II 
Calendar No. 597 
113TH CONGRESS 
2D SESSION 
H. R. 4 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 12, 2014 
Received; read the first time 
NOVEMBER 13, 2014 
Read the second time and placed on the calendar 
AN ACT 
To make revisions to Federal law to improve the conditions 
necessary for economic growth and job creation, and 
for other purposes. 
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 ‘‘Jobs for America Act’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. PAYGO scorecard. 
DIVISION I—WAYS AND MEANS 
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TITLE I—SAVE AMERICAN WORKERS 
Sec. 101. Short title. 
Sec. 102. Repeal of 30-hour threshold for classification as full-time employee 
for purposes of the employer mandate in the Patient Protection 
and Affordable Care Act and replacement with 40 hours. 
TITLE II—HIRE MORE HEROES 
Sec. 201. Short title. 
Sec. 202. Employees with health coverage under TRICARE or the Veterans 
Administration may be exempted from employer mandate 
under Patient Protection and Affordable Care Act. 
TITLE III—AMERICAN RESEARCH AND COMPETITIVENESS 
Sec. 301. Short title. 
Sec. 302. Research credit simplified and made permanent. 
Sec. 303. PAYGO Scorecard. 
TITLE IV—AMERICA’S SMALL BUSINESS TAX RELIEF 
Sec. 401. Short title. 
Sec. 402. Expensing certain depreciable business assets for small business. 
Sec. 403. Budgetary effects. 
TITLE V—S CORPORATION PERMANENT TAX RELIEF 
Sec. 501. Short title. 
Sec. 502. Reduced recognition period for built-in gains of S corporations made 
permanent. 
Sec. 503. Permanent rule regarding basis adjustment to stock of S corporations 
making charitable contributions of property. 
Sec. 504. Budgetary effects. 
TITLE VI—BONUS DEPRECIATION MODIFIED AND MADE 
PERMANENT 
Sec. 601. Bonus depreciation modified and made permanent. 
Sec. 602. Budgetary effects. 
TITLE VII—REPEAL OF MEDICAL DEVICE EXCISE TAX 
Sec. 701. Repeal of medical device excise tax. 
Sec. 702. Budgetary effects. 
DIVISION II—FINANCIAL SERVICES 
TITLE I—SMALL BUSINESS CAPITAL ACCESS AND JOB 
PRESERVATION 
Sec. 101. Short title. 
Sec. 102. Registration and reporting exemptions relating to private equity 
funds advisors. 
TITLE II—SMALL BUSINESS MERGERS, ACQUISITIONS, SALES, 
AND BROKERAGE SIMPLIFICATION 
Sec. 201. Short title. 
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Sec. 202. Registration exemption for merger and acquisition brokers. 
Sec. 203. Effective date. 
DIVISION III—OVERSIGHT 
SUBDIVISION A—UNFUNDED MANDATES INFORMATION AND TRANSPARENCY 
Sec. 101. Short title. 
Sec. 102. Purpose. 
Sec. 103. Providing for Congressional Budget Office studies on policies involv-
ing changes in conditions of grant aid. 
Sec. 104. Clarifying the definition of direct costs to reflect Congressional Budg-
et Office practice. 
Sec. 105. Expanding the scope of reporting requirements to include regulations 
imposed by independent regulatory agencies. 
Sec. 106. Amendments to replace Office of Management and Budget with Of-
fice of Information and Regulatory Affairs. 
Sec. 107. Applying substantive point of order to private sector mandates. 
Sec. 108. Regulatory process and principles. 
Sec. 109. Expanding the scope of statements to accompany significant regu-
latory actions. 
Sec. 110. Enhanced stakeholder consultation. 
Sec. 111. New authorities and responsibilities for Office of Information and 
Regulatory Affairs. 
Sec. 112. Retrospective analysis of existing Federal regulations. 
Sec. 113. Expansion of judicial review. 
SUBDIVISION B—ACHIEVING LESS EXCESS IN REGULATION AND REQUIRING 
TRANSPARENCY 
Sec. 100. Short title; table of contents. 
TITLE I—ALL ECONOMIC REGULATIONS ARE TRANSPARENT ACT 
Sec. 101. Short title. 
Sec. 102. Office of Information and Regulatory Affairs publication of informa-
tion relating to rules. 
TITLE II—REGULATORY ACCOUNTABILITY ACT 
Sec. 201. Short title. 
Sec. 202. Definitions. 
Sec. 203. Rule making. 
Sec. 204. Agency guidance; procedures to issue major guidance; presidential au-
thority to issue guidelines for issuance of guidance. 
Sec. 205. Hearings; presiding employees; powers and duties; burden of proof; 
evidence; record as basis of decision. 
Sec. 206. Actions reviewable. 
Sec. 207. Scope of review. 
Sec. 208. Added definition. 
Sec. 209. Effective date. 
TITLE III—REGULATORY FLEXIBILITY IMPROVEMENTS ACT 
Sec. 301. Short title. 
Sec. 302. Clarification and expansion of rules covered by the Regulatory Flexi-
bility Act. 
Sec. 303. Expansion of report of regulatory agenda. 
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Sec. 304. Requirements providing for more detailed analyses. 
Sec. 305. Repeal of waiver and delay authority; additional powers of the Chief 
Counsel for Advocacy. 
Sec. 306. Procedures for gathering comments. 
Sec. 307. Periodic review of rules. 
Sec. 308. Judicial review of compliance with the requirements of the Regulatory 
Flexibility Act available after publication of the final rule. 
Sec. 309. Jurisdiction of court of appeals over rules implementing the Regu-
latory Flexibility Act. 
Sec. 310. Establishment and approval of small business concern size standards 
by Chief Counsel for Advocacy. 
Sec. 311. Clerical amendments. 
Sec. 312. Agency preparation of guides. 
Sec. 313. Comptroller General report. 
TITLE IV—SUNSHINE FOR REGULATORY DECREES AND 
SETTLEMENTS ACT 
Sec. 401. Short title. 
Sec. 402. Definitions. 
Sec. 403. Consent decree and settlement reform. 
Sec. 404. Motions to modify consent decrees. 
Sec. 405. Effective date. 
DIVISION IV—JUDICIARY 
TITLE I—REGULATIONS FROM THE EXECUTIVE IN NEED OF 
SCRUTINY 
Sec. 101. Short title. 
Sec. 102. Purpose. 
Sec. 103. Congressional review of agency rulemaking. 
Sec. 104. Budgetary effects of rules subject to section 802 of title 5, United 
States Code. 
Sec. 105. Government Accountability Office study of rules. 
TITLE II—PERMANENT INTERNET TAX FREEDOM 
Sec. 201. Short title. 
Sec. 202. Permanent moratorium on Internet access taxes and multiple and 
discriminatory taxes on electronic commerce. 
DIVISION V—NATURAL RESOURCES 
SUBDIVISION A—RESTORING HEALTHY FORESTS FOR HEALTHY 
COMMUNITIES 
Sec. 100. Short title. 
TITLE I—RESTORING THE COMMITMENT TO RURAL COUNTIES 
AND SCHOOLS 
Sec. 101. Purposes. 
Sec. 102. Definitions. 
Sec. 103. Establishment of Forest Reserve Revenue Areas and annual volume 
requirements. 
Sec. 104. Management of Forest Reserve Revenue Areas. 
Sec. 105. Distribution of forest reserve revenues. 
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Sec. 106. Annual report. 
TITLE II—HEALTHY FOREST MANAGEMENT AND CATASTROPHIC 
WILDFIRE PREVENTION 
Sec. 201. Purposes. 
Sec. 202. Definitions. 
Sec. 203. Hazardous fuel reduction projects and forest health projects in at-risk 
forests. 
Sec. 204. Environmental analysis. 
Sec. 205. State designation of high-risk areas of National Forest System and 
public lands. 
Sec. 206. Use of hazardous fuels reduction or forest health projects for high- 
risk areas. 
Sec. 207. Moratorium on use of prescribed fire in Mark Twain National Forest, 
Missouri, pending report. 
TITLE III—OREGON AND CALIFORNIA RAILROAD GRANT LANDS 
TRUST, CONSERVATION, AND JOBS 
Sec. 301. Short title. 
Sec. 302. Definitions. 
Subtitle A—Trust, Conservation, and Jobs 
CHAPTER 1—CREATION AND TERMS OF O&C TRUST 
Sec. 311. Creation of O&C Trust and designation of O&C Trust lands. 
Sec. 312. Legal effect of O&C Trust and judicial review. 
Sec. 313. Board of Trustees. 
Sec. 314. Management of O&C Trust lands. 
Sec. 315. Distribution of revenues from O&C Trust lands. 
Sec. 316. Land exchange authority. 
Sec. 317. Payments to the United States Treasury. 
CHAPTER 2—TRANSFER OF CERTAIN LANDS TO FOREST SERVICE 
Sec. 321. Transfer of certain Oregon and California Railroad Grant lands to 
Forest Service. 
Sec. 322. Management of transferred lands by Forest Service. 
Sec. 323. Management efficiencies and expedited land exchanges. 
Sec. 324. Review panel and old growth protection. 
Sec. 325. Uniqueness of old growth protection on Oregon and California Rail-
road Grant lands. 
CHAPTER 3—TRANSITION 
Sec. 331. Transition period and operations. 
Sec. 332. O&C Trust management capitalization. 
Sec. 333. Existing Bureau of Land Management and Forest Service contracts. 
Sec. 334. Protection of valid existing rights and access to non-Federal land. 
Sec. 335. Repeal of superseded law relating to Oregon and California Railroad 
Grant lands. 
Subtitle B—Coos Bay Wagon Roads 
Sec. 341. Transfer of management authority over certain Coos Bay Wagon 
Road Grant lands to Coos County, Oregon. 
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Sec. 342. Transfer of certain Coos Bay Wagon Road Grant lands to Forest 
Service. 
Sec. 343. Land exchange authority. 
Subtitle C—Oregon Treasures 
CHAPTER 1—WILDERNESS AREAS 
Sec. 351. Designation of Devil’s Staircase Wilderness. 
Sec. 352. Expansion of Wild Rogue Wilderness Area. 
CHAPTER 2—WILD AND SCENIC RIVER DESIGNATED AND RELATED 
PROTECTIONS 
Sec. 361. Wild and scenic river designations, Molalla River. 
Sec. 362. Wild and Scenic Rivers Act technical corrections related to Chetco 
River. 
Sec. 363. Wild and scenic river designations, Wasson Creek and Franklin 
Creek. 
Sec. 364. Wild and scenic river designations, Rogue River area. 
Sec. 365. Additional protections for Rogue River tributaries. 
CHAPTER 3—ADDITIONAL PROTECTIONS 
Sec. 371. Limitations on land acquisition. 
Sec. 372. Overflights. 
Sec. 373. Buffer zones. 
Sec. 374. Prevention of wildfires. 
Sec. 375. Limitation on designation of certain lands in Oregon. 
CHAPTER 4—EFFECTIVE DATE 
Sec. 381. Effective date. 
Subtitle D—Tribal Trust Lands 
PART 1—COUNCIL CREEK LAND CONVEYANCE 
Sec. 391. Definitions. 
Sec. 392. Conveyance. 
Sec. 393. Map and legal description. 
Sec. 394. Administration. 
PART 2—OREGON COASTAL LAND CONVEYANCE 
Sec. 395. Definitions. 
Sec. 396. Conveyance. 
Sec. 397. Map and legal description. 
Sec. 398. Administration. 
TITLE IV—COMMUNITY FOREST MANAGEMENT DEMONSTRATION 
Sec. 401. Purpose and definitions. 
Sec. 402. Establishment of community forest demonstration areas. 
Sec. 403. Advisory committee. 
Sec. 404. Management of community forest demonstration areas. 
Sec. 405. Distribution of funds from community forest demonstration area. 
Sec. 406. Initial funding authority. 
Sec. 407. Payments to United States Treasury. 
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Sec. 408. Termination of community forest demonstration area. 
TITLE V—REAUTHORIZATION AND AMENDMENT OF EXISTING 
AUTHORITIES AND OTHER MATTERS 
Sec. 501. Extension of Secure Rural Schools and Community Self-Determina-
tion Act of 2000 pending full operation of Forest Reserve Rev-
enue Areas. 
Sec. 502. Restoring original calculation method for 25-percent payments. 
Sec. 503. Forest Service and Bureau of Land Management good-neighbor co-
operation with States to reduce wildfire risks. 
Sec. 504. Treatment as supplemental funding. 
Sec. 505. Definition of fire suppression to include certain related activities. 
Sec. 506. Prohibition on certain actions regarding Forest Service roads and 
trails. 
SUBDIVISION B—NATIONAL STRATEGIC AND CRITICAL MINERALS 
PRODUCTION 
Sec. 100. Short title. 
Sec. 100A. Findings. 
Sec. 100B. Definitions. 
TITLE I—DEVELOPMENT OF DOMESTIC SOURCES OF STRATEGIC 
AND CRITICAL MINERALS 
Sec. 101. Improving development of strategic and critical minerals. 
Sec. 102. Responsibilities of the lead agency. 
Sec. 103. Conservation of the resource. 
Sec. 104. Federal register process for mineral exploration and mining projects. 
TITLE II—JUDICIAL REVIEW OF AGENCY ACTIONS RELATING TO 
EXPLORATION AND MINE PERMITS 
Sec. 201. Definitions for title. 
Sec. 202. Timely filings. 
Sec. 203. Right to intervene. 
Sec. 204. Expedition in hearing and determining the action. 
Sec. 205. Limitation on prospective relief. 
Sec. 206. Limitation on attorneys’ fees. 
TITLE III—MISCELLANEOUS PROVISIONS 
Sec. 301. Secretarial order not affected. 
SEC. 3. PAYGO SCORECARD. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
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DIVISION I—WAYS AND MEANS 
TITLE I—SAVE AMERICAN 
WORKERS 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Save American Work-
ers Act of 2014’’. 
SEC. 102. REPEAL OF 30-HOUR THRESHOLD FOR CLASSI-
FICATION AS FULL-TIME EMPLOYEE FOR 
PURPOSES OF THE EMPLOYER MANDATE IN 
THE PATIENT PROTECTION AND AFFORD-
ABLE CARE ACT AND REPLACEMENT WITH 40 
HOURS. 
(a) FULL-TIME EQUIVALENTS.—Paragraph (2) of 
section 4980H(c) of the Internal Revenue Code of 1986 
is amended— 
(1) by repealing subparagraph (E), and 
(2) by inserting after subparagraph (D) the fol-
lowing new subparagraph: 
‘‘(E) FULL-TIME EQUIVALENTS TREATED 
AS
FULL-TIME
EMPLOYEES.—Solely for pur-
poses of determining whether an employer is an 
applicable large employer under this paragraph, 
an employer shall, in addition to the number of 
full-time employees for any month otherwise de-
termined, include for such month a number of 
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full-time employees determined by dividing the 
aggregate number of hours of service of employ-
ees who are not full-time employees for the 
month by 174.’’. 
(b) FULL-TIME EMPLOYEES.—Paragraph (4) of sec-
tion 4980H(c) of the Internal Revenue Code of 1986 is 
amended— 
(1) by repealing subparagraph (A), and 
(2) by inserting before subparagraph (B) the 
following new subparagraph: 
‘‘(A) IN
GENERAL.—The term ‘full-time 
employee’ means, with respect to any month, an 
employee who is employed on average at least 
40 hours of service per week.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to months beginning after Decem-
ber 31, 2013. 
TITLE II—HIRE MORE HEROES 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Hire More Heroes Act 
of 2014’’. 
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SEC. 202. EMPLOYEES WITH HEALTH COVERAGE UNDER 
TRICARE OR THE VETERANS ADMINISTRA-
TION MAY BE EXEMPTED FROM EMPLOYER 
MANDATE UNDER PATIENT PROTECTION AND 
AFFORDABLE CARE ACT. 
(a) IN GENERAL.—Section 4980H(c)(2) of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘(F) EXEMPTION FOR HEALTH COVERAGE 
UNDER TRICARE OR THE VETERANS ADMINIS-
TRATION.—Solely for purposes of determining 
whether an employer is an applicable large em-
ployer under this paragraph for any month, an 
employer may elect not to take into account for 
a month as an employee any individual who, for 
such month, has medical coverage under— 
‘‘(i) chapter 55 of title 10, United 
States Code, including coverage under the 
TRICARE program, or 
‘‘(ii) under a health care program 
under chapter 17 or 18 of title 38, United 
States Code, as determined by the Sec-
retary of Veterans Affairs, in coordination 
with the Secretary of Health and Human 
Services and the Secretary.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to months beginning after De-
cember 31, 2013. 
TITLE 
III—AMERICAN 
RE-
SEARCH AND COMPETITIVE-
NESS 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘American Research 
and Competitiveness Act of 2014’’. 
SEC. 302. RESEARCH CREDIT SIMPLIFIED AND MADE PER-
MANENT. 
(a) IN GENERAL.—Subsection (a) of section 41 of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
research credit determined under this section for the tax-
able year shall be an amount equal to the sum of— 
‘‘(1) 20 percent of so much of the qualified re-
search expenses for the taxable year as exceeds 50 
percent of the average qualified research expenses 
for the 3 taxable years preceding the taxable year 
for which the credit is being determined, 
‘‘(2) 20 percent of so much of the basic re-
search payments for the taxable year as exceeds 50 
percent of the average basic research payments for 
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the 3 taxable years preceding the taxable year for 
which the credit is being determined, plus 
‘‘(3) 20 percent of the amounts paid or in-
curred by the taxpayer in carrying on any trade or 
business of the taxpayer during the taxable year (in-
cluding as contributions) to an energy research con-
sortium for energy research.’’. 
(b) REPEAL OF TERMINATION.—Section 41 of such 
Code is amended by striking subsection (h). 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (c) of section 41 of such Code 
is amended to read as follows: 
‘‘(c) DETERMINATION OF AVERAGE RESEARCH EX-
PENSES FOR PRIOR YEARS.— 
‘‘(1) SPECIAL RULE IN CASE OF NO QUALIFIED 
RESEARCH EXPENDITURES IN ANY OF 3 PRECEDING 
TAXABLE YEARS.—In any case in which the taxpayer 
has no qualified research expenses in any one of the 
3 taxable years preceding the taxable year for which 
the credit is being determined, the amount deter-
mined under subsection (a)(1) for such taxable year 
shall be equal to 10 percent of the qualified research 
expenses for the taxable year. 
‘‘(2) 
CONSISTENT
TREATMENT
OF
EX-
PENSES.— 
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‘‘(A) 
IN
GENERAL.—Notwithstanding 
whether the period for filing a claim for credit 
or refund has expired for any taxable year 
taken into account in determining the average 
qualified research expenses, or average basic re-
search payments, taken into account under sub-
section (a), the qualified research expenses and 
basic research payments taken into account in 
determining such averages shall be determined 
on a basis consistent with the determination of 
qualified research expenses and basic research 
payments, respectively, for the credit year. 
‘‘(B) PREVENTION OF DISTORTIONS.—The 
Secretary may prescribe regulations to prevent 
distortions in calculating a taxpayer’s qualified 
research expenses or basic research payments 
caused by a change in accounting methods used 
by such taxpayer between the current year and 
a year taken into account in determining the 
average qualified research expenses or average 
basic research payments taken into account 
under subsection (a).’’. 
(2) Section 41(e) of such Code is amended— 
(A) by striking all that precedes paragraph 
(6) and inserting the following: 
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‘‘(e) BASIC RESEARCH PAYMENTS.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘basic research 
payment’ means, with respect to any taxable year, 
any amount paid in cash during such taxable year 
by a corporation to any qualified organization for 
basic research but only if— 
‘‘(A) such payment is pursuant to a writ-
ten agreement between such corporation and 
such qualified organization, and 
‘‘(B) such basic research is to be per-
formed by such qualified organization. 
‘‘(2) EXCEPTION TO REQUIREMENT THAT RE-
SEARCH BE PERFORMED BY THE ORGANIZATION.— 
In the case of a qualified organization described in 
subparagraph (C) or (D) of paragraph (3), subpara-
graph (B) of paragraph (1) shall not apply.’’, 
(B) by redesignating paragraphs (6) and 
(7) as paragraphs (3) and (4), respectively, and 
(C) in paragraph (4) as so redesignated, 
by striking subparagraphs (B) and (C) and by 
redesignating subparagraphs (D) and (E) as 
subparagraphs (B) and (C), respectively. 
(3) Section 41(f)(3) of such Code is amended— 
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(A)(i) by striking ‘‘, and the gross re-
ceipts’’ in subparagraph (A)(i) and all that fol-
lows through ‘‘determined under clause (iii)’’, 
(ii) by striking clause (iii) of subparagraph 
(A) and redesignating clauses (iv), (v), and (vi), 
thereof, as clauses (iii), (iv), and (v), respec-
tively, 
(iii) by striking ‘‘and (iv)’’ each place it 
appears in subparagraph (A)(iv) (as so redesig-
nated) and inserting ‘‘and (iii)’’, 
(iv) by striking subclause (IV) of subpara-
graph (A)(iv) (as so redesignated), by striking 
‘‘, and’’ at the end of subparagraph (A)(iv)(III) 
(as so redesignated) and inserting a period, and 
by adding ‘‘and’’ at the end of subparagraph 
(A)(iv)(II) (as so redesignated), 
(v) by striking ‘‘(A)(vi)’’ in subparagraph 
(B) and inserting ‘‘(A)(v)’’, and 
(vi) by striking ‘‘(A)(iv)(II)’’ in subpara-
graph (B)(i)(II) and inserting ‘‘(A)(iii)(II)’’, 
(B) by striking ‘‘, and the gross receipts of 
the predecessor,’’ in subparagraph (A)(iv)(II) 
(as so redesignated), 
(C) by striking ‘‘, and the gross receipts 
of,’’ in subparagraph (B), 
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(D) by striking ‘‘, or gross receipts of,’’ in 
subparagraph (B)(i)(I), and 
(E) by striking subparagraph (C). 
(4) Section 45C(b)(1) of such Code is amended 
by striking subparagraph (D). 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2013. 
(2) SUBSECTION (b).—The amendment made 
by subsection (b) shall apply to amounts paid or in-
curred after December 31, 2013. 
SEC. 303. PAYGO SCORECARD. 
(a) PAYGO SCORECARD.—The budgetary effects of 
this title shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay- 
As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARD.—The budgetary ef-
fects of this title shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress). 
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TITLE IV—AMERICA’S SMALL 
BUSINESS TAX RELIEF 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘America’s Small Busi-
ness Tax Relief Act of 2014’’. 
SEC. 402. EXPENSING CERTAIN DEPRECIABLE BUSINESS 
ASSETS FOR SMALL BUSINESS. 
(a) IN GENERAL.— 
(1) DOLLAR
LIMITATION.—Paragraph (1) of 
section 179(b) of the Internal Revenue Code of 1986 
is amended by striking ‘‘shall not exceed—’’ and all 
that follows and inserting ‘‘shall not exceed 
$500,000.’’. 
(2) REDUCTION
IN
LIMITATION.—Paragraph 
(2) of section 179(b) of such Code is amended by 
striking ‘‘exceeds—’’ and all that follows and insert-
ing ‘‘exceeds $2,000,000.’’. 
(b) COMPUTER SOFTWARE.—Clause (ii) of section 
179(d)(1)(A) of such Code is amended by striking ‘‘, to 
which section 167 applies, and which is placed in service 
in a taxable year beginning after 2002 and before 2014’’ 
and inserting ‘‘and to which section 167 applies’’. 
(c) ELECTION.—Paragraph (2) of section 179(c) of 
such Code is amended— 
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(1) by striking ‘‘may not be revoked’’ and all 
that follows through ‘‘and before 2014’’, and 
(2) by striking ‘‘IRREVOCABLE’’ in the heading 
thereof. 
(d) AIR CONDITIONING
AND HEATING UNITS.— 
Paragraph (1) of section 179(d) of such Code is amended 
by striking ‘‘and shall not include air conditioning or heat-
ing units’’. 
(e) QUALIFIED REAL PROPERTY.—Subsection (f) of 
section 179 of such Code is amended— 
(1) by striking ‘‘beginning in 2010, 2011, 2012, 
or 2013’’ in paragraph (1), and 
(2) by striking paragraphs (3) and (4). 
(f) INFLATION ADJUSTMENT.—Subsection (b) of sec-
tion 179 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(6) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2014, the dollar 
amounts in paragraphs (1) and (2) shall each 
be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which such taxable year be-
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gins, determined by substituting ‘calendar 
year 2013’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
‘‘(B) ROUNDING.—The amount of any in-
crease under subparagraph (A) shall be round-
ed to the nearest multiple of $10,000.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
SEC. 403. BUDGETARY EFFECTS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The 
budgetary effects of this title shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARDS.—The budgetary 
effects of this title shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress). 
TITLE V—S CORPORATION 
PERMANENT TAX RELIEF 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘S Corporation Perma-
nent Tax Relief Act of 2014’’. 
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SEC. 502. REDUCED RECOGNITION PERIOD FOR BUILT-IN 
GAINS OF S CORPORATIONS MADE PERMA-
NENT. 
(a) IN GENERAL.—Paragraph (7) of section 1374(d) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(7) RECOGNITION PERIOD.— 
‘‘(A) IN GENERAL.—The term ‘recognition 
period’ means the 5-year period beginning with 
the 1st day of the 1st taxable year for which 
the corporation was an S corporation. For pur-
poses of applying this section to any amount in-
cludible in income by reason of distributions to 
shareholders pursuant to section 593(e), the 
preceding sentence shall be applied without re-
gard to the phrase ‘5-year’. 
‘‘(B) INSTALLMENT SALES.—If an S cor-
poration sells an asset and reports the income 
from the sale using the installment method 
under section 453, the treatment of all pay-
ments received shall be governed by the provi-
sions of this paragraph applicable to the taxable 
year in which such sale was made.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
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SEC. 503. PERMANENT RULE REGARDING BASIS ADJUST-
MENT TO STOCK OF S CORPORATIONS MAK-
ING CHARITABLE CONTRIBUTIONS OF PROP-
ERTY. 
(a) IN GENERAL.—Section 1367(a)(2) of the Internal 
Revenue Code of 1986 is amended by striking the last sen-
tence. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2013. 
SEC. 504. BUDGETARY EFFECTS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The 
budgetary effects of this title shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARDS.—The budgetary 
effects of this title shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress). 
TITLE 
VI—BONUS 
DEPRECIA-
TION MODIFIED AND MADE 
PERMANENT 
SEC. 601. BONUS DEPRECIATION MODIFIED AND MADE 
PERMANENT. 
(a) MADE PERMANENT; INCLUSION OF QUALIFIED 
RETAIL IMPROVEMENT PROPERTY.—Section 168(k)(2) of 
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the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(2) QUALIFIED PROPERTY.—For purposes of 
this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property’ means property— 
‘‘(i)(I) to which this section applies 
which has a recovery period of 20 years or 
less, 
‘‘(II) which is computer software (as 
defined in section 167(f)(1)(B)) for which 
a deduction is allowable under section 
167(a) without regard to this subsection, 
‘‘(III) which is water utility property, 
‘‘(IV) which is qualified leasehold im-
provement property, or 
‘‘(V) which is qualified retail improve-
ment property, and 
‘‘(ii) the original use of which com-
mences with the taxpayer. 
‘‘(B) EXCEPTION FOR ALTERNATIVE DE-
PRECIATION
PROPERTY.—The term ‘qualified 
property’ shall not include any property to 
which the alternative depreciation system under 
subsection (g) applies, determined— 
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‘‘(i) without regard to paragraph (7) 
of subsection (g) (relating to election to 
have system apply), and 
‘‘(ii) after application of section 
280F(b) (relating to listed property with 
limited business use). 
‘‘(C) SPECIAL RULES.— 
‘‘(i) 
SALE-LEASEBACKS.—For 
pur-
poses of clause (ii) and subparagraph 
(A)(ii), if property is— 
‘‘(I) originally placed in service 
by a person, and 
‘‘(II) sold and leased back by 
such person within 3 months after the 
date such property was originally 
placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date 
on which such property is used under the 
leaseback referred to in subclause (II). 
‘‘(ii) SYNDICATION.—For purposes of 
subparagraph (A)(ii), if— 
‘‘(I) property is originally placed 
in service by the lessor of such prop-
erty, 
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‘‘(II) such property is sold by 
such lessor or any subsequent pur-
chaser within 3 months after the date 
such property was originally placed in 
service (or, in the case of multiple 
units of property subject to the same 
lease, within 3 months after the date 
the final unit is placed in service, so 
long as the period between the time 
the first unit is placed in service and 
the time the last unit is placed in 
service does not exceed 12 months), 
and 
‘‘(III) the user of such property 
after the last sale during such 3- 
month period remains the same as 
when such property was originally 
placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date 
of such last sale. 
‘‘(D) 
COORDINATION
WITH
SECTION 
280F.—For purposes of section 280F— 
‘‘(i) AUTOMOBILES.—In the case of a 
passenger automobile (as defined in section 
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280F(d)(5)) which is qualified property, 
the Secretary shall increase the limitation 
under section 280F(a)(1)(A)(i) by $8,000. 
‘‘(ii) LISTED PROPERTY.—The deduc-
tion allowable under paragraph (1) shall be 
taken into account in computing any re-
capture amount under section 280F(b)(2). 
‘‘(iii) INFLATION
ADJUSTMENT.—In 
the case of any taxable year beginning in 
a calendar year after 2014, the $8,000 
amount in clause (i) shall be increased by 
an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the automobile price infla-
tion adjustment determined under sec-
tion 280F(d)(7)(B)(i) for the calendar 
year in which such taxable year begins 
by substituting ‘2013’ for ‘1987’ in 
subclause (II) thereof. 
If any increase under the preceding sen-
tence is not a multiple of $100, such in-
crease shall be rounded to the nearest mul-
tiple of $100. 
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‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM
TAX.—For purposes of determining 
alternative minimum taxable income under sec-
tion 55, the deduction under section 167 for 
qualified property shall be determined without 
regard to any adjustment under section 56.’’. 
(b) EXPANSION OF ELECTION TO ACCELERATE AMT 
CREDITS IN LIEU OF BONUS DEPRECIATION.—Section 
168(k)(4) of such Code is amended to read as follows: 
‘‘(4) ELECTION TO ACCELERATE AMT CREDITS 
IN LIEU OF BONUS DEPRECIATION.— 
‘‘(A) IN GENERAL.—If a corporation elects 
to have this paragraph apply for any taxable 
year— 
‘‘(i) paragraphs (1)(A), (2)(D)(i), and 
(5)(A)(i) shall not apply for such taxable 
year, 
‘‘(ii) the applicable depreciation meth-
od used under this section with respect to 
any qualified property shall be the straight 
line method, and 
‘‘(iii) the limitation imposed by section 
53(c) for such taxable year shall be in-
creased by the bonus depreciation amount 
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which is determined for such taxable year 
under subparagraph (B). 
‘‘(B) BONUS
DEPRECIATION
AMOUNT.— 
For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The bonus depre-
ciation amount for any taxable year is an 
amount equal to 20 percent of the excess 
(if any) of— 
‘‘(I) the aggregate amount of de-
preciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraph 
(1) applied to all such property, over 
‘‘(II) the aggregate amount of 
depreciation which would be allowed 
under this section for qualified prop-
erty placed in service by the taxpayer 
during such taxable year if paragraph 
(1) did not apply to any such prop-
erty. 
The aggregate amounts determined under 
subclauses (I) and (II) shall be determined 
without regard to any election made under 
subsection (b)(2)(D), (b)(3)(D), or (g)(7) 
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and 
without 
regard 
to 
subparagraph 
(A)(ii). 
‘‘(ii) LIMITATION.—The bonus depre-
ciation amount for any taxable year shall 
not exceed the lesser of— 
‘‘(I) 50 percent of the minimum 
tax credit under section 53(b) for the 
first taxable year ending after Decem-
ber 31, 2013, or 
‘‘(II) the minimum tax credit 
under section 53(b) for such taxable 
year determined by taking into ac-
count only the adjusted net minimum 
tax for taxable years ending before 
January 1, 2014 (determined by 
treating credits as allowed on a first- 
in, first-out basis). 
‘‘(iii) AGGREGATION RULE.—All cor-
porations which are treated as a single em-
ployer under section 52(a) shall be treat-
ed— 
‘‘(I) as 1 taxpayer for purposes 
of this paragraph, and 
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‘‘(II) as having elected the appli-
cation of this paragraph if any such 
corporation so elects. 
‘‘(C) CREDIT
REFUNDABLE.—For pur-
poses of section 6401(b), the aggregate increase 
in the credits allowable under part IV of sub-
chapter A for any taxable year resulting from 
the application of this paragraph shall be treat-
ed as allowed under subpart C of such part 
(and not any other subpart). 
‘‘(D) OTHER RULES.— 
‘‘(i) ELECTION.—Any election under 
this paragraph may be revoked only with 
the consent of the Secretary. 
‘‘(ii) PARTNERSHIPS WITH ELECTING 
PARTNERS.—In the case of a corporation 
which is a partner in a partnership and 
which makes an election under subpara-
graph (A) for the taxable year, for pur-
poses of determining such corporation’s 
distributive share of partnership items 
under section 702 for such taxable year— 
‘‘(I) 
paragraphs 
(1)(A), 
(2)(D)(i), and (5)(A)(i) shall not 
apply, and 
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‘‘(II) the applicable depreciation 
method used under this section with 
respect to any qualified property shall 
be the straight line method. 
‘‘(iii) CERTAIN
PARTNERSHIPS.—In 
the case of a partnership in which more 
than 50 percent of the capital and profits 
interests are owned (directly or indirectly) 
at all times during the taxable year by 1 
corporation (or by corporations treated as 
1 taxpayer under subparagraph (B)(iii)), 
each partner shall compute its bonus de-
preciation amount under clause (i) of sub-
paragraph (B) by taking into account its 
distributive share of the amounts deter-
mined by the partnership under subclauses 
(I) and (II) of such clause for the taxable 
year of the partnership ending with or 
within the taxable year of the partner.’’. 
(c) SPECIAL RULES FOR TREES AND VINES BEARING 
FRUITS
AND NUTS.—Section 168(k) of such Code is 
amended— 
(1) by striking paragraph (5), and 
(2) by inserting after paragraph (4) the fol-
lowing new paragraph: 
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‘‘(5) SPECIAL RULES FOR TREES AND VINES 
BEARING FRUITS AND NUTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
tree or vine bearing fruits or nuts which is 
planted, or is grafted to a plant that has al-
ready been planted, by the taxpayer in the ordi-
nary course of the taxpayer’s farming business 
(as defined in section 263A(e)(4))— 
‘‘(i) a depreciation deduction equal to 
50 percent of the adjusted basis of such 
tree or vine shall be allowed under section 
167(a) for the taxable year in which such 
tree or vine is so planted or grafted, and 
‘‘(ii) the adjusted basis of such tree or 
vine shall be reduced by the amount of 
such deduction. 
‘‘(B) ELECTION
OUT.—If a taxpayer 
makes an election under this subparagraph for 
any taxable year, this paragraph shall not apply 
to any tree or vine planted or grafted during 
such taxable year. An election under this sub-
paragraph may be revoked only with the con-
sent of the Secretary. 
‘‘(C) ADDITIONAL DEPRECIATION MAY BE 
CLAIMED ONLY ONCE.—If this paragraph ap-
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plies to any tree or vine, such tree or vine shall 
not be treated as qualified property in the tax-
able year in which placed in service. 
‘‘(D) COORDINATION WITH ELECTION TO 
ACCELERATE AMT CREDITS.—If a corporation 
makes an election under paragraph (4) for any 
taxable year, the amount under paragraph 
(4)(B)(i)(I) for such taxable year shall be in-
creased by the amount determined under sub-
paragraph (A)(i) for such taxable year. 
‘‘(E) DEDUCTION ALLOWED IN COMPUTING 
MINIMUM TAX.—Rules similar to the rules of 
paragraph (2)(E) shall apply for purposes of 
this paragraph.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 168(e)(8) of such Code is amended 
by striking subparagraph (D). 
(2) Section 168(k) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(6) ELECTION OUT.—If a taxpayer makes an 
election under this paragraph with respect to any 
class of property for any taxable year, this sub-
section shall not apply to all property in such class 
placed in service (or, in the case of paragraph (5), 
planted or grafted) during such taxable year. An 
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election under this paragraph may be revoked only 
with the consent of the Secretary.’’. 
(3) Section 168(l)(5) of such Code is amended 
by striking ‘‘section 168(k)(2)(G)’’ and inserting 
‘‘section 168(k)(2)(E)’’. 
(4) Section 263A(c) of such Code is amended 
by adding at the end the following new paragraph: 
‘‘(7) 
COORDINATION
WITH
SECTION 
168(k)(5).—This section shall not apply to any 
amount allowable as a deduction by reason of section 
168(k)(5) (relating to special rules for trees and 
vines bearing fruits and nuts).’’. 
(5) Section 460(c)(6)(B) of such Code is 
amended by striking ‘‘which—’’ and all that follows 
and inserting ‘‘which has a recovery period of 7 
years or less.’’. 
(6) Section 168(k) of such Code is amended by 
striking ‘‘ACQUIRED AFTER DECEMBER 31, 2007, 
AND BEFORE JANUARY 1, 2014’’ in the heading 
thereof. 
(e) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to property placed in service 
after December 31, 2013. 
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(2) EXPANSION OF ELECTION TO ACCELERATE 
AMT CREDITS IN LIEU OF BONUS DEPRECIATION.— 
(A) IN GENERAL.—The amendment made 
by subsection (b) (other than so much of such 
amendment 
as 
relates 
to 
section 
168(k)(4)(D)(iii) of such Code, as added by 
such amendment) shall apply to taxable years 
ending after December 31, 2013. 
(B) TRANSITIONAL RULE.—In the case of 
a taxable year beginning before January 1, 
2014, and ending after December 31, 2013, the 
bonus depreciation amount determined under 
section 168(k)(4) of such Code for such year 
shall be the sum of— 
(i) such amount determined without 
regard to the amendments made by this 
section and— 
(I) by taking into account only 
property placed in service before Jan-
uary 1, 2014, and 
(II) by multiplying the limitation 
under section 168(k)(4)(C)(ii) of such 
Code (determined without regard to 
the amendments made by this section) 
by a fraction the numerator of which 
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is the number of days in the taxable 
year before January 1, 2014, and the 
denominator of which is the number 
of days in the taxable year, and 
(ii) such amount determined after 
taking into account the amendments made 
by this section and— 
(I) by taking into account only 
property placed in service after De-
cember 31, 2013, and 
(II) by multiplying the limitation 
under section 168(k)(4)(B)(ii) of such 
Code (as amended by this section) by 
a fraction the numerator of which is 
the number of days in the taxable 
year after December 31, 2013, and 
the denominator of which is the num-
ber of days in the taxable year. 
(3) SPECIAL RULES FOR CERTAIN TREES AND 
VINES.—The amendment made by subsection (c)(2) 
shall apply to trees and vines planted or grafted 
after December 31, 2013. 
SEC. 602. BUDGETARY EFFECTS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The 
budgetary effects of this title shall not be entered on either 
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PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARDS.—The budgetary 
effects of this title shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress). 
TITLE VII—REPEAL OF MEDICAL 
DEVICE EXCISE TAX 
SEC. 701. REPEAL OF MEDICAL DEVICE EXCISE TAX. 
(a) IN GENERAL.—Chapter 32 of the Internal Rev-
enue Code of 1986 is amended by striking subchapter E. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 4221 of such Code 
is amended by striking the last sentence. 
(2) Paragraph (2) of section 6416(b) of such 
Code is amended by striking the last sentence. 
(3) The table of subchapters for chapter 32 of 
such Code is amended by striking the item relating 
to subchapter E. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after December 31, 2012. 
SEC. 702. BUDGETARY EFFECTS. 
(a) STATUTORY PAY-AS-YOU-GO SCORECARDS.—The 
budgetary effects of this title shall not be entered on either 
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PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay-As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARDS.—The budgetary 
effects of this title shall not be entered on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress). 
DIVISION II—FINANCIAL 
SERVICES 
TITLE I—SMALL BUSINESS CAP-
ITAL ACCESS AND JOB PRES-
ERVATION 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Small Business Cap-
ital Access and Job Preservation Act’’. 
SEC. 102. REGISTRATION AND REPORTING EXEMPTIONS 
RELATING TO PRIVATE EQUITY FUNDS ADVI-
SORS. 
Section 203 of the Investment Advisers Act of 1940 
(15 U.S.C. 80b–3) is amended by adding at the end the 
following: 
‘‘(o) EXEMPTION
OF
AND REPORTING REQUIRE-
MENTS BY PRIVATE EQUITY FUNDS ADVISORS.— 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, no investment adviser shall be subject to 
the registration or reporting requirements of this 
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title with respect to the provision of investment ad-
vice relating to a private equity fund or funds, pro-
vided that each such fund has not borrowed and 
does not have outstanding a principal amount in ex-
cess of twice its invested capital commitments. 
‘‘(2) MAINTENANCE OF RECORDS AND ACCESS 
BY COMMISSION.—Not later than 6 months after the 
date of enactment of this subsection, the Commis-
sion shall issue final rules— 
‘‘(A) to require investment advisers de-
scribed in paragraph (1) to maintain such 
records and provide to the Commission such an-
nual or other reports as the Commission may 
require taking into account fund size, govern-
ance, investment strategy, risk, and other fac-
tors, as the Commission determines necessary 
and appropriate in the public interest and for 
the protection of investors; and 
‘‘(B) to define the term ‘private equity 
fund’ for purposes of this subsection.’’. 
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TITLE 
II—SMALL 
BUSINESS 
MERGERS, 
ACQUISITIONS, 
SALES, AND BROKERAGE SIM-
PLIFICATION 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Small Business Merg-
ers, Acquisitions, Sales, and Brokerage Simplification Act 
of 2014’’. 
SEC. 202. REGISTRATION EXEMPTION FOR MERGER AND 
ACQUISITION BROKERS. 
Section 15(b) of the Securities Exchange Act of 1934 
(15 U.S.C. 78o(b)) is amended by adding at the end the 
following: 
‘‘(13) REGISTRATION EXEMPTION FOR MERGER 
AND ACQUISITION BROKERS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), an M&A broker shall be ex-
empt from registration under this section. 
‘‘(B) EXCLUDED
ACTIVITIES.—An M&A 
broker is not exempt from registration under 
this paragraph if such broker does any of the 
following: 
‘‘(i) Directly or indirectly, in connec-
tion with the transfer of ownership of an 
eligible privately held company, receives, 
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holds, transmits, or has custody of the 
funds or securities to be exchanged by the 
parties to the transaction. 
‘‘(ii) Engages on behalf of an issuer in 
a public offering of any class of securities 
that is registered, or is required to be reg-
istered, with the Commission under section 
12 or with respect to which the issuer files, 
or is required to file, periodic information, 
documents, and reports under subsection 
(d). 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to limit 
any other authority of the Commission to ex-
empt any person, or any class of persons, from 
any provision of this title, or from any provision 
of any rule or regulation thereunder. 
‘‘(D) DEFINITIONS.—In this paragraph: 
‘‘(i) CONTROL.—The term ‘control’ 
means the power, directly or indirectly, to 
direct the management or policies of a 
company, whether through ownership of 
securities, by contract, or otherwise. There 
is a presumption of control for any person 
who— 
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‘‘(I) is a director, general part-
ner, member or manager of a limited 
liability company, or officer exercising 
executive responsibility (or has similar 
status or functions); 
‘‘(II) has the right to vote 20 
percent or more of a class of voting 
securities or the power to sell or direct 
the sale of 20 percent or more of a 
class of voting securities; or 
‘‘(III) in the case of a partner-
ship or limited liability company, has 
the right to receive upon dissolution, 
or has contributed, 20 percent or 
more of the capital. 
‘‘(ii) 
ELIGIBLE
PRIVATELY
HELD 
COMPANY.—The term ‘eligible privately 
held company’ means a company that 
meets both of the following conditions: 
‘‘(I) The company does not have 
any class of securities registered, or 
required to be registered, with the 
Commission under section 12 or with 
respect to which the company files, or 
is required to file, periodic informa-
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tion, documents, and reports under 
subsection (d). 
‘‘(II) In the fiscal year ending 
immediately before the fiscal year in 
which the services of the M&A broker 
are initially engaged with respect to 
the securities transaction, the com-
pany meets either or both of the fol-
lowing conditions (determined in ac-
cordance with the historical financial 
accounting records of the company): 
‘‘(aa) The earnings of the 
company before interest, taxes, 
depreciation, and amortization 
are less than $25,000,000. 
‘‘(bb) The gross revenues of 
the 
company 
are 
less 
than 
$250,000,000. 
‘‘(iii) M&A BROKER.—The term ‘M&A 
broker’ means a broker, and any person 
associated with a broker, engaged in the 
business of effecting securities transactions 
solely in connection with the transfer of 
ownership of an eligible privately held com-
pany, regardless of whether the broker acts 
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on behalf of a seller or buyer, through the 
purchase, sale, exchange, issuance, repur-
chase, or redemption of, or a business com-
bination involving, securities or assets of 
the eligible privately held company, if the 
broker reasonably believes that— 
‘‘(I) upon consummation of the 
transaction, any person acquiring se-
curities or assets of the eligible pri-
vately held company, acting alone or 
in concert, will control and, directly or 
indirectly, will be active in the man-
agement of the eligible privately held 
company or the business conducted 
with the assets of the eligible privately 
held company; and 
‘‘(II) if any person is offered se-
curities in exchange for securities or 
assets of the eligible privately held 
company, such person will, prior to 
becoming legally bound to consum-
mate the transaction, receive or have 
reasonable access to the most recent 
year-end balance sheet, income state-
ment, statement of changes in finan-
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cial position, and statement of owner’s 
equity of the issuer of the securities 
offered in exchange, and, if the finan-
cial statements of the issuer are au-
dited, the related report of the inde-
pendent auditor, a balance sheet 
dated not more than 120 days before 
the date of the offer, and information 
pertaining to the management, busi-
ness, results of operations for the pe-
riod covered by the foregoing financial 
statements, and material loss contin-
gencies of the issuer. 
‘‘(E) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—On the date that 
is 5 years after the date of the enactment 
of the Small Business Mergers, Acquisi-
tions, Sales, and Brokerage Simplification 
Act of 2014, and every 5 years thereafter, 
each 
dollar 
amount 
in 
subparagraph 
(D)(ii)(II) shall be adjusted by— 
‘‘(I) dividing the annual value of 
the Employment Cost Index For 
Wages and Salaries, Private Industry 
Workers (or any successor index), as 
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published by the Bureau of Labor 
Statistics, for the calendar year pre-
ceding the calendar year in which the 
adjustment is being made by the an-
nual value of such index (or suc-
cessor) for the calendar year ending 
December 31, 2012; and 
‘‘(II) multiplying such dollar 
amount by the quotient obtained 
under subclause (I). 
‘‘(ii) 
ROUNDING.—Each 
dollar 
amount determined under clause (i) shall 
be rounded to the nearest multiple of 
$100,000.’’. 
SEC. 203. EFFECTIVE DATE. 
This title and any amendment made by this title shall 
take effect on the date that is 90 days after the date of 
the enactment of this Act. 
DIVISION III—OVERSIGHT 
SUBDIVISION 
A—UNFUNDED 
MANDATES 
INFORMATION 
AND TRANSPARENCY 
SEC. 101. SHORT TITLE. 
This subdivision may be cited as the ‘‘Unfunded 
Mandates Information and Transparency Act of 2014’’. 
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SEC. 102. PURPOSE. 
The purpose of this title is— 
(1) to improve the quality of the deliberations 
of Congress with respect to proposed Federal man-
dates by— 
(A) providing Congress and the public with 
more complete information about the effects of 
such mandates; and 
(B) ensuring that Congress acts on such 
mandates only after focused deliberation on 
their effects; and 
(2) to enhance the ability of Congress and the 
public to identify Federal mandates that may impose 
undue harm on consumers, workers, employers, 
small businesses, and State, local, and tribal govern-
ments. 
SEC. 103. PROVIDING FOR CONGRESSIONAL BUDGET OF-
FICE 
STUDIES 
ON 
POLICIES 
INVOLVING 
CHANGES IN CONDITIONS OF GRANT AID. 
Section 202(g) of the Congressional Budget Act of 
1974 (2 U.S.C. 602(g)) is amended by adding at the end 
the following new paragraph: 
‘‘(3) ADDITIONAL STUDIES.—At the request of 
any Chairman or ranking member of the minority of 
a Committee of the Senate or the House of Rep-
resentatives, the Director shall conduct an assess-
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ment comparing the authorized level of funding in a 
bill or resolution to the prospective costs of carrying 
out any changes to a condition of Federal assistance 
being imposed on State, local, or tribal governments 
participating in the Federal assistance program con-
cerned or, in the case of a bill or joint resolution 
that authorizes such sums as are necessary, an as-
sessment of an estimated level of funding compared 
to such costs.’’. 
SEC. 104. CLARIFYING THE DEFINITION OF DIRECT COSTS 
TO REFLECT CONGRESSIONAL BUDGET OF-
FICE PRACTICE. 
Section 421(3) of the Congressional Budget Act of 
1974 (2 U.S.C. 658(3)(A)(i)) is amended— 
(1) in subparagraph (A)(i), by inserting ‘‘incur 
or’’ before ‘‘be required’’; and 
(2) in subparagraph (B), by inserting after ‘‘to 
spend’’ the following: ‘‘or could forgo in profits, in-
cluding costs passed on to consumers or other enti-
ties taking into account, to the extent practicable, 
behavioral changes,’’. 
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SEC. 105. EXPANDING THE SCOPE OF REPORTING RE-
QUIREMENTS TO INCLUDE REGULATIONS IM-
POSED 
BY 
INDEPENDENT 
REGULATORY 
AGENCIES. 
Paragraph (1) of section 421 of the Congressional 
Budget Act of 1974 (2 U.S.C. 658) is amended by striking 
‘‘, but does not include independent regulatory agencies’’ 
and inserting ‘‘, except it does not include the Board of 
Governors of the Federal Reserve System or the Federal 
Open Market Committee’’. 
SEC. 106. AMENDMENTS TO REPLACE OFFICE OF MANAGE-
MENT AND BUDGET WITH OFFICE OF INFOR-
MATION AND REGULATORY AFFAIRS. 
The Unfunded Mandates Reform Act of 1995 (Public 
Law 104–4; 2 U.S.C. 1511 et seq.) is amended— 
(1) in section 103(c) (2 U.S.C. 1511(c))— 
(A) in the subsection heading, by striking 
‘‘OFFICE OF MANAGEMENT AND BUDGET’’ and 
inserting ‘‘OFFICE OF INFORMATION AND REG-
ULATORY AFFAIRS’’; and 
(B) by striking ‘‘Director of the Office of 
Management and Budget’’ and inserting ‘‘Ad-
ministrator of the Office of Information and 
Regulatory Affairs’’; 
(2) in section 205(c) (2 U.S.C. 1535(c))— 
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(A) in the subsection heading, by striking 
‘‘OMB’’; and 
(B) by striking ‘‘Director of the Office of 
Management and Budget’’ and inserting ‘‘Ad-
ministrator of the Office of Information and 
Regulatory Affairs’’; and 
(3) in section 206 (2 U.S.C. 1536), by striking 
‘‘Director of the Office of Management and Budget’’ 
and inserting ‘‘Administrator of the Office of Infor-
mation and Regulatory Affairs’’. 
SEC. 107. APPLYING SUBSTANTIVE POINT OF ORDER TO 
PRIVATE SECTOR MANDATES. 
Section 425(a)(2) of the Congressional Budget Act 
of 1974 (2 U.S.C. 658d(a)(2)) is amended— 
(1) by striking ‘‘Federal intergovernmental 
mandates’’ and inserting ‘‘Federal mandates’’; and 
(2) by inserting ‘‘or 424(b)(1)’’ after ‘‘section 
424(a)(1)’’. 
SEC. 108. REGULATORY PROCESS AND PRINCIPLES. 
Section 201 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1531) is amended to read as follows: 
‘‘SEC. 201. REGULATORY PROCESS AND PRINCIPLES. 
‘‘(a) IN GENERAL.—Each agency shall, unless other-
wise expressly prohibited by law, assess the effects of Fed-
eral regulatory actions on State, local, and tribal govern-
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ments and the private sector (other than to the extent that 
such regulatory actions incorporate requirements specifi-
cally set forth in law) in accordance with the following 
principles: 
‘‘(1) Each agency shall identify the problem 
that it intends to address (including, if applicable, 
the failures of private markets or public institutions 
that warrant new agency action) as well as assess 
the significance of that problem. 
‘‘(2) Each agency shall examine whether exist-
ing regulations (or other law) have created, or con-
tributed to, the problem that a new regulation is in-
tended to correct and whether those regulations (or 
other law) should be modified to achieve the in-
tended goal of regulation more effectively. 
‘‘(3) Each agency shall identify and assess 
available alternatives to direct regulation, including 
providing economic incentives to encourage the de-
sired behavior, such as user fees or marketable per-
mits, or providing information upon which choices 
can be made by the public. 
‘‘(4) If an agency determines that a regulation 
is the best available method of achieving the regu-
latory objective, it shall design its regulations in the 
most cost-effective manner to achieve the regulatory 
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objective. In doing so, each agency shall consider in-
centives for innovation, consistency, predictability, 
the costs of enforcement and compliance (to the gov-
ernment, regulated entities, and the public), flexi-
bility, distributive impacts, and equity. 
‘‘(5) Each agency shall assess both the costs 
and the benefits of the intended regulation and, rec-
ognizing that some costs and benefits are difficult to 
quantify, propose or adopt a regulation, unless ex-
pressly prohibited by law, only upon a reasoned de-
termination that the benefits of the intended regula-
tion justify its costs. 
‘‘(6) Each agency shall base its decisions on the 
best reasonably obtainable scientific, technical, eco-
nomic, and other information concerning the need 
for, and consequences of, the intended regulation. 
‘‘(7) Each agency shall identify and assess al-
ternative forms of regulation and shall, to the extent 
feasible, specify performance objectives, rather than 
specifying the behavior or manner of compliance 
that regulated entities must adopt. 
‘‘(8) Each agency shall avoid regulations that 
are inconsistent, incompatible, or duplicative with its 
other regulations or those of other Federal agencies. 
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‘‘(9) Each agency shall tailor its regulations to 
minimize the costs of the cumulative impact of regu-
lations. 
‘‘(10) Each agency shall draft its regulations to 
be simple and easy to understand, with the goal of 
minimizing the potential for uncertainty and litiga-
tion arising from such uncertainty. 
‘‘(b) REGULATORY ACTION DEFINED.—In this sec-
tion, the term ‘regulatory action’ means any substantive 
action by an agency (normally published in the Federal 
Register) that promulgates or is expected to lead to the 
promulgation of a final rule or regulation, including ad-
vance notices of proposed rulemaking and notices of pro-
posed rulemaking.’’. 
SEC. 109. EXPANDING THE SCOPE OF STATEMENTS TO AC-
COMPANY SIGNIFICANT REGULATORY AC-
TIONS. 
(a) IN GENERAL.—Subsection (a) of section 202 of 
the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1532) is amended to read as follows: 
‘‘(a) IN GENERAL.—Unless otherwise expressly pro-
hibited by law, before promulgating any general notice of 
proposed rulemaking or any final rule, or within six 
months after promulgating any final rule that was not pre-
ceded by a general notice of proposed rulemaking, if the 
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proposed rulemaking or final rule includes a Federal man-
date that may result in an annual effect on State, local, 
or tribal governments, or to the private sector, in the ag-
gregate of $100,000,000 or more in any 1 year, the agency 
shall prepare a written statement containing the following: 
‘‘(1) The text of the draft proposed rulemaking 
or final rule, together with a reasonably detailed de-
scription of the need for the proposed rulemaking or 
final rule and an explanation of how the proposed 
rulemaking or final rule will meet that need. 
‘‘(2) An assessment of the potential costs and 
benefits of the proposed rulemaking or final rule, in-
cluding an explanation of the manner in which the 
proposed rulemaking or final rule is consistent with 
a statutory requirement and avoids undue inter-
ference with State, local, and tribal governments in 
the exercise of their governmental functions. 
‘‘(3) A qualitative and quantitative assessment, 
including the underlying analysis, of benefits antici-
pated from the proposed rulemaking or final rule 
(such as the promotion of the efficient functioning of 
the economy and private markets, the enhancement 
of health and safety, the protection of the natural 
environment, and the elimination or reduction of dis-
crimination or bias). 
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‘‘(4) A qualitative and quantitative assessment, 
including the underlying analysis, of costs antici-
pated from the proposed rulemaking or final rule 
(such as the direct costs both to the Government in 
administering the final rule and to businesses and 
others in complying with the final rule, and any ad-
verse effects on the efficient functioning of the econ-
omy, private markets (including productivity, em-
ployment, and international competitiveness), health, 
safety, and the natural environment). 
‘‘(5) Estimates by the agency, if and to the ex-
tent that the agency determines that accurate esti-
mates are reasonably feasible, of— 
‘‘(A) the future compliance costs of the 
Federal mandate; and 
‘‘(B) any disproportionate budgetary ef-
fects of the Federal mandate upon any par-
ticular regions of the Nation or particular 
State, local, or tribal governments, urban or 
rural or other types of communities, or par-
ticular segments of the private sector. 
‘‘(6)(A) A detailed description of the extent of 
the agency’s prior consultation with the private sec-
tor and elected representatives (under section 204) 
of the affected State, local, and tribal governments. 
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‘‘(B) A detailed summary of the comments and 
concerns that were presented by the private sector 
and State, local, or tribal governments either orally 
or in writing to the agency. 
‘‘(C) A detailed summary of the agency’s eval-
uation of those comments and concerns. 
‘‘(7) A detailed summary of how the agency 
complied with each of the regulatory principles de-
scribed in section 201.’’. 
(b) REQUIREMENT FOR DETAILED SUMMARY.—Sub-
section (b) of section 202 of such Act is amended by in-
serting ‘‘detailed’’ before ‘‘summary’’. 
SEC. 110. ENHANCED STAKEHOLDER CONSULTATION. 
Section 204 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1534) is amended— 
(1) in the section heading, by inserting ‘‘AND 
PRIVATE SECTOR’’ before ‘‘INPUT’’; 
(2) in subsection (a)— 
(A) by inserting ‘‘, and impacted parties 
within the private sector (including small busi-
ness),’’ after ‘‘on their behalf)’’; 
(B) by striking ‘‘Federal intergovernmental 
mandates’’ and inserting ‘‘Federal mandates’’; 
and 
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(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) GUIDELINES.—For appropriate implementation 
of subsections (a) and (b) consistent with applicable laws 
and regulations, the following guidelines shall be followed: 
‘‘(1) Consultations shall take place as early as 
possible, before issuance of a notice of proposed rule-
making, continue through the final rule stage, and 
be integrated explicitly into the rulemaking process. 
‘‘(2) Agencies shall consult with a wide variety 
of State, local, and tribal officials and impacted par-
ties within the private sector (including small busi-
nesses). Geographic, political, and other factors that 
may differentiate varying points of view should be 
considered. 
‘‘(3) Agencies should estimate benefits and 
costs to assist with these consultations. The scope of 
the consultation should reflect the cost and signifi-
cance of the Federal mandate being considered. 
‘‘(4) Agencies shall, to the extent practicable— 
‘‘(A) seek out the views of State, local, and 
tribal governments, and impacted parties within 
the private sector (including small business), on 
costs, benefits, and risks; and 
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‘‘(B) solicit ideas about alternative meth-
ods of compliance and potential flexibilities, and 
input on whether the Federal regulation will 
harmonize with and not duplicate similar laws 
in other levels of government. 
‘‘(5) Consultations shall address the cumulative 
impact of regulations on the affected entities. 
‘‘(6) Agencies may accept electronic submis-
sions of comments by relevant parties but may not 
use those comments as the sole method of satisfying 
the guidelines in this subsection.’’. 
SEC. 111. NEW AUTHORITIES AND RESPONSIBILITIES FOR 
OFFICE OF INFORMATION AND REGULATORY 
AFFAIRS. 
Section 208 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1538) is amended to read as follows: 
‘‘SEC. 208. OFFICE OF INFORMATION AND REGULATORY AF-
FAIRS RESPONSIBILITIES. 
‘‘(a) IN GENERAL.—The Administrator of the Office 
of Information and Regulatory Affairs shall provide mean-
ingful guidance and oversight so that each agency’s regu-
lations for which a written statement is required under 
section 202 are consistent with the principles and require-
ments of this title, as well as other applicable laws, and 
do not conflict with the policies or actions of another agen-
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cy. If the Administrator determines that an agency’s regu-
lations for which a written statement is required under 
section 202 do not comply with such principles and re-
quirements, are not consistent with other applicable laws, 
or conflict with the policies or actions of another agency, 
the Administrator shall identify areas of non-compliance, 
notify the agency, and request that the agency comply be-
fore the agency finalizes the regulation concerned. 
‘‘(b) ANNUAL STATEMENTS TO CONGRESS ON AGEN-
CY COMPLIANCE.—The Director of the Office of Informa-
tion and Regulatory Affairs annually shall submit to Con-
gress, including the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee 
on Oversight and Government Reform of the House of 
Representatives, a written report detailing compliance by 
each agency with the requirements of this title that relate 
to regulations for which a written statement is required 
by section 202, including activities undertaken at the re-
quest of the Director to improve compliance, during the 
preceding reporting period. The report shall also contain 
an appendix detailing compliance by each agency with sec-
tion 204.’’. 
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SEC. 112. RETROSPECTIVE ANALYSIS OF EXISTING FED-
ERAL REGULATIONS. 
The Unfunded Mandates Reform Act of 1995 (Public 
Law 104–4; 2 U.S.C. 1511 et seq.) is amended— 
(1) by redesignating section 209 as section 210; 
and 
(2) by inserting after section 208 the following 
new section 209: 
‘‘SEC. 209. RETROSPECTIVE ANALYSIS OF EXISTING FED-
ERAL REGULATIONS. 
‘‘(a) REQUIREMENT.—At the request of the chairman 
or ranking minority member of a standing or select com-
mittee of the House of Representatives or the Senate, an 
agency shall conduct a retrospective analysis of an existing 
Federal regulation promulgated by an agency. 
‘‘(b) REPORT.—Each agency conducting a retrospec-
tive analysis of existing Federal regulations pursuant to 
subsection (a) shall submit to the chairman of the relevant 
committee, Congress, and the Comptroller General a re-
port containing, with respect to each Federal regulation 
covered by the analysis— 
‘‘(1) a copy of the Federal regulation; 
‘‘(2) the continued need for the Federal regula-
tion; 
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‘‘(3) the nature of comments or complaints re-
ceived concerning the Federal regulation from the 
public since the Federal regulation was promulgated; 
‘‘(4) the extent to which the Federal regulation 
overlaps, duplicates, or conflicts with other Federal 
regulations, and, to the extent feasible, with State 
and local governmental rules; 
‘‘(5) the degree to which technology, economic 
conditions, or other factors have changed in the area 
affected by the Federal regulation; 
‘‘(6) a complete analysis of the retrospective di-
rect costs and benefits of the Federal regulation that 
considers studies done outside the Federal Govern-
ment (if any) estimating such costs or benefits; and 
‘‘(7) any litigation history challenging the Fed-
eral regulation.’’. 
SEC. 113. EXPANSION OF JUDICIAL REVIEW. 
Section 401(a) of the Unfunded Mandates Reform 
Act of 1995 (2 U.S.C. 1571(a)) is amended— 
(1) in paragraphs (1) and (2)(A)— 
(A) 
by 
striking 
‘‘sections 
202 
and 
203(a)(1) and (2)’’ each place it appears and 
inserting ‘‘sections 201, 202, 203(a)(1) and (2), 
and 205(a) and (b)’’; and 
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(B) by striking ‘‘only’’ each place it ap-
pears; 
(2) in paragraph (2)(B), by striking ‘‘section 
202’’ and all that follows through the period at the 
end and inserting the following: ‘‘section 202, pre-
pare the written plan under section 203(a)(1) and 
(2), or comply with section 205(a) and (b), a court 
may compel the agency to prepare such written 
statement, prepare such written plan, or comply with 
such section.’’; and 
(3) in paragraph (3), by striking ‘‘written state-
ment or plan is required’’ and all that follows 
through ‘‘shall not’’ and inserting the following: 
‘‘written statement under section 202, a written plan 
under section 203(a)(1) and (2), or compliance with 
sections 201 and 205(a) and (b) is required, the in-
adequacy or failure to prepare such statement (in-
cluding the inadequacy or failure to prepare any es-
timate, analysis, statement, or description), to pre-
pare such written plan, or to comply with such sec-
tion may’’. 
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SUBDIVISION 
B—ACHIEVING 
LESS EXCESS IN REGULATION 
AND 
REQUIRING 
TRANS-
PARENCY 
SEC. 100. SHORT TITLE; TABLE OF CONTENTS. 
This subdivision may be cited as the ‘‘Achieving Less 
Excess in Regulation and Requiring Transparency Act of 
2014’’ or as the ‘‘ALERRT Act of 2014’’. 
TITLE I—ALL ECONOMIC REGU-
LATIONS ARE TRANSPARENT 
ACT 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘All Economic Regula-
tions are Transparent Act of 2014’’ or the ‘‘ALERT Act 
of 2014’’. 
SEC. 102. OFFICE OF INFORMATION AND REGULATORY AF-
FAIRS PUBLICATION OF INFORMATION RE-
LATING TO RULES. 
(a) AMENDMENT.—Title 5, United States Code, is 
amended by inserting after chapter 6, the following new 
chapter: 
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‘‘CHAPTER 6A—OFFICE OF INFORMATION 
AND REGULATORY AFFAIRS PUBLICA-
TION OF INFORMATION RELATING TO 
RULES 
‘‘Sec. 
‘‘651. Agency monthly submission to Office of Information and Regulatory Af-
fairs. 
‘‘652. Office of Information and Regulatory Affairs Publications. 
‘‘653. Requirement for rules to appear in agency-specific monthly publication. 
‘‘654. Definitions. 
‘‘§ 651. Agency monthly submission to Office of Infor-
mation and Regulatory Affairs 
‘‘On a monthly basis, the head of each agency shall 
submit to the Administrator of the Office of Information 
and Regulatory Affairs (referred to in this chapter as the 
‘Administrator’), in such a manner as the Administrator 
may reasonably require, the following information: 
‘‘(1) For each rule that the agency expects to 
propose or finalize during the following year: 
‘‘(A) A summary of the nature of the rule, 
including the regulation identifier number and 
the docket number for the rule. 
‘‘(B) The objectives of and legal basis for 
the issuance of the rule, including— 
‘‘(i) any statutory or judicial deadline; 
and 
‘‘(ii) whether the legal basis restricts 
or precludes the agency from conducting 
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an analysis of the costs or benefits of the 
rule during the rule making, and if not, 
whether the agency plans to conduct an 
analysis of the costs or benefits of the rule 
during the rule making. 
‘‘(C) Whether the agency plans to claim an 
exemption from the requirements of section 553 
pursuant to section 553(b)(B). 
‘‘(D) The stage of the rule making as of 
the date of submission. 
‘‘(E) Whether the rule is subject to review 
under section 610. 
‘‘(2) For any rule for which the agency expects 
to finalize during the following year and has issued 
a general notice of proposed rule making— 
‘‘(A) an approximate schedule for com-
pleting action on the rule; 
‘‘(B) an estimate of whether the rule will 
cost— 
‘‘(i) less than $50,000,000; 
‘‘(ii) $50,000,000 or more but less 
than $100,000,000; 
‘‘(iii) $100,000,000 or more but less 
than $500,000,000; 
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‘‘(iv) $500,000,000 or more but less 
than $1,000,000,000; 
‘‘(v) $1,000,000,000 or more but less 
than $5,000,000,000; 
‘‘(vi) $5,000,000,000 or more but less 
than $10,000,000,000; or 
‘‘(vii) $10,000,000,000 or more; and 
‘‘(C) any estimate of the economic effects 
of the rule, including any estimate of the net ef-
fect that the rule will have on the number of 
jobs in the United States, that was considered 
in drafting the rule. If such estimate is not 
available, a statement affirming that no infor-
mation on the economic effects, including the 
effect on the number of jobs, of the rule has 
been considered. 
‘‘§ 652. Office of Information and Regulatory Affairs 
Publications 
‘‘(a) AGENCY-SPECIFIC INFORMATION PUBLISHED 
MONTHLY.—Not later than 30 days after the submission 
of information pursuant to section 651, the Administrator 
shall make such information publicly available on the 
Internet. 
‘‘(b) CUMULATIVE ASSESSMENT OF AGENCY RULE 
MAKING PUBLISHED ANNUALLY.— 
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‘‘(1) PUBLICATION
IN
THE
FEDERAL
REG-
ISTER.—Not later than October 1 of each year, the 
Administrator shall publish in the Federal Register, 
for the previous year the following: 
‘‘(A) The information that the Adminis-
trator received from the head of each agency 
under section 651. 
‘‘(B) The number of rules and a list of 
each such rule— 
‘‘(i) that was proposed by each agen-
cy, including, for each such rule, an indica-
tion of whether the issuing agency con-
ducted an analysis of the costs or benefits 
of the rule; and 
‘‘(ii) that was finalized by each agen-
cy, including for each such rule an indica-
tion of whether— 
‘‘(I) the issuing agency conducted 
an analysis of the costs or benefits of 
the rule; 
‘‘(II) the agency claimed an ex-
emption from the procedures under 
section 
553 
pursuant 
to 
section 
553(b)(B); and 
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‘‘(III) the rule was issued pursu-
ant to a statutory mandate or the rule 
making is committed to agency discre-
tion by law. 
‘‘(C) The number of agency actions and a 
list of each such action taken by each agency 
that— 
‘‘(i) repealed a rule; 
‘‘(ii) reduced the scope of a rule; 
‘‘(iii) reduced the cost of a rule; or 
‘‘(iv) accelerated the expiration date 
of a rule. 
‘‘(D) The total cost (without reducing the 
cost by any offsetting benefits) of all rules pro-
posed or finalized, and the number of rules for 
which an estimate of the cost of the rule was 
not available. 
‘‘(2) PUBLICATION
ON
THE
INTERNET.—Not 
later than October 1 of each year, the Administrator 
shall make publicly available on the Internet the fol-
lowing: 
‘‘(A) The analysis of the costs or benefits, 
if conducted, for each proposed rule or final 
rule issued by an agency for the previous year. 
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‘‘(B) The docket number and regulation 
identifier number for each proposed or final 
rule issued by an agency for the previous year. 
‘‘(C) The number of rules and a list of 
each such rule reviewed by the Director of the 
Office of Management and Budget for the pre-
vious year, and the authority under which each 
such review was conducted. 
‘‘(D) The number of rules and a list of 
each such rule for which the head of an agency 
completed a review under section 610 for the 
previous year. 
‘‘(E) The number of rules and a list of 
each such rule submitted to the Comptroller 
General under section 801. 
‘‘(F) The number of rules and a list of 
each such rule for which a resolution of dis-
approval was introduced in either the House of 
Representatives or the Senate under section 
802. 
‘‘§ 653. Requirement for rules to appear in agency- 
specific monthly publication 
‘‘(a) IN GENERAL.—Subject to subsection (b), a rule 
may not take effect until the information required to be 
made publicly available on the Internet regarding such 
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rule pursuant to section 652(a) has been so available for 
not less than 6 months. 
‘‘(b) EXCEPTIONS.—The requirement of subsection 
(a) shall not apply in the case of a rule— 
‘‘(1) for which the agency issuing the rule 
claims an exception under section 553(b)(B); or 
‘‘(2) which the President determines by Execu-
tive order should take effect because the rule is— 
‘‘(A) necessary because of an imminent 
threat to health or safety or other emergency; 
‘‘(B) necessary for the enforcement of 
criminal laws; 
‘‘(C) necessary for national security; or 
‘‘(D) issued pursuant to any statute imple-
menting an international trade agreement. 
‘‘§ 654. Definitions 
‘‘In this chapter, the terms ‘agency’, ‘agency action’, 
‘rule’, and ‘rule making’ have the meanings given those 
terms in section 551.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of chapters for part I of title 5, United States 
Code, is amended by inserting after the item relating to 
chapter 5, the following: 
‘‘6. The Analysis of Regulatory Functions .............................................
601
‘‘6A. Office of Information and Regulatory Affairs Publication of In-
formation Relating to Rules ..........................................
651’’. 
(c) EFFECTIVE DATES.— 
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(1) AGENCY MONTHLY SUBMISSION TO THE OF-
FICE
OF
INFORMATION
AND
REGULATORY
AF-
FAIRS.—The first submission required pursuant to 
section 651 of title 5, United States Code, as added 
by subsection (a), shall be submitted not later than 
30 days after the date of the enactment of this title, 
and monthly thereafter. 
(2) CUMULATIVE
ASSESSMENT
OF
AGENCY 
RULE MAKING.— 
(A) IN GENERAL.—Subsection (b) of sec-
tion 652 of title 5, United States Code, as 
added by subsection (a), shall take effect on the 
date that is 60 days after the date of the enact-
ment of this title. 
(B) DEADLINE.—The first requirement to 
publish or make available, as the case may be, 
under subsection (b) of section 652 of title 5, 
United States Code, as added by subsection (a), 
shall be the first October 1 after the effective 
date of such subsection. 
(C) FIRST
PUBLICATION.—The require-
ment under section 652(b)(2)(A) of title 5, 
United States Code, as added by subsection (a), 
shall include for the first publication, any anal-
ysis of the costs or benefits conducted for a 
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proposed or final rule, for the 10 years before 
the date of the enactment of this title. 
(3) REQUIREMENT FOR RULES TO APPEAR IN 
AGENCY-SPECIFIC MONTHLY PUBLICATION.—Section 
653 of title 5, United States Code, as added by sub-
section (a), shall take effect on the date that is 8 
months after the date of the enactment of this title. 
TITLE II—REGULATORY 
ACCOUNTABILITY ACT 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Regulatory Account-
ability Act of 2014’’. 
SEC. 202. 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 a semicolon; and 
(3) by adding at the end the following: 
‘‘(15) ‘major rule’ means any rule that the Ad-
ministrator of the Office of Information and Regu-
latory Affairs determines is likely to impose— 
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‘‘(A) an annual cost on the economy of 
$100,000,000 or more, adjusted annually for 
inflation; 
‘‘(B) a major increase in costs or prices for 
consumers, 
individual 
industries, 
Federal, 
State, local, or tribal government agencies, or 
geographic regions; 
‘‘(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; or 
‘‘(D) significant impacts on multiple sec-
tors of the economy; 
‘‘(16) ‘high-impact rule’ means any rule that 
the Administrator of the Office of Information and 
Regulatory Affairs determines is likely to impose an 
annual cost on the economy of $1,000,000,000 or 
more, adjusted annually for inflation; 
‘‘(17) ‘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-
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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; 
‘‘(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 
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employment level will decrease by 1 percent or 
more, further reduce employment not related to 
new regulatory compliance during the first year 
after implementation; 
‘‘(18) ‘guidance’ means an agency statement of 
general applicability and future effect, other than a 
regulatory action, that sets forth a policy on a statu-
tory, regulatory or technical issue or an interpreta-
tion of a statutory or regulatory issue; 
‘‘(19) ‘major guidance’ means guidance that the 
Administrator of the Office of Information and Reg-
ulatory Affairs finds is likely to lead to— 
‘‘(A) an annual cost on the economy of 
$100,000,000 or more, adjusted annually for 
inflation; 
‘‘(B) a major increase in costs or prices for 
consumers, 
individual 
industries, 
Federal, 
State, local or tribal government agencies, or 
geographic regions; 
‘‘(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; or 
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‘‘(D) significant impacts on multiple sec-
tors of the economy; 
‘‘(20) the ‘Information Quality Act’ means sec-
tion 515 of Public Law 106–554, the Treasury and 
General Government Appropriations Act for Fiscal 
Year 2001, and guidelines issued by the Adminis-
trator of the Office of Information and Regulatory 
Affairs or other agencies pursuant to the Act; and 
‘‘(21) the ‘Office of Information and Regulatory 
Affairs’ means the office established under section 
3503 of chapter 35 of title 44 and any successor to 
that office.’’. 
SEC. 203. 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 subsections (b) through (e) and in-
serting the following: 
‘‘(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 
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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. 
‘‘(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— 
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‘‘(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— 
‘‘(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-
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cluding an estimate of the net gain or loss in 
domestic jobs), wages, economic growth, innova-
tion, and economic competitiveness; 
‘‘(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. 
‘‘(c) ADVANCE NOTICE OF PROPOSED RULE MAKING 
FOR MAJOR RULES, HIGH-IMPACT RULES, NEGATIVE-IM-
PACT ON JOBS AND WAGES RULES, AND RULES INVOLV-
ING NOVEL LEGAL OR POLICY ISSUES.—In the case of 
a rule making for a major rule, a high-impact rule, a nega-
tive-impact on jobs and wages rule, or a rule that involves 
a novel legal or policy issue arising out of statutory man-
dates, not later than 90 days before a notice of proposed 
rule making is published in the Federal Register, an agen-
cy shall publish advance notice of proposed rule making 
in the Federal Register. In publishing such advance notice, 
the agency shall— 
‘‘(1) include a written statement identifying, at 
a minimum— 
‘‘(A) the nature and significance of the 
problem the agency may address with a rule, in-
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cluding data and other evidence and informa-
tion on which the agency expects to rely for the 
proposed rule; 
‘‘(B) the legal authority under which a rule 
may be proposed, including whether a rule mak-
ing is required by statute, and if so, whether by 
a specific date, or whether the agency has dis-
cretion to commence a rule making; 
‘‘(C) preliminary information available to 
the agency concerning the other considerations 
specified in subsection (b); 
‘‘(D) in the case of a rule that involves a 
novel legal or policy issue arising out of statu-
tory mandates, the nature of and potential rea-
sons to adopt the novel legal or policy position 
upon which the agency may base a proposed 
rule; and 
‘‘(E) an achievable objective for the rule 
and metrics by which the agency will measure 
progress toward that objective; 
‘‘(2) solicit written data, views or argument 
from interested persons concerning the information 
and issues addressed in the advance notice; and 
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‘‘(3) provide for a period of not fewer than 60 
days for interested persons to submit such written 
data, views, or argument to the agency. 
‘‘(d) NOTICES OF PROPOSED RULE MAKING; DETER-
MINATIONS OF OTHER AGENCY COURSE.—(1) Before it 
determines to propose a rule, and following completion of 
procedures under subsection (c), if applicable, the agency 
shall consult with the Administrator of the Office of Infor-
mation and Regulatory Affairs. If the agency thereafter 
determines to propose a rule, the agency shall publish a 
notice of proposed rule making, which shall include— 
‘‘(A) a statement of the time, place, and nature 
of public rule making proceedings; 
‘‘(B) reference to the legal authority under 
which the rule is proposed; 
‘‘(C) the terms of the proposed rule; 
‘‘(D) a description of information known to the 
agency on the subject and issues of the proposed 
rule, including but not limited to— 
‘‘(i) a summary of information known to 
the agency concerning the considerations speci-
fied in subsection (b); 
‘‘(ii) a summary of additional information 
the agency provided to and obtained from inter-
ested persons under subsection (c); 
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‘‘(iii) a summary of any preliminary risk 
assessment or regulatory impact analysis per-
formed by the agency; and 
‘‘(iv) information specifically identifying all 
data, studies, models, and other evidence or in-
formation considered or used by the agency in 
connection with its determination to propose 
the rule; 
‘‘(E)(i) a reasoned preliminary determination of 
need for the rule based on the information described 
under subparagraph (D); 
‘‘(ii) an additional statement of whether a rule 
is required by statute; and 
‘‘(iii) an achievable objective for the rule and 
metrics by which the agency will measure progress 
toward that objective; 
‘‘(F) a reasoned preliminary determination that 
the benefits of the proposed rule meet the relevant 
statutory objectives and justify the costs of the pro-
posed rule (including all costs to be considered under 
subsection (b)(6)), based on the information de-
scribed under subparagraph (D); 
‘‘(G) a discussion of— 
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‘‘(i) the alternatives to the proposed rule, 
and other alternative responses, considered by 
the agency under subsection (b); 
‘‘(ii) the costs and benefits of those alter-
natives (including all costs to be considered 
under subsection (b)(6)); 
‘‘(iii) whether those alternatives meet rel-
evant statutory objectives; and 
‘‘(iv) why the agency did not propose any 
of those alternatives; and 
‘‘(H)(i) a statement of whether existing rules 
have created or contributed to the problem the agen-
cy seeks to address with the proposed rule; and 
‘‘(ii) if so, whether or not the agency proposes 
to amend or rescind any such rules, and why. 
All information provided to or considered by the agency, 
and steps to obtain information by the agency, in connec-
tion with its determination to propose the rule, including 
any preliminary risk assessment or regulatory impact 
analysis prepared by the agency and all other information 
prepared or described by the agency under subparagraph 
(D) and, at the discretion of the President or the Adminis-
trator of the Office of Information and Regulatory Affairs, 
information provided by that Office in consultations with 
the agency, shall be placed in the docket for the proposed 
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rule and made accessible to the public by electronic means 
and otherwise for the public’s use when the notice of pro-
posed rule making is published. 
‘‘(2)(A) If the agency undertakes procedures under 
subsection (c) and determines thereafter not to propose 
a rule, the agency shall, following consultation with the 
Office of Information and Regulatory Affairs, publish a 
notice of determination of other agency course. A notice 
of determination of other agency course shall include in-
formation required by paragraph (1)(D) to be included in 
a notice of proposed rule making and a description of the 
alternative response the agency determined to adopt. 
‘‘(B) If in its determination of other agency course 
the agency makes a determination to amend or rescind 
an existing rule, the agency need not undertake additional 
proceedings under subsection (c) before it publishes a no-
tice of proposed rule making to amend or rescind the exist-
ing rule. 
All information provided to or considered by the agency, 
and steps to obtain information by the agency, in connec-
tion with its determination of other agency course, includ-
ing but not limited to any preliminary risk assessment or 
regulatory impact analysis prepared by the agency and all 
other information that would be required to be prepared 
or described by the agency under paragraph (1)(D) if the 
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