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 rule making, and for other purposes.
ELI5 AI
The ALERT Act is like a rulebook that makes sure government agencies show everyone their new ideas for rules and explain how much these rules might cost or help. Agencies have to let people see these ideas for six months online before they can make them official, unless there's something super urgent.
Summary AI
S. 4200, titled the "All Economic Regulations are Transparent Act of 2024" (ALERT Act), aims to make the rule-making process more transparent by requiring U.S. federal agencies to regularly submit detailed information about their rule-making activities to the Office of Information and Regulatory Affairs. This bill mandates that agencies provide monthly updates on proposed or finalized rules, including their costs and potential economic impacts. The information must be made publicly accessible online and agencies cannot implement new rules until they have been publicly shared for at least six months unless certain exceptions apply.
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AnalysisAI
General Summary of the Bill
The bill, titled the "All Economic Regulations are Transparent Act of 2024" or the "ALERT Act of 2024," aims to amend title 5 of the United States Code to increase transparency in federal rule-making. It requires federal agencies to regularly submit information about their rule-making activities to the Office of Information and Regulatory Affairs (OIRA). This includes details about the nature, cost, and economic impact of proposed and finalized rules. The bill mandates that this information be made publicly accessible both online and in the Federal Register, and a rule cannot take effect until its details have been available for at least six months, with certain exceptions for emergencies or critical situations.
Summary of Significant Issues
One significant issue with the bill is its broad exceptions for bypassing the six-month publication requirement. Terms such as "imminent threats" and "national security" are vaguely defined, which could lead to potential misuse. Additionally, the requirement for rules to be made publicly available for six months before taking effect could delay urgent measures, affecting timely responses to critical situations.
Another concern is the lack of oversight mechanisms to ensure agency compliance with the bill's requirements. Without clear enforcement or auditing systems, agencies might not adhere to the transparency standards set forth in the bill. Moreover, the mandate to publish extensive rule-making information online and in the Federal Register could result in information overload for stakeholders, complicating their ability to interpret and use the data effectively.
The criteria for cost and economic impact assessments are not well-defined, leading to potential inconsistencies across different agencies. Privacy and data protection issues also arise, as large amounts of sensitive information might be published online without specified security measures.
Impact on the Public
The bill's impact on the public largely revolves around increased transparency in governmental processes. By requiring detailed information about rule-making to be publicly available, citizens can gain better insight into the actions of federal agencies. This could lead to more informed public discourse and participation in regulatory processes.
However, the broad exceptions and potential delays in implementing urgent rules could negatively affect public safety and welfare in critical situations. For instance, if a health or safety rule is necessary but can't take effect immediately due to the six-month requirement, it could have adverse consequences for those needing immediate protection.
Impact on Specific Stakeholders
For government agencies, the bill introduces significant reporting requirements that may necessitate additional resources or administrative adjustments. Agencies might face challenges in meeting these demands consistently, especially without clear guidance on cost and economic impact assessments.
For businesses and industries, the bill could provide a clearer understanding of upcoming regulations, allowing for better strategic planning and adjustment to comply with new rules. However, delays in rule implementation might also mean prolonged uncertainty in regulatory environments, affecting business operations and investments.
Legal and advocacy groups might find the bill's transparency measures beneficial for analyzing government actions and advocating for or against certain regulations. Yet, they may need to navigate through significant amounts of data, which could complicate efforts to focus on specific issues of concern.
Overall, while the bill aims to enhance transparency and public involvement in the regulatory process, its implementation may pose challenges that need careful consideration and potential refinement.
Financial Assessment
The "All Economic Regulations are Transparent Act of 2024" (ALERT Act) is designed to enhance transparency in federal rule-making by requiring agencies to report regularly on their activities. The bill makes several references to financial costs and economic impacts, which are central to its objectives.
Financial References and Economic Impact Assessments
The bill requires federal agencies to submit detailed monthly reports to the Office of Information and Regulatory Affairs for each rule they plan to propose or finalize. Specifically, these reports must include:
- An estimate of whether the rule will cost less than $50 million or fall into higher cost categories, scaling up to more than $10 billion.
- Any estimate of the economic effects of the rule, such as the net impact on job numbers in the United States.
These financial references are crucial as they aim to provide stakeholders with an understanding of the potential economic burden or benefit of proposed regulations. However, the bill does not specify a clear methodology for these financial estimations, which could lead to inconsistencies. Without standardized criteria, agencies might produce disparate assessments that elude accurate comparisons and evaluations.
Delays in Implementation and Cost Concerns
The requirement that rules be made publicly available online for at least six months before taking effect—unless exempted by urgent necessity such as an "imminent threat"—introduces a potential delay in implementing rules. While this is intended to allow thorough public review and scrutiny, it could hinder timely responses to pressing issues. For financially significant rules, such as those costing $10 billion or more, any delay could have substantial economic implications, potentially affecting governmental budget allocations and economic planning.
Oversight and Accountability
One issue identified is the lack of specified oversight mechanisms to ensure compliance with these reporting and publication requirements. This gap may lead to challenges in holding agencies accountable, particularly concerning the accurate reporting of financial impacts. The absence of oversight may further complicate the consistency and reliability of cost assessments, exacerbating the risk of economic misjudgment in regulatory decisions.
Information Overload and Interpretation Challenges
The mandate for extensive data publication, including cost assessments, aims to improve transparency but raises concerns about information overload. For financial data to be useful, it must be accessible and interpretable. The sheer volume of published information might overwhelm stakeholders, making it challenging to discern crucial financial insights from superfluous data. Addressing these concerns requires careful consideration of how financial data is presented and filtered for relevance.
In summary, the ALERT Act makes critical financial references related to the costs and economic impact of agency rules, highlighting a need for careful attention to methodology and data handling to ensure meaningful and consistent transparency.
Issues
The bill outlines specific exceptions that allow rules to bypass publication requirements based on grounds such as 'imminent threats' or 'national security' (Sections 2 and 654(b)), which could be seen as overly broad and lead to potential misuse or bureaucratic loopholes.
The requirement for rules to be available for at least 6 months before they take effect (Section 654(a)) may delay the implementation of urgent measures, impacting response times to critical situations.
There is no mention of oversight or compliance mechanisms to ensure that agencies adhere to the requirements outlined in the bill (Section 2), which could lead to implementation challenges and lack of accountability.
The bill mandates extensive data publication both online and in the Federal Register (Section 653), which might cause information overload, making it difficult for stakeholders to interpret and use the information effectively.
The language surrounding cost and economic impact assessments of rules fails to provide clear criteria or methodology for estimations (Section 2), leading to potential inconsistencies across agencies.
Privacy and data protection concerns arise as the bill requires significant amounts of sensitive information to be published online without specifying data security measures (Section 2).
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 section specifies the short title of the Act, which can be referred to as the “All Economic Regulations are Transparent Act of 2024” or simply the “ALERT Act of 2024.”
2. Office of information and regulatory affairs publication of information relating to rules Read Opens in new tab
Summary AI
The text introduces a new chapter in the United States Code outlining how federal agencies must submit and publish details about their rulemaking activities. It mandates that agencies regularly inform the Office of Information and Regulatory Affairs about upcoming rules, including cost estimates and potential economic impacts, which must then be made publicly accessible online. Additionally, it stipulates that no rule can take effect until these details have been publicly available for at least six months, with some exceptions allowed for emergency or critical situations.
Money References
- “(1) For each rule that the agency expects to propose or finalize during the following year— “(A) a summary of the nature of the rule, including the regulation identifier number and the docket number for the rule; “(B) the objectives of and legal basis for the issuance of the rule, including— “(i) any statutory or judicial deadline; and “(ii) whether the legal basis restricts or precludes the agency from conducting an analysis of the costs or benefits of the rule during the rule making, and if not, whether the agency plans to conduct an analysis of the costs or benefits of the rule during the rule making; “(C) whether the agency plans to claim an exemption from the requirements of section 553 of this title pursuant to section 553(b)(B); “(D) the stage of the rule making as of the date of submission; and “(E) whether the rule is subject to review under section 610 of this title. “(2) For each rule that the agency expects to finalize during the following year and for which the agency 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; and “(C) any estimate of the economic effects of the rule, including— “(i) 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 “(ii) if an estimate is not available, a statement affirming that no information on the economic effects of the rule, including the effect the rule will have on the number of jobs in the United States, has been considered. “§ 653.
651. Definitions Read Opens in new tab
Summary AI
The section provides definitions for certain key terms used in this chapter, clarifying that "Administrator" refers to the head of a specific office in the government, and the terms related to agencies and rules follow the meanings given in another part of the legal code.
652. Agency monthly submission to Office of Information and Regulatory Affairs Read Opens in new tab
Summary AI
Each month, the head of every agency must provide the Office of Information and Regulatory Affairs with details about rules they plan to propose or finalize in the coming year. This information should include the rule’s summary, legal basis, cost estimates, and potential economic impacts, along with whether the rule will be exempt from certain procedural requirements and its development stage.
Money References
- On a monthly basis, the head of each agency shall submit to the Administrator, in such a manner as the Administrator may reasonably require, the following information: (1) For each rule that the agency expects to propose or finalize during the following year— (A) a summary of the nature of the rule, including the regulation identifier number and the docket number for the rule; (B) the objectives of and legal basis for the issuance of the rule, including— (i) any statutory or judicial deadline; and (ii) whether the legal basis restricts or precludes the agency from conducting an analysis of the costs or benefits of the rule during the rule making, and if not, whether the agency plans to conduct an analysis of the costs or benefits of the rule during the rule making; (C) whether the agency plans to claim an exemption from the requirements of section 553 of this title pursuant to section 553(b)(B); (D) the stage of the rule making as of the date of submission; and (E) whether the rule is subject to review under section 610 of this title. (2) For each rule that the agency expects to finalize during the following year and for which the agency 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; and (C) any estimate of the economic effects of the rule, including— (i) 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 (ii) if an estimate is not available, a statement affirming that no information on the economic effects of the rule, including the effect the rule will have on the number of jobs in the United States, has been considered. ---
653. Office of Information and Regulatory Affairs publications Read Opens in new tab
Summary AI
The section requires the Administrator to publish detailed information about agency rule-making activities online and in the Federal Register each year by October 1. This includes data on proposed and finalized rules, analyses of their costs or benefits, actions taken to change rules, and the total costs of these rules without accounting for benefits.
654. 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 made publicly available online for at least 6 months, unless it falls under exceptions like being necessary for health and safety, criminal law enforcement, national security, or international trade as determined by the President or specific agency provisions.