Title: Establishes Additional Requirements for Regulatory Agencies
Vote Smart's Synopsis:
Vote to pass a bill that requires regulatory agencies to consider the costs and benefits of potential alternatives to new rules and that establishes additional rule-making requirements.
Requires regulatory agencies to make factual determinations based on evidence and to consider certain criteria during the rule-making process including, but not limited to, the following (Sec. 3):
The legal authority under which a rule may be proposed;
The specific nature and significance of the problem the agency seeks to address through the rule;
Whether existing rules have created or contributed to the problem, and whether those rules could be amended or rescinded to address the problem in whole or in part;
Any "reasonable alternatives" to the proposed new rule; and
The costs and benefits associated with potential alternative rules.
Defines "reasonable alternatives" as certain courses of action including, but not limited to, the following (Sec. 3):
No federal response;
Amending or rescinding existing rules;
Potential state or local action that could be taken in lieu of agency action; or
Potential responses that establish economic incentives to encourage the desired behavior.
Requires regulatory agencies to adopt the least costly rule considered during the rule-making process, unless the additional benefits of a more costly rule justify its additional costs (Sec. 3).
Requires regulatory agencies to publish advance notice of proposed rules in the Federal Register and provide opportunities for public hearings and public comment for the following types of rules (Sec. 3):
High-impact rules; and
Rules involving "novel" legal or policy issues.
Defines a "major rule" as any rule that the Office of Information and Regulatory Affairs determines is likely to result in the following (Sec. 2):
An annual cost on the economy of at least $100 million, adjusted annually for inflation;
A "major increase" in costs or prices for consumers, individual industries, governments, or regions;
"Significant adverse effects" on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises; or
"Significant impacts" on multiple sectors of the economy.
Defines a "high impact rule" as any rule that the Office of Information and Regulatory Affairs determines is likely to result in an annual cost on the economy of at least $1 billion, adjusted annually for inflation (Sec. 2).