Overview
Title
To amend title 5, United States Code, to provide for the publication, by the Office of Information and Regulatory Affairs, of information relating to rulemakings, and for other purposes.
ELI5 AI
The ALERT Act is a rule that wants government groups to tell everyone about new rules they're planning and what those rules might cost, kind of like a monthly report card, to make sure everyone knows what's going on and it's fair for everyone.
Summary AI
H. R. 262 aims to amend title 5 of the United States Code to ensure that the Office of Information and Regulatory Affairs publishes information about rulemakings. This bill, known as the "All Economic Regulations are Transparent Act" or the "ALERT Act," requires each federal agency to provide details about any rules they plan to propose or finalize, including their potential costs and economic effects. The bill mandates that this information be shared monthly and made available online, with some exceptions for urgent scenarios.
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AnalysisAI
General Summary of the Bill
The proposed bill, introduced in the 118th Congress as H.R. 262, seeks to amend Title 5 of the United States Code with the aim of increasing transparency around regulatory actions by federal agencies. The bill, known as the "All Economic Regulations are Transparent Act" or the "ALERT Act," mandates that federal agencies report detailed information about their rulemaking actions to the Office of Information and Regulatory Affairs (OIRA). This information is to be published monthly and consolidated annually, intended to be publicly available both online and in the Federal Register. Essentially, the bill is designed to foster greater transparency and accountability in the regulatory process by requiring detailed reporting and public availability of information about proposed and finalized rules, their costs, and economic impacts.
Summary of Significant Issues
One of the considerable concerns highlighted in the bill is the potential administrative burden it imposes on federal agencies, particularly smaller ones. The requirement for monthly and annual submissions of regulatory information could demand significant resources in terms of time and expertise, which may be challenging without additional support or funding.
Another prominent issue is the stipulation that rules have to be publicly accessible for at least six months before coming into effect, except in urgent circumstances such as threats to public safety or national security. While this waiting period aims to ensure transparency, it could delay necessary regulatory actions, creating potential risks in urgent scenarios.
Additionally, the broad exceptions allowed for circumventing the waiting period, especially those determined by an Executive Order, raise concerns about potential executive overreach and inconsistent application across different agencies. Clarity and accountability mechanisms in such exceptions could be essential to prevent abuse and ensure fair application of the rules.
There is also a concern related to the complexity added by creating new sections within Title 5. This change could complicate the understanding and compliance requirements for agencies, which may result in further administrative challenges.
Impact on the Public and Stakeholders
The bill’s emphasis on transparency is likely to be beneficial for the general public, providing citizens and businesses with greater insight into the rules affecting them. For those invested in regulatory changes, such as business owners or advocacy groups, the access to detailed regulatory information could enhance their ability to participate in or respond to these processes.
However, the potential delay in rule implementation due to transparency requirements could negatively affect the ability to address urgent issues promptly. For instance, in the event of a public health crisis, delayed regulatory responses might impede timely protections.
Specific stakeholders, like smaller federal agencies, could face challenges due to the increased administrative load without additional resources. Meeting the prescribed evaluation and reporting requirements may strain their already limited budgets.
On the positive side, the bill could push agencies to conduct more comprehensive cost-benefit analyses, ultimately leading to better-informed decisions in rulemaking. However, this also requires the agencies to have the necessary expertise and resources, which might be a hurdle for some.
Overall, while the bill underscores the value of transparency and accountability in governance, its implementation must consider the balance between ensuring public insight and maintaining efficient and effective regulatory processes.
Financial Assessment
The H.R. 262 bill, also known as the "All Economic Regulations are Transparent Act" or the "ALERT Act," presents several points of interest regarding financial references within its provisions. These are mostly related to the estimation and reporting of financial impacts for rules that federal agencies plan to propose or finalize.
Cost Estimations and Economic Effects
The bill mandates that federal agencies estimate the costs of proposed rules within specific monetary ranges. These ranges are less than $50 million, $50 million or more but less than $100 million, $100 million or more but less than $500 million, $500 million or more but less than $1 billion, $1 billion or more but less than $5 billion, $5 billion or more but less than $10 billion, or $10 billion or more. By requiring agencies to classify the financial impact of each rule into one of these tiers, the bill aims to ensure a standardized approach to how the economic effects of regulations are assessed and communicated.
Resource Implications
However, this detailed financial requirement may introduce significant challenges, as highlighted in the issues section, particularly for smaller agencies. Conducting comprehensive cost-benefit analyses that include not only direct financial impacts but also broader economic effects, such as job implications, can be a resource-intensive task. Agencies with limited budgets and staff might struggle to meet these stipulations without additional support.
Potential for Imprecision and Reporting Challenges
Additionally, the requirement to categorize financial impacts within fixed ranges might result in imprecision or even manipulation, as agencies may adjust their estimates to fit into the predefined tiers. This risks the accuracy of the data reported, as any non-standardized assessment could lead to misleading conclusions about the true economic impact of regulations.
Implications for Timeliness and Urgency
The bill includes a stipulation that information about a rule must be publicly available on the Internet for at least six months before it can take effect, which could delay the implementation of critical regulatory actions. The financial implications of these delays are significant, as prolonged timelines could impede the timely realization of benefits associated with a rule or, conversely, delay the mitigation of costs tied to existing problems.
Overall, the financial reporting requirements in H.R. 262 reflect a legislative effort to enhance transparency and accountability in the regulatory process, but they also underscore the need for careful balance. The potential administrative and resource burden, as well as the risk of imprecision, merit careful attention to ensure the Act's goals are achieved effectively and efficiently.
Issues
The requirement for agencies to conduct and publish comprehensive cost-benefit analyses of rules, including economic effects and job impacts, could impose significant resource and expertise burdens, particularly on smaller agencies. This issue is addressed in Sections 2 and 652.
There could be potential delays in implementing necessary regulatory actions due to the stipulation that rules must be publicly available on the Internet for at least 6 months before taking effect. This delay could pose challenges in urgent situations. This issue is outlined in Section 653.
The bill demands monthly submissions from each agency to the Office of Information and Regulatory Affairs. This might introduce an administrative burden that could be resource-intensive, particularly for smaller agencies with limited budgets. This issue is found in Sections 2 and 651.
The absence of a specified process or consequences if an agency fails to comply with the monthly submission or publication deadlines could lead to accountability issues. This concern is mentioned in Sections 651 and 652.
The provision allowing the President to expedite the implementation of rules by Executive Order without clear checks and balances may lead to potential executive overreach. This governance issue is noted in Section 653.
The section on exceptions for rules necessary due to imminent threats or emergencies lacks specific criteria, leading to potential inconsistent application across agencies. This issue is specified in Section 653.
The potential for the bill to add complexity by creating a new chapter and multiple sections within Title 5 could result in difficulties for agencies in understanding and complying with these requirements. This problem is identified in Section 2.
The use of unclear language like 'influential scientific information' without precise definitions may lead to ambiguity in implementation. This is discussed in Sections 651 and 654.
The requirement for agencies to estimate costs within specific monetary ranges could lead to imprecision or manipulation of actual cost estimates, posing a risk to accurate reporting. This issue is highlighted in Section 651.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The beginning of this legislation introduces the short title, stating that it can be referred to as the “All Economic Regulations are Transparent Act” or simply the “ALERT Act.”
2. Office of information and regulatory affairs publication of information relating to rules Read Opens in new tab
Summary AI
The proposed section amends Title 5 of the United States Code to establish new rules requiring federal agencies to submit monthly and annual reports to the Office of Information and Regulatory Affairs about their regulatory actions. It mandates that agencies provide detailed information on planned and finalized rules, including their potential costs and economic effects, and make this information publicly available online and in the Federal Register, with certain exceptions for urgent or legally exempted rules.
Money References
- “(2) For any rule for which the agency expects to finalize during the 12-month period following the month covered by the monthly submission and has issued a general notice of proposed rule making— “(A) an approximate schedule for completing action on the rule; “(B) an estimate of whether the rule will cost— “(i) less than $50,000,000; “(ii) $50,000,000 or more but less than $100,000,000; “(iii) $100,000,000 or more but less than $500,000,000; “(iv) $500,000,000 or more but less than $1,000,000,000; “(v) $1,000,000,000 or more but less than $5,000,000,000; “(vi) $5,000,000,000 or more but less than $10,000,000,000; or “(vii) $10,000,000,000 or more; “(C) any estimate of the economic effects of the rule, including the imposition of unfunded mandates and any estimate of the net effect that the rule will have on the number of jobs in the United States, that was considered in drafting the rule, or, if no such estimate is available, a statement affirming that no information on the economic effects, including the effect on the number of jobs, of the rule has been considered; and “(D) a list of all influential scientific information disseminated or expected to be disseminated by the agency relating to the rule, including any peer review plans for the information, including— “(i) the date the information or peer review was or is expected to be received by the agency; “(ii) the date the information or peer review was publically disclosed or is expected to be publically disclosed, and, if that date is altered in subsequent reports, a brief explanation for the change; and “(iii) the Internet address of the information or peer review completed and disclosed or of where the information or peer review will be found, once completed and disclosed.
651. Agency monthly submission to office of information and regulatory affairs Read Opens in new tab
Summary AI
The section requires the head of each agency to send monthly reports to the Office of Information and Regulatory Affairs, detailing any rules they plan to propose or finalize in the upcoming year. These reports must include summaries of each rule, their objectives, legal bases, expected economic effects, costs, and any influential scientific information related to the rules.
Money References
- (E) Whether the rule is subject to review under section 610. (2) For any rule for which the agency expects to finalize during the 12-month period following the month covered by the monthly submission and has issued a general notice of proposed rule making— (A) an approximate schedule for completing action on the rule; (B) an estimate of whether the rule will cost— (i) less than $50,000,000; (ii) $50,000,000 or more but less than $100,000,000; (iii) $100,000,000 or more but less than $500,000,000; (iv) $500,000,000 or more but less than $1,000,000,000; (v) $1,000,000,000 or more but less than $5,000,000,000; (vi) $5,000,000,000 or more but less than $10,000,000,000; or (vii) $10,000,000,000 or more; (C) any estimate of the economic effects of the rule, including the imposition of unfunded mandates and any estimate of the net effect that the rule will have on the number of jobs in the United States, that was considered in drafting the rule, or, if no such estimate is available, a statement affirming that no information on the economic effects, including the effect on the number of jobs, of the rule has been considered; and (D) a list of all influential scientific information disseminated or expected to be disseminated by the agency relating to the rule, including any peer review plans for the information, including— (i) the date the information or peer review was or is expected to be received by the agency; (ii) the date the information or peer review was publically disclosed or is expected to be publically disclosed, and, if that date is altered in subsequent reports, a brief explanation for the change; and (iii) the Internet address of the information or peer review completed and disclosed or of where the information or peer review will be found, once completed and disclosed. ---
652. Office of information and regulatory affairs publications Read Opens in new tab
Summary AI
The section requires that each year, by October 1, the Administrator must publish information about agency rules and actions from the previous year both in the Federal Register and online. This includes details such as costs, benefits, and reviews of proposed and finalized rules, as well as whether any resolutions of disapproval were introduced in Congress.
653. Requirement for rules to appear in agency-specific monthly publication Read Opens in new tab
Summary AI
A rule cannot take effect until it has been publicly available online for at least six months, unless it qualifies for certain exceptions. These exceptions include urgent situations like threats to health or safety, enforcement of criminal laws, national security issues, or rules related to international trade agreements, as determined by the President or as claimed by the issuing agency.
654. Definitions Read Opens in new tab
Summary AI
In this section, specific terms like "agency," "agency action," "rule," and "rule making" are defined as they are in section 551. Also, the term "unfunded mandate" is described based on how "Federal mandate" is defined in section 421(6) of the Congressional Budget Act of 1974.