrator or other
officer designated by the President.
SEC. 7. TERMINATION DATES FOR COVERED RULES.
(a) IN GENERAL.—For purposes of section 3, the ter-
mination date of a covered rule is as follows:
(1) EXISTING SIGNIFICANT RULES.—For a sig-
nificant rule in effect on the date of the enactment of
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this Act, the initial termination date is the last day
of the 4-year, 5-year, 6-year, or 7-year period begin-
ning on the date of the enactment of this Act, as spec-
ified by the Administrator under section 6(a)(2)(A).
For any significant rule that 6 months after the date
of enactment is not assigned to such a group specified
under section 6(a)(2)(A), the initial termination date
is the last day of the 4-year period beginning on the
date of enactment of this Act.
(2) NEW SIGNIFICANT RULES.—For a significant
rule that first takes effect after the date of the enact-
ment of this Act, the initial termination date is the
last day of either—
(A) the 3-year period beginning on the date
the rule takes effect, or
(B) if the Administrator determines as part
of the rulemaking process that the rule is issued
pursuant to negotiated rulemaking procedures or
that compliance with the rule requires substan-
tial capital investment, the 7-year period begin-
ning on the date the rule takes effect.
(3) RULES COVERED PURSUANT TO PUBLIC PETI-
TION OR CONGRESSIONAL REQUEST.—For any rule
subject to sunset review pursuant to a public petition
under section 4(c) or a congressional request under
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section 4(d), the initial termination date is the last
day of the 3-year period beginning on—
(A) the date the Administrator so designates
the rule for review; or
(B) the date of issuance of a final court
order that the Administrator is deemed to have
designated the rule for sunset review.
(4) RELATED RULE DESIGNATED FOR REVIEW.—
For a rule that the Administrator designates under
section 6(a)(3) for sunset review because it is related
to another covered rule and that is grouped with that
other rule for simultaneous review, the initial termi-
nation date is the same as the termination date for
that other rule.
(5) RULES EXTENDED IN EFFECTIVENESS.—For
a rule the effectiveness of which has been extended
under section 3, the next termination date is the last
day of the 7-year period beginning on the date the
rule would have terminated under section 3 if it had
not been extended.
(b) TEMPORARY EXTENSION.—The termination date
under subsection (a) for a covered rule may be extended by
the Administrator for not more than 6 months by publish-
ing notice thereof in the Federal Register that describes—
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(1) modifications that should be made to the rule
and the reasons why the modifications cannot be
made by the original termination date; or
(2) reasons why the temporary extension is nec-
essary to respond to or prevent an emergency situa-
tion.
(c) LIMITATION ON INTERIM REVIEWS.—An agency
may not undertake a comprehensive review and significant
revision of a covered rule more frequently than required by
this section or another law, unless the head of the agency
determines, and the Administrator concurs, that the likely
benefits from such review and revision outweigh the reason-
able expenditures that have been made in reliance on the
rule. For purposes of this section, a law may be considered
to require a comprehensive review and significant revision
of a rule if it makes significant changes in the Act under
which the rule was issued.
(d) DETERMINATIONS WHERE RULES HAVE BEEN
AMENDED.—For purposes of this Act, if various provisions
of a covered rule were issued at different times, then the
rule as a whole shall be treated as if it were issued on the
later of—
(1) the date of issuance of the provision of the
rule that was issued first; or
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(2) the date the most recent comprehensive re-
view and significant revision of the rule was com-
pleted.
(e) COMPREHENSIVE REVIEW AND SIGNIFICANT REVI-
SION DEFINED.—In this section, the term ‘‘comprehensive
review and significant revision’’ means—
(1) a sunset review, whether or not the rule is re-
vised; or
(2) a review and revision of a rule consistent
with subsection (c).
SEC. 8. SUNSET REVIEW NOTICES AND AGENCY REPORTS.
(a) SUNSET REVIEW NOTICES.—The sunset review no-
tice under section 6(b)(1) for a rule shall—
(1) request comments regarding whether the rule
should be continued without change, modified, consoli-
dated with another rule, or allowed to terminate;
(2) if applicable, request comments regarding
whether the rule meets the applicable Federal cost/ben-
efit and risk assessment criteria; and
(3) solicit comments about the past implementa-
tion and effects of the rule, including—
(A) the direct and indirect costs incurred
because of the rule, including the net reduction
in the value of private property (whether real,
personal, tangible, or intangible), and whether