,,ii #aacth ,,congress #b;d ,session ,s4 #bihh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #h1 #bjad ,mr4 ,lee introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to amend the ,congressional ,budget ,act of #aigd to establish a ,federal regulatory budget and to impose cost controls on that budget1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,regulatory ,cost ,assessment ,act of #bjad4 #b4 ,amendments to the ,congressional ,budget ,act of #aigd 7a7 ,federal regulatory budget cost control system ,title ,,iii of the ,congressional ,budget ,act of #aigd is amended-- 7#a7 by inserting before section #cjj the following3 ,a ,general provisions 2 and 7#b7 by adding at the end the following new part3 ,b ,federal regulatory budget cost control #cba4 ,definitions ,in this part-- 7#a7 the term ,,cbo means the ,congressional ,budget ,office2 7#b7 the term direct cost of ,federal regulation means all costs incurred by1 and expenditures required of1 the ,federal ,government in issuing and enforcing ,federal regulations1 rules1 statements1 and legislation2 7#c7 the term ,federal regulation1 rule1 statement1 or legislation-- 7,a7 includes any guidance document issued after notice and an opportunity for comment in accordance with the requirements for the promulgation of a rule under chapter #e of title #e1 ,united ,states ,code2 and 7,b7 does not include a ,federal regulation1 rule1 statement1 or legislation applying to-- 7i7 the military2 or 7ii7 agency organization1 management1 or personnel2 7#d7 the term ,federal regulatory cost-- 7,a7 means all costs incurred by1 and expenditures required of1 the private sector in complying with any ,federal regulation1 rule1 statement1 or legislation2 and 7,b7 does not include the value of any benefit under the ,federal regulation1 rule1 statement1 or legislation2 7#e7 the term gross domestic product means the gross domestic product of the ,united ,states during a fiscal year1 consistent with ,department of ,commerce definitions2 7#f7 the term ,,omb means the ,office of ,management and ,budget2 and 7#g7 the term regulatory baseline means the projection described in section #cbc7;a7 of the ,federal regulatory cost for the fiscal year after the date of the projection and the outyears4 #cbb4 ,,omb-,,cbo reports ,not later than #a year after the date of enactment of this section1 and not later than ,september #aeth of each odd-numbered year thereafter1 ,,omb and ,,cbo shall jointly submit to the ,president1 the ,senate1 and the ,house of ,representatives a report that includes-- 7#a7 a projection of the direct cost of ,federal regulation and the ,federal regulatory cost for the first fiscal year beginning after the date of the report and at least each of the #d ensuing fiscal years2 7#b7 a calculation of the estimated direct cost of ,federal regulation and ,federal regulatory cost as a percentage of the gross domestic product2 7#c7 the reduction in estimated gross domestic product attributable to private sector compliance with all ,federal regulations1 rules1 statements1 or legislation2 7#d7 a detailed description of the effect on the economy of the ,united ,states of ,federal regulations1 rules1 statements1 and legislation1 which shall be categorized as relating to-- 7,a7 regulation of the economy2 7,b7 security1 including homeland security2 7,c7 the environment2 7,d7 health and safety2 or 7,e7 the ,federal budget2 7#e7 a discussion of the expected reduction in personnel1 administrative overhead1 and programmatic costs that would be achieved by ,federal agencies that issue regulations1 rules1 or statements with a ,federal regulatory cost if the ,federal agencies reduced the ,federal regulatory cost by #e percent2 and 7#f7 recommendations for budgeting1 technical1 and estimating changes to improve the ,federal regulatory budgeting process4 #cbc4 ,regulatory baseline 7a7 ,in general ,for the first fiscal year that begins at least #abj days after the date of enactment of this section and for every second fiscal year thereafter1 ,,cbo1 in consultation with ,,omb1 shall submit to the ,president1 the ,senate1 and the ,house of ,representatives a regulatory baseline1 consisting of a projection of the ,federal regulatory cost for the fiscal year and at least each of the #d ensuing fiscal years4 ,in preparing the projection of the regulatory baseline under this subsection1 for the second fiscal year covered under the projection and each fiscal year thereafter1 ,,cbo shall adjust the baseline for the estimated growth during that fiscal year in the gross domestic product4 7b7 ,deadlines ,the ,,cbo shall submit the regulatory baselines required under subsection 7a7-- 7#a7 for the first regulatory baseline1 not later than #cj days after the date of enactment of this section2 and 7#b7 for the second regulatory baseline and each regulatory baseline thereafter1 not later than ,september #ae of the fiscal year before the first fiscal year covered under the regulatory baseline4 #cbd4 ,establishment of level and allocations 7a7 ,establishment of level 7#a7 ,in general ,in addition to the requirements under section #cja1 a concurrent resolution on the budget for a fiscal year shall set forth the appropriate level for the ,federal regulatory cost for the fiscal year and for at least each of the #d ensuing fiscal years4 7#b7 ,default total ,if there is not a level for the ,federal regulatory cost that is in effect for a fiscal year under a concurrent resolution on the budget-- 7,a7 for the first fiscal year that begins at least #abj days after the date of enactment of this section1 the appropriate level for the ,federal regulatory cost for the fiscal year shall be the amount of the first regulatory baseline submitted under section #cbc2 and 7,b7 for each fiscal year after the fiscal year described in subparagraph 7,a71 the appropriate level for the ,federal regulatory cost for the fiscal year shall be the level for the most recent fiscal year for which such a level was in effect 7under subparagraph 7,a71 this subparagraph1 or a concurrent resolution on the budget74 7b7 ,allocation of totals 7#a7 ,in general ,for the first fiscal year that begins at least #abj days after the date of enactment of this section1 and each fiscal year thereafter1 the ,committee on the ,budget of the ,senate and the ,committee on the ,budget of the ,house of ,representatives shall each allocate among each committee of its ,house and by major functional category the ,federal regulatory cost in effect under subsection 7a7 for such fiscal year and at least each of the #d ensuing fiscal years4 7#b7 ,suballocations ,as soon as practicable after receiving an allocation under paragraph 7#a71 each committee shall subdivide its allocation among its subcommittees or among programs over which the committee has jurisdiction4 7c7 ,point of order 7#a7 ,in general ,it shall not be in order in the ,senate or the ,house of ,representatives to consider any bill or resolution1 or amendment thereto1 which would cause an allocation or suballocation of the ,federal regulatory cost made under subsection 7b7 for a fiscal year to be exceeded4 7#b7 ,waiver ,a point of order under paragraph 7#a7 may only be waived by the affirmative vote of three-fifths of the ,members1 duly chosen and sworn4 7d7 ,determinations by budget committees ,for purposes of this section1 the amount of the ,federal regulatory cost for a fiscal year and the amount of the ,federal regulatory cost of a bill or resolution1 or amendment thereto1 shall be determined by the ,committee on the ,budget of the ,senate or the ,committee on the ,budget of the ,house of ,representatives1 as the case may be4 #cbe4 ,analysis of ,federal regulatory cost by congressional budget office 7a7 ,in general ,,cbo shall prepare for each bill or resolution of a public character reported by any committee of the ,senate or the ,house of ,representatives 7except the ,committee on ,appropriations of each ,house71 and submit to such committee-- 7#a7 an estimate of the costs which would be incurred by the private sector in carrying out or complying with such bill or resolution in the fiscal year in which it is to become effective and in each of the #d fiscal years following such fiscal year1 which shall include a discussion of the methodology used to prepare1 and the basis for1 each such estimate2 and 7#b7 a comparison of the estimate of costs described in paragraph 7#a7 with any available estimates of costs made by such committee or by any ,federal agency4 7b7 ,look-,back reviews ,,cbo shall periodically submit to ,congress a report that-- 7#a7 reviews a sample of laws of a public character for which an estimate was prepared under subsection 7a77#a72 and 7#b7 compares the estimates of the costs described in paragraphs 7#a7 and 7#b7 of subsection 7a7 and the actual costs incurred by the private sector in carrying out or complying with the law in the fiscal year in which it took effect and in each of the #d fiscal years following such fiscal year4 4 #c4 ,president's annual budget submissions ,section #aaje7;a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating the second paragraph designated as paragraph 7#cg71 relating to outdated or duplicative plans and reports1 as added by section #aa of the ,,gpra ,modernization ,act of #bjaj 7,public ,law #aaa-ceb2 #abd ,stat4 #chha71 as paragraph 7#ci72 and 7#b7 by adding at the end the following3 7#dj7 a regulatory authority budget analysis of the ,federal regulatory cost 7as defined in section #cba of the ,congressional ,budget ,act of #aigd7 of complying with all current and proposed ,federal regulations and proposals for complying with section #cbd of the ,congressional ,budget ,act of #aigd for the fiscal year for which the budget is submitted and the #d fiscal years after that year4 4 #d4 ,estimation and disclosure of costs of federal regulation 7a7 ,costs to private sector of new federal regulations ,chapter #f of title #e1 ,united ,states ,code1 popularly known as the ,regulatory ,flexibility ,act1 is amended-- 7#a7 in section #fjc-- 7,a7 in subsection 7a71 in the second sentence1 by inserting before the period the following3 and shall discuss in detail whether the cost to businesses of complying with the proposed rule will vary depending on the size of the business and1 if so1 to what extent the cost will vary and what factors contribute to the variation2 7,b7 in subsection 7c7-- 7i7 by redesignating paragraphs 7#a71 7#b71 7#c71 and 7#d7 as subparagraphs 7,a71 7,b71 7,c71 and 7,d71 respectively1 and adjusting the margin accordingly2 7ii7 by inserting 7#a7 after 7c72 and 7iii7 by striking ,consistent with the and inserting the following3 7#b7 ,the analysis of significant alternatives to the proposed rule shall include a detailed analysis of the costs and benefits of the proposed rule and each alternative1 which shall separately address the costs and benefits for each industry4 7#c7 ,consistent with the 2 and 7,c7 by adding at the end the following3 7e7 ,each initial regulatory flexibility analysis shall also contain a description of the nature and amount of monetary costs that will be incurred by small entities1 other businesses1 and individuals in complying with the proposed rule4 2 7#b7 in section #fjd7;a7-- 7,a7 in the first paragraph designated as paragraph 7#f7 7relating to minimization of significant economic impacts71 by striking and at the end2 7,b7 by redesignating the second paragraph 7#f7 7relating to covered agencies71 as paragraph 7#h72 and 7,c7 by inserting after paragraph 7#f7 the following3 7#g7 a statement of the nature and amount of monetary costs that will be incurred by small entities1 other businesses1 and individuals in complying with the rule2 and 2 and 7#c7 in section #fjg1 by inserting before the period the following3 1 except that estimates of monetary costs under sections #fjc7;d7 and #fjd7;a77#g7 shall only be in the form of a numerical description4 7b7 ,agency reports ,each agency that prepares an initial regulatory flexibility analysis under chapter #f of title #e1 ,united ,states ,code1 shall1 at the same time submit to each ,house of ,congress1 the ,congressional ,budget ,office1 and the ,office of ,management and ,budget a cost estimate and cost benefit analysis of any new proposed regulations1 rules1 or statements that would have a ,federal regulatory cost 7as defined in section #cba of the ,congressional ,budget ,act of #aigd1 as added by this ,act7 of at least #aj1jjj1jjj for any fiscal year4 #e4 ,guidance documents 7a7 ,definitions ,in this section-- 7#a7 the terms agency and rule have the meanings given such terms in section #eea of title #e1 ,united ,states ,code2 and 7#b7 the term guidance document means an agency statement of general applicability and future effect1 other than a rule1 that sets forth a policy on a statutory1 regulatory1 or technical issue or an interpretation of a statutory or regulatory issue4 7b7 ,limitation on guidance documents ,an agency may not issue a guidance document unless the agency-- 7#a7 issues the guidance document after notice and an opportunity for comment in accordance with the requirements for the promulgation of a rule under chapter #e of title #e1 ,united ,states ,code2 or 7#b7 before the effective date of the guidance document1 submits to ,congress a report that-- 7,a7 certifies that the guidance document is not a rule2 and 7,b7 explains in detail why the guidance document does not satisfy the definition of a rule4 #f4 ,study of nonmajor rules 7a7 ,definitions ,in this section-- 7#a7 the term agency has the meaning given that term in section #eea of title #e1 ,united ,states ,code2 7#b7 the term covered guidance document means any guidance document that has resulted or is likely to result in an annual effect on the economy of not less than #aj1jjj1jjj2 7#c7 the term covered nonmajor rule means any rule that has resulted in or is likely to result in an annual effect on the economy of not less than #aj1jjj1jjj and not more than #ajj1jjj1jjj2 7#d7 the term guidance document means an agency statement of general applicability and future effect1 other than a rule1 that sets forth a policy on a statutory1 regulatory1 or technical issue or an interpretation of a statutory or regulatory issue2 7#e7 the term ,federal regulatory cost has the meaning given that term under section #cba of the ,congressional ,budget ,act of #aigd1 as added by section #b of this ,act2 and 7#f7 the term rule has the meaning given that term in section #hjd of title #e1 ,united ,states ,code4 7b7 ,reports ,not later than #abj days after the date of enactment of this ,act and every #b years thereafter1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report regarding covered nonmajor rules and covered guidance documents1 which shall include1 for the #d-year period immediately preceding the report-- 7#a7 the number of covered nonmajor rules promulgated2 7#b7 the number of covered nonmajor rules implemented2 7#c7 the number of covered guidance documents developed2 7#d7 the number of covered guidance documents issued2 7#e7 the ,federal regulatory cost of each covered nonmajor rule implemented2 7#f7 the ,federal regulatory cost of each covered guidance document issued2 7#g7 the aggregate ,federal regulatory cost of all covered nonmajor rules implemented2 7#h7 the aggregate ,federal regulatory cost of all covered guidance documents issued2 and 7#i7 a discussion of any covered nonmajor rule for which an initial regulatory flexibility analysis was prepared under section #fjc of title #e1 ,united ,states ,code1 a final regulatory flexibility analysis was prepared under section #fjd of title #e1 ,united ,states ,code1 or a cost benefit analysis was prepared that underestimated the actual ,federal regulatory cost of implementing the covered nonmajor rule4