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Division II — Deregulation

H.R. 4304 · 113th Congress · Mar 26, 2014 · Lineage

II Deregulation

V Uniform cost-benefit analysis of regulations

Sec. 501 Uniform use of cost-benefit analysis

Section 553 of title 5, United States Code, is amended by adding at the end the following:

“(f)

“(1) Prior to any rulemaking under this section, an agency shall comply with the following:

“(A) The agency shall identify, in the context of a coherent conceptual framework and supported with objective data—

“(i) the nature and significance of the market failure, regulatory failure, or other problem that necessitates regulatory action;

“(ii) the reasons why national economic and income growth, advancing technology, and other market developments will not obviate the need for the rulemaking;

“(iii) the reasons why regulation at the State, local, or tribal level could not address the problem better than at the Federal level;

“(iv) the reasons why reducing rather than increasing the extent or stringency of existing Federal regulation would not address the problem better; and

“(v) the particular authority by which the agency may take action.

“(B) Before the agency increases the extent or stringency of regulation based on its determinations pursuant to subparagraph (A), it shall—

“(i) set an achievable objective for its regulatory action and identify the metrics by which the agency will measure progress toward the objective;

“(ii) issue a notice of inquiry seeking public comment on the identification of a new objective under clause (i); and

“(iii) give notice to the committees of Congress with jurisdiction over the subject matter of the rule.

“(C) The agency, if the agency is not seeking to repeal a rule, shall develop at least 3 distinct regulatory options, in addition to not regulating, that the agency estimates will provide the greatest benefits for the least cost in meeting the regulatory objective set under subparagraph (B) and, in developing such regulatory options, shall apply the following principles:

“(i) The agency shall assume that individuals are rational and not qualify that assumption unless the agency—

“(I) has conclusive evidence of a detrimental systematic behavioral bias; and

“(II) can devise behavioral regulatory options that do not preclude any choices of market participants.

“(ii) The agency shall, to the extent practicable, attempt to engage private incentives to solve a problem and not supplant private incentives any more than necessary.

“(iii) The agency shall consider the adverse effects that mandates and prohibitions may have on innovation, economic growth, and employment.

“(iv) An agency’s risk assessment shall be confined to its jurisdiction, subject to specific regulatory authority. Agency assessments of the risks of adverse health and environmental effects shall follow standardized parameters, assumptions, and methodologies. An agency also shall provide analyses of increases in risks, whatever their nature, produced by the regulatory options under consideration.

“(v) The agency shall avoid incongruities and duplication in regulation at the Federal, State, local, and tribal levels.

“(vi) The agency shall compare and contrast the regulatory options developed and explain how each would meet the regulatory objective set pursuant to subparagraph (B).

“(D) The agency shall estimate the costs and benefits of each regulatory option developed, notwithstanding any provision of law that prohibits the agency from using costs in rulemaking, at least to the extent that the agency is able to—

“(i) exclude options whose costs exceed their benefits;

“(ii) rank the options by cost from lowest to highest;

“(iii) estimate the monetary cost of any adverse effects on private property rights, identify the categories of persons who experience a net loss from a regulatory option, and explain why the negative effects cannot be lessened or avoided;

“(iv) establish whether the cost of an option exceeds $50,000,000 for any 12-month period, except that the dollar amount shall be adjusted annually for inflation based on the GDP deflator, and the President may order that a lower dollar amount be used for a particular period; and

“(v) identify the key uncertainties and assumptions that drive the results and provide an analysis of how the ranking of the options and the threshold determination under clause (iv) may change if key assumptions are changed.

“(E) The estimates pursuant to subparagraph (D) shall—

“(i) follow the methodology established pursuant to paragraph (2)(A);

“(ii) to the maximum extent practicable, comply with any guidelines issued by the Administrator of the Office of Information and Regulatory Affairs pertaining to cost-benefit analysis; and

“(iii) include, at a minimum—

“(I) agency administrative costs;

“(II) United States private sector compliance costs;

“(III) Federal, State, local, and tribal compliance costs;

“(IV) Federal, State, local, and tribal revenue impacts;

“(V) impacts from the regulatory options developed on United States industries in the role of suppliers and consumers to each industry substantially affected, especially in terms of employment, costs, volume and quality of output, and prices;

“(VI) nationwide impacts on overall economic output, productivity, consumer and producer prices;

“(VII) international competitiveness of United States companies; and

“(VIII) distortions in incentives and markets, including an estimate of the resulting loss to the United States economy.

“(F) The agency shall publish for public comment all analyses, documentation, and data under subparagraphs (A) through (D) for a public comment period of at least 30 days (subject to applicable limitations under law, including laws protecting privacy, trade secrets, and intellectual property) and correct deficiencies or omissions that the agency becomes aware of before choosing a rule to propose.

“(2)

“(A) Beginning not later than the date that is 180 days after the effective date of this section—

“(i) each agency shall, by rule, establish and maintain the specific cost-benefit analysis methodology appropriate to the functions and responsibilities of that agency and establish an appropriate period for review of new rules to assess the cost effectiveness of each such new rule at achieving the objective identified under paragraph (1)(B)(i) the new rule was intended to address;

“(ii) the methodology so established shall—

“(I) include the standardized parameters, assumptions, and methodologies for agency assessments of risk under paragraph (1)(C)(iv);

“(II) comply, to the maximum extent practicable, with technical standards for methodologies and assumptions issued by the Administrator for the Office of Information and Regulatory Affairs;

“(III) include the scope of benefits and costs consistent with the framework used and the metrics identified in the establishment of the regulatory objective under paragraph (1);

“(IV) not include consideration of incidental benefits but only those benefits that were considered in the establishment of the regulatory objective;

“(V) limit consideration of costs and benefits to costs and benefits that accrue to the population of the United States;

“(VI) constrain the agency from presuming that continued augmentation or tightening of mandates and additional prohibitions cause benefits and costs to change linearly but determine at what point benefits will rise less than, and costs will rise more than, proportionally;

“(VII) include comparison of incremental benefits to incremental costs from any action the agency considers taking and refrain from actions whose incremental benefits do not exceed their incremental costs; and

“(VIII) include analysis of effects on private incentives and possible unintended consequences; and

“(iii) the agency shall adhere to the methodology so established in all rulemakings.

“(B) If the agency does not select the least-cost regulatory option as its proposed rule, the agency shall justify its selection, explaining—

“(i) how that selection furthers other goals or requirements relevant to regulating matters within the agency’s jurisdiction and why these should override cost savings; and

“(ii) why each of the other regulatory options not chosen would not sufficiently further such other goals or requirements.

“(C) If the agency makes a determination under paragraph (1)(D) that the monetized cost of a rule exceeds the applicable monetary limit under clause (iv) of such paragraph for any 12-month period, the agency head shall—

“(i) first issue an advanced notice of proposed rulemaking;

“(ii) provide notice to the appropriate Congressional committees and keep such committees informed of the status of the rulemaking; and

“(iii) ensure that—

“(I) the agency shall notify the Administrator of the Small Business Administration, the Director of the Office of Management and Budget, and affected parties, and provide each such person with information on the potential effects of the proposed rule on affected parties and the type of affected parties that might be affected;

“(II) not later than 15 days after the date of receipt of the materials described in subclause (I), the Director, in consultation with the Administrator, shall identify representatives of affected parties, 25 percent of which shall represent small business concerns (as such term is defined in section 3(a) of the Small Business Act), when possible, and all the major stakeholders shall have the opportunity to obtain advice and recommendations about the potential effects of the proposed rule;

“(III) the agency shall convene a review panel consisting wholly of full-time Federal officers, employees, and contractors in the agency responsible for the proposed rule, the Director, the Administrator, and the representatives of affected parties identified pursuant to subclause (II);

“(IV) the agency shall conduct a detailed analysis of the costs and benefits of the regulatory option it is advancing, and, in doing so—

“(aa) the agency shall consider the cumulative and interactive costs of regulatory requirements of Federal, State, local, tribal, and (where applicable) international regulations; and

“(bb) the agency shall identify the key uncertainties and assumptions that drive the results and provide an analysis of how the ranking of the regulatory options changes if the key assumptions are changed;

“(V) the panel shall review agency material prepared in connection with this subsection, including any draft proposed rule, and review the advice and recommendations of each affected party representative identified;

“(VI) not later than 60 days after the date the agency convenes a review panel pursuant to subclause (III), the review panel shall report on the comments of the affected party representatives and its findings as to issues related to the provisions of this subsection, and such report shall be made public as part of the rulemaking record;

“(VII) where appropriate, the agency shall modify the proposed rule or the cost-benefit analysis under subclause (IV) based on the report under subclause (VI);

“(VIII) subject to applicable limitations under law, including laws protecting privacy, trade secrets, and intellectual property, the agency shall publish for comment all analyses, documentation, and data under this paragraph for a public comment period of at least 30 days and correct deficiencies or omissions that the agency becomes aware of before adopting a proposed rule; and

“(IX) affected parties, including State, local, or tribal governments, and other stakeholders may participate in the rulemaking by means such as—

“(aa) the publication of advanced and general notices of proposed rulemaking in publications likely to be obtained by affected parties;

“(bb) the direct notification of interested affected parties;

“(cc) the conduct of open conferences or public hearings including soliciting and receiving comments over computer networks; and

“(dd) reducing the cost or complexity of procedural rules to ease participation in the rulemaking.

“(D) Every 4 years the agency shall conduct a review of all rules of the agency in effect and determine based on objective data whether its rules are working as intended, furthering their objectives, imposing unanticipated costs, and generating a net benefit or not, and shall amend such rules if appropriate. The agency shall report to Congress the findings of each such review.

“(E) Any person may petition an agency to amend an existing rule made prior to the establishment of methodology under this paragraph, and, if the agency denies such a petition, that denial shall be subject to review under chapter 7 of this title.

“(F) Notwithstanding any other provision of law, including any provision of law that explicitly prohibits the use of cost-benefit analysis in rulemaking, an agency shall conduct cost-benefit analyses and report to Congress the findings with specific recommendations for how to lower regulatory costs by amending the statutes prohibiting the use thereof.

“(3) For purposes of this subsection—

“(A) the term regulatory options means any action an agency may take to address an objective identified under paragraph (1)(B)(i), including the option not to act;

“(B) the term private incentives means financial gains or losses that motivate actions by private individuals and businesses, and does not include any law or regulation that prescribes private actions or outcomes; and

“(C) the term incidental benefit means a claimed benefit outside the specific regulatory objective or objectives identified under paragraph (1)(B)(i) a rule is intended to address as identified in paragraph (1)(A).

“(4) All determinations made under this subsection shall be subject to review under chapter 7.”

Sec. 502 Congressional review

Section 801(a)(2) of title 5, United States Code, is amended by adding at the end the following:

“(C) The Comptroller General shall examine the cost-benefit analysis for compliance with the requirements of section 553(f), including the agency methodology established under section 553(f)(2)(A).

“(D) The Comptroller General shall examine any risk analysis under section 553(f)(1)(C)(iv) pertaining to the cost-benefit analysis for compliance with the requirements of section 553(f).

“(E) The Comptroller General also shall examine the agencies’ quadrennial regulatory reviews for consistency with the requirements of section 553(f) and report to Congress on the results.”

VI Periodic review and termination of regulations

Sec. 601 Review of regulations

A covered rule shall be subject to review in accordance with this title. Upon completion of such review, the agency which has jurisdiction over such rule shall—
(1)
issue a final report under section 406(c)(2) continuing such rule, or
(2)
conduct a rulemaking in accordance with section 406(d) to modify, consolidate with another rule, or terminate such rule.

Sec. 602 Rules covered

(a)
Covered rules— For purposes of this title, a covered rule is a rule that—
(1)
is determined by the Administrator to be a significant rule under subsection (b); or
(2)
is any other rule designated by the agency which has jurisdiction over such rule or the Administrator under this title for sunset review.
(b)
Significant rules— For purposes of this title, a significant rule is a rule that the Administrator determines—
(1)
has resulted in or is likely to result in an annual effect on the economy of $100,000,000 or more;
(2)
is a major rule; or
(3)
was issued pursuant to a significant regulatory action, as that term is defined in Executive Order 12866 (as in effect on the first date that Executive order was in effect).
(c)
Public petitions—
(1)
In general— Any person adversely affected by a rule that is not a significant rule may submit a petition to the agency which has jurisdiction over the rule requesting that such agency designate the rule for sunset review. Such agency shall designate the rule for sunset review unless such agency determines that it would not be in the public interest to conduct a sunset review of the rule. In making such determination, such agency shall take into account the number and nature of other petitions received on the same rule and whether or not such petitions have been denied.
(2)
Form and content of petition— A petition under paragraph (1)—
(A)
shall be in writing, but is not otherwise required to be in any particular form; and
(B)
shall identify the rule for which sunset review is requested with reasonable specificity and state on its face that the petitioner seeks sunset review of the rule.
(3)
Response required for noncomplying petitions— If an agency determines that a petition does not meet the requirements of this subsection, the agency shall provide a response to the petitioner within 30 days after receiving the petition, notifying the petitioner of the problem and providing information on how to formulate a petition that meets those requirements.
(4)
Decision within 90 days— Within the 90-day period beginning on the date of receiving a petition that meets the requirements of this subsection, the agency shall transmit a response to the petitioner stating whether the petition was granted or denied, except that the agency may extend such period by a total of not more than 30 days.
(5)
Petitions deemed granted for substantial inexcusable delay— A petition for sunset review of a rule is deemed to have been granted by an agency, and such agency is deemed to have designated the rule for sunset review, if a court finds there is a substantial and inexcusable delay, beyond the period specified in paragraph (4), in notifying the petitioner of the agency’s determination to grant or deny the petition.
(6)
Public log— Each agency shall maintain a public log of petitions submitted under this subsection, that includes the status or disposition of each petition.
(d)
Congressional requests—
(1)
In general— An appropriate committee of the Congress, or a majority of the majority party members or a majority of nonmajority party members of such committee, may request in writing that the Administrator designate any rule that is not a significant rule for sunset review. The Administrator shall designate such rule for sunset review within 30 days after receipt of such request unless the Administrator determines that it would not be in the public interest to conduct a sunset review of such rule.
(2)
Notice of denial— If the Administrator denies a congressional request under this subsection, the Administrator shall transmit to the congressional committee making the request a notice stating the reasons for the denial.
(e)
Publication of notice of designation for sunset review— After designating a rule under subsection (c) or (d) for sunset review, the agency or the Administrator shall promptly publish a notice of that designation in the Federal Register.

Sec. 603 Criteria for sunset review

(a)
Compliance with other laws— In order for any rule subject to sunset review to continue without change or to be modified or consolidated in accordance with this title, such rule must be authorized by law and meet all applicable requirements that would apply if it were issued as a new rule pursuant to section 553 of title 5, United States Code, or other statutory rulemaking procedures required for that rule. For purposes of this section, the term applicable requirements includes any requirement for cost-benefit analysis and any requirement for standardized risk analysis and risk assessment.
(b)
Governing law— If there is a conflict between applicable requirements and an Act under which a rule was issued, the conflict shall be resolved in the same manner as such conflict would be resolved if the agency were issuing a new rule.

Sec. 604 Sunset review procedures

(a)
Functions of the administrator—
(1)
Notice of rules subject to review—
(A)
Inventory and first list— Within 6 months after the date of the enactment of this title, the Administrator shall conduct an inventory of existing rules and publish a first list of covered rules. The list shall—
(i)
specify the particular group to which each significant rule is assigned under paragraph (2), and state the review deadline for all significant rules in each such group; and
(ii)
include other rules subject to sunset review for any other reason, and state the review deadline for each such rule.
(B)
Subsequent lists— After publication of the first list under subparagraph (A), the Administrator shall publish an updated list of covered rules at least annually, specifying the review deadline for each rule on the list.
(2)
Grouping of significant rules in first list—
(A)
Staggered review— The Administrator shall assign each significant rule in effect on the date of enactment of this title to one of 4 groups established by the Administrator to permit orderly and prioritized sunset reviews, and specify for each group an initial review deadline in accordance with section 405(a)(1).
(B)
Prioritizations— In determining which rules shall be given priority in time in that assignment, the Administrator shall consult with appropriate agencies, and shall prioritize rule based on—
(i)
the grouping of related rules in accordance with paragraph (3);
(ii)
the extent of the cost of each rule and on the regulated community and the public, with priority in time given to those rules that impose the greatest cost;
(iii)
consideration of the views of regulated persons, including State and local governments;
(iv)
whether a particular rule has recently been subject to cost-benefit analysis and risk assessment, with priority in time given to those rules that have not been subject to such analysis and assessment;
(v)
whether a particular rule was issued under a statutory provision that provides relatively greater discretion to an official in issuing the rule, with priority in time given to those rules that were issued under provisions that provide relatively greater discretion;
(vi)
the burden of reviewing each rule on the reviewing agency; and
(vii)
the need for orderly processing and the timely completion of the sunset reviews of existing rules.
(3)
Grouping of related rules— The Administrator shall group related rules under paragraph (2) (and designate other rules) for simultaneous sunset review based upon their subject matter similarity, functional interrelationships, and other relevant factors to ensure comprehensive and coordinated review of redundant, overlapping, and conflicting rules and requirements. The Administrator shall ensure simultaneous sunset reviews of covered rules without regard to whether they were issued by the same agency, and shall designate any other rule for sunset review that is necessary for a comprehensive sunset review whether or not such other rule is otherwise a covered rule under this title.
(4)
Guidance— The Administrator shall provide timely guidance to agencies on the conduct of sunset reviews and the preparation of sunset review notices and reports required by this title to ensure uniform, complete, and timely sunset reviews and to ensure notice and opportunity for public comment consistent with section 406.
(5)
Review and evaluation of reports— The Administrator shall review and evaluate each preliminary and final report submitted by the agency pursuant to this section. Within 90 days after receiving a preliminary report, the Administrator shall transmit comments to the head of the agency regarding—
(A)
the quality of the analysis in the report, including whether the agency has properly applied section 403;
(B)
the consistency of the agency’s proposed action with actions of other agencies; and
(C)
whether the rule should be continued without change, modified, consolidated with another rule, or terminated.
(b)
Agency sunset review procedure—
(1)
Sunset review notice— At least 30 months before the review deadline under section 405(a) for a covered rule issued by an agency, the agency shall—
(A)
publish a sunset review notice in accordance with section 406(a) in the Federal Register and, to the extent reasonable and practicable, in other publications or media that are designed to reach those persons most affected by the covered rule; and
(B)
request the views of the Administrator and the appropriate committees of the Congress on whether to continue without change, modify, consolidate, or terminate the covered rule.
(2)
Preliminary report— In reviewing a covered rule, the agency shall—
(A)
consider public comments and other recommendations generated by a sunset review notice under paragraph (1); and
(B)
at least 1 year before the review deadline under section 405(a) for the covered rule, publish in the Federal Register, in accordance with section 406(b), and transmit to the Administrator and the appropriate committees of the Congress a preliminary report.
(3)
Final report— The agency shall consider the public comments and other recommendations generated by the preliminary report under paragraph (2) for a covered rule, and shall consult with the appropriate committees of the Congress before issuing a final report. At least 90 days before the review deadline of the covered rule, the agency shall publish in the Federal Register, in accordance with section 406(c)(2) or 406(d), and transmit a final report to the Administrator and the appropriate committees of the Congress.
(4)
Open procedures regarding sunset review— In any sunset review conducted pursuant to this title, the agency conducting the review shall make a written record describing the subject of all contacts the agency or Administrator made with non-governmental persons outside the agency relating to such review. The written record of such contact shall be made available, upon request, to the public.
(c)
Effectiveness of agency recommendation— If a final report under subsection (b)(3) recommends that a covered rule should be continued without change, the covered rule shall be continued. If a final report under subsection (b)(3) recommends that a covered rule should be modified, consolidated with another rule, or terminated, the rule may be modified, so consolidated, or terminated in accordance with section 406(d).
(d)
Preservation of independence of federal bank regulatory agencies— The head of any appropriate Federal banking agency (as that term is defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q))), the Federal Housing Finance Board, the National Credit Union Administration, and the Office of Federal Housing Enterprise Oversight shall have the authority with respect to that agency that would otherwise be granted under section 405(a)(2)(B) to the Administrator or other officer designated by the President.

Sec. 605 Review deadlines for covered rules

(a)
In general— For purposes of this title, the review deadline of a covered rule is as follows:
(1)
Existing significant rules— For a significant rule in effect on the date of the enactment of this title, the initial review deadline is the last day of the 4-year, 5-year, 6-year, or 7-year period beginning on the date of the enactment of this title, as specified by the Administrator under section 404(a)(2)(A). For any significant rule that 6 months after the date of enactment is not assigned to such a group specified under section 404(a)(2)(A), the initial review deadline is the last day of the 4-year period beginning on the date of enactment of this title.
(2)
New significant rules— For a significant rule that first takes effect after the date of the enactment of this title, the initial review deadline is the last day of either—
(A)
the 3-year period beginning on the date the rule takes effect, or
(B)
if the Administrator determines as part of the rulemaking process that the rule is issued pursuant to negotiated rulemaking procedures or that compliance with the rule requires substantial capital investment, the 7-year period beginning on the date the rule takes effect.
(3)
Rules covered pursuant to public petition or congressional request— For any rule subject to sunset review pursuant to a public petition under section 402(c) or a congressional request under section 402(d), the initial review deadline is the last day of the 3-year period beginning on—
(A)
the date the agency or Administrator so designates the rule for review; or
(B)
the date of issuance of a final court order that the agency is deemed to have designated the rule for sunset review.
(4)
Related rule designated for review— For a rule that the Administrator designates under section 404(a)(3) for sunset review because it is related to another covered rule and that is grouped with that other rule for simultaneous review, the initial review deadline is the same as the review deadline for that other rule.
(b)
Temporary extension— The review deadline under subsection (a) for a covered rule may be extended by the Administrator for not more than 6 months by publishing notice thereof in the Federal Register that describes reasons why the temporary extension is necessary to respond to or prevent an emergency situation.
(c)
Determinations where rules have been amended— For purposes of this title, if various provisions of a covered rule were issued at different times, then the rule as a whole shall be treated as if it were issued on the later of—
(1)
the date of issuance of the provision of the rule that was issued first; or
(2)
the date the most recent review and revision of the rule under this title was completed.

Sec. 606 Sunset review notices and agency reports

(a)
Sunset review notices— The sunset review notice under section 404(b)(1) for a rule shall—
(1)
request comments regarding whether the rule should be continued without change, modified, consolidated with another rule, or terminated;
(2)
if applicable, request comments regarding whether the rule meets the applicable Federal cost-benefit and risk assessment criteria; and
(3)
solicit comments about the past implementation and effects of the rule, including—
(A)
the direct and indirect costs incurred because of the rule, including the net reduction in the value of private property (whether real, personal, tangible, or intangible), and whether the incremental benefits of the rule exceeded the incremental costs of the rule, both generally and regarding each of the specific industries and sectors it covers;
(B)
whether the rule as a whole, or any major feature of it, is outdated, obsolete, or unnecessary, whether by change of technology, the marketplace, or otherwise;
(C)
the extent to which the rule or information required to comply with the rule duplicated, conflicted, or overlapped with requirements under rules of other agencies;
(D)
in the case of a rule addressing a risk to health or safety or the environment, what the perceived risk was at the time of issuance and to what extent the risk predictions were accurate;
(E)
whether the rule unnecessarily impeded domestic or international competition or unnecessarily intruded on free market forces, and whether the rule unnecessarily interfered with opportunities or efforts to transfer to the private sector duties carried out by the Government;
(F)
whether, and to what extent, the rule imposed unfunded mandates on, or otherwise affected, State and local governments;
(G)
whether compliance with the rule required substantial capital investment and whether terminating the rule on the next review deadline would create an unfair advantage to those who are not in compliance with it;
(H)
whether the rule constituted the least cost method of achieving its objective consistent with the criteria of the Act under which the rule was issued, and to what extent the rule provided flexibility to those who were subject to it;
(I)
whether the rule was worded simply and clearly, including clear identification of those who were subject to the rule;
(J)
whether the rule created negative unintended consequences;
(K)
the extent to which information requirements under the rule can be reduced; and
(L)
the extent to which the rule has contributed positive benefits, particularly health or safety or environmental benefits.
(b)
Preliminary reports on sunset reviews— The preliminary report under section 404(b)(2) on the sunset review of a rule shall request public comments and contain—
(1)
specific requests for factual findings and recommended legal conclusions regarding the application of section 403 to the rule, the continued need for the rule, and whether the rule duplicates functions of another rule;
(2)
a request for comments on whether the rule should be continued without change, modified, consolidated with another rule, or terminated; and
(3)
if consolidation or modification of the rule is recommended, suggestions for the proposed text of the consolidated or modified rule.
(c)
Final reports on sunset reviews— The report under section 404(b)(3) on the sunset review of a rule shall—
(1)
contain the factual findings and legal conclusions of the agency conducting the review regarding the application of section 403 to the rule and the agency’s proposed recommendation as to whether the rule should be continued without change, modified, consolidated with another rule, or terminated;
(2)
in the case of a rule that the agency proposes to continue without change, so state;
(3)
in the case of a rule that the agency proposes to modify or consolidate with another rule, contain—
(A)
a notice of proposed rulemaking under section 553 of title 5, United States Code or under other statutory rulemaking procedures required for that rule; and
(B)
the text of the rule as so modified or consolidated; and
(4)
in the case of a rule that the agency proposes to terminate, contain a notice of proposed rulemaking for termination consistent with paragraph (3)(A).
(d)
Rulemaking— The final report under subsection (c)(3) or (c)(4) shall be published in the Federal Register and its publication shall constitute publication of the notice required by subsection (c)(3)(A). After publication of the final report under subsection (c)(3) or (c)(4) on a sunset review of a rule, the agency which conducted such review shall conduct the rulemaking which is called for in such report.
(e)
Legislative recommendations— In any case in which the head of an agency determines that a rule in a final report under subsection (c)(3) or (c)(4) cannot be changed, modified, or consolidated with another rule without legislative action, such head shall include in such final report a description of what legislative changes are required to implement the recommendations in such final report with regard to such rule.

Sec. 607 Designation of agency regulatory review officers

The head of each agency shall designate an officer of the agency as the Regulatory Review Officer of the agency. The Regulatory Review Officer of an agency shall be responsible for the implementation of this title by the agency and shall report directly to the head of the agency and the Administrator with respect to that responsibility.

Sec. 608 Relationship to the Administrative Procedure Act

Nothing in this title is intended to supersede the provisions of chapters 5, 6, and 7 of title 5, United States Code.

Sec. 609 Effect of termination of a covered rule

(a)
Effect of termination, generally— If a covered rule is terminated pursuant to this title—
(1)
this title shall not be construed to prevent the President or an agency from exercising any authority that otherwise exists to implement the statute under which the rule was issued;
(2)
in an agency proceeding or court action between an agency and a non-agency party, the rule shall be given no conclusive legal effect but may be submitted as evidence of prior agency practice and procedure; and
(3)
this title shall not be construed to prevent the continuation or institution of any enforcement action that is based on a violation of the rule that occurred before the effectiveness of the rule terminated.
(b)
Effect on deadlines—
(1)
In general— Notwithstanding subsection (a), any deadline for, relating to, or involving any action dependent upon, any rule terminated under this title is suspended until the agency that issued the rule issues a new rule on the same matter, unless otherwise provided by a law.
(2)
Deadline defined— In this subsection, the term deadline means any date certain for fulfilling any obligation or exercising any authority established by or under any Federal rule, or by or under any court order implementing any Federal rule.

Sec. 610 Judicial review

(a)
In general— A denial or substantial inexcusable delay in granting or denying a petition under section 402(c) shall be considered final agency action subject to review under section 702 of title 5, United States Code. A denial of a congressional request under section 402(d) shall not be subject to judicial review.
(b)
Time limitation on filing a civil action— Notwithstanding any other provisions of law, an action seeking judicial review of a final agency action under this title may not be brought—
(1)
in the case of a final agency action denying a public petition under section 402(c) or continuing without change, modifying, consolidating, or terminating a covered rule, more than 30 days after the date of that agency action; or
(2)
in the case of an action challenging a delay in deciding on a petition for a rule under section 402(c), more than 1 year after the period applicable to the rule under section 402(c)(4).
(c)
Availability of judicial review unaffected— Except to the extent that there is a direct conflict with the provisions of this title, nothing in this title is intended to affect the availability or standard of judicial review for agency regulatory action.

Sec. 611 Definitions

In this title, the following definitions apply:
(1)
Administrator— The term Administrator means the Administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget.
(2)
Agency— The term agency has the meaning given that term in section 551(1) of title 5, United States Code.
(3)
Appropriate committee of the congress— The term appropriate committee of the Congress means, with respect to a rule, each standing committee of Congress having authority under the Rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued.
(4)
Major rule— The term major rule means any rule that the Administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget finds has resulted in or is likely to result in—
(A)
an annual effect on the economy of $100,000,000 or more;
(B)
a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or
(C)
significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.
(5)
Rule—
(A)
General rule— Subject to subparagraph (B), the term rule means any agency statement of general applicability and future effect, including agency guidance documents, designed to implement, interpret, or prescribe law or policy, or describing the procedures or practices of an agency, or intended to assist in such actions, but does not include—
(i)
regulations or other agency statements issued in accordance with formal rulemaking provisions of sections 556 and 557 of title 5, United States Code, or in accordance with other statutory formal rulemaking procedures required for such regulations or statements;
(ii)
regulations or other agency statements that are limited to agency organization, management, or personnel matters;
(iii)
regulations or other agency statements issued with respect to a military or foreign affairs function of the United States;
(iv)
regulations, statements, or other agency actions that are reviewed and usually modified each year (or more frequently), or are reviewed regularly and usually modified based on changing economic or seasonal conditions;
(v)
regulations or other agency actions that grant an approval, license, permit, registration, or similar authority or that grant or recognize an exemption or relieve a restriction, or any agency action necessary to permit new or improved applications of technology or to allow the manufacture, distribution, sale, or use of a substance or product; and
(vi)
regulations or other agency statements that the Administrator certifies in writing are necessary for the enforcement of the Federal criminal laws.
(B)
Scope of a rule— For purposes of this title, each set of rules designated in the Code of Federal Regulations as a part shall be treated as one rule. Each set of rules that do not appear in the Code of Federal Regulations and that are comparable to a part of that Code under guidelines established by the Administrator shall be treated as one rule.
(6)
Sunset review— The term sunset review means a review of the rule under this title.

Sec. 612 Sunset of this title

This title shall have no force or effect after the 10-year period beginning on the date of the enactment of this title.

VII Regulation costs to small businesses and Grace period for regulatory violations

Sec. 701 Small Business Administration study on the cost of Federal regulations

(a)
In general— Beginning on the date that is 1 year after the date of enactment of this title, and annually thereafter, the Administrator shall conduct an annual study of the total costs to small business concerns of Federal regulations and the amount that such total costs have increased over the prior year.
(b)
Requirement— In conducting each study required under subsection (a), the Administrator shall use the best available estimates of the costs and the benefits, disaggregated by the agency issuing the regulation, of each major rule (as defined in section 804 of title 5, United States Code) made after the date of the study in the prior year resulting in a net cost to small business concerns during the period to which the report pertains, and of the cumulative costs of such rules. Such estimates may include estimates produced under the terms of Executive Order 12866.
(c)
Report— Not later than 90 days after completing a study required by this section, the Administrator shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the findings of that study.
(d)
Funding—
(1)
In general— The Administration shall carry out this section using unobligated funds otherwise made available to the Administration.
(2)
Sense of congress regarding funding— It is the sense of Congress that no additional funds should be made available to the Administration to carry out this title.
(e)
Definitions— In this section—
(1)
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and
(2)
the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632).

Sec. 702 Grace period for regulatory violations

Section 558 of title 5, United States Code, is amended by adding at the end the following:

“(d) Before any enforcement action is taken on any sanction on a business for any violation of a rule or pursuant to an adjudication an agency shall—

“(1) not later than 10 business days after the date on which the agency determines that a sanction may be imposed on the business, provide notice to the business that, if the business is a small business as defined in subsection (k), the small business may be subject to a sanction at the end of the grace period described in paragraph (3);

“(2) delay any further action for a period of 15 calendar days;

“(3) for any small business, defer any further action for a period of not less than 6 months, less the 15 days described in paragraph (2), which shall be extended by an additional period of 3 months on application by the small business demonstrating reasonable efforts made in good faith to remedy the violation or other conduct giving rise to the sanction;

“(4) make a further determination after the period described in paragraph (3) as to whether or not the small business would still be subject to the sanction as of the end of that period;

“(5) if the determination under paragraph (4) is that the small business would not be subject to the sanction, waive the sanction; and

“(6) if notice is given more than 10 business days after the date on which the agency determines that a sanction may be imposed on the business, and the agency determines that the same sanction may have been imposed on the business 10 business days prior to the date of the notice, that date of notice shall be the effective date commencing the grace period described in paragraph (3).

“(e) The grace period described by subsection (d) shall be applicable only once per business per rule, but shall cover subsequent violations of the same rule until it expires.

“(f) The grace period described by subsection (d) shall not apply to a violation that puts anyone in imminent danger, as defined by the Occupational Safety and Health Act (29 U.S.C. 662 et seq.).

“(g) Nothing in subsection (d) shall be construed to prevent a small business from appealing any sanction imposed in accordance with the procedures of the agency, or from seeking review under chapter 7 of this title.

“(h) Any sanction by an agency on a small business for any violation of a rule or pursuant to an adjudication, absent proof of written notice of the sanction and the date on which the agency determined that a sanction may be imposed, or in violation of subsection (d)(3), shall be null and void.

“(i) Federal agencies shall report annually to the Ombudsman on the utilization of this directive and disclose the penalty mitigation for small businesses.

“(j) The Ombudsman shall include in its annual report to Congress the agency reports described by subsection (i) and a summary of the findings.

“(k) For purposes of this section—

“(1) term “small business” is defined as any sole proprietorship, partnership, corporation, limited liability company, or other business entity, that—

“(A) had less than $10,000,000 in gross receipts in the preceding calendar year;

“(B) is considered a “small-business concern” as such term is defined pursuant to Section 3(a) of the Small Business Act (15 U.S.C. 632(a));

“(C) employed fewer than 200 individuals in the preceding calendar year; or

“(D) had CPI adjusted gross receipts of less than $10,000,000 in the preceding year;

“(2) the term Ombudsman has the same meaning given such term in section 30(a) of the Small Business Act (15 U.S.C. 657(a));

“(3) the term consumer price index means the consumer price index for all urban consumers published by the Department of Labor; and

“(4) the term CPI adjusted gross receipts means the amount of gross receipts, divided by the consumer price index for calendar year 2012, and multiplied by the consumer price index for the preceding calendar year, rounded to the nearest multiple of $100,000 (or, if midway between multiples of $100,000, to the next higher multiple of $100,000).”

VIII Major Rules of the Executive Branch Be Approved By Congress

Sec. 801 Congressional review of agency rulemaking

Chapter 8 of title 5, United States Code, is amended to read as follows:

“8 Congressional Review of Agency Rulemaking

“801. Congressional review

“(a)

“(1)

“(A) Before a rule may take effect, the Federal agency promulgating such rule shall submit to each House of the Congress and to the Comptroller General a report containing—

“(i) a copy of the rule;

“(ii) a concise general statement relating to the rule;

“(iii) a classification of the rule as a major or nonmajor rule, including an explanation of the classification specifically addressing each criteria for a major rule contained within clauses (i) through (iii) of section 804(2)(A) or within section 804(2)(B);

“(iv) a list of any other related regulatory actions taken by or that will be taken by the Federal agency promulgating the rule that are intended to implement the same statutory provision or regulatory objective as well as the individual and aggregate economic effects of those actions;

“(v) a list of any other related regulatory actions taken by or that will be taken by any other Federal agency with authority to implement the same statutory provision or regulatory objective that are intended to implement such provision or objective, of which the Federal agency promulgating the rule is aware, as well as the individual and aggregate economic effects of those actions; and

“(vi) the proposed effective date of the rule.

“(B) On the date of the submission of the report under subparagraph (A), the Federal agency promulgating the rule shall submit to the Comptroller General and make available to each House of Congress—

“(i) a complete copy of the cost-benefit analysis of the rule, if any, including an analysis of any jobs added or lost, differentiating between public and private sector jobs;

“(ii) the agency’s actions pursuant to sections 603, 604, 605, 607, and 609 of this title;

“(iii) the agency’s actions pursuant to sections 202, 203, 204, and 205 of the Unfunded Mandates Reform Act of 1995; and

“(iv) any other relevant information or requirements under any other Act and any relevant Executive orders.

“(C) Upon receipt of a report submitted under subparagraph (A), each House shall provide copies of the report to the chairman and ranking member of each standing committee with jurisdiction under the rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued.

“(2)

“(A) The Comptroller General shall provide a report on each major rule to the committees of jurisdiction by the end of 15 calendar days after the submission or publication date. The report of the Comptroller General shall include an assessment of the agency’s compliance with procedural steps required by paragraph (1)(B) and an assessment of whether the major rule imposes any new limits or mandates on private-sector activity.

“(B) Federal agencies shall cooperate with the Comptroller General by providing information relevant to the Comptroller General’s report under subparagraph (A).

“(3) A major rule relating to a report submitted under paragraph (1) shall take effect upon enactment of a joint resolution of approval described in section 802 or as provided for in the rule following enactment of a joint resolution of approval described in section 802, whichever is later.

“(4) A nonmajor rule shall take effect as provided by section 803 after submission to Congress under paragraph (1).

“(5) If a joint resolution of approval relating to a major rule is not enacted within the period provided in subsection (b)(2), then a joint resolution of approval relating to the same rule may not be considered under this chapter in the same Congress by either the House of Representatives or the Senate.

“(b)

“(1) A major rule shall not take effect unless the Congress enacts a joint resolution of approval described under section 802.

“(2) If a joint resolution described in subsection (a) is not enacted into law by the end of 70 session days or legislative days, as applicable, beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), then the rule described in that resolution shall be deemed not to be approved and such rule shall not take effect.

“(c)

“(1) Notwithstanding any other provision of this section (except subject to paragraph (3)), a major rule may take effect for one 90-calendar-day period if the President makes a determination under paragraph (2) and submits written notice of such determination to the Congress.

“(2) Paragraph (1) applies to a determination made by the President by Executive order that the major rule should take effect because such 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 implementing an international trade agreement.

“(3) An exercise by the President of the authority under this subsection shall have no effect on the procedures under section 802.

“(d)

“(1) In addition to the opportunity for review otherwise provided under this chapter, in the case of any rule for which a report was submitted in accordance with subsection (a)(1)(A) during the period beginning on the date occurring—

“(A) in the case of the Senate, 60 session days, or

“(B) in the case of the House of Representatives, 60 legislative days,

“(2)

“(A) In applying sections 802 and 803 for purposes of such additional review, a rule described under paragraph (1) shall be treated as though—

“(i) such rule were published in the Federal Register on—

“(I) in the case of the Senate, the 15th session day, or

“(II) in the case of the House of Representatives, the 15th legislative day,

“(ii) a report on such rule were submitted to Congress under subsection (a)(1) on such date.

“(B) Nothing in this paragraph shall be construed to affect the requirement under subsection (a)(1) that a report shall be submitted to Congress before a rule can take effect.

“(3) A rule described under paragraph (1) shall take effect as otherwise provided by law (including other subsections of this section).

“802. Congressional approval procedure for major rules

“(a)

“(1) For purposes of this section, the term joint resolution means only a joint resolution addressing a report classifying a rule as major pursuant to section 801(a)(1)(A)(iii) that—

“(A) bears no preamble;

“(B) bears the following title (with blanks filled as appropriate): “Approving the rule submitted by ___ relating to ___.”;

“(C) includes after its resolving clause only the following (with blanks filled as appropriate): “That Congress approves the rule submitted by ___ relating to ___.”; and

“(D) is introduced pursuant to paragraph (2).

“(2) After a House of Congress receives a report classifying a rule as major pursuant to section 801(a)(1)(A)(iii), the majority leader of that House (or his or her respective designee) shall introduce (by request, if appropriate) a joint resolution described in paragraph (1)—

“(A) in the case of the House of Representatives, within three legislative days; and

“(B) in the case of the Senate, within three session days.

“(3) A joint resolution described in paragraph (1) shall not be subject to amendment at any stage of proceeding.

“(b) A joint resolution described in subsection (a) shall be referred in each House of Congress to the committees having jurisdiction over the provision of law under which the rule is issued.

“(c) In the Senate, if the committee or committees to which a joint resolution described in subsection (a) has been referred have not reported it at the end of 15 session days after its introduction, such committee or committees shall be automatically discharged from further consideration of the resolution and it shall be placed on the calendar. A vote on final passage of the resolution shall be taken on or before the close of the 15th session day after the resolution is reported by the committee or committees to which it was referred, or after such committee or committees have been discharged from further consideration of the resolution.

“(d)

“(1) In the Senate, when the committee or committees to which a joint resolution is referred have reported, or when a committee or committees are discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.

“(2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.

“(3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.

“(4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.

“(e) In the House of Representatives, if any committee to which a joint resolution described in subsection (a) has been referred has not reported it to the House at the end of 15 legislative days after its introduction, such committee shall be discharged from further consideration of the joint resolution, and it shall be placed on the appropriate calendar. On the second and fourth Thursdays of each month it shall be in order at any time for the Speaker to recognize a Member who favors passage of a joint resolution that has appeared on the calendar for at least 5 legislative days to call up that joint resolution for immediate consideration in the House without intervention of any point of order. When so called up a joint resolution shall be considered as read and shall be debatable for 1 hour equally divided and controlled by the proponent and an opponent, and the previous question shall be considered as ordered to its passage without intervening motion. It shall not be in order to reconsider the vote on passage. If a vote on final passage of the joint resolution has not been taken by the third Thursday on which the Speaker may recognize a Member under this subsection, such vote shall be taken on that day.

“(f)

“(1) If, before passing a joint resolution described in subsection (a), one House receives from the other a joint resolution having the same text, then—

“(A) the joint resolution of the other House shall not be referred to a committee; and

“(B) the procedure in the receiving House shall be the same as if no joint resolution had been received from the other House until the vote on passage, when the joint resolution received from the other House shall supplant the joint resolution of the receiving House.

“(2) This subsection shall not apply to the House of Representatives if the joint resolution received from the Senate is a revenue measure.

“(g) If either House has not taken a vote on final passage of the joint resolution by the last day of the period described in section 801(b)(2), then such vote shall be taken on that day.

“(h) This section and section 803 are enacted by Congress—

“(1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such is deemed to be part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution described in subsection (a) and superseding other rules only where explicitly so; and

“(2) with full recognition of the Constitutional right of either House to change the rules (so far as they relate to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House.

“803. Congressional disapproval procedure for nonmajor rules

“(a) For purposes of this section, the term joint resolution means only a joint resolution introduced in the period beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress and ending 60 days thereafter (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: “That Congress disapproves the nonmajor rule submitted by the ___ relating to ___ , and such rule shall have no force or effect.” (The blank spaces being appropriately filled in).

“(b) A joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction.

“(c) In the Senate, if the committee to which is referred a joint resolution described in subsection (a) has not reported such joint resolution (or an identical joint resolution) at the end of 15 session days after the date of introduction of the joint resolution, such committee may be discharged from further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint resolution shall be placed on the calendar.

“(d)

“(1) In the Senate, when the committee to which a joint resolution is referred has reported, or when a committee is discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.

“(2) In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.

“(3) In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.

“(4) Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.

“(e) In the Senate the procedure specified in subsection (c) or (d) shall not apply to the consideration of a joint resolution respecting a nonmajor rule—

“(1) after the expiration of the 60 session days beginning with the applicable submission or publication date, or

“(2) if the report under section 801(a)(1)(A) was submitted during the period referred to in section 801(d)(1), after the expiration of the 60 session days beginning on the 15th session day after the succeeding session of Congress first convenes.

“(f) If, before the passage by one House of a joint resolution of that House described in subsection (a), that House receives from the other House a joint resolution described in subsection (a), then the following procedures shall apply:

“(1) The joint resolution of the other House shall not be referred to a committee.

“(2) With respect to a joint resolution described in subsection (a) of the House receiving the joint resolution—

“(A) the procedure in that House shall be the same as if no joint resolution had been received from the other House; but

“(B) the vote on final passage shall be on the joint resolution of the other House.

“804. Definitions

“For purposes of this chapter—

“(1) The term Federal agency means any agency as that term is defined in section 551(1).

“(2) The term major rule means any rule, including an interim final rule, that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds—

“(A) has resulted in or is likely to result in—

“(i) an annual effect on the economy of $50,000,000 or more;

“(ii) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or

“(iii) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets;

“(B) is made by the Administrator of the Environmental Protection Agency and that would have a significant impact on a substantial number of agricultural entities, as determined by the Secretary of Agriculture (who shall publish such determination in the Federal Register);

“(C) is a rule that implements or provides for the imposition or collection of a carbon tax; or

“(D) is made under the Patient Protection and Affordable Care Act (Public Law 111–148).

“(3) The term nonmajor rule means any rule that is not a major rule.

“(4) The term rule has the meaning given such term in section 551, except that such term does not include any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefore, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing.

“(5) The term submission date or publication date, except as otherwise provided in this chapter, means—

“(A) in the case of a major rule, the date on which the Congress receives the report submitted under section 801(a)(1); and

“(B) in the case of a nonmajor rule, the later of—

“(i) the date on which the Congress receives the report submitted under section 801(a)(1); and

“(ii) the date on which the nonmajor rule is published in the Federal Register, if so published.

“(6) The term agricultural entity means any entity involved in or related to agricultural enterprise, including enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries.

“(7) The term carbon tax means a fee, levy, or price on—

“(A) emissions, including carbon dioxide emissions generated by the burning of coal, natural gas, or oil; or

“(B) coal, natural gas, or oil based on emissions, including carbon dioxide emissions that would be generated through the fuel's combustion.

“805. Judicial review

“(a) No determination, finding, action, or omission under this chapter shall be subject to judicial review.

“(b) Notwithstanding subsection (a), a court may determine whether a Federal agency has completed the necessary requirements under this chapter for a rule to take effect.

“(c) The enactment of a joint resolution of approval under section 802 shall not be interpreted to serve as a grant or modification of statutory authority by Congress for the promulgation of a rule, shall not extinguish or affect any claim, whether substantive or procedural, against any alleged defect in a rule, and shall not form part of the record before the court in any judicial proceeding concerning a rule except for purposes of determining whether or not the rule is in effect.

“806. Exemption for monetary policy

“Nothing in this chapter shall apply to rules that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee.

“807. Effective date of certain rules

“Notwithstanding section 801—

“(1) any rule that establishes, modifies, opens, closes, or conducts a regulatory program for a commercial, recreational, or subsistence activity related to hunting, fishing, or camping; or

“(2) any rule other than a major rule which an agency for good cause finds (and incorporates the finding and a brief statement of reasons therefore in the rule issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest,”

Sec. 802 Budgetary effects of rules subject to section 802 of title 5, United States Code

Section 257(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following new subparagraph:

“(E) Budgetary effects of rules subject to section 802 of title 5, United States Code—Any rules subject to the congressional approval procedure set forth in section 802 of chapter 8 of title 5, United States Code, affecting budget authority, outlays, or receipts shall be assumed to be effective unless it is not approved in accordance with such section.”

Sec. 803 Government Accountability Office study of rules

(a)
In general— The Comptroller General of the United States shall conduct a study to determine, as of the date of the enactment of this Act—
(1)
how many rules (as such term is defined in section 804 of title 5, United States Code) were in effect;
(2)
how many major rules (as such term is defined in section 804 of title 5, United States Code) were in effect; and
(3)
the total estimated economic cost imposed by all such rules.
(b)
Report— Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to Congress that contains the findings of the study conducted under subsection (a).

IX Simplification of Mergers, Acquisitions and Sales of Small Business

Sec. 901 Registration exemption for merger and acquisition brokers

(a)
Registration exemption— 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 exempt 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 connection with the transfer of ownership of an eligible privately held company, receives, 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 registered, 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 exempt 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—

“(I) is a director, general partner, 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 partnership 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 information, 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 company meets either or both of the following conditions (determined in accordance 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 company, regardless of whether the broker acts on behalf of a seller or buyer, through the purchase, sale, exchange, issuance, repurchase, or redemption of, or a business combination 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 securities or assets of the eligible privately held company, acting alone or in concert, will control and, directly or indirectly, will be active in the management 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 securities in exchange for securities or assets of the eligible privately held company, such person will, prior to becoming legally bound to consummate the transaction, receive or have reasonable access to the most recent year-end balance sheet, income statement, statement of changes in financial position, and statement of owner’s equity of the issuer of the securities offered in exchange, and, if the financial statements of the issuer are audited, the related report of the independent auditor, a balance sheet dated not more than 120 days before the date of the offer, and information pertaining to the management, business, results of operations for the period covered by the foregoing financial statements, and material loss contingencies 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, Acquisitions, 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 published by the Bureau of Labor Statistics, for the calendar year preceding the calendar year in which the adjustment is being made by the annual value of such index (or successor) 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.”

(b)
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.