I 
113TH CONGRESS 
1ST SESSION H. R. 2122 
To reform the process by which Federal agencies analyze and formulate 
new regulations and guidance documents. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 23, 2013 
Mr. GOODLATTE (for himself, Mr. PETERSON, Mr. SMITH of Texas, Mr. 
OWENS, Mr. COBLE, Mr. SCHRADER, and Mr. BACHUS) introduced the 
following bill; which was referred to the Committee on the Judiciary 
A BILL 
To reform the process by which Federal agencies analyze 
and formulate new regulations and guidance documents. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Regulatory Account-
ability Act of 2013’’. 
SEC. 2. DEFINITIONS. 
Section 551 of title 5, United States Code, is amend-
ed— 
(1) in paragraph (13), by striking ‘‘and’’ at the 
end; 
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(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— 
‘‘(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; 
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‘‘(17) ‘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; 
‘‘(18) ‘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 
‘‘(D) significant impacts on multiple sec-
tors of the economy; 
‘‘(19) the ‘Information Quality Act’ means sec-
tion 515 of Public Law 106–554, the Treasury and 
General Government Appropriations Act for Fiscal 
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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 
‘‘(20) 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. 3. RULE MAKING. 
(a) Section 553(a) of title 5, United States Code, is 
amended by striking ‘‘(a) This section applies’’ and insert-
ing ‘‘(a) APPLICABILITY.—This section applies’’. 
(b) Section 553 of title 5, United States Code, is 
amended by striking 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 
is required by statute, and if so, whether by a spe-
cific date, or whether the agency has discretion to 
commence a rule making. 
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‘‘(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— 
‘‘(A) the alternative of no Federal re-
sponse; 
‘‘(B) amending or rescinding existing 
rules; 
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‘‘(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-
cluding an estimate of the net gain or loss in 
domestic jobs), economic growth, innovation, 
and economic competitiveness; 
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‘‘(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, AND RULES 
INVOLVING NOVEL LEGAL OR POLICY ISSUES.—In the 
case of a rule making for a major rule or high-impact rule 
or a rule that involves a novel legal or policy issue arising 
out of statutory mandates, not later than 90 days before 
a notice of proposed rule making is published in the Fed-
eral Register, an agency shall publish advance notice of 
proposed rule making in the Federal Register. In pub-
lishing 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-
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-
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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); and 
‘‘(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; 
‘‘(2) solicit written data, views or argument 
from interested persons concerning the information 
and issues addressed in the advance notice; and 
‘‘(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 
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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); 
‘‘(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; 
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‘‘(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 agen-
cy, in connection with its determination to propose 
the rule, including any preliminary risk assessment 
or regulatory impact analysis prepared by the agen-
cy and all other information prepared or described 
by the agency under subparagraph (D) and, at the 
discretion of the President or the Administrator of 
the Office of Information and Regulatory Affairs, in-
formation provided by that Office in consultations 
with the agency, shall be placed in the docket for the 
proposed rule and made accessible to the public by 
electronic means and otherwise for the public’s use 
when the notice of proposed rule making is pub-
lished. 
‘‘(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 
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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 
agency had determined to publish a notice of proposed rule 
making and, at the discretion of the President or the Ad-
ministrator of the Office of Information and Regulatory 
Affairs, information provided by that Office in consulta-
tions with the agency, shall be placed in the docket for 
the determination and made accessible to the public by 
electronic means and otherwise for the public’s use when 
the notice of determination is published. 
‘‘(3) After notice of proposed rule making required 
by this section, the agency shall provide interested persons 
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an opportunity to participate in the rule making through 
submission of written data, views, or arguments with or 
without opportunity for oral presentation, except that— 
‘‘(A) if a hearing is required under paragraph 
(4)(B) or subsection (e), opportunity for oral presen-
tation shall be provided pursuant to that require-
ment; or 
‘‘(B) when other than under subsection (e) of 
this section rules are required by statute or at the 
discretion of the agency to be made on the record 
after opportunity for an agency hearing, sections 
556 and 557 shall apply, and paragraph (4), the re-
quirements of subsection (e) to receive comment out-
side of the procedures of sections 556 and 557, and 
the petition procedures of subsection (e)(6) shall not 
apply. 
The agency shall provide not fewer than 60 days for inter-
ested persons to submit written data, views, or argument 
(or 120 days in the case of a proposed major or high- 
impact rule). 
‘‘(4)(A) Within 30 days of publication of notice of 
proposed rule making, a member of the public may peti-
tion for a hearing in accordance with section 556 to deter-
mine whether any evidence or other information upon 
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which the agency bases the proposed rule fails to comply 
with the Information Quality Act. 
‘‘(B)(i) The agency may, upon review of the petition, 
determine without further process to exclude from the rule 
making the evidence or other information that is the sub-
ject of the petition and, if appropriate, withdraw the pro-
posed rule. The agency shall promptly publish any such 
determination. 
‘‘(ii) If the agency does not resolve the petition under 
the procedures of clause (i), it shall grant any such peti-
tion that presents a prima facie case that evidence or other 
information upon which the agency bases the proposed 
rule fails to comply with the Information Quality Act, hold 
the requested hearing not later than 30 days after receipt 
of the petition, provide a reasonable opportunity for cross- 
examination at the hearing, and decide the issues pre-
sented by the petition not later than 60 days after receipt 
of the petition. The agency may deny any petition that 
it determines does not present such a prima facie case. 
‘‘(C) There shall be no judicial review of the agency’s 
disposition of issues considered and decided or determined 
under subparagraph (B)(ii) until judicial review of the 
agency’s final action. There shall be no judicial review of 
an agency’s determination to withdraw a proposed rule 
under subparagraph (B)(i) on the basis of the petition. 
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‘‘(D) Failure to petition for a hearing under this 
paragraph shall not preclude judicial review of any claim 
based on the Information Quality Act under chapter 7 of 
this title. 
‘‘(e) HEARINGS
FOR HIGH-IMPACT RULES.—Fol-
lowing notice of a proposed rule making, receipt of com-
ments on the proposed rule, and any hearing held under 
subsection (d)(4), and before adoption of any high-impact 
rule, the agency shall hold a hearing in accordance with 
sections 556 and 557, unless such hearing is waived by 
all participants in the rule making other than the agency. 
The agency shall provide a reasonable opportunity for 
cross-examination at such hearing. The hearing shall be 
limited to the following issues of fact, except that partici-
pants at the hearing other than the agency may waive de-
termination of any such issue: 
‘‘(1) Whether the agency’s asserted factual 
predicate for the rule is supported by the evidence. 
‘‘(2) Whether there is an alternative to the pro-
posed rule that would achieve the relevant statutory 
objectives at a lower cost (including all costs to be 
considered under subsection (b)(6)) than the pro-
posed rule. 
‘‘(3) If there is more than one alternative to the 
proposed rule that would achieve the relevant statu-
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tory objectives at a lower cost than the proposed 
rule, which alternative would achieve the relevant 
statutory objectives at the lowest cost. 
‘‘(4) Whether, if the agency proposes to adopt 
a rule that is more costly than the least costly alter-
native that would achieve the relevant statutory ob-
jectives (including all costs to be considered under 
subsection (b)(6)), the additional benefits of the 
more costly rule exceed the additional costs of the 
more costly rule. 
‘‘(5) Whether the evidence and other informa-
tion upon which the agency bases the proposed rule 
meets the requirements of the Information Quality 
Act. 
‘‘(6) Upon petition by an interested person who 
has participated in the rule making, other issues rel-
evant to the rule making, unless the agency deter-
mines that consideration of the issues at the hearing 
would not advance consideration of the rule or 
would, in light of the nature of the need for agency 
action, unreasonably delay completion of the rule 
making. An agency shall grant or deny a petition 
under this paragraph within 30 days of its receipt 
of the petition. 
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No later than 45 days before any hearing held under this 
subsection or sections 556 and 557, the agency shall pub-
lish in the Federal Register a notice specifying the pro-
posed rule to be considered at such hearing, the issues 
to be considered at the hearing, and the time and place 
for such hearing, except that such notice may be issued 
not later than 15 days before a hearing held under sub-
section (d)(4)(B). 
‘‘(f) FINAL RULES.—(1) The agency shall adopt a 
rule only following consultation with the Administrator of 
the Office of Information and Regulatory Affairs to facili-
tate compliance with applicable rule making requirements. 
‘‘(2) The agency shall adopt a rule only on the basis 
of the best reasonably obtainable scientific, technical, eco-
nomic, and other evidence and information concerning the 
need for, consequences of, and alternatives to the rule. 
‘‘(3)(A) Except as provided in subparagraph (B), the 
agency shall adopt the least costly rule considered during 
the rule making (including all costs to be considered under 
subsection (b)(6)) that meets relevant statutory objectives. 
‘‘(B) The agency may adopt a rule that is more costly 
than the least costly alternative that would achieve the rel-
evant statutory objectives only if the additional benefits 
of the more costly rule justify its additional costs and only 
if the agency explains its reason for doing so based on 
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interests of public health, safety or welfare that are clearly 
within the scope of the statutory provision authorizing the 
rule. 
‘‘(4) When it adopts a final rule, the agency shall 
publish a notice of final rule making. The notice shall in-
clude— 
‘‘(A) a concise, general statement of the rule’s 
basis and purpose; 
‘‘(B) the agency’s reasoned final determination 
of need for a rule to address the problem the agency 
seeks to address with the rule, including a statement 
of whether a rule is required by statute and a sum-
mary of any final risk assessment or regulatory im-
pact analysis prepared by the agency; 
‘‘(C) the agency’s reasoned final determination 
that the benefits of the rule meet the relevant statu-
tory objectives and justify the rule’s costs (including 
all costs to be considered under subsection (b)(6)); 
‘‘(D) the agency’s reasoned final determination 
not to adopt any of the alternatives to the proposed 
rule considered by the agency during the rule mak-
ing, including— 
‘‘(i) the agency’s reasoned final determina-
tion that no alternative considered achieved the 
relevant statutory objectives with lower costs 
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every ten years to determine whether, based upon 
evidence, there remains a need for the rule, whether 
the rule is in fact achieving statutory objectives, 
whether the rule’s benefits continue to justify its 
costs, and whether the rule can be modified or re-
scinded to reduce costs while continuing to achieve 
statutory objectives; and 
‘‘(ii) review of a rule under a plan required by 
clause (i) of this subparagraph shall take into ac-
count the factors and criteria set forth in sub-
sections (b) through (f) of section 553 of this title. 
All information considered by the agency in connection 
with its adoption of the rule, and, at the discretion of the 
President or the Administrator of the Office of Informa-
tion and Regulatory Affairs, information provided by that 
Office in consultations with the agency, shall be placed 
in the docket for the rule and made accessible to the public 
for the public’s use no later than when the rule is adopted. 
‘‘(g) EXCEPTIONS FROM NOTICE AND HEARING RE-
QUIREMENTS.—(1) Except when notice or hearing is re-
quired by statute, the following do not apply to interpre-
tive rules, general statements of policy, or rules of agency 
organization, procedure, or practice: 
‘‘(A) Subsections (c) through (e). 
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‘‘(B) Paragraphs (1) through (3) of subsection 
(f). 
‘‘(C) Subparagraphs (B) through (H) of sub-
section (f)(4). 
‘‘(2)(A) When the agency for good cause, based upon 
evidence, finds (and incorporates the finding and a brief 
statement of reasons therefor in the rules issued) that 
compliance with subsection (c), (d), or (e) or requirements 
to render final determinations under subsection (f) of this 
section before the issuance of an interim rule is impracti-
cable or contrary to the public interest, including interests 
of national security, such subsections or requirements to 
render final determinations shall not apply to the agency’s 
adoption of an interim rule. 
‘‘(B) If, following compliance with subparagraph (A) 
of this paragraph, the agency adopts an interim rule, it 
shall commence proceedings that comply fully with sub-
sections (d) through (f) of this section immediately upon 
publication of the interim rule, shall treat the publication 
of the interim rule as publication of a notice of proposed 
rule making and shall not be required to issue supple-
mental notice other than to complete full compliance with 
subsection (d). No less than 270 days from publication 
of the interim rule (or 18 months in the case of a major 
rule or high-impact rule), the agency shall complete rule 
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making under subsections (d) through (f) of this sub-
section and take final action to adopt a final rule or re-
scind the interim rule. If the agency fails to take timely 
final action, the interim rule will cease to have the effect 
of law. 
‘‘(C) Other than in cases involving interests of na-
tional security, upon the agency’s publication of an interim 
rule without compliance with subsections (c), (d), or (e) 
or requirements to render final determinations under sub-
section (f) of this section, an interested party may seek 
immediate judicial review under chapter 7 of this title of 
the agency’s determination to adopt such interim rule. The 
record on such review shall include all documents and in-
formation considered by the agency and any additional in-
formation presented by a party that the court determines 
necessary to consider to assure justice. 
‘‘(3) When the agency for good cause finds (and in-
corporates the finding and a brief statement of reasons 
therefor in the rules issued) that notice and public proce-
dure thereon are unnecessary, including because agency 
rule making is undertaken only to correct a de minimis 
technical or clerical error in a previously issued rule or 
for other noncontroversial purposes, the agency may pub-
lish a rule without compliance with subsections (c), (d), 
(e), or (f)(1)–(3) and (f)(4)(B)–(F). If the agency receives 
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significant adverse comment within 60 days after publica-
tion of the rule, it shall treat the notice of the rule as 
a notice of proposed rule making and complete rule mak-
ing in compliance with subsections (d) and (f). 
‘‘(h) ADDITIONAL REQUIREMENTS FOR HEARINGS.— 
When a hearing is required under subsection (e) or is oth-
erwise required by statute or at the agency’s discretion 
before adoption of a rule, the agency shall comply with 
the requirements of sections 556 and 557 in addition to 
the requirements of subsection (f) in adopting the rule and 
in providing notice of the rule’s adoption. 
‘‘(i) DATE OF PUBLICATION OF RULE.—The required 
publication or service of a substantive final or interim rule 
shall be made not less than 30 days before the effective 
date of the rule, except— 
‘‘(1) a substantive rule which grants or recog-
nizes an exemption or relieves a restriction; 
‘‘(2) interpretive rules and statements of policy; 
or 
‘‘(3) as otherwise provided by the agency for 
good cause found and published with the rule. 
‘‘(j) RIGHT TO PETITION.—Each agency shall give 
an interested person the right to petition for the issuance, 
amendment, or repeal of a rule. 
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‘‘(k) RULE MAKING GUIDELINES.—(1)(A) The Ad-
ministrator of the Office of Information and Regulatory 
Affairs shall establish guidelines for the assessment, in-
cluding quantitative and qualitative assessment, of the 
costs and benefits of proposed and final rules and other 
economic issues or issues related to risk that are relevant 
to rule making under this title. The rigor of cost-benefit 
analysis required by such guidelines shall be commensu-
rate, in the Administrator’s determination, with the eco-
nomic impact of the rule. 
‘‘(B) To ensure that agencies use the best available 
techniques to quantify and evaluate anticipated present 
and future benefits, costs, other economic issues, and risks 
as accurately as possible, the Administrator of the Office 
of Information and Regulatory Affairs shall regularly up-
date guidelines established under paragraph (1)(A) of this 
subsection. 
‘‘(2) The Administrator of the Office of Information 
and Regulatory Affairs shall also issue guidelines to pro-
mote coordination, simplification and harmonization of 
agency rules during the rule making process and other-
wise. Such guidelines shall assure that each agency avoids 
regulations that are inconsistent or incompatible with, or 
duplicative of, its other regulations and those of other 
Federal agencies and drafts its regulations to be simple 
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and easy to understand, with the goal of minimizing the 
potential for uncertainty and litigation arising from such 
uncertainty. 
‘‘(3) To ensure consistency in Federal rule making, 
the Administrator of the Office of Information and Regu-
latory Affairs shall— 
‘‘(A) issue guidelines and otherwise take action 
to ensure that rule makings conducted in whole or 
in part under procedures specified in provisions of 
law other than those of subchapter II of this title 
conform to the fullest extent allowed by law with the 
procedures set forth in section 553 of this title; and 
‘‘(B) issue guidelines for the conduct of hear-
ings under subsections 553(d)(4) and 553(e) of this 
section, including to assure a reasonable opportunity 
for cross-examination. Each agency shall adopt regu-
lations for the conduct of hearings consistent with 
the guidelines issued under this subparagraph. 
‘‘(4) The Administrator of the Office of Information 
and Regulatory Affairs shall issue guidelines pursuant to 
the Information Quality Act to apply in rule making pro-
ceedings under sections 553, 556, and 557 of this title. 
In all cases, such guidelines, and the Administrator’s spe-
cific determinations regarding agency compliance with 
such guidelines, shall be entitled to judicial deference. 
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‘‘(l) INCLUSION IN THE RECORD OF CERTAIN DOCU-
MENTS AND INFORMATION.—The agency shall include in 
the record for a rule making, and shall make available by 
electronic means and otherwise, all documents and infor-
mation prepared or considered by the agency during the 
proceeding, including, at the discretion of the President 
or the Administrator of the Office of Information and Reg-
ulatory Affairs, documents and information communicated 
by that Office during consultation with the Agency. 
‘‘(m) MONETARY POLICY EXEMPTION.—Nothing in 
subsection (b)(6), subparagraphs (F) and (G) of sub-
section (d)(1), subsection (e), subsection (f)(3), and sub-
paragraphs (C) and (D) of subsection (f)(5) shall apply 
to rule makings that concern monetary policy proposed or 
implemented by the Board of Governors of the Federal 
Reserve System or the Federal Open Market Committee.’’. 
SEC. 4. AGENCY GUIDANCE; PROCEDURES TO ISSUE MAJOR 
GUIDANCE; PRESIDENTIAL AUTHORITY TO 
ISSUE GUIDELINES FOR ISSUANCE OF GUID-
ANCE. 
(a) IN GENERAL.—Chapter 5 of title 5, United 
States Code, is amended by inserting after section 553 the 
following new section: 
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‘‘§ 553a. Agency guidance; procedures to issue major 
guidance; authority to issue guidelines 
for issuance of guidance 
‘‘(a) Before issuing any major guidance, or guidance 
that involves a novel legal or policy issue arising out of 
statutory mandates, an agency shall— 
‘‘(1) make and document a reasoned determina-
tion that— 
‘‘(A) assures that such guidance is under-
standable and complies with relevant statutory 
objectives and regulatory provisions (including 
any statutory deadlines for agency action); 
‘‘(B) summarizes the evidence and data on 
which the agency will base the guidance; 
‘‘(C) identifies the costs and benefits (in-
cluding all costs to be considered during a rule 
making under section 553(b) of this title) of 
conduct conforming to such guidance and 
assures that such benefits justify such costs; 
and 
‘‘(D) describes alternatives to such guid-
ance and their costs and benefits (including all 
costs to be considered during a rule making 
under section 553(b) of this title) and explains 
why the agency rejected those alternatives; and 
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‘‘(2) confer with the Administrator of the Office 
of Information and Regulatory Affairs on the 
issuance of such guidance to assure that the guid-
ance is reasonable, understandable, consistent with 
relevant statutory and regulatory provisions and re-
quirements or practices of other agencies, does not 
produce costs that are unjustified by the guidance’s 
benefits, and is otherwise appropriate. 
Upon issuing major guidance, or guidance that involves 
a novel legal or policy issue arising out of statutory man-
dates, the agency shall publish the documentation required 
by subparagraph (1) by electronic means and otherwise. 
‘‘(b) Agency guidance— 
‘‘(1) is not legally binding and may not be re-
lied upon by an agency as legal grounds for agency 
action; 
‘‘(2) shall state in a plain, prominent and per-
manent manner that it is not legally binding; and 
‘‘(3) shall, at the time it is issued or upon re-
quest, be made available by the issuing agency to in-
terested persons and the public by electronic means 
and otherwise. 
Agencies shall avoid the issuance of guidance that is in-
consistent or incompatible with, or duplicative of, the 
agency’s governing statutes or regulations, with the goal 
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of minimizing the potential for uncertainty and litigation 
arising from such uncertainty. 
‘‘(c) The Administrator of the Office of Information 
and Regulatory Affairs shall have authority to issue guide-
lines for use by the agencies in the issuance of major guid-
ance and other guidance. Such guidelines shall assure that 
each agency avoids issuing guidance documents that are 
inconsistent or incompatible with, or duplicative of, the 
law, its other regulations, or the regulations of other Fed-
eral agencies and drafts its guidance documents to be sim-
ple and easy to understand, with the goal of minimizing 
the potential for uncertainty and litigation arising from 
such uncertainty.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 5 of title 5, United States Code, is amended 
by inserting after the item relating to section 553 the fol-
lowing new item: 
‘‘553a. Agency guidance; procedures to issue major guidance; authority to issue 
guidelines for issuance of guidance.’’. 
SEC. 5. HEARINGS; PRESIDING EMPLOYEES; POWERS AND 
DUTIES; 
BURDEN 
OF 
PROOF; 
EVIDENCE; 
RECORD AS BASIS OF DECISION. 
Section 556 of title 5, United States Code, is amend-
ed by striking subsection (e) and inserting the following: 
‘‘(e)(1) The transcript of testimony and exhibits, to-
gether with all papers and requests filed in the proceeding, 
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constitutes the exclusive record for decision in accordance 
with section 557 and shall be made available to the parties 
and the public by electronic means and, upon payment of 
lawfully prescribed costs, otherwise. When an agency deci-
sion rests on official notice of a material fact not appear-
ing in the evidence in the record, a party is entitled, on 
timely request, to an opportunity to show the contrary. 
‘‘(2) Notwithstanding paragraph (1) of this sub-
section, in a proceeding held under this section pursuant 
to section 553(d)(4) or 553(e), the record for decision 
shall also include any information that is part of the 
record of proceedings under section 553. 
‘‘(f) When an agency conducts rule making under this 
section and section 557 directly after concluding pro-
ceedings upon an advance notice of proposed rule making 
under section 553(c), the matters to be considered and 
determinations to be made shall include, among other rel-
evant matters and determinations, the matters and deter-
minations described in subsections (b) and (f) of section 
553. 
‘‘(g) Upon receipt of a petition for a hearing under 
this section, the agency shall grant the petition in the case 
of any major rule, unless the agency reasonably deter-
mines that a hearing would not advance consideration of 
the rule or would, in light of the need for agency action, 
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