I
103D CONGRESS
2D SESSION
H. R. 4006
To provide statements of the economic and employment impacts of Federal
legislation and regulation on the private sector and State and local
governments.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 1994
Mr. COX introduced the following bill; which was referred jointly to the
Committees on Rules and Government Operations
A BILL
To provide statements of the economic and employment im-
pacts of Federal legislation and regulation on the private
sector and State and local governments.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ECONOMIC AND EMPLOYMENT IMPACT ACT.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Economic and Employment Impact Act’’.
(b) FINDINGS AND PURPOSES.—
(1) FINDINGS.—The Congress finds that—
(A) compliance with Federal regulations
is estimated to cost the private sector and
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State and local governments as much as
$850,000,000,000 a year;
(B) excessive Federal regulation and man-
dates increase the cost of doing business and
thus hinder economic growth and employment
opportunities;
(C) State and local governments are forced
to absorb the cost of unfunded Federal man-
dates; and
(D) in addition to budget and deficit esti-
mates, Congress and the executive branch deci-
sion makers need to be aware of regulatory cost
impacts of proposed Federal actions on the pri-
vate sector and State, local, and tribal govern-
ments.
(2) PURPOSES.—The purposes of this section
are—
(A) to ensure that the people of the United
States are fully apprised of the impact of Fed-
eral legislative and regulatory activity on eco-
nomic growth and employment;
(B) to require both the Congress and the
executive branch to acknowledge and to take re-
sponsibility for the fiscal and economic effects
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of legislative and regulatory actions and activi-
ties;
(C) to provide a means to ensure that con-
gressional and executive branch action are fo-
cused on enhancing economic growth and pro-
viding increased job opportunities for the people
of the United States; and
(D) to protect against congressional or ex-
ecutive branch actions which hinder economic
growth or eliminate jobs for the people of the
United States.
(c) ECONOMIC AND EMPLOYMENT IMPACT STATE-
MENTS FOR LEGISLATION.—
(1) PREPARATION.—The Director of the Con-
gressional Budget Office (referred to as the ‘‘Direc-
tor’’) shall prepare an economic and employment im-
pact statement, as described in paragraph (2), to ac-
company each bill or joint resolution reported by any
committee (except the Committee on Appropriations)
of the House of Representatives or the Senate or
considered on the floor of either House.
(2) CONTENTS.—The economic and employ-
ment impact statement required by paragraph (1)
shall include the following:
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(A) An estimate of the numbers of individ-
uals and businesses who would be regulated by
the bill or joint resolution and a determination
of the groups and classes of such individuals
and businesses;
(B) A determination of the economic im-
pact of such regulation on individuals, consum-
ers, and businesses affected.
(C)(i) An estimate of the costs which
would be incurred by the private sector in car-
rying out or complying with such bill or joint
resolution in the fiscal year in which it is to be-
come effective, and in each of the 4 fiscal years
following such fiscal year, together with the
basis for each such estimate.
(ii) Estimates required by this subpara-
graph shall include specific data on costs im-
posed on groups and classes of individuals and
businesses, including small business and con-
sumers, and employment impacts on those indi-
viduals and businesses.
(D) An estimate of the costs that would be
incurred by State and local governments, which
shall include—
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(i) the estimates required by section
403 of the Congressional Budget Act of
1974; and
(ii) an evaluation of the extent of the
costs of the Federal mandates arising from
such bill or joint resolution in comparison
with funding assistance provided by the
Federal Government to address the costs
of complying with such mandates.
(3) REPORT
NOT
AVAILABLE.—If compliance
with the requirements of paragraph (1) is imprac-
ticable, the Director shall submit a statement setting
forth the reasons for noncompliance.
(4) STATEMENT
TO
ACCOMPANY
COMMITTEE
REPORTS.—The economic and employment impact
statement required by this subsection shall accom-
pany each bill or joint resolution reported or other-
wise considered on the floor of either House. Such
statement shall be printed in the committee report
upon timely submission to the committee. If not
timely filed or otherwise unavailable for publication
in the committee report, the economic and regu-
latory statement shall be published in the Congres-
sional Record not less than 2 calendar days prior to
any floor consideration of a bill or joint resolution
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subject to the provisions of this subsection by either
House.
(5) COMMITTEE
STATEMENTS
OPTIONAL.—
Nothing in this subsection shall be construed to
modify or otherwise affect the requirements of para-
graph 11(b) of rule XXVI of the Standing Rules of
the Senate, regarding preparation of an evaluation
of regulatory impact.
(d) ECONOMIC AND EMPLOYMENT IMPACT STATE-
MENT FOR EXECUTIVE BRANCH REGULATIONS.—
(1) PREPARATION.—Each Federal department
or executive branch agency shall prepare an eco-
nomic and employment impact statement, as de-
scribed in paragraph (2), to accompany regulatory
actions.
(2) CONTENTS.—The economic and employ-
ment impact statement required by paragraph (1)
shall include the following:
(A) An estimate of the numbers of individ-
uals and businesses who would be regulated by
the regulatory action and a determination of
the groups and classes of such individuals and
businesses.
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(B) A determination of the economic im-
pact of such regulation on individuals, consum-
ers, and businesses affected.
(C)(i) An estimate of the costs which
would be incurred by the private sector in car-
rying out or complying with such regulatory ac-
tion in the fiscal year in which it is to become
effective and in each of the 4 fiscal years follow-
ing such fiscal year, together with the basis for
each such estimate.
(ii) The estimate required by this subpara-
graph shall include specific data on costs on
groups and classes of individuals and busi-
nesses, including small business and consumers,
and employment impacts on those individuals
and businesses.
(D) An estimate of the costs that would be
incurred by State and local governments, which
shall include—
(i) an estimate of cost which would be
incurred by State and local governments in
carrying out or complying with the regu-
latory action in the fiscal year in which it
is to become effective and in each of the 4
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fiscal years following such fiscal year, to-
gether with the basis for such estimate;
(ii) a comparison of the estimates of
costs described in clause (i), with any
available estimates of costs made by any
Federal or State agency;
(iii) if the agency determines that the
regulatory action is likely to result in an-
nual cost to State and local governments of
$200,000,000 or more, or is likely to have
exceptional fiscal consequences for a geo-
graphic region or a particular level of gov-
ernment, a statement by the agency detail-
ing such results or consequences; and
(iv) an evaluation of the extent of the
costs of the Federal mandates arising from
the regulatory action in comparison with
funding assistance provided by the Federal
Government to address the costs of com-
plying with such mandates.
(4) REPORT
NOT
AVAILABLE.—If compliance
with the requirements of paragraph (1) is imprac-
ticable, the agency or department shall submit a
statement setting forth the reasons for noncompli-
ance.
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(5) STATEMENT TO ACCOMPANY FEDERAL REG-
ULATORY ACTIONS.—The economic and employment
impact statement with respect to a regulatory action
required by this subsection shall be published in the
Federal Register together with the publication of
such regulatory action. If the regulatory action is
not published in the Federal Register, the economic
and employment impact statement shall be made
available to the public in a timely manner.
(6) DEFINITION OF ‘‘REGULATORY ACTION’’.—
For purposes of this subsection, the term ‘‘regu-
latory action’’ means any substantive action by a
Federal agency (required to be or customarily pub-
lished in the Federal Register) that promulgates or
is expected to lead to the promulgation of a final
rule or regulation, including notices of inquiry, ad-
vance notices of proposed rulemaking, notices of pro-
posed rulemaking, interim final rules, and final rules
and regulations.
(e) PROVISION
FOR NATIONAL SECURITY EMER-
GENCY WAIVER.—
(1) CONGRESSIONAL ECONOMIC IMPACT STATE-
MENTS.—The Congress may waive the requirements
of subsection (c) at any time in which a declaration
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of war is in effect, or in response to a national secu-
rity emergency at the request of the President.
(2) EXECUTIVE
REGULATIONS
ECONOMIC
IM-
PACT STATEMENTS.—The President may waive the
requirements of subsection (d) at any time in which
a declaration of war is in effect, or in response to
a national security emergency as determined by the
President in consultation with Congress.
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