[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4949 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 4949
To amend title 5, United States Code, to reform Federal administrative
procedures and improve the regulatory process.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 12, 1994
Mr. Franks of New Jersey (for himself, Mr. Meehan, Mr. Gallo, and Mr.
DeLay) introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to reform Federal administrative
procedures and improve the regulatory process.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Administrative Procedure Reform Act
of 1994''.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds the following:
(1) The cost and burden of regulations have risen to
historic highs.
(2) The number of people writing Federal regulations has
grown dramatically from 106,000 in 1989 to 122,440 in 1992--a
15 percent increase in just 3 years.
(3) The Federal Government currently has 125,000
bureaucrats working on 5,000 regulations promulgated by 59
different Federal agencies.
(4) The 1993 regulatory output of the Federal Government
numbered 69,688 pages of regulations, with the Code of Federal
Regulations taking up 21 feet of shelf space.
(5) The Office of the Federal Register, the publisher of
the journal of Federal agency rule making, now teaches classes
to assist manufacturers in reading new regulations and
proposals.
(6) The total cost of administering the Federal regulatory
apparatus in fiscal year 1993 was $11,300,000,000.
(7) It is estimated that the total cost of regulation of
manufacturing approximated, and in some studies exceeded,
aggregate after-tax manufacturing profits.
(8) The cost of regulatory compliance drains funds for
research, job creation, training, wages, and employment
benefits.
(9) In a February 1993 survey of leading manufacturing
chief executive officers, government mandates, including
regulations, were identified as the government policies which
have done the most to harm United States manufacturing
employment in the past 5 years.
(10) The vast scope, rigid construction, and costly impact
of State and Federal regulatory schemes has created the
perception of a hostile climate for manufacturing.
SEC. 3. RULE MAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amended by adding at
the end the following:
``(f)(1)(A) The head of an agency shall publish in the Federal
Register, at least 90 days before the date of publication of general
notice under subsection (b) for a proposed major rule, a notice of
intent to engage in rule making.
``(B) A notice under subparagraph (A) for a proposed major rule
shall include, to the extent possible, the information required to be
included in a Regulatory Impact Analysis for the rule under section
5(c) (1), (2), and (8) of the Administrative Procedure Reform Act of
1994.
``(2) The head of an agency shall include in a general notice under
subsection (b) for a major rule proposed by the agency--
``(A) a final Regulatory Impact Analysis for the rule
prepared in accordance with section 5 of the Administrative
Procedure Reform Act of 1994; and
``(B) clear delineation of all changes in the information
included in the final Regulatory Impact Analysis under section
5(c)(1) and (2) of the Administrative Procedure Reform Act of
1994 from any such information that was included in the notice
for the rule under paragraph (1)(B) of this subsection.
``(3) In this subsection, the term `major rule' has the meaning
given that term in section 5(b) of the Administrative Procedure Reform
Act of 1994.''.
SEC. 4. HEARING REQUIREMENT FOR PROPOSED RULES; EXTENSION OF COMMENT
PERIOD.
(a) Hearing Requirement.--Section 553 of title 5, United States
Code, is further amended--
(1) in subsection (b), in the matter following paragraph
(3), by inserting ``(except subsection (g))'' after ``this
subsection''; and
(2) by adding after subsection (f) (as added by section 3
of this Act) the following:
``(g) If more than 100 interested persons acting individually
submit comments to an agency regarding any rule proposed by the agency,
the agency shall hold a public hearing on the proposed rule.''.
(b) Extension of Comment Period.--Section 553 of title 5, United
States Code, is further amended by adding after subsection (g) (as
added by subsection (a)(2) of this section) the following:
``(h) If during the 30-day period beginning on the date of
publication of notice under subsection (f)(1)(A) for a proposed major
rule, or if during the 30-day period beginning on the date of
publication or service of notice required by subsection (b) for a
proposed rule, more than 100 persons individually contact the agency to
request an extension of the period for making submissions under
subsection (c) pursuant to the notice, the agency--
``(1) shall provide an additional 30-day period for making
those submissions; and
``(2) may not adopt the rule until after that additional
period.''.
(c) Response to Comments.--Section 553(c) of title 5, United States
Code, is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following:
``(2) The head of an agency shall publish in the Federal Register
with each rule published under section 552(a)(1)(D) of this title,
responses to the substance of all comments received by the agency
regarding the rule.''.
SEC. 5. REGULATORY IMPACT ANALYSIS.
(a) Application of Executive Order as Statutory Requirement.--
Except as otherwise provided in this section, Executive Order 12866
(relating to Federal regulation requirements and regulatory impact
analysis), as in effect on September 30, 1993, shall apply to each
agency in accordance with the provisions of the Order.
(b) Definition of Major Rule in Order.--Notwithstanding section
1(b) of the Order, for purposes of subsection (a) of this section, the
term ``major rule'' means any proposed regulatory action--
(1) which affects more than 100 persons; or
(2) compliance with which will require the expenditure of
more than $1,000,000 by any person which is not a Federal
agency.
(c) Contents of Regulatory Impact Analyses.--In lieu of the
information specified in section 3(d) of the Order, each preliminary
and final Regulatory Impact Analysis required under section 3 of the
Order for a rule shall contain the following:
(1) An explanation of the necessity, appropriateness and
reasonableness of the rule.
(2) A description of the current condition that the rule
will address and how that condition will be affected by the
rule.
(3) A statement that the rule does not conflict with nor
duplicate any other rule, or an explanation of why the conflict
or duplication exists.
(4) A statement of whether the rule is in accord with or in
conflict with any legal precedent.
(5) A statement of the factual, scientific, or technical
basis for the agency's determination that the rule will
accomplish its intended purpose.
(6) A statement that describes and, to the extent
practicable, quantifies the risks to human health or the
environment to be addressed by the rule.
(7) A demonstration that the rule provides the least costly
or least intrusive approach for meeting its intended purpose.
(8) A description of any alternative approaches considered
by the agency or suggested by interested persons and the
reasons for their rejection.
(9) An estimate of the nature and number of persons to be
regulated or affected by the rule.
(10) An estimate of the costs that will be incurred by
persons in complying with the rule.
(11) An evaluation of the costs versus the benefits derived
from the rule, including evaluation of how those benefits
outweigh the cost.
(12) Whether the rule will require onsite inspections.
(13) An estimate of the paperwork burden on persons
regulated or affected by the rule, such as the number of forms,
impact statements, surveys, and other documents required to be
completed by the person under the rule.
(14) Whether persons will be required by the rule to
maintain any records which will be subject to inspection.
(15) Whether persons will be required by the rule to obtain
licenses, permits, or other certifications, and the fees and
fines associated therewith.
(16) Whether persons will be required by the rule to appear
before the agency.
(17) Whether persons will be required by the rule to
disclose information on materials or processes, including trade
secrets.
(18) Whether persons will be required by the rule to report
any particular type of incidents.
(19) Whether persons will be required by the rule to adhere
to design or performance standards.
(20) Whether persons may need to retain or utilize any
lawyer, accountant, engineer, or other professional consultant
in order to comply with the regulations.
(21) An estimate of the costs to the agency for
implementation and enforcement of the regulations.
(22) Whether the agency can be reasonably expected to
implement the rule with the current level of appropriations.
(23) A statement that any person may submit comments on the
Regulatory Impact Analysis to the Administrator of the Office
of Information and Regulatory Affairs.
(d) Definitions.--In this section--
(1) the term ``Order'' means Executive Order 12866, as in
effect on September 30, 1993; and
(2) each of the terms ``agency'', ``regulation'', and
``rule'' has the meaning given that term in section 1 of the
Order.
SEC. 6. ADDITIONAL RESPONSIBILITIES OF DIRECTOR OF THE OFFICE OF
MANAGEMENT AND BUDGET.
An agency may not adopt a major rule unless the final Regulatory
Impact Analysis for the rule is approved in writing by the Director of
the Office of Management and Budget or by an individual designated by
the Director for that purpose.
SEC. 7. STANDARD OF CLARITY.
The head of an agency may not publish in the Federal Register any
proposed major rule, summary of a proposed major rule, or Regulatory
Impact Analysis unless the Director of the Office of Management and
Budget certifies that the proposed major rule, summary, or Analysis--
(1) is written in a reasonably simple and understandable
manner and is easily readable;
(2) is written to provide adequate notice of the content of
the rule, summary, or Analysis to affected persons and
interested persons that have some subject matter expertise;
(3) conforms to commonly accepted principles of grammar;
(4) contains only sentences that are as short as practical
and organized in a sensible manner; and
(5) does not contain any double negatives, confusing cross
references, convoluted phrasing, unreasonably complex language,
or term of art or word with multiple meanings that may be
misinterpreted and is not defined in the rule, summary, or
analysis, respectively.
SEC. 8. REPORT BY OIRA.
The Administrator of the Office of Information and Regulatory
Affairs shall submit a report to the Congress no later than 12 months
after the date of the enactment of this Act containing an analysis of
rule making procedures of Federal agencies and an analysis of the
impact of those rule making procedures on the regulated public and
regulatory process.
SEC. 9. DEFINITIONS.
For purposes of this Act--
(1) except as provided in section 5(d)(2), each of the
terms ``agency'', ``rule'', and ``rule making'' has the meaning
given that term in section 551 of title 5, United States Code;
and
(2) the term ``major rule'' has the meaning given that term
in section 5(b).
<all>