,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #chfc  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #ad1 #bjad,mr4
 ,brady ( ,texas introduc$ ! foll[+     
bill2 :i* 0 ref]r$ to ! ,committee on ! 
,judici>y  ,a ,,bill  ,to am5d title #e1
 ,unit$ ,/ates ,code1 to e/abli% uni=m  
requirem5ts = ?or\gh economic analysis (
 regulations by ,f$]al ag5cies bas$ on  
s\nd pr9ciples1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,s\nd ,regulation ,act ( #bjad4  #b4    
,f9d+s ,congress f9ds ! foll[+3 7#a7    
,gr[+ ,f$]al regulation t is highly     
prescriptive 9 nature burd5s ,am]ican   
indu/ry & impairs its int]national      
competitiv5ess4  7#b7 ,prescriptive     
regulation takes away flexibility1 is   
adv]s>ial 9 nature1 leads to un9t5d$    
consequ5ces1 &1 especially z x          
prolif]ates1 sl[s economic gr[? & job   
creation4  7#c7 ,despite evid5ce (      
increas+ regulatory co/s1 ,f$]al ag5cies
 hold fa/ to ! presumption t _! rules   
are 9 ! public int]e/4  7#d7 ,"s /atutes

 prohibit consid]ation ( co/s & b5efits 
9 rulemak+1 al?\gh none prohibit ag5cy  
analysis ( co/s & b5efits = in=mative   
purposes4  7#e7 ,= indep5d5t regulatory 
ag5cies co/-b5efit analysis is n        
in/itutionaliz$4 ,executive ag5cies p]=m
 co/-b5efit analysis pursuant to        
,executive ord] & "u ! purview ( !      
,(fice ( ,in=mation & ,regulatory       
,affairs 7,,oira71 :i* takes direction f
 ! ,presid5t4 ,no pe] review is requir$ 
( analyses by ei!r set ( ag5cies4  7#f7 
,!re are no /atutory /&>ds = co/-b5efit 
analysis 9 ,f$]al rulemak+ & !re are no 
consi/5t1 mat]ial consequ5ces :5 rules  
are bas$ on faulty or inadequate        
analysis4  7#g7 ,ag5cies conduct _! own 
regulatory impact analyses l>gely by    
me?ods ( _! own *oos+ & only on a small 
fraction ( ! rules !y issue4 ,ag5cies   
use regulatory co/-b5efit analysis ma9ly
 9 support ( favor$1 preconceiv$ rules r
 ?an z a decision tool4 ,common         
defici5cies include-- 7,a7 lack ( a     
coh]5t !ory by :i* to def9e a problem1  

det]m9e :y x occurs1 & guide ! ag5cy to 
! mo/ effici5t response2  7,b7 lack (   
objective evid5ce t an actionable       
problem actually exi/s1 :at its         
dim5sions are1 & h[ !y diff] f          
acceptable norms2  7,c7 lack (          
compreh5sive analysis to det]m9e :e!r a 
m>ket malfunction exi/s & ori5t rulemak+
 to its causes1 n its symptoms2  7,d7   
failure to set cle> & reali/ic          
objectives ^: b5efits ju/ify ! co/ (    
a*iev+ !m2  7,e7 objectives t are set   
disconnect$ f co/s & may be expansive & 
vague s t any regulation c be made to   
appe> b5eficial2  7,f7 ag5cies          
increas+ly claim+ incid5tal b5efits     
7s-call$ co-b5efits7 t are n 9 fur!rance
 ( ! /at$ objective & ev5 private 7z    
oppos$ to public7 b5efits = _! rules2   
7,g7 failure to develop regulatory      
options 9 light ( m>ket analysis & rank 
!m by h[ effici5tly !y w improve ! m>ket
 process2  7,h7 inconsi/5t assumptions &
 me?odologies across ag5cies2  7,i7     
invalid basel9es = gaug+ regulatory     

effects2  7,j7 omissions ( important    
impacts1 su* z on employm5t &           
int]national competitiv5ess ( ,u4,s4    
firms2  7,k7 failure to reevaluate      
regulations aft] implem5tation2 &  7,l7 
failure to consid] ! cumulative co/s (  
regulation by ! v>i\s ,f$]al1 ,/ate1    
local1 & tribal ag5cies4  7#h7 ,despite 
cont9ually *ang+ m>ket conditions1      
ag5cies d n regul>ly review _! exi/+    
regulations & regulatory regimes4 ,!y   
also d n review ! division ( functions  
among diff]5t ,f$]al ag5cies or among   
,f$]al1 ,/ate1 local1 & tribal ag5cies4 
,regulations lose _! purpose1 yet l+] & 
accumulate1 impos+ unnecess>y co/s &    
sl[+ economic gr[? to ! detrim5t (      
mat]ial liv+ /&>ds &1 to "s ext5t1 ! v  
social conditions t are ! objects (     
regulation4  7#i7 ,ag5cies typically d n
 conduct regulatory co/ /udies          
proactively & report to ,congress       
unnecess>y co/s t are n "u ! ag5cies'   
control because ( ! way laws are writt54
 ,ag5cy recomm5dations on h[ to improve 

! effici5cy ( regulation by modify+ an  
exi/+ /atute c\ld be helpful to         
,congress4  #c4 ,uni=m use ( co/-b5efit 
analysis ,section #eec ( title #e1      
,unit$ ,/ates ,code1 is am5d$ by add+ at
 ! end ! foll[+3  7f7 7#a7 ,prior to any
 rulemak+ "u ?is section1 an ag5cy %all 
comply ) ! foll[+3 7,a7 ,! ag5cy %all   
id5tify1 9 ! context ( a coh]5t         
conceptual framework & support$ )       
objective data-- 7i7 ! nature &         
significance ( ! m>ket failure1         
regulatory failure1 or o!r problem t    
necessitates regulatory action2  7ii7 ! 
reasons :y national economic & income   
gr[?1 advanc+ te*nology1 & o!r m>ket    
developm5ts w n obviate ! ne$ = !       
rulemak+2  7iii7 ! reasons :y regulation
 at ! ,/ate1 local1 or tribal level c\ld
 n address ! problem bett] ?an at !     
,f$]al level2  7iv7 ! reasons :y r$uc+ r
 ?an increas+ ! ext5t or /r+5cy ( exi/+ 
,f$]al regulation w\ld n address !      
problem bett]2 &  7v7 ! p>ticul>        
au?ority by :i* ! ag5cy may take action4

  7,b7 ,be=e ! ag5cy increases ! ext5t  
or /r+5cy ( regulation bas$ on its      
det]m9ations pursuant to subp>agraph    
7,a71 x %all-- 7i7 set an a*ievable     
objective = its regulatory action &     
id5tify ! metrics by :i* ! ag5cy w      
measure progress t[>d ! objective2  7ii7
 issue a notice ( inquiry seek+ public  
comm5t on ! id5tification ( a new       
objective "u clause 7i72 &  7iii7 give  
notice to ! committees ( ,congress )    
jurisdiction ov] ! subject matt] ( !    
rule4  7,c7 ,! ag5cy1 if ! ag5cy is n   
seek+ to repeal a rule1 %all develop at 
lea/ #c di/9ct regulatory options1 9    
addition to n regulat+1 t ! ag5cy       
e/imates w provide ! greate/ b5efits = !
 lea/ co/ 9 meet+ ! regulatory objective
 set "u subp>agraph 7,b7 &1 9 develop+  
su* regulatory options1 %all apply !    
foll[+ pr9ciples3 7i7 ,! ag5cy %all     
assume t individuals are rational & n   
qualify t assumption unless ! ag5cy--   
7,i7 has conclusive evid5ce ( a         
detrim5tal sy/ematic behavioral bias2 & 

7,,ii7 c devise behavioral regulatory   
options t d n preclude any *oices (     
m>ket p>ticipants4  7ii7 ,! ag5cy %all1 
to ! ext5t practicable1 attempt to      
engage private inc5tives to solve a     
problem & n supplant private inc5tives  
any m ?an necess>y4  7iii7 ,! ag5cy %all
 consid] ! adv]se effects t m&ates &    
prohibitions may h on innovation1       
economic gr[?1 & employm5t4  7iv7 ,an   
ag5cy's risk assessm5t %all be conf9$ to
 its jurisdiction1 subject to specific  
regulatory au?ority4 ,ag5cy assessm5ts (
 ! risks ( adv]se heal? & environm5tal  
effects %all foll[ /&>diz$ p>amet]s1    
assumptions1 & me?odologies4 ,an ag5cy  
also %all provide analyses ( increases 9
 risks1 :atev] _! nature1 produc$ by !  
regulatory options "u consid]ation4  7v7
 ,! ag5cy %all avoid incongruities &    
duplication 9 regulation at ! ,f$]al1   
,/ate1 local1 & tribal levels4  7vi7 ,! 
ag5cy %all comp>e & contra/ ! regulatory
 options develop$ & expla9 h[ ea* w\ld  
meet ! regulatory objective set pursuant

 to subp>agraph 7,b74  7,d7 ,! ag5cy    
%all e/imate ! co/s & b5efits ( ea*     
regulatory option develop$1 not)/&+ any 
provision ( law t prohibits ! ag5cy f   
us+ co/s 9 rulemak+1 at lea/ to ! ext5t 
t ! ag5cy is able to-- 7i7 exclude      
options ^: co/s exce$ _! b5efits2  7ii7 
rank ! options by co/ f l[e/ to highe/2 
7iii7 e/imate ! monet>y co/ ( any adv]se
 effects on private prop]ty rights1     
id5tify ! categories ( p]sons :o        
exp]i5ce a net loss f a regulatory      
option1 & expla9 :y ! negative effects  
_c be less5$ or avoid$2  7iv7 e/abli%   
:e!r ! co/ ( an option exce$s           
#ej1jjj1jjj = any #ab-mon? p]iod1 except
 t ! doll> am\nt %all be adju/$ annually
 = inflation bas$ on ! ,,gdp deflator1 &
 ! ,presid5t may ord] t a l[] doll>     
am\nt be us$ = a p>ticul> p]iod2 &  7v7 
id5tify ! key unc]ta9ties & assumptions 
t drive ! results & provide an analysis 
( h[ ! rank+ ( ! options & ! ?re%old    
det]m9ation "u clause 7iv7 may *ange if 
key assumptions are *ang$4  7,e7 ,!     

e/imates pursuant to subp>agraph 7,d7   
%all-- 7i7 foll[ ! me?odology e/abli%$  
pursuant to p>agraph 7#b77;,a72  7ii7 to
 ! maximum ext5t practicable1 comply )  
any guidel9es issu$ by ! ,adm9i/rator ( 
! ,(fice ( ,in=mation & ,regulatory     
,affairs p]ta9+ to co/-b5efit analysis2 
&  7iii7 include1 at a m9imum-- 7,i7    
ag5cy adm9i/rative co/s2  7,,ii7 ,unit$ 
,/ates private sector compliance co/s2  
7,,iii7 ,f$]al1 ,/ate1 local1 & tribal  
compliance co/s2  7,,iv7 ,f$]al1 ,/ate1 
local1 & tribal rev5ue impacts2  7,v7   
impacts f ! regulatory options develop$ 
on ,unit$ ,/ates indu/ries 9 ! role (   
suppli]s & consum]s to ea* indu/ry      
sub/antially affect$1 especially 9 t]ms 
( employm5t1 co/s1 volume & quality (   
output1 & prices2  7,,vi7 nationwide    
impacts on ov]all economic output1      
productivity1 consum] & produc] prices2 
7,,vii7 int]national competitiv5ess (   
,unit$ ,/ates companies2 &  7,,viii7    
di/ortions 9 inc5tives & m>kets1 includ+
 an e/imate ( ! result+ loss to ! ,unit$

 ,/ates economy4  7,f7 ,! ag5cy %all    
publi% = public comm5t all analyses1    
docum5tation1 & data "u subp>agraphs    
7,a7 ?r\gh 7,d7 = a public comm5t p]iod 
( at lea/ #cj days 7subject to          
applicable limitations "u law1 includ+  
laws protect+ privacy1 trade secrets1 & 
intellectual prop]ty7 & correct         
defici5cies or omissions t ! ag5cy      
becomes aw>e ( be=e *oos+ a rule to     
propose4  7#b7 7,a7 ,beg9n+ n lat] ?an !
 date t is #ahj days aft] ! effective   
date ( ?is section-- 7i7 ea* ag5cy %all1
 by rule1 e/abli% & ma9ta9 ! specific   
co/-b5efit analysis me?odology          
appropriate to ! functions &            
responsibilities ( t ag5cy & e/abli% an 
appropriate p]iod = review ( new rules  
to assess ! co/ effectiv5ess ( ea* su*  
new rule at a*iev+ ! objective id5tifi$ 
"u p>agraph 7#a77;,b77i7 ! new rule 0   
int5d$ to address2  7ii7 ! me?odology s 
e/abli%$ %all-- 7,i7 include ! /&>diz$  
p>amet]s1 assumptions1 & me?odologies = 
ag5cy assessm5ts ( risk "u p>agraph     

7#a77;,c77iv72  7,,ii7 comply1 to !     
maximum ext5t practicable1 ) te*nical   
/&>ds = me?odologies & assumptions issu$
 by ! ,adm9i/rator = ! ,(fice (         
,in=mation & ,regulatory ,affairs2      
7,,iii7 include ! scope ( b5efits & co/s
 consi/5t ) ! framework us$ & ! metrics 
id5tifi$ 9 ! e/abli%m5t ( ! regulatory  
objective "u p>agraph 7#a72  7,,iv7 n   
include consid]ation ( incid5tal b5efits
 b only ^? b5efits t 7 consid]$ 9 !     
e/abli%m5t ( ! regulatory objective2    
7,v7 limit consid]ation ( co/s & b5efits
 to co/s & b5efits t accrue to !        
population ( ! ,unit$ ,/ates2  7,,vi7   
con/ra9 ! ag5cy f presum+ t cont9u$     
augm5tation or tight5+ ( m&ates &       
additional prohibitions cause b5efits & 
co/s to *ange l9e>ly b det]m9e at :at   
po9t b5efits w rise less ?an1 & co/s w  
rise m ?an1 proportionally2  7,,vii7    
include comp>ison ( increm5tal b5efits  
to increm5tal co/s f any action ! ag5cy 
consid]s tak+ & refra9 f actions ^:     
increm5tal b5efits d n exce$ _!         

increm5tal co/s2 &  7,,viii7 include    
analysis ( effects on private inc5tives 
& possible un9t5d$ consequ5ces2 &  7iii7
 ! ag5cy %all adh]e to ! me?odology s   
e/abli%$ 9 all rulemak+s4  7,b7 ,if !   
ag5cy does n select ! lea/-co/          
regulatory option z its propos$ rule1 ! 
ag5cy %all ju/ify its selection1        
expla9+-- 7i7 h[ t selection fur!rs o!r 
goals or requirem5ts relevant to        
regulat+ matt]s )9 ! ag5cy's            
jurisdiction & :y ^! %\ld ov]ride co/   
sav+s2 &  7ii7 :y ea* ( ! o!r regulatory
 options n *os5 w\ld n suffici5tly fur!r
 su* o!r goals or requirem5ts4  7,c7 ,if
 ! ag5cy makes a det]m9ation "u p>agraph
 7#a77;,d7 t ! monetiz$ co/ ( a rule    
exce$s ! applicable monet>y limit "u    
clause 7iv7 ( su* p>agraph = any        
#ab-mon? p]iod1 ! ag5cy head %all-- 7i7 
fir/ issue an advanc$ notice ( propos$  
rulemak+2  7ii7 provide notice to !     
appropriate ,congressional committees & 
keep su* committees in=m$ ( ! /atus ( ! 
rulemak+2 &  7iii7 ensure t-- 7,i7 !    

ag5cy %all notify ! ,adm9i/rator ( !    
,small ,bus9ess ,adm9i/ration1 !        
,director ( ! ,(fice ( ,managem5t &     
,budget1 & affect$ p>ties1 & provide ea*
 su* p]son ) in=mation on ! pot5tial    
effects ( ! propos$ rule on affect$     
p>ties & ! type ( affect$ p>ties t might
 be affect$2  7,,ii7 n lat] ?an #ae days
 aft] ! date ( receipt ( ! mat]ials     
describ$ 9 subclause 7,i71 ! ,director1 
9 consultation ) ! ,adm9i/rator1 %all   
id5tify repres5tatives ( affect$ p>ties1
 #be p]c5t ( :i* %all repres5t small    
bus9ess conc]ns 7z su* t]m is def9$ 9   
section #c7;a7 ( ! ,small ,bus9ess      
,act71 :5 possible1 & all ! major       
/akehold]s %all h ! opportunity to obta9
 advice & recomm5dations ab\t ! pot5tial
 effects ( ! propos$ rule2  7,,iii7 !   
ag5cy %all conv5e a review panel consi/+
 :olly ( full-"t ,f$]al (fic]s1         
employees1 & contractors 9 ! ag5cy      
responsible = ! propos$ rule1 !         
,director1 ! ,adm9i/rator1 & !          
repres5tatives ( affect$ p>ties id5tifi$

 pursuant to subclause 7,,ii72  7,,iv7 !
 ag5cy %all conduct a detail$ analysis (
 ! co/s & b5efits ( ! regulatory option 
x is advanc+1 &1 9 do+ s-- 7aa7 ! ag5cy 
%all consid] ! cumulative & int]active  
co/s ( regulatory requirem5ts ( ,f$]al1 
,/ate1 local1 tribal1 & 7:]e applicable7
 int]national regulations2 &  7bb7 !    
ag5cy %all id5tify ! key unc]ta9ties &  
assumptions t drive ! results & provide 
an analysis ( h[ ! rank+ ( ! regulatory 
options *anges if ! key assumptions are 
*ang$2  7,v7 ! panel %all review ag5cy  
mat]ial prep>$ 9 connection ) ?is       
subsection1 includ+ any draft propos$   
rule1 & review ! advice & recomm5dations
 ( ea* affect$ p>ty repres5tative       
id5tifi$2  7,,vi7 n lat] ?an #fj days   
aft] ! date ! ag5cy conv5es a review    
panel pursuant to subclause 7,,iii71 !  
review panel %all report on ! comm5ts ( 
! affect$ p>ty repres5tatives & its     
f9d+s z to issues relat$ to ! provisions
 ( ?is subsection1 & su* report %all be 
made public z "p ( ! rulemak+ record2   

7,,vii7 :]e appropriate1 ! ag5cy %all   
modify ! propos$ rule or ! co/-b5efit   
analysis "u subclause 7,,iv7 bas$ on !  
report "u subclause 7,,vi72  7,,viii7   
subject to applicable limitations "u    
law1 includ+ laws protect+ privacy1     
trade secrets1 & intellectual prop]ty1 !
 ag5cy %all publi% = comm5t all         
analyses1 docum5tation1 & data "u ?is   
p>agraph = a public comm5t p]iod ( at   
lea/ #cj days & correct defici5cies or  
omissions t ! ag5cy becomes aw>e ( be=e 
adopt+ a propos$ rule2 &  7,,ix7 affect$
 p>ties1 includ+ ,/ate1 local1 or tribal
 gov]nm5ts1 & o!r /akehold]s may        
p>ticipate 9 ! rulemak+ by means su* z--
 7aa7 ! publication ( advanc$ & g5]al   
notices ( propos$ rulemak+ 9            
publications likely to be obta9$ by     
affect$ p>ties2  7bb7 ! direct          
notification ( int]e/$ affect$ p>ties2  
7cc7 ! conduct ( op5 conf]5ces or public
 he>+s includ+ solicit+ & receiv+       
comm5ts ov] comput] networks2 &  7dd7   
r$uc+ ! co/ or complexity ( proc$ural   

rules to ease p>ticipation 9 ! rulemak+4
  7,d7 ,e #d ye>s ! ag5cy %all conduct a
 review ( all rules ( ! ag5cy 9 effect &
 det]m9e bas$ on objective data :e!r its
 rules are work+ z int5d$1 fur!r+ _!    
objectives1 impos+ unanticipat$ co/s1 & 
g5]at+ a net b5efit or n1 & %all am5d   
su* rules if appropriate4 ,! ag5cy %all 
report to ,congress ! f9d+s ( ea* su*   
review4  7,e7 ,any p]son may petition an
 ag5cy to am5d an exi/+ rule made prior 
to ! e/abli%m5t ( me?odology "u ?is     
p>agraph1 &1 if ! ag5cy d5ies su* a     
petition1 t d5ial %all be subject to    
review "u *apt] #g ( ?is title4  7,f7   
,not)/&+ any o!r provision ( law1       
includ+ any provision ( law t explicitly
 prohibits ! use ( co/-b5efit analysis 9
 rulemak+1 an ag5cy %all conduct        
co/-b5efit analyses & report to         
,congress ! f9d+s ) specific            
recomm5dations = h[ to l[] regulatory   
co/s by am5d+ ! /atutes prohibit+ ! use 
!re(4  7#c7 ,= purposes ( ?is           
subsection-- 7,a7 ! t]m regulatory      

options means any action an ag5cy may   
take to address an objective id5tifi$ "u
 p>agraph 7#a77;,b77i71 includ+ ! option
 n to act2  7,b7 ! t]m private inc5tives
 means f9ancial ga9s or losses t        
motivate actions by private individuals 
& bus9esses1 & does n include any law or
 regulation t prescribes private actions
 or outcomes2 &  7,c7 ! t]m incid5tal   
b5efit means a claim$ b5efit outside !  
specific regulatory objective or        
objectives id5tifi$ "u p>agraph         
7#a77;,b77i7 a rule is int5d$ to address
 z id5tifi$ 9 p>agraph 7#a77;,a74  7#d7 
,all det]m9ations made "u ?is subsection
 %all be subject to review "u *apt] #g4 
4  #d4 ,congressional review ,section   
#hja7;a77#b7 ( title #e1 ,unit$ ,/ates  
,code1 is am5d$ by add+ at ! end !      
foll[+3  7,c7 ,! ,comptroll] ,g5]al %all
 exam9e ! co/-b5efit analysis =         
compliance ) ! requirem5ts ( section    
#eec7;f71 includ+ ! ag5cy me?odology    
e/abli%$ "u section #eec7;f77#b77;,a74  
7,d7 ,! ,comptroll] ,g5]al %all exam9e  

any risk analysis "u section            
#eec7;f77#a77;,c77iv7 p]ta9+ to !       
co/-b5efit analysis = compliance ) !    
requirem5ts ( section #eec7;f74  7,e7 ,!
 ,comptroll] ,g5]al also %all exam9e !  
ag5cies' quadr5nial regulatory reviews =
 consi/5cy ) ! requirem5ts ( section    
#eec7;f7 & report to ,congress on !     
results4  4