,,ii #aacth ,,congress #b;d ,session ,s4 #baec ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #be1 #bjad ,mr4 ,rubio introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to establish a ,national ,regulatory ,budget1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,national ,regulatory ,budget ,act of #bjad4 #b4 ,establishment of the ,office of ,regulatory ,analysis 7a7 ,in general ,part ,i of title #e1 ,united ,states ,code1 is amended by inserting after chapter #f the following3 #f;,a ,national ,regulatory ,budget and ,office of ,regulatory ,analysis ,sec4 #fac4 ,definitions4 #fad4 ,office of ,regulatory ,analysis2 establishment2 powers4 #fae4 ,functions of ,office of ,regulatory ,analysis2 ,executive branch agency compliance4 #faf4 ,public disclosure of estimate methodology and data2 privacy4 #fag4 ,national ,regulatory ,budget2 timeline4 #fah4 ,executive branch agency cooperation mandatory2 information sharing4 #fai4 ,enforcement4 #fbj4 ,regulatory ,analysis ,advisory ,board4 #fac4 ,definitions ,in this chapter-- 7#a7 the term aggregate costs1 with respect to a covered ,federal rule1 means the sum of-- 7,a7 the direct costs of the covered ,federal rule2 and 7,b7 the regulatory costs of the covered ,federal rule2 7#b7 the term covered ,federal rule means-- 7,a7 a rule 7as defined in section #eea72 7,b7 an information collection requirement given a control number by the ,office of ,management and ,budget2 or 7,c7 guidance or a directive that-- 7i7 is not described in subparagraph 7,a7 or 7,b72 7ii7 7,i7 is mandatory in its application to regulated entities2 or 7,,ii7 represents a statement of agency position that regulated entities would reasonably construe as reflecting the enforcement or litigation position of the agency2 and 7iii7 imposes not less than #be1jjj1jjj in annual costs on regulated entities2 7#c7 the term direct costs means-- 7,a7 expenditures made by an ,executive branch agency that relate to the promulgation1 administration1 or enforcement of a covered ,federal rule2 or 7,b7 costs incurred by an ,executive branch agency1 a ,government corporation1 the ,united ,states ,postal ,service1 or any other instrumentality of the ,federal ,government because of a covered ,federal rule2 7#d7 the term ,director means the ,director of the ,office of ,regulatory ,analysis established under section #fad7;b72 7#e7 the term ,executive branch agency means-- 7,a7 an ,executive department 7as defined in section #aja72 and 7,b7 an independent establishment 7as defined in section #ajd72 7#f7 the term regulated entity means-- 7,a7 a for-profit private sector entity 7including an individual who is in business as a sole proprietor72 7,b7 a not-for-profit private sector entity2 or 7,c7 a ,state or local government2 and 7#g7 the term regulatory costs means all costs incurred by a regulated entity because of covered ,federal rules4 #fad4 ,office of ,regulatory ,analysis2 establishment2 powers 7a7 ,establishment ,there is established in the executive branch an independent establishment to be known as the ,office of ,regulatory ,analysis4 7b7 ,director 7#a7 ,establishment of position ,there shall be at the head of the ,office of ,regulatory ,analysis a ,director1 who shall be appointed by the ,president1 by and with the advice and consent of the ,senate4 7#b7 ,term 7,a7 ,in general ,the term of office of the ,director shall-- 7i7 be #d years2 and 7ii7 expire on the last day of ,february following each ,presidential election4 7,b7 ,appointments prior to expiration of term ,subject to subparagraph 7,c71 an individual appointed as ,director to fill a vacancy prior to the expiration of a term shall serve only for the unexpired portion of the term4 7,c7 ,service until appointment of successor ,an individual serving as ,director at the expiration of a term may continue to serve until a successor is appointed4 7#c7 ,powers 7,a7 ,appointment of ,deputy ,directors1 officers1 and employees 7i7 ,in general ,the ,director may appoint ,deputy ,directors1 officers1 and employees1 including attorneys1 in accordance with chapter #ea and subchapter ,,iii of chapter #ec4 7ii7 ,term of ,deputy ,directors ,a ,deputy ,director shall serve until the expiration of the term of office of the ,director who appointed the ,deputy ,director 7and until a successor to that ,director is appointed71 unless sooner removed by the ,director4 7,b7 ,contracting 7i7 ,in general ,the ,director may contract for financial and administrative services 7including those related to budget and accounting1 financial reporting1 personnel1 and procurement7 with the ,general ,services ,administration1 or such other ,federal agency as the ,director determines appropriate1 for which payment shall be made in advance1 or by reimbursement1 from funds of the ,office of ,regulatory ,analysis in such amounts as may be agreed upon by the ,director and the head of the ,federal agency providing the services4 7ii7 ,subject to appropriations ,contract authority under clause 7i7 shall be effective for any fiscal year only to the extent that appropriations are available for that purpose4 7c7 ,authorization of appropriations ,there are authorized to be appropriated to the ,office of ,regulatory ,analysis for each fiscal year such sums as may be necessary to enable the ,office of ,regulatory ,analysis to carry out its duties and functions4 #fae4 ,functions of ,office of ,regulatory ,analysis2 ,executive branch agency compliance 7a7 ,annual report required 7#a7 ,in general ,not later than ,january #cj of each year1 the ,director shall submit to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate1 the ,committee on ,small ,business and ,entrepreneurship of the ,senate1 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives1 and the ,committee on ,small ,business of the ,house of ,representatives a ,report on ,national ,regulatory ,costs 7referred to in this section as the ,report7 that includes the information specified under paragraph 7#b74 7#b7 ,contents ,each ,report shall include- 7,a7 an estimate1 for the fiscal year during which the ,report is submitted and for the preceding fiscal year1 of-- 7i7 the regulatory costs imposed by each ,executive branch agency on regulated entities2 7ii7 the aggregate costs imposed by each ,executive branch agency2 7iii7 the aggregate costs imposed by all ,executive branch agencies combined2 7iv7 the direct costs incurred by the ,federal ,government because of covered ,federal rules issued by each ,executive branch agency2 7v7 the sum of the costs described in clauses 7iii7 and 7iv72 7vi7 the regulatory costs imposed by each ,executive branch agency on small businesses1 small organizations1 and small governmental jurisdictions 7as those terms are defined in section #fja72 and 7vii7 the sum of the costs described in clause 7vi72 7,b7 an analysis of any major changes in estimation methodology used by the ,office of ,regulatory ,analysis since the previous annual report2 7,c7 an analysis of any major estimate changes caused by improved or inadequate data since the previous annual report2 7,d7 recommendations1 both general and specific1 regarding-- 7i7 how regulations may be streamlined1 simplified1 and modernized2 7ii7 regulations that should be repealed2 and 7iii7 how the ,federal ,government may reduce the costs of regulations without diminishing the effectiveness of regulations2 and 7,e7 any other information that the ,director determines may be of assistance to ,congress in determining the ,national ,regulatory ,budget required under section #fag4 7b7 ,regulatory analysis of new rules 7#a7 ,requirement ,the ,director shall publish in the ,federal ,register and on the website of the ,office of ,regulatory ,analysis a regulatory analysis of each proposed covered ,federal rule issued by an ,executive branch agency1 and each proposed withdrawal or modification of a covered ,federal rule by an ,executive branch agency1 that-- 7,a7 imposes costs on a regulated entity2 or 7,b7 reduces costs imposed on a regulated entity4 7#b7 ,contents ,each regulatory analysis published under paragraph 7#a7 shall include-- 7,a7 an estimate of the change in regulatory cost of each proposed covered ,federal rule 7or proposed withdrawal or modification of a covered ,federal rule72 and 7,b7 any other information or recommendation that the ,director may choose to provide4 7#c7 ,timing of regulatory analysis 7,a7 ,initial regulatory analysis ,not later than #fj days after the date on which the ,director receives a copy of a proposed covered ,federal rule from the head of an ,executive branch agency under paragraph 7#d71 the ,director shall publish an initial regulatory analysis4 7,b7 ,revised regulatory analysis ,the ,director may publish a revised regulatory analysis at any time4 7#d7 ,notice to ,director of proposed covered ,federal rule ,the head of an ,executive branch agency shall provide a copy of each proposed covered ,federal rule to the ,director in a manner prescribed by the ,director4 7c7 ,effective dates 7#a7 ,in general ,except as provided in paragraph 7#b71 a covered ,federal rule may not take effect earlier than #ge days after the date on which the head of the ,executive branch agency proposing the covered ,federal rule submits a copy of the proposed covered ,federal rule to the ,director in the manner prescribed by the ,director under subsection 7b77#d74 7#b7 ,exception ,if the head of the ,executive branch agency proposing a covered ,federal rule determines that the public health or safety or national security requires that the covered ,federal rule be promulgated earlier than the date specified under paragraph 7#a71 the head of the ,executive branch agency may promulgate the covered ,federal rule without regard to paragraph 7#a74 #faf4 ,public disclosure of estimate methodology and data2 privacy 7a7 ,privacy ,the ,director shall comply with all relevant privacy laws1 including-- 7#a7 the ,confidential ,information ,protection and ,statistical ,efficiency ,act of #bjjb 7#dd ,u4,s4,c4 #ceja note72 7#b7 section #i of title #ac2 and 7#c7 section #fajc of the ,internal ,revenue ,code of #aihf4 7b7 ,disclosure 7#a7 ,in general ,to the maximum extent permitted by law1 the ,director shall disclose1 by publication in the ,federal ,register and on the website of the ,office of ,regulatory ,analysis1 the methodology and data used to generate the estimates in the ,report on ,national ,regulatory ,costs required under section #fae4 7#b7 ,goal of disclosure ,in disclosing the methodology and data under paragraph 7#a71 the ,director shall seek to provide sufficient information so that outside researchers may replicate the results contained in the ,report on ,national ,regulatory ,costs4 #fag4 ,national ,regulatory ,budget2 timeline 7a7 ,definition ,in this section-- 7#a7 the term annual overall regulatory cost cap means the maximum amount of regulatory costs that all ,executive branch agencies combined may impose in a fiscal year2 7#b7 the term annual agency regulatory cost cap means the maximum amount of regulatory costs that an ,executive branch agency may impose in a fiscal year2 and 7#c7 the term ,national ,regulatory ,budget means an ,act of ,congress that establishes1 for a fiscal year-- 7,a7 the annual overall regulatory cost cap2 and 7,b7 an annual agency regulatory cost cap for each ,executive branch agency4 7b7 ,committee deadlines 7#a7 ,referral ,not later than ,march #ca of each year-- 7,a7 the ,committee on ,small ,business and ,entrepreneurship of the ,senate shall refer to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate a bill that sets forth a ,national ,regulatory ,budget for the fiscal year beginning on ,october #a of that year2 and 7,b7 the ,committee on ,small ,business of the ,house of ,representatives shall refer to the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives a bill that sets forth a ,national ,regulatory ,budget for the fiscal year beginning on ,october #a of that year4 7#b7 ,reporting ,not later than ,may #ca of each year-- 7,a7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate shall report a bill establishing a ,national ,regulatory ,budget for the fiscal year beginning on ,october #a of that year2 and 7,b7 the ,committee on ,oversight and ,government ,reform of the ,house of ,representatives shall report a bill establishing a ,national ,regulatory ,budget for the fiscal year beginning on ,october #a of that year4 7c7 ,passage ,not later than ,july #ca of each year1 the ,house of ,representatives and the ,senate shall each pass a bill establishing a ,national ,regulatory ,budget for the fiscal year beginning on ,october #a of that year4 7d7 ,presentment ,not later than ,september #ae of each year1 ,congress shall pass and present to the ,president a ,national ,regulatory ,budget for the fiscal year beginning on ,october #a of that year4 7e7 ,default budget 7#a7 ,in general ,if a ,national ,regulatory ,budget is not enacted with respect to a fiscal year1 the most recently enacted ,national ,regulatory ,budget shall apply to that fiscal year4 7#b7 ,default initial budget 7,a7 ,calculation ,if a ,national ,regulatory ,budget is not enacted with respect to a fiscal year1 and no ,national ,regulatory ,budget has previously been enacted-- 7i7 the annual agency regulatory cost cap for an ,executive branch agency for the fiscal year shall be equal to the amount of regulatory costs imposed by that ,executive branch agency on regulated entities during the preceding fiscal year1 as estimated by the ,director in the annual report submitted to ,congress under section #fae7;a72 and 7ii7 the annual overall regulatory cost cap for the fiscal year shall be equal to the sum of the amounts described in clause 7i74 7,b7 ,effect ,for purposes of section #fai1 an annual agency regulatory cost cap described in subparagraph 7,a7 that applies to a fiscal year shall have the same effect as if the annual agency regulatory cost cap were part of a ,national ,regulatory ,budget applicable to that fiscal year4 7f7 ,initial budget ,the first ,national ,regulatory ,budget shall be with respect to fiscal year #bjaf4 #fah4 ,executive branch agency cooperation mandatory2 information sharing 7a7 ,executive branch agency cooperation mandatory ,not later than #de days after the date on which the ,director requests any information from an ,executive branch agency1 the ,executive branch agency shall provide the ,director with the information4 7b7 ,memoranda of understanding regarding confidentiality 7#a7 ,in general ,an ,executive branch agency may require the ,director to enter into a memorandum of understanding regarding the confidentiality of information provided by the ,executive branch agency to the ,director under subsection 7a7 as a condition precedent to providing any requested information4 7#b7 ,degree of confidentiality or data protection ,an ,executive branch agency may not require a greater degree of confidentiality or data protection from the ,director in a memorandum of understanding entered into under paragraph 7#a7 than the ,executive branch agency itself must adhere to4 7#c7 ,scope ,a memorandum of understanding entered into by the ,director and an ,executive branch agency under paragraph 7#a7 shall-- 7,a7 be general in scope2 and 7,b7 govern all pending and future requests made to the ,executive branch agency by the ,director4 7c7 ,sanctions for non-,cooperation 7#a7 ,in general ,the appropriations of an ,executive branch agency for a fiscal year shall be reduced by one-half of #a percent if1 during that fiscal year1 the ,director finds that-- 7,a7 the ,executive branch agency has failed to timely provide information that the ,director requested under subsection 7a72 7,b7 the ,director has provided notice of the failure described in subparagraph 7,a7 to the ,executive branch agency2 7,c7 the ,executive branch agency has failed to cure the failure described in subparagraph 7,a7 within #cj days of being notified under subparagraph 7,b72 and 7,d7 the information that the ,director requested under subsection 7a7-- 7i7 is in the possession of the ,executive branch agency2 or 7ii7 may reasonably be developed by the ,executive branch agency4 7#b7 ,sequestration ,the ,office of ,management and ,budget1 in consultation with the ,office of ,federal ,financial ,management and ,financial ,management ,service1 shall enforce a reduction in appropriations under paragraph 7#a7 by sequestering the appropriate amount of funds and returning the funds to the ,treasury4 7#c7 ,appeals 7,a7 ,in general ,the ,director of the ,office of ,management and ,budget may reduce the amount of1 or except as provided in subparagraph 7,b71 waive1 a sanction imposed under paragraph 7#a7 if the ,director of the ,office of ,management and ,budget finds that-- 7i7 the sanction is unwarranted2 7ii7 the sanction is disproportionate to the gravity of the failure2 7iii7 the failure has been cured2 or 7iv7 providing the requested information would adversely affect national security4 7,b7 ,no waiver for historically non-compliant agencies ,the ,director of the ,office of ,management and ,budget may not waive a sanction imposed on an ,executive branch agency under paragraph 7#a7 if the ,executive branch agency has a history of non-compliance with requests for information by the ,director of the ,office of ,regulatory ,analysis under subsection 7a74 7d7 ,national security ,the ,director may not require an ,executive branch agency to provide information under subsection 7a7 that would adversely affect national security4 #fai4 ,enforcement 7a7 ,exceeding annual agency regulatory cost cap ,an ,executive branch agency that exceeds the annual agency regulatory cost cap imposed by the ,national ,regulatory ,budget for a fiscal year may not promulgate a new covered ,federal rule that increases regulatory costs until the ,executive branch agency no longer exceeds the annual agency regulatory cost cap imposed by the applicable ,national ,regulatory ,budget4 7b7 ,determination of ,director 7#a7 ,in general ,an ,executive branch agency may not promulgate a covered ,federal rule unless the ,director determines1 in conducting the regulatory analysis of the covered ,federal rule under section #fae7;b77#c77;,a7 that1 after the ,executive branch agency promulgates the covered ,federal rule1 the ,executive branch agency will not exceed the annual agency regulatory cost cap for that ,executive branch agency4 7#b7 ,timing ,the ,director shall make a determination under paragraph 7#a7 with respect to a proposed covered ,federal rule not later than #fj days after the ,director receives a copy of the proposed covered ,federal rule under section #fae7;b77#d74 7c7 ,effect of violation of this section 7#a7 ,no force or effect ,a covered ,federal rule that is promulgated in violation of this section shall have no force or effect4 7#b7 ,judicial ,enforcement ,any party may bring an action in a district court of the ,united ,states to declare that a covered ,federal rule has no force or effect because the covered ,federal rule was promulgated in violation of this section4 #fbj4 ,regulatory ,analysis ,advisory ,board 7a7 ,establishment of ,board ,in accordance with the ,federal ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app471 the ,director shall-- 7#a7 establish a ,regulatory ,analysis ,advisory ,board2 and 7#b7 appoint not fewer than #i and not more than #ae individuals as members of the ,regulatory ,analysis ,advisory ,board4 7b7 ,qualifications ,the ,director shall appoint individuals with technical and practical expertise in economics1 law1 accounting1 science1 management1 and other areas that will aid the ,director in preparing the annual ,report on ,national ,regulatory ,costs required under section #fae4 4 7b7 ,technical and conforming amendments 7#a7 ,table of chapters ,the table of chapters for part ,i of title #e1 ,united ,states ,code1 is amended by inserting after the item relating to chapter #f the following3 #f;,a4 ,national ,regulatory ,budget and ,office of ,regulatory ,analysis #fac 4 7#b7 ,internal ,revenue ,code of #aihf ,section #fajc7;j7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#g7 ,office of ,regulatory ,analysis ,upon written request by the ,director of the ,office of ,regulatory ,analysis established under section #fad of title #e1 ,united ,states ,code1 the ,secretary shall furnish to officers and employees of the ,office of ,regulatory ,analysis return information for the purpose of1 but only to the extent necessary for1 an analysis of regulatory costs4 4 #c4 ,report on duplicative personnel2 report on regulatory analysis 7a7 ,report on duplicative personnel ,not later than ,december #ca1 #bjad1 the ,director shall submit to ,congress a report determining positions in the ,federal ,government that are-- 7#a7 duplicative of the work performed by the ,office of ,regulatory ,analysis established under section #fad of title #e1 ,united ,states ,code2 or 7#b7 otherwise rendered cost ineffective by the work of the ,office of ,regulatory ,analysis4 7b7 ,report on regulatory analysis 7#a7 ,report required ,not later than ,june #cj1 #bjae1 the ,director shall provide to ,congress a report analyzing the practice with respect to1 and the effectiveness of-- 7,a7 chapter #f of this title 7commonly known as the ,regulatory ,flexibility ,act72 7,b7 the ,small ,business ,regulatory ,enforcement ,fairness ,act of #aiif 7#e ,u4,s4,c4 #fja note72 7,c7 chapter #ce of title #dd 7commonly known as the ,paperwork ,reduction ,act2 7,d7 each ,executive order that mandates economic analysis of ,federal regulations2 and 7,e7 ,office of ,management and ,budget circulars1 directives1 and memoranda that mandate the economic analysis of ,federal regulation4 7#b7 ,recommendations ,the report under paragraph 7#a7 shall include recommendations about how ,federal regulatory analysis may be improved4 #d4 ,administrative procedure 7a7 ,definition of rule ,section #eea7d7 of title #e1 ,united ,states ,code1 is amended by inserting after requirements of an agency the following3 1 whether or not the agency statement amends the ,code of ,federal ,regulations and including1 without limitation1 a statement described by the agency as a regulation1 rule1 directive1 or guidance14 7b7 ,notice of proposed rulemaking ,section #eec7;b7 of title #e1 ,united ,states ,code1 is amended1 following the flush text1 in subparagraph 7,a7 by striking interpretative rules1 general statements of policy1 or4