Regulatory Agenda Clarity Act — Rept. 118-852, Part 1 (House of Representatives, 118th Congress, December 10, 2024)
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Summary
House Report 118–852, Part 1, submitted December 10, 2024 by Mr. Williams of Texas from the House Committee on Small Business to accompany H.R. 9030, the Regulatory Agenda Clarity Act, with minority views. The committee reports the bill favorably without amendment. The report states that H.R. 9030, introduced by Rep. Alford on July 15, 2024, would require agencies to include in their annual regulatory agenda the NAICS codes of small entities primarily impacted by a rule and a plain language summary within three days of publication in the Federal Register. It records a May 22, 2024 hearing, a September 10, 2024 markup, a section-by-section analysis and a Congressional Budget Office table estimating insignificant budget effects. The minority views, signed by Ranking Member Nydia M. Velázquez, describe substitute amendments offered by Mr. Thanedar and Ms. Chu.
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“Regulatory Agenda Clarity Act — Rept. 118-852, Part 1 (House of Representatives, 118th Congress, December 10, 2024).”
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118TH CONGRESS REPT. 118–852
" HOUSE OF REPRESENTATIVES !
2d Session Part 1
REGULATORY AGENDA CLARITY ACT
DECEMBER 10, 2024.—Ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 9030]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the bill
(H.R. 9030) to amend chapter 6 of title 5, United States Code (com-
monly known as the ‘‘Regulatory Flexibility Act’’), to ensure com-
plete disclosure of an agency’s annual regulatory agenda, having
considered the same, reports favorably thereon without amendment
and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 2
II. Need for Legislation .................................................................................... 2
III. Hearings ....................................................................................................... 2
IV. Committee Consideration ........................................................................... 2
V. Committee Votes ......................................................................................... 2
VI. Section-by-Section of H.R. 9030 ................................................................. 9
VII. Congressional Budget Office Cost Estimate ............................................. 9
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 12
IX. Oversight Findings & Recommendations .................................................. 12
X. Performance Goals and Objectives ............................................................ 12
XI. Statement of Duplication of Federal Programs ........................................ 12
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 12
XIII. Federal Mandates Statement ..................................................................... 12
XIV. Federal Advisory Committee Statement ................................................... 12
XV. Applicability to Legislative Branch ........................................................... 13
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XVI. Statement of Constitutional Authority ...................................................... 13
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XVII. Changes in Existing Law, Made by the Bill, As Reported ...................... 13
XVIII. Minority views ............................................................................................. 15
I. PURPOSE AND BILL SUMMARY
On July 15, 2024, Rep. Alford introduced H.R. 9030. The purpose
of H.R. 9030, the ‘‘Regulatory Agenda Clarity Act,’’ is to require
agencies to include in their annual regulatory agenda the North
American Industry Classification System (NAICS) codes of small
entities primarily impacted by any rule and a plain language sum-
mary within three days of its publication in the Federal Register.
II. NEED FOR LEGISLATION
Agencies publish their regulatory agenda in the Fall and Spring
each year which is publicly available on the Office of Information
and Regulatory Affairs’ (OIRA) website. This legislation requires
agencies to include the North American Industry Classification
System (NAICS) codes of small entities primarily impacted by any
rule and a plain language summary on the agency’s website within
three days of the agenda’s publication in the Federal Register.
Throughout the Committee’s investigation, we repeatedly found
that agencies underestimated the number of effected entities as
well as industries that will be impacted by regulations. By forcing
agencies to take this additional step, it would allow for a more ac-
curate and wholistic view into the businesses that will be forced to
comply with a new rule.
This information is important for small businesses to be aware
of so they know precisely who is impacted by a proposed rule and
might be required to comply with a rule should it become final.
III. HEARINGS
In the 118th Congress, the Committee held one hearing exam-
ining the issues covered in H.R. 9030. On May 22, 2024, the Com-
mittee held a hearing titled ‘‘Burdensome Regulations: Examining
the Biden Administration’s Failure to Consider Small Businesses’’
which examined the impacts of the Biden Administration’s burden-
some regulatory landscape and explored ways to support small
businesses and overcome agencies’ noncompliance with the RFA.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on September 10, 2024 and ordered H.R.
9030 reported to the House of Representatives. During the markup
two amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 9030 to the House of Representatives
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VI. SECTION-BY-SECTION OF H.R. 9030
Section 1: Short title
This bill may be cited as the ‘‘Regulatory Agenda Clarity Act.’’
Section 2: Expansion of report of regulatory agenda
Requires a brief description of the NAICS codes impacted by the
rule to be included in the regulatory agenda.
Requires a plain language summary of the rule/regulatory flexi-
bility agenda to be posted in the Federal Register and the agency’s
website within 3 days of publishing the rule. The Office of Advo-
cacy must then post the summaries on the SBA’s website.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to clause 3(d)(1) of House rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of the
Congressional Budget Office pursuant to section 402 of the Con-
gressional Budget Act of 1974.
The Congressional Budget Act of 1974 requires the Congressional
Budget Office, to the extent practicable, to prepare estimates of the
budgetary effects of legislation ordered reported by Congressional
authorizing committees. In order to provide the Congress with as
much information as possible, the attached table summarizes infor-
mation about the estimated direct spending and revenue effects of
some of the legislation that has been ordered reported by the
House Committee on Small Business during the 118th Congress.
The legislation listed in the table generally would have small ef-
fects, if any, on direct spending or revenues, CBO estimates. Where
possible, the table also provided information about the legislation’s
estimated effects on spending subject to appropriation and on inter-
governmental and private-sector mandates as defined in the Un-
funded Mandates Reform Act.
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ESTIMATED BUDGETARY EFFECTS AND MANDATES INFORMATION
Direct Spending subject Pay-as-you-go Budgetary
Last Budget Revenues,
Bill number Title Status spending, to appropriation, procedures effects Mandates Contact
action function 2025–2034
Jkt 059006 2025–2034 2025–2029 apply? after 2034
H.R. 9030 Regulatory Agenda Ordered reported .......... 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
Clarity Act. functions zero and ¥$500,000
$500,000 and zero
PO 00000 H.R. 9030 would require federal agencies to describe the type of business that would be affected by a proposed rule, explain whether the rule would impose significant economic effects on a sub-
stantial number of small entities, and display that information on their website. CBO estimates that enacting H.R. 9030 could increase direct spending by some regulatory agencies, a few of which
are allowed to charge fees to cover their operating costs. CBO estimates that the net increase in direct spending would be insignificant. Enacting H.R. 9030 could reduce revenues because costs in-
curred by the Federal Reserve reduce remittances to the Treasury, which are recorded in the budget as revenues. However, CBO estimates that any reduction in revenues would be insignificant. CBO
has not estimated the bill’s effects on spending subject to appropriation. If federal regulators increase annual fees to offset the costs of implementing the bill, H.R. 9030 would increase the costs of
an existing private-sector mandate on entities required to pay those fees. CBO estimates that the incremental cost of the mandate would be small and would fall well below the annual threshold es-
Frm 00010
tablished in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($200 million in 2024, adjusted annually for inflation). The bill contains no intergovernmental mandates as de-
fined in UMRA.
H.R. 9031 Assurance for Small Ordered reported .......... 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
Fmt 6659 Business Act of 2024. functions zero and ¥$500,000
$500,000 and zero
H.R. 9031 would require each rulemaking agency to report to the Congress on how the agency determines whether a rule would impose significant economic effects on a substantial number of small
10
entities. Enacting H.R. 9031 could increase direct spending by some regulatory agencies, a few of which are allowed to charge fees to cover their operating costs. CBO estimates that the net in-
Sfmt 6602 crease in direct spending would be insignificant. Enacting H.R. 9031 could reduce revenues because costs incurred by the Federal Reserve reduce remittances to the Treasury, which are recorded in
the budget as revenues. However, CBO estimates that any reduction in revenues would be insignificant. CBO has not estimated the bill’s effects on spending subject to appropriation. If federal regu-
lators increase annual fees to offset the costs of implementing the bill, H.R. 9031 would increase the costs of an existing private-sector mandate on entities required to pay those fees. CBO esti-
mates that the incremental cost of the mandate would be small and would fall well below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector man-
dates ($200 million in 2024, adjusted annually for inflation). The bill contains no intergovernmental mandates as defined in UMRA.
H.R. 9033 LABOR Act of 2024 ...... Ordered reported .......... 09/10/24 500 0 0 Not estimated No No No Margot Berman
H.R. 9033 would require the Department of Labor to convene a small business advocacy review panel before proposing rules that would have significant economic effects on a substantial number of
small entities. Under current law, only the Occupational Safety and Health Administration within the Department of Labor is required to do so. CBO estimates that enacting H.R. 9033 would not af-
fect direct spending or revenues. CBO has not estimated the bill’s effects on spending subject to appropriation. The bill contains no intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act.
H.R. 9085 Regulatory Review Im- Ordered reported .......... 09/10/24 Multiple Between Between Not estimated Yes Insignificant Yes Margot Berman
E:\HR\OC\HR852P1.XXX
provement Act of functions zero and ¥$500,000
2024. $500,000 and zero
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H.R. 9085 would expand the information that agencies must include in a 10-year review of a rule’s effect on small entities, including the cost for entities to comply with the rule once it goes into
effect and an analysis of public comments an agency receives about the rule. The bill also would reduce the time from 5 years to 1 year for an agency to complete a review. CBO estimates that en-
acting H.R. 9085 could increase direct spending by some agencies, a few of which are allowed to charge fees to cover their operating costs. CBO estimates that the net increase in direct spending
would be insignificant. Enacting H.R. 9085 could reduce revenues because costs incurred by the Federal Reserve reduce remittances to the Treasury, which are recorded in the budget as revenues.
Jkt 059006 However, CBO estimates that any reduction in revenues would be insignificant. CBO has not estimated the bill’s effects on spending subject to appropriation. If federal regulators increase annual
fees to offset the costs of implementing the bill, H.R. 9085 would increase the costs of an existing private-sector mandate on entities required to pay those fees. CBO estimates that the incremental
cost of the mandate would be small and would fall well below the annual threshold established in the Unfunded Mandates Reform Act (UMRA) for private-sector mandates ($200 million in 2024, ad-
justed annually for inflation). The bill contains no intergovernmental mandates as defined in UMRA.
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VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. The Committee does not believe that
there will be any additional costs attributable to this legislation.
H.R. 9030 does not direct new spending, but instead reallocates
funding independently authorized and appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.R.
9030 are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(1) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 9030 are to require agencies to include in
their annual regulatory agenda the North American Industry Clas-
sification System (NAICS) codes of small entities primarily im-
pacted by any rule and a plain language summary within three
days of its publication in the federal register.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 9030 is known to be dupli-
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
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Federal Advisory Committee Act were created by this legislation.
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XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW, MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART I—THE AGENCIES GENERALLY
* * * * * * *
CHAPTER 6—THE ANALYSIS OF REGULATORY
FUNCTIONS
* * * * * * *
§ 602. Regulatory agenda
(a) During the months of October and April of each year, each
agency shall publish in the Federal Register a regulatory flexibility
agenda which shall contain—
(1) a brief description of the subject area of any rule which
the agency expects to propose or promulgate which is likely to
have a significant economic impact on a substantial number of
small entities;
(2) a summary of the nature of any such rule under consider-
ation for each subject area listed in the agenda pursuant to
paragraph (1), the objectives and legal basis for the issuance
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of the rule, and an approximate schedule for completing action
on any rule for which the agency has issued a general notice
of proposed rulemakingø, and¿;
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14
(3) a brief description of each sector of the North American
Industrial Classification System that is primarily affected by
any rule which the agency expects to propose or promulgate
which is likely to have a significant economic impact on a sub-
stantial number of small entities; and
ø(3)¿ (4) the name and telephone number of an agency offi-
cial knowledgeable concerning the items listed in paragraph
(1).
(b) Each regulatory flexibility agenda shall be transmitted to the
Chief Counsel for Advocacy of the Small Business Administration
for comment, if any.
ø(c) Each agency shall endeavor to provide notice of each regu-
latory flexibility agenda to small entities or their representatives
through direct notification or publication of the agenda in publica-
tions likely to be obtained by such small entities and shall invite
comments upon each subject area on the agenda.¿
(c) Not later than 3 days after the date on which an agency pub-
lishes a regulatory flexibility agenda in the Federal Register under
subsection (a)—
(1) such agency shall prominently display on the website of
such agency a plain language summary of the information con-
tained in the regulatory flexibility agenda;
(2) the Chief Counsel for Advocacy shall compile, by agency,
and prominently display on the website of the Small Business
Administration a plain language summary of each such regu-
latory flexibility agenda.
(d) Nothing in this section precludes an agency from considering
or acting on any matter not included in a regulatory flexibility
agenda, or requires an agency to consider or act on any matter list-
ed in such agenda.
* * * * * * *
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XVIII. MINORITY VIEWS
Section 602 of the Regulatory Flexibility Act (RFA) requires fed-
eral agencies to publish a regulatory flexibility agenda in the Fed-
eral Register during the months of April and October every year.
Each agency is required to list all rules it expects to propose or pro-
mulgate that are likely to have a significant economic impact on a
substantial number of small entities, (SEISNSE). The regulatory
agenda must include:
• A brief description of the subject area of any rule the agen-
cy expects to propose or promulgate that is likely to have a sig-
nificant economic impact on a substantial number of small en-
tities.
• A summary of the nature of each such rule under consider-
ation, the objectives and the legal basis for issuing each rule,
and an approximate schedule for completing action on any rule
for which an agency has issued a general notice of proposed
rulemaking.
• The name and telephone number of an agency official
knowledgeable about the rule.1
In addition, the regulatory flexibility agenda is published on Reg-
ulations.gov with links to all the relevant information.
The Majority is concerned that agencies are not taking the 602
requirements seriously, and only providing links on their websites
to regulations.gov website. Their bill would require (1) each federal
agency to post a plain language summary of the information con-
tained in the regulatory flexibility agenda prominently on their
websites, (2) The Office of Advocacy (Advocacy) to post the sum-
maries on its website, and (3) each federal agency to provide a brief
description of the sector, by NAICS code, that is affected by the
rule.
I have concerns with the requirement for each federal agency to
provide a brief description of the sector, by NAICS code. The regu-
latory flexibility agenda is a comprehensive collection of rules the
agencies are considering or currently working on. Agencies do not
always move forward with every rule. Requiring more detailed in-
formation at this pre-planning stage, like NAICS code, may lead
agencies to exclude rules from the regulatory flexibility agenda, un-
less they are certain to move forward with the rulemaking process.
This, in turn, would hurt small businesses because they would not
be able to weigh in during the initial stages.
Committee Democrats offered common-sense legislation to make
regulations and regulatory processes more accessible to small busi-
nesses. To that end, Mr. Thanedar and Ms. Chu each proposed
amendments in the nature of a substitute to this bill. Mr.
1 OFF. OF ADVOCACY, A Guide for Government Agencies: How to Comply with the Regulatory
Flexibility Act, U.S. SMALL BUS. ADMIN. (Aug. 2017), https://advocacy.sba.gov/wp-
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content/uploads/2019/06/How-to-Comply-with-the-RFA.pdf.
(15)
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16
Thanedar’s common sense amendment would require agencies to
publish their brief description of rules under consideration that
may have a significant economic impact on a substantial number
of small entities (SEISNSE) in plain language and require that
they publish the information on their website within five days of
the publication of the regulatory flexibility agenda.
Ms. Chu’s amendment would strike provisions in the text and re-
quire agencies to conduct comprehensive outreach to small busi-
nesses when developing their regulatory flexibility agendas. The
types of outreach include: community-based outreach; outreach to
organizations that work with small entities; agency field offices;
and the use of alternative platforms and media for engaging with
small entities. The Chu amendment will encourage agencies to get
out of the Capital beltway and connect directly with small busi-
nesses. This is a far better solution.
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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