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H.R. 4 (113th): Jobs for America Act

The text of the bill below is as of Sep 15, 2014 (Introduced).


I

113th CONGRESS

2d Session

H. R. 4

IN THE HOUSE OF REPRESENTATIVES

September 15, 2014

(for himself, Mr. Hastings of Washington, Mr. Issa, Mr. Goodlatte, and Mr. Hensarling) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, Oversight and Government Reform, Rules, the Judiciary, Financial Services, Agriculture, Natural Resources, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To make revisions to Federal law to improve the conditions necessary for economic growth and job creation, and for other purposes.

1.

Short title

This Act may be cited as the Jobs for America Act .

2.

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. PAYGO scorecard.

Division I—Ways and Means

Title I—Save American Workers

Sec. 101. Short title.

Sec. 102. Repeal of 30-hour threshold for classification as full-time employee for purposes of the employer mandate in the Patient Protection and Affordable Care Act and replacement with 40 hours.

Title II—Hire More Heroes

Sec. 201. Short title.

Sec. 202. Employees with health coverage under TRICARE or the Veterans Administration may be exempted from employer mandate under Patient Protection and Affordable Care Act.

Title III—American Research and Competitiveness

Sec. 301. Short title.

Sec. 302. Research credit simplified and made permanent.

Sec. 303. PAYGO Scorecard.

Title IV—America’s Small Business Tax Relief

Sec. 401. Short title.

Sec. 402. Expensing certain depreciable business assets for small business.

Sec. 403. Budgetary effects.

Title V—S Corporation Permanent Tax Relief

Sec. 501. Short title.

Sec. 502. Reduced recognition period for built-in gains of S corporations made permanent.

Sec. 503. Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property.

Sec. 504. Budgetary effects.

Title VI—Bonus depreciation modified and made permanent

Sec. 601. Bonus depreciation modified and made permanent.

Sec. 602. Budgetary effects.

Title VII—Repeal of medical device excise tax

Sec. 701. Repeal of medical device excise tax.

Sec. 702. Budgetary effects.

Division II—Financial Services

Title I—Small Business Capital Access and Job Preservation

Sec. 101. Short title.

Sec. 102. Registration and reporting exemptions relating to private equity funds advisors.

Title II—Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification

Sec. 201. Short title.

Sec. 202. Registration exemption for merger and acquisition brokers.

Sec. 203. Effective date.

Division III—Oversight

Subdivision A—Unfunded Mandates Information and Transparency

Sec. 101. Short title.

Sec. 102. Purpose.

Sec. 103. Providing for Congressional Budget Office studies on policies involving changes in conditions of grant aid.

Sec. 104. Clarifying the definition of direct costs to reflect Congressional Budget Office practice.

Sec. 105. Expanding the scope of reporting requirements to include regulations imposed by independent regulatory agencies.

Sec. 106. Amendments to replace Office of Management and Budget with Office of Information and Regulatory Affairs.

Sec. 107. Applying substantive point of order to private sector mandates.

Sec. 108. Regulatory process and principles.

Sec. 109. Expanding the scope of statements to accompany significant regulatory actions.

Sec. 110. Enhanced stakeholder consultation.

Sec. 111. New authorities and responsibilities for Office of Information and Regulatory Affairs.

Sec. 112. Retrospective analysis of existing Federal regulations.

Sec. 113. Expansion of judicial review.

Subdivision B—Achieving Less Excess in Regulation and Requiring Transparency

Sec. 100. Short title; table of contents.

Title I—All Economic Regulations are Transparent Act

Sec. 101. Short title.

Sec. 102. Office of Information and Regulatory Affairs publication of information relating to rules.

Title II—Regulatory Accountability Act

Sec. 201. Short title.

Sec. 202. Definitions.

Sec. 203. Rule making.

Sec. 204. Agency guidance; procedures to issue major guidance; presidential authority to issue guidelines for issuance of guidance.

Sec. 205. Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision.

Sec. 206. Actions reviewable.

Sec. 207. Scope of review.

Sec. 208. Added definition.

Sec. 209. Effective date.

Title III—Regulatory Flexibility Improvements Act

Sec. 301. Short title.

Sec. 302. Clarification and expansion of rules covered by the Regulatory Flexibility Act.

Sec. 303. Expansion of report of regulatory agenda.

Sec. 304. Requirements providing for more detailed analyses.

Sec. 305. Repeal of waiver and delay authority; additional powers of the Chief Counsel for Advocacy.

Sec. 306. Procedures for gathering comments.

Sec. 307. Periodic review of rules.

Sec. 308. Judicial review of compliance with the requirements of the Regulatory Flexibility Act available after publication of the final rule.

Sec. 309. Jurisdiction of court of appeals over rules implementing the Regulatory Flexibility Act.

Sec. 310. Establishment and approval of small business concern size standards by Chief Counsel for Advocacy.

Sec. 311. Clerical amendments.

Sec. 312. Agency preparation of guides.

Sec. 313. Comptroller General report.

Title IV—Sunshine for Regulatory Decrees and Settlements Act

Sec. 401. Short title.

Sec. 402. Definitions.

Sec. 403. Consent decree and settlement reform.

Sec. 404. Motions to modify consent decrees.

Sec. 405. Effective date.

Division IV—Judiciary

Title I—Regulations From the Executive in Need of Scrutiny

Sec. 101. Short title.

Sec. 102. Purpose.

Sec. 103. Congressional review of agency rulemaking.

Sec. 104. Budgetary effects of rules subject to section 802 of title 5, United States Code.

Sec. 105. Government Accountability Office study of rules.

Title II—Permanent Internet Tax Freedom

Sec. 201. Short title.

Sec. 202. Permanent moratorium on Internet access taxes and multiple and discriminatory taxes on electronic commerce.

Division V—Natural Resources

Subdivision A—Restoring Healthy Forests for Healthy Communities

Sec. 100. Short title.

Title I—Restoring the Commitment to Rural Counties and Schools

Sec. 101. Purposes.

Sec. 102. Definitions.

Sec. 103. Establishment of Forest Reserve Revenue Areas and annual volume requirements.

Sec. 104. Management of Forest Reserve Revenue Areas.

Sec. 105. Distribution of forest reserve revenues.

Sec. 106. Annual report.

Title II—Healthy Forest Management and Catastrophic Wildfire Prevention

Sec. 201. Purposes.

Sec. 202. Definitions.

Sec. 203. Hazardous fuel reduction projects and forest health projects in at-risk forests.

Sec. 204. Environmental analysis.

Sec. 205. State designation of high-risk areas of National Forest System and public lands.

Sec. 206. Use of hazardous fuels reduction or forest health projects for high-risk areas.

Sec. 207. Moratorium on use of prescribed fire in Mark Twain National Forest, Missouri, pending report.

Title III—Oregon and California Railroad Grant Lands Trust, Conservation, and Jobs

Sec. 301. Short title.

Sec. 302. Definitions.

Subtitle A—Trust, Conservation, and Jobs

Chapter 1—Creation and Terms of O Trust

Sec. 311. Creation of O Trust and designation of O Trust lands.

Sec. 312. Legal effect of O Trust and judicial review.

Sec. 313. Board of Trustees.

Sec. 314. Management of O Trust lands.

Sec. 315. Distribution of revenues from O Trust lands.

Sec. 316. Land exchange authority.

Sec. 317. Payments to the United States Treasury.

Chapter 2—Transfer of Certain Lands to Forest Service

Sec. 321. Transfer of certain Oregon and California Railroad Grant lands to Forest Service.

Sec. 322. Management of transferred lands by Forest Service.

Sec. 323. Management efficiencies and expedited land exchanges.

Sec. 324. Review panel and old growth protection.

Sec. 325. Uniqueness of old growth protection on Oregon and California Railroad Grant lands.

Chapter 3—Transition

Sec. 331. Transition period and operations.

Sec. 332. O Trust management capitalization.

Sec. 333. Existing Bureau of Land Management and Forest Service contracts.

Sec. 334. Protection of valid existing rights and access to non-Federal land.

Sec. 335. Repeal of superseded law relating to Oregon and California Railroad Grant lands.

Subtitle B—Coos Bay Wagon Roads

Sec. 341. Transfer of management authority over certain Coos Bay Wagon Road Grant lands to Coos County, Oregon.

Sec. 342. Transfer of certain Coos Bay Wagon Road Grant lands to Forest Service.

Sec. 343. Land exchange authority.

Subtitle C—Oregon Treasures

Chapter 1—Wilderness Areas

Sec. 351. Designation of Devil's Staircase Wilderness.

Sec. 352. Expansion of Wild Rogue Wilderness Area.

Chapter 2—Wild and Scenic River Designated and Related Protections

Sec. 361. Wild and scenic river designations, Molalla River.

Sec. 362. Wild and Scenic Rivers Act technical corrections related to Chetco River.

Sec. 363. Wild and scenic river designations, Wasson Creek and Franklin Creek.

Sec. 364. Wild and scenic river designations, Rogue River area.

Sec. 365. Additional protections for Rogue River tributaries.

Chapter 3—Additional Protections

Sec. 371. Limitations on land acquisition.

Sec. 372. Overflights.

Sec. 373. Buffer zones.

Sec. 374. Prevention of wildfires.

Sec. 375. Limitation on designation of certain lands in Oregon.

Chapter 4—Effective Date

Sec. 381. Effective date.

Subtitle D—Tribal Trust Lands

Part 1—Council Creek Land Conveyance

Sec. 391. Definitions.

Sec. 392. Conveyance.

Sec. 393. Map and legal description.

Sec. 394. Administration.

Part 2—Oregon Coastal Land Conveyance

Sec. 395. Definitions.

Sec. 396. Conveyance.

Sec. 397. Map and legal description.

Sec. 398. Administration.

Title IV—Community Forest Management Demonstration

Sec. 401. Purpose and definitions.

Sec. 402. Establishment of community forest demonstration areas.

Sec. 403. Advisory committee.

Sec. 404. Management of community forest demonstration areas.

Sec. 405. Distribution of funds from community forest demonstration area.

Sec. 406. Initial funding authority.

Sec. 407. Payments to United States Treasury.

Sec. 408. Termination of community forest demonstration area.

Title V—Reauthorization and Amendment of Existing Authorities and Other Matters

Sec. 501. Extension of Secure Rural Schools and Community Self-Determination Act of 2000 pending full operation of Forest Reserve Revenue Areas.

Sec. 502. Restoring original calculation method for 25-percent payments.

Sec. 503. Forest Service and Bureau of Land Management good-neighbor cooperation with States to reduce wildfire risks.

Sec. 504. Treatment as supplemental funding.

Sec. 505. Definition of fire suppression to include certain related activities.

Sec. 506. Prohibition on certain actions regarding Forest Service roads and trails.

Subdivision B—National Strategic and Critical Minerals Production

Sec. 100. Short title.

Sec. 100A. Findings.

Sec. 100B. Definitions.

Title I—Development of Domestic Sources of Strategic and Critical Minerals

Sec. 101. Improving development of strategic and critical minerals.

Sec. 102. Responsibilities of the lead agency.

Sec. 103. Conservation of the resource.

Sec. 104. Federal register process for mineral exploration and mining projects.

Title II—Judicial review of agency actions relating to Exploration and Mine Permits

Sec. 201. Definitions for title.

Sec. 202. Timely filings.

Sec. 203. Right to intervene.

Sec. 204. Expedition in hearing and determining the action.

Sec. 205. Limitation on prospective relief.

Sec. 206. Limitation on attorneys’ fees.

Title III—Miscellaneous Provisions

Sec. 301. Secretarial order not affected.

3.

PAYGO scorecard

The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

I

Ways and Means

I

Save American Workers

101.

Short title

This title may be cited as the Save American Workers Act of 2014 .

102.

Repeal of 30-hour threshold for classification as full-time employee for purposes of the employer mandate in the Patient Protection and Affordable Care Act and replacement with 40 hours

(a)

Full-Time equivalents

Paragraph (2) of section 4980H(c) of the Internal Revenue Code of 1986 is amended—

(1)

by repealing subparagraph (E), and

(2)

by inserting after subparagraph (D) the following new subparagraph:

(E)

Full-time equivalents treated as full-time employees

Solely for purposes of determining whether an employer is an applicable large employer under this paragraph, an employer shall, in addition to the number of full-time employees for any month otherwise determined, include for such month a number of full-time employees determined by dividing the aggregate number of hours of service of employees who are not full-time employees for the month by 174.

.

(b)

Full-Time employees

Paragraph (4) of section 4980H(c) of the Internal Revenue Code of 1986 is amended—

(1)

by repealing subparagraph (A), and

(2)

by inserting before subparagraph (B) the following new subparagraph:

(A)

In general

The term full-time employee means, with respect to any month, an employee who is employed on average at least 40 hours of service per week.

.

(c)

Effective date

The amendments made by this section shall apply to months beginning after December 31, 2013.

II

Hire More Heroes

201.

Short title

This title may be cited as the Hire More Heroes Act of 2014 .

202.

Employees with health coverage under TRICARE or the Veterans Administration may be exempted from employer mandate under Patient Protection and Affordable Care Act

(a)

In general

Section 4980H(c)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(F)

Exemption for health coverage under TRICARE or the Veterans Administration

Solely for purposes of determining whether an employer is an applicable large employer under this paragraph for any month, an employer may elect not to take into account for a month as an employee any individual who, for such month, has medical coverage under—

(i)

chapter 55 of title 10, United States Code, including coverage under the TRICARE program, or

(ii)

under a health care program under chapter 17 or 18 of title 38, United States Code, as determined by the Secretary of Veterans Affairs, in coordination with the Secretary of Health and Human Services and the Secretary.

.

(b)

Effective date

The amendment made by subsection (a) shall apply to months beginning after December 31, 2013.

III

American Research and Competitiveness

301.

Short title

This title may be cited as the American Research and Competitiveness Act of 2014 .

302.

Research credit simplified and made permanent

(a)

In general

Subsection (a) of section 41 of the Internal Revenue Code of 1986 is amended to read as follows:

(a)

In general

For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to the sum of—

(1)

20 percent of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined,

(2)

20 percent of so much of the basic research payments for the taxable year as exceeds 50 percent of the average basic research payments for the 3 taxable years preceding the taxable year for which the credit is being determined, plus

(3)

20 percent of the amounts paid or incurred by the taxpayer in carrying on any trade or business of the taxpayer during the taxable year (including as contributions) to an energy research consortium for energy research.

.

(b)

Repeal of termination

Section 41 of such Code is amended by striking subsection (h).

(c)

Conforming amendments

(1)

Subsection (c) of section 41 of such Code is amended to read as follows:

(c)

Determination of average research expenses for prior years

(1)

Special rule in case of no qualified research expenditures in any of 3 preceding taxable years

In any case in which the taxpayer has no qualified research expenses in any one of the 3 taxable years preceding the taxable year for which the credit is being determined, the amount determined under subsection (a)(1) for such taxable year shall be equal to 10 percent of the qualified research expenses for the taxable year.

(2)

Consistent treatment of expenses

(A)

In general

Notwithstanding whether the period for filing a claim for credit or refund has expired for any taxable year taken into account in determining the average qualified research expenses, or average basic research payments, taken into account under subsection (a), the qualified research expenses and basic research payments taken into account in determining such averages shall be determined on a basis consistent with the determination of qualified research expenses and basic research payments, respectively, for the credit year.

(B)

Prevention of distortions

The Secretary may prescribe regulations to prevent distortions in calculating a taxpayer’s qualified research expenses or basic research payments caused by a change in accounting methods used by such taxpayer between the current year and a year taken into account in determining the average qualified research expenses or average basic research payments taken into account under subsection (a).

.

(2)

Section 41(e) of such Code is amended—

(A)

by striking all that precedes paragraph (6) and inserting the following:

(e)

Basic research payments

For purposes of this section—

(1)

In general

The term basic research payment means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if—

(A)

such payment is pursuant to a written agreement between such corporation and such qualified organization, and

(B)

such basic research is to be performed by such qualified organization.

(2)

Exception to requirement that research be performed by the organization

In the case of a qualified organization described in subparagraph (C) or (D) of paragraph (3), subparagraph (B) of paragraph (1) shall not apply.

,

(B)

by redesignating paragraphs (6) and (7) as paragraphs (3) and (4), respectively, and

(C)

in paragraph (4) as so redesignated, by striking subparagraphs (B) and (C) and by redesignating subparagraphs (D) and (E) as subparagraphs (B) and (C), respectively.

(3)

Section 41(f)(3) of such Code is amended—

(A)
(i)

by striking , and the gross receipts in subparagraph (A)(i) and all that follows through determined under clause (iii),

(ii)

by striking clause (iii) of subparagraph (A) and redesignating clauses (iv), (v), and (vi), thereof, as clauses (iii), (iv), and (v), respectively,

(iii)

by striking and (iv) each place it appears in subparagraph (A)(iv) (as so redesignated) and inserting and (iii),

(iv)

by striking subclause (IV) of subparagraph (A)(iv) (as so redesignated), by striking , and at the end of subparagraph (A)(iv)(III) (as so redesignated) and inserting a period, and by adding and at the end of subparagraph (A)(iv)(II) (as so redesignated),

(v)

by striking (A)(vi) in subparagraph (B) and inserting (A)(v), and

(vi)

by striking (A)(iv)(II) in subparagraph (B)(i)(II) and inserting (A)(iii)(II),

(B)

by striking , and the gross receipts of the predecessor, in subparagraph (A)(iv)(II) (as so redesignated),

(C)

by striking , and the gross receipts of, in subparagraph (B),

(D)

by striking , or gross receipts of, in subparagraph (B)(i)(I), and

(E)

by striking subparagraph (C).

(4)

Section 45C(b)(1) of such Code is amended by striking subparagraph (D).

(d)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2013.

(2)

Subsection (b)

The amendment made by subsection (b) shall apply to amounts paid or incurred after December 31, 2013.

303.

PAYGO Scorecard

(a)

Paygo Scorecard

The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate Paygo Scorecard

The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

IV

America’s Small Business Tax Relief

401.

Short title

This title may be cited as the America’s Small Business Tax Relief Act of 2014 .

402.

Expensing certain depreciable business assets for small business

(a)

In general

(1)

Dollar limitation

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 is amended by striking shall not exceed— and all that follows and inserting shall not exceed $500,000..

(2)

Reduction in limitation

Paragraph (2) of section 179(b) of such Code is amended by striking exceeds— and all that follows and inserting exceeds $2,000,000..

(b)

Computer software

Clause (ii) of section 179(d)(1)(A) of such Code is amended by striking , to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before 2014 and inserting and to which section 167 applies.

(c)

Election

Paragraph (2) of section 179(c) of such Code is amended—

(1)

by striking may not be revoked and all that follows through and before 2014, and

(2)

by striking irrevocable in the heading thereof.

(d)

Air conditioning and heating units

Paragraph (1) of section 179(d) of such Code is amended by striking and shall not include air conditioning or heating units.

(e)

Qualified real property

Subsection (f) of section 179 of such Code is amended—

(1)

by striking beginning in 2010, 2011, 2012, or 2013 in paragraph (1), and

(2)

by striking paragraphs (3) and (4).

(f)

Inflation adjustment

Subsection (b) of section 179 of such Code is amended by adding at the end the following new paragraph:

(6)

Inflation adjustment

(A)

In general

In the case of any taxable year beginning after 2014, the dollar amounts in paragraphs (1) and (2) shall each be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting calendar year 2013 for calendar year 1992 in subparagraph (B) thereof.

(B)

Rounding

The amount of any increase under subparagraph (A) shall be rounded to the nearest multiple of $10,000.

.

(g)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

403.

Budgetary effects

(a)

Statutory Pay-As-You-Go Scorecards

The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate PAYGO Scorecards

The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

V

S Corporation Permanent Tax Relief

501.

Short title

This title may be cited as the S Corporation Permanent Tax Relief Act of 2014 .

502.

Reduced recognition period for built-in gains of S corporations made permanent

(a)

In general

Paragraph (7) of section 1374(d) of the Internal Revenue Code of 1986 is amended to read as follows:

(7)

Recognition period

(A)

In general

The term recognition period means the 5-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation. For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e), the preceding sentence shall be applied without regard to the phrase 5-year.

(B)

Installment sales

If an S corporation sells an asset and reports the income from the sale using the installment method under section 453, the treatment of all payments received shall be governed by the provisions of this paragraph applicable to the taxable year in which such sale was made.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2013.

503.

Permanent rule regarding basis adjustment to stock of S corporations making charitable contributions of property

(a)

In general

Section 1367(a)(2) of the Internal Revenue Code of 1986 is amended by striking the last sentence.

(b)

Effective date

The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2013.

504.

Budgetary effects

(a)

Statutory Pay-As-You-Go Scorecards

The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate PAYGO Scorecards

The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

VI

Bonus depreciation modified and made permanent

601.

Bonus depreciation modified and made permanent

(a)

Made permanent; inclusion of qualified retail improvement property

Section 168(k)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

(2)

Qualified property

For purposes of this subsection—

(A)

In general

The term qualified property means property—

(i)
(I)

to which this section applies which has a recovery period of 20 years or less,

(II)

which is computer software (as defined in section 167(f)(1)(B)) for which a deduction is allowable under section 167(a) without regard to this subsection,

(III)

which is water utility property,

(IV)

which is qualified leasehold improvement property, or

(V)

which is qualified retail improvement property, and

(ii)

the original use of which commences with the taxpayer.

(B)

Exception for alternative depreciation property

The term qualified property shall not include any property to which the alternative depreciation system under subsection (g) applies, determined—

(i)

without regard to paragraph (7) of subsection (g) (relating to election to have system apply), and

(ii)

after application of section 280F(b) (relating to listed property with limited business use).

(C)

Special rules

(i)

Sale-leasebacks

For purposes of clause (ii) and subparagraph (A)(ii), if property is—

(I)

originally placed in service by a person, and

(II)

sold and leased back by such person within 3 months after the date such property was originally placed in service,

such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in subclause (II).
(ii)

Syndication

For purposes of subparagraph (A)(ii), if—

(I)

property is originally placed in service by the lessor of such property,

(II)

such property is sold by such lessor or any subsequent purchaser within 3 months after the date such property was originally placed in service (or, in the case of multiple units of property subject to the same lease, within 3 months after the date the final unit is placed in service, so long as the period between the time the first unit is placed in service and the time the last unit is placed in service does not exceed 12 months), and

(III)

the user of such property after the last sale during such 3-month period remains the same as when such property was originally placed in service,

such property shall be treated as originally placed in service not earlier than the date of such last sale.
(D)

Coordination with section 280F

For purposes of section 280F

(i)

Automobiles

In the case of a passenger automobile (as defined in section 280F(d)(5)) which is qualified property, the Secretary shall increase the limitation under section 280F(a)(1)(A)(i) by $8,000.

(ii)

Listed property

The deduction allowable under paragraph (1) shall be taken into account in computing any recapture amount under section 280F(b)(2).

(iii)

Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2014, the $8,000 amount in clause (i) shall be increased by an amount equal to—

(I)

such dollar amount, multiplied by

(II)

the automobile price inflation adjustment determined under section 280F(d)(7)(B)(i) for the calendar year in which such taxable year begins by substituting 2013 for 1987 in subclause (II) thereof.

If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.
(E)

Deduction allowed in computing minimum tax

For purposes of determining alternative minimum taxable income under section 55, the deduction under section 167 for qualified property shall be determined without regard to any adjustment under section 56.

.

(b)

Expansion of election to accelerate amt credits in lieu of bonus depreciation

Section 168(k)(4) of such Code is amended to read as follows:

(4)

Election to accelerate amt credits in lieu of bonus depreciation

(A)

In general

If a corporation elects to have this paragraph apply for any taxable year—

(i)

paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not apply for such taxable year,

(ii)

the applicable depreciation method used under this section with respect to any qualified property shall be the straight line method, and

(iii)

the limitation imposed by section 53(c) for such taxable year shall be increased by the bonus depreciation amount which is determined for such taxable year under subparagraph (B).

(B)

Bonus depreciation amount

For purposes of this paragraph—

(i)

In general

The bonus depreciation amount for any taxable year is an amount equal to 20 percent of the excess (if any) of—

(I)

the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph (1) applied to all such property, over

(II)

the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph (1) did not apply to any such property.

The aggregate amounts determined under subclauses (I) and (II) shall be determined without regard to any election made under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without regard to subparagraph (A)(ii).
(ii)

Limitation

The bonus depreciation amount for any taxable year shall not exceed the lesser of—

(I)

50 percent of the minimum tax credit under section 53(b) for the first taxable year ending after December 31, 2013, or

(II)

the minimum tax credit under section 53(b) for such taxable year determined by taking into account only the adjusted net minimum tax for taxable years ending before January 1, 2014 (determined by treating credits as allowed on a first-in, first-out basis).

(iii)

Aggregation rule

All corporations which are treated as a single employer under section 52(a) shall be treated—

(I)

as 1 taxpayer for purposes of this paragraph, and

(II)

as having elected the application of this paragraph if any such corporation so elects.

(C)

Credit refundable

For purposes of section 6401(b), the aggregate increase in the credits allowable under part IV of subchapter A for any taxable year resulting from the application of this paragraph shall be treated as allowed under subpart C of such part (and not any other subpart).

(D)

Other rules

(i)

Election

Any election under this paragraph may be revoked only with the consent of the Secretary.

(ii)

Partnerships with electing partners

In the case of a corporation which is a partner in a partnership and which makes an election under subparagraph (A) for the taxable year, for purposes of determining such corporation’s distributive share of partnership items under section 702 for such taxable year—

(I)

paragraphs (1)(A), (2)(D)(i), and (5)(A)(i) shall not apply, and

(II)

the applicable depreciation method used under this section with respect to any qualified property shall be the straight line method.

(iii)

Certain partnerships

In the case of a partnership in which more than 50 percent of the capital and profits interests are owned (directly or indirectly) at all times during the taxable year by 1 corporation (or by corporations treated as 1 taxpayer under subparagraph (B)(iii)), each partner shall compute its bonus depreciation amount under clause (i) of subparagraph (B) by taking into account its distributive share of the amounts determined by the partnership under subclauses (I) and (II) of such clause for the taxable year of the partnership ending with or within the taxable year of the partner.

.

(c)

Special rules for trees and vines bearing fruits and nuts

Section 168(k) of such Code is amended—

(1)

by striking paragraph (5), and

(2)

by inserting after paragraph (4) the following new paragraph:

(5)

Special rules for trees and vines bearing fruits and nuts

(A)

In general

In the case of any tree or vine bearing fruits or nuts which is planted, or is grafted to a plant that has already been planted, by the taxpayer in the ordinary course of the taxpayer’s farming business (as defined in section 263A(e)(4))—

(i)

a depreciation deduction equal to 50 percent of the adjusted basis of such tree or vine shall be allowed under section 167(a) for the taxable year in which such tree or vine is so planted or grafted, and

(ii)

the adjusted basis of such tree or vine shall be reduced by the amount of such deduction.

(B)

Election out

If a taxpayer makes an election under this subparagraph for any taxable year, this paragraph shall not apply to any tree or vine planted or grafted during such taxable year. An election under this subparagraph may be revoked only with the consent of the Secretary.

(C)

Additional depreciation may be claimed only once

If this paragraph applies to any tree or vine, such tree or vine shall not be treated as qualified property in the taxable year in which placed in service.

(D)

Coordination with election to accelerate AMT credits

If a corporation makes an election under paragraph (4) for any taxable year, the amount under paragraph (4)(B)(i)(I) for such taxable year shall be increased by the amount determined under subparagraph (A)(i) for such taxable year.

(E)

Deduction allowed in computing minimum tax

Rules similar to the rules of paragraph (2)(E) shall apply for purposes of this paragraph.

.

(d)

Conforming amendments

(1)

Section 168(e)(8) of such Code is amended by striking subparagraph (D).

(2)

Section 168(k) of such Code is amended by adding at the end the following new paragraph:

(6)

Election out

If a taxpayer makes an election under this paragraph with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service (or, in the case of paragraph (5), planted or grafted) during such taxable year. An election under this paragraph may be revoked only with the consent of the Secretary.

.

(3)

Section 168(l)(5) of such Code is amended by striking section 168(k)(2)(G) and inserting section 168(k)(2)(E) .

(4)

Section 263A(c) of such Code is amended by adding at the end the following new paragraph:

(7)

Coordination with section 168(k)(5)

This section shall not apply to any amount allowable as a deduction by reason of section 168(k)(5) (relating to special rules for trees and vines bearing fruits and nuts).

.

(5)

Section 460(c)(6)(B) of such Code is amended by striking which— and all that follows and inserting which has a recovery period of 7 years or less..

(6)

Section 168(k) of such Code is amended by striking acquired after December 31, 2007, and before January 1, 2014 in the heading thereof.

(e)

Effective dates

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2013.

(2)

Expansion of election to accelerate amt credits in lieu of bonus depreciation

(A)

In general

The amendment made by subsection (b) (other than so much of such amendment as relates to section 168(k)(4)(D)(iii) of such Code, as added by such amendment) shall apply to taxable years ending after December 31, 2013.

(B)

Transitional rule

In the case of a taxable year beginning before January 1, 2014, and ending after December 31, 2013, the bonus depreciation amount determined under section 168(k)(4) of such Code for such year shall be the sum of—

(i)

such amount determined without regard to the amendments made by this section and—

(I)

by taking into account only property placed in service before January 1, 2014, and

(II)

by multiplying the limitation under section 168(k)(4)(C)(ii) of such Code (determined without regard to the amendments made by this section) by a fraction the numerator of which is the number of days in the taxable year before January 1, 2014, and the denominator of which is the number of days in the taxable year, and

(ii)

such amount determined after taking into account the amendments made by this section and—

(I)

by taking into account only property placed in service after December 31, 2013, and

(II)

by multiplying the limitation under section 168(k)(4)(B)(ii) of such Code (as amended by this section) by a fraction the numerator of which is the number of days in the taxable year after December 31, 2013, and the denominator of which is the number of days in the taxable year.

(3)

Special rules for certain trees and vines

The amendment made by subsection (c)(2) shall apply to trees and vines planted or grafted after December 31, 2013.

602.

Budgetary effects

(a)

Statutory Pay-As-You-Go Scorecards

The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate PAYGO Scorecards

The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

VII

Repeal of medical device excise tax

701.

Repeal of medical device excise tax

(a)

In general

Chapter 32 of the Internal Revenue Code of 1986 is amended by striking subchapter E.

(b)

Conforming amendments

(1)

Subsection (a) of section 4221 of such Code is amended by striking the last sentence.

(2)

Paragraph (2) of section 6416(b) of such Code is amended by striking the last sentence.

(3)

The table of subchapters for chapter 32 of such Code is amended by striking the item relating to subchapter E.

(c)

Effective date

The amendments made by this section shall apply to sales after December 31, 2012.

702.

Budgetary effects

(a)

Statutory Pay-As-You-Go Scorecards

The budgetary effects of this title shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate PAYGO Scorecards

The budgetary effects of this title shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

II

Financial Services

I

Small Business Capital Access and Job Preservation

101.

Short title

This title may be cited as the Small Business Capital Access and Job Preservation Act .

102.

Registration and reporting exemptions relating to private equity funds advisors

Section 203 of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b–3 ) is amended by adding at the end the following:

(o)

Exemption of and reporting requirements by private equity funds advisors

(1)

In general

Except as provided in this subsection, no investment adviser shall be subject to the registration or reporting requirements of this title with respect to the provision of investment advice relating to a private equity fund or funds, provided that each such fund has not borrowed and does not have outstanding a principal amount in excess of twice its invested capital commitments.

(2)

Maintenance of records and access by Commission

Not later than 6 months after the date of enactment of this subsection, the Commission shall issue final rules—

(A)

to require investment advisers described in paragraph (1) to maintain such records and provide to the Commission such annual or other reports as the Commission may require taking into account fund size, governance, investment strategy, risk, and other factors, as the Commission determines necessary and appropriate in the public interest and for the protection of investors; and

(B)

to define the term private equity fund for purposes of this subsection.

.

II

Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification

201.

Short title

This title may be cited as the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2014 .

202.

Registration exemption for merger and acquisition brokers

Section 15(b) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78o(b) ) is amended by adding at the end the following:

(13)

Registration exemption for merger and acquisition brokers

(A)

In general

Except as provided in subparagraph (B), an M broker shall be exempt from registration under this section.

(B)

Excluded activities

An M broker is not exempt from registration under this paragraph if such broker does any of the following:

(i)

Directly or indirectly, in connection with the transfer of ownership of an eligible privately held company, receives, holds, transmits, or has custody of the funds or securities to be exchanged by the parties to the transaction.

(ii)

Engages on behalf of an issuer in a public offering of any class of securities that is registered, or is required to be registered, with the Commission under section 12 or with respect to which the issuer files, or is required to file, periodic information, documents, and reports under subsection (d).

(C)

Rule of construction

Nothing in this paragraph shall be construed to limit any other authority of the Commission to exempt any person, or any class of persons, from any provision of this title, or from any provision of any rule or regulation thereunder.

(D)

Definitions

In this paragraph:

(i)

Control

The term control means the power, directly or indirectly, to direct the management or policies of a company, whether through ownership of securities, by contract, or otherwise. There is a presumption of control for any person who—

(I)

is a director, general partner, member or manager of a limited liability company, or officer exercising executive responsibility (or has similar status or functions);

(II)

has the right to vote 20 percent or more of a class of voting securities or the power to sell or direct the sale of 20 percent or more of a class of voting securities; or

(III)

in the case of a partnership or limited liability company, has the right to receive upon dissolution, or has contributed, 20 percent or more of the capital.

(ii)

Eligible privately held company

The term eligible privately held company means a company that meets both of the following conditions:

(I)

The company does not have any class of securities registered, or required to be registered, with the Commission under section 12 or with respect to which the company files, or is required to file, periodic information, documents, and reports under subsection (d).

(II)

In the fiscal year ending immediately before the fiscal year in which the services of the M broker are initially engaged with respect to the securities transaction, the company meets either or both of the following conditions (determined in accordance with the historical financial accounting records of the company):

(aa)

The earnings of the company before interest, taxes, depreciation, and amortization are less than $25,000,000.

(bb)

The gross revenues of the company are less than $250,000,000.

(iii)

M broker

The term M broker means a broker, and any person associated with a broker, engaged in the business of effecting securities transactions solely in connection with the transfer of ownership of an eligible privately held company, regardless of whether the broker acts on behalf of a seller or buyer, through the purchase, sale, exchange, issuance, repurchase, or redemption of, or a business combination involving, securities or assets of the eligible privately held company, if the broker reasonably believes that—

(I)

upon consummation of the transaction, any person acquiring securities or assets of the eligible privately held company, acting alone or in concert, will control and, directly or indirectly, will be active in the management of the eligible privately held company or the business conducted with the assets of the eligible privately held company; and

(II)

if any person is offered securities in exchange for securities or assets of the eligible privately held company, such person will, prior to becoming legally bound to consummate the transaction, receive or have reasonable access to the most recent year-end balance sheet, income statement, statement of changes in financial position, and statement of owner’s equity of the issuer of the securities offered in exchange, and, if the financial statements of the issuer are audited, the related report of the independent auditor, a balance sheet dated not more than 120 days before the date of the offer, and information pertaining to the management, business, results of operations for the period covered by the foregoing financial statements, and material loss contingencies of the issuer.

(E)

Inflation adjustment

(i)

In general

On the date that is 5 years after the date of the enactment of the Small Business Mergers, Acquisitions, Sales, and Brokerage Simplification Act of 2014 , and every 5 years thereafter, each dollar amount in subparagraph (D)(ii)(II) shall be adjusted by—

(I)

dividing the annual value of the Employment Cost Index For Wages and Salaries, Private Industry Workers (or any successor index), as published by the Bureau of Labor Statistics, for the calendar year preceding the calendar year in which the adjustment is being made by the annual value of such index (or successor) for the calendar year ending December 31, 2012; and

(II)

multiplying such dollar amount by the quotient obtained under subclause (I).

(ii)

Rounding

Each dollar amount determined under clause (i) shall be rounded to the nearest multiple of $100,000.

.

203.

Effective date

This title and any amendment made by this title shall take effect on the date that is 90 days after the date of the enactment of this Act.

III

Oversight

A

Unfunded Mandates Information and Transparency

101.

Short title

This subdivision may be cited as the Unfunded Mandates Information and Transparency Act of 2014 .

102.

Purpose

The purpose of this title is—

(1)

to improve the quality of the deliberations of Congress with respect to proposed Federal mandates by—

(A)

providing Congress and the public with more complete information about the effects of such mandates; and

(B)

ensuring that Congress acts on such mandates only after focused deliberation on their effects; and

(2)

to enhance the ability of Congress and the public to identify Federal mandates that may impose undue harm on consumers, workers, employers, small businesses, and State, local, and tribal governments.

103.

Providing for Congressional Budget Office studies on policies involving changes in conditions of grant aid

Section 202(g) of the Congressional Budget Act of 1974 ( 2 U.S.C. 602(g) ) is amended by adding at the end the following new paragraph:

(3)

Additional studies

At the request of any Chairman or ranking member of the minority of a Committee of the Senate or the House of Representatives, the Director shall conduct an assessment comparing the authorized level of funding in a bill or resolution to the prospective costs of carrying out any changes to a condition of Federal assistance being imposed on State, local, or tribal governments participating in the Federal assistance program concerned or, in the case of a bill or joint resolution that authorizes such sums as are necessary, an assessment of an estimated level of funding compared to such costs.

.

104.

Clarifying the definition of direct costs to reflect Congressional Budget Office practice

Section 421(3) of the Congressional Budget Act of 1974 ( 2 U.S.C. 658(3)(A)(i) ) is amended—

(1)

in subparagraph (A)(i), by inserting incur or before be required; and

(2)

in subparagraph (B), by inserting after to spend the following: or could forgo in profits, including costs passed on to consumers or other entities taking into account, to the extent practicable, behavioral changes,.

105.

Expanding the scope of reporting requirements to include regulations imposed by independent regulatory agencies

Paragraph (1) of section 421 of the Congressional Budget Act of 1974 ( 2 U.S.C. 658 ) is amended by striking , but does not include independent regulatory agencies and inserting , except it does not include the Board of Governors of the Federal Reserve System or the Federal Open Market Committee .

106.

Amendments to replace Office of Management and Budget with Office of Information and Regulatory Affairs

The Unfunded Mandates Reform Act of 1995 ( Public Law 104–4 ; 2 U.S.C. 1511 et seq. ) is amended—

(1)

in section 103(c) ( 2 U.S.C. 1511(c) )

(A)

in the subsection heading, by striking Office of Management and Budget and inserting Office of Information and Regulatory Affairs ; and

(B)

by striking Director of the Office of Management and Budget and inserting Administrator of the Office of Information and Regulatory Affairs ;

(2)

in section 205(c) ( 2 U.S.C. 1535(c) )

(A)

in the subsection heading, by striking OMB ; and

(B)

by striking Director of the Office of Management and Budget and inserting Administrator of the Office of Information and Regulatory Affairs ; and

(3)

in section 206 ( 2 U.S.C. 1536 ), by striking Director of the Office of Management and Budget and inserting Administrator of the Office of Information and Regulatory Affairs .

107.

Applying substantive point of order to private sector mandates

Section 425(a)(2) of the Congressional Budget Act of 1974 ( 2 U.S.C. 658d(a)(2) ) is amended—

(1)

by striking Federal intergovernmental mandates and inserting Federal mandates; and

(2)

by inserting or 424(b)(1) after section 424(a)(1) .

108.

Regulatory process and principles

Section 201 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1531 ) is amended to read as follows:

201.

Regulatory process and principles

(a)

In general

Each agency shall, unless otherwise expressly prohibited by law, assess the effects of Federal regulatory actions on State, local, and tribal governments and the private sector (other than to the extent that such regulatory actions incorporate requirements specifically set forth in law) in accordance with the following principles:

(1)

Each agency shall identify the problem that it intends to address (including, if applicable, the failures of private markets or public institutions that warrant new agency action) as well as assess the significance of that problem.

(2)

Each agency shall examine whether existing regulations (or other law) have created, or contributed to, the problem that a new regulation is intended to correct and whether those regulations (or other law) should be modified to achieve the intended goal of regulation more effectively.

(3)

Each agency shall identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior, such as user fees or marketable permits, or providing information upon which choices can be made by the public.

(4)

If an agency determines that a regulation is the best available method of achieving the regulatory objective, it shall design its regulations in the most cost-effective manner to achieve the regulatory objective. In doing so, each agency shall consider incentives for innovation, consistency, predictability, the costs of enforcement and compliance (to the government, regulated entities, and the public), flexibility, distributive impacts, and equity.

(5)

Each agency shall assess both the costs and the benefits of the intended regulation and, recognizing that some costs and benefits are difficult to quantify, propose or adopt a regulation, unless expressly prohibited by law, only upon a reasoned determination that the benefits of the intended regulation justify its costs.

(6)

Each agency shall base its decisions on the best reasonably obtainable scientific, technical, economic, and other information concerning the need for, and consequences of, the intended regulation.

(7)

Each agency shall identify and assess alternative forms of regulation and shall, to the extent feasible, specify performance objectives, rather than specifying the behavior or manner of compliance that regulated entities must adopt.

(8)

Each agency shall avoid regulations that are inconsistent, incompatible, or duplicative with its other regulations or those of other Federal agencies.

(9)

Each agency shall tailor its regulations to minimize the costs of the cumulative impact of regulations.

(10)

Each agency shall draft its regulations to be simple and easy to understand, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty.

(b)

Regulatory action defined

In this section, the term regulatory action means any substantive action by an agency (normally published in the Federal Register) that promulgates or is expected to lead to the promulgation of a final rule or regulation, including advance notices of proposed rulemaking and notices of proposed rulemaking.

.

109.

Expanding the scope of statements to accompany significant regulatory actions

(a)

In general

Subsection (a) of section 202 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1532 ) is amended to read as follows:

(a)

In general

Unless otherwise expressly prohibited by law, before promulgating any general notice of proposed rulemaking or any final rule, or within six months after promulgating any final rule that was not preceded by a general notice of proposed rulemaking, if the proposed rulemaking or final rule includes a Federal mandate that may result in an annual effect on State, local, or tribal governments, or to the private sector, in the aggregate of $100,000,000 or more in any 1 year, the agency shall prepare a written statement containing the following:

(1)

The text of the draft proposed rulemaking or final rule, together with a reasonably detailed description of the need for the proposed rulemaking or final rule and an explanation of how the proposed rulemaking or final rule will meet that need.

(2)

An assessment of the potential costs and benefits of the proposed rulemaking or final rule, including an explanation of the manner in which the proposed rulemaking or final rule is consistent with a statutory requirement and avoids undue interference with State, local, and tribal governments in the exercise of their governmental functions.

(3)

A qualitative and quantitative assessment, including the underlying analysis, of benefits anticipated from the proposed rulemaking or final rule (such as the promotion of the efficient functioning of the economy and private markets, the enhancement of health and safety, the protection of the natural environment, and the elimination or reduction of discrimination or bias).

(4)

A qualitative and quantitative assessment, including the underlying analysis, of costs anticipated from the proposed rulemaking or final rule (such as the direct costs both to the Government in administering the final rule and to businesses and others in complying with the final rule, and any adverse effects on the efficient functioning of the economy, private markets (including productivity, employment, and international competitiveness), health, safety, and the natural environment).

(5)

Estimates by the agency, if and to the extent that the agency determines that accurate estimates are reasonably feasible, of—

(A)

the future compliance costs of the Federal mandate; and

(B)

any disproportionate budgetary effects of the Federal mandate upon any particular regions of the Nation or particular State, local, or tribal governments, urban or rural or other types of communities, or particular segments of the private sector.

(6)
(A)

A detailed description of the extent of the agency’s prior consultation with the private sector and elected representatives (under section 204) of the affected State, local, and tribal governments.

(B)

A detailed summary of the comments and concerns that were presented by the private sector and State, local, or tribal governments either orally or in writing to the agency.

(C)

A detailed summary of the agency’s evaluation of those comments and concerns.

(7)

A detailed summary of how the agency complied with each of the regulatory principles described in section 201.

.

(b)

Requirement for detailed summary

Subsection (b) of section 202 of such Act is amended by inserting detailed before summary.

110.

Enhanced stakeholder consultation

Section 204 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1534 ) is amended—

(1)

in the section heading, by inserting and private sector before input ;

(2)

in subsection (a)—

(A)

by inserting , and impacted parties within the private sector (including small business), after on their behalf);

(B)

by striking Federal intergovernmental mandates and inserting Federal mandates; and

(3)

by amending subsection (c) to read as follows:

(c)

Guidelines

For appropriate implementation of subsections (a) and (b) consistent with applicable laws and regulations, the following guidelines shall be followed:

(1)

Consultations shall take place as early as possible, before issuance of a notice of proposed rulemaking, continue through the final rule stage, and be integrated explicitly into the rulemaking process.

(2)

Agencies shall consult with a wide variety of State, local, and tribal officials and impacted parties within the private sector (including small businesses). Geographic, political, and other factors that may differentiate varying points of view should be considered.

(3)

Agencies should estimate benefits and costs to assist with these consultations. The scope of the consultation should reflect the cost and significance of the Federal mandate being considered.

(4)

Agencies shall, to the extent practicable—

(A)

seek out the views of State, local, and tribal governments, and impacted parties within the private sector (including small business), on costs, benefits, and risks; and

(B)

solicit ideas about alternative methods of compliance and potential flexibilities, and input on whether the Federal regulation will harmonize with and not duplicate similar laws in other levels of government.

(5)

Consultations shall address the cumulative impact of regulations on the affected entities.

(6)

Agencies may accept electronic submissions of comments by relevant parties but may not use those comments as the sole method of satisfying the guidelines in this subsection.

.

111.

New authorities and responsibilities for Office of Information and Regulatory Affairs

Section 208 of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1538 ) is amended to read as follows:

208.

Office of Information and Regulatory Affairs responsibilities

(a)

In General

The Administrator of the Office of Information and Regulatory Affairs shall provide meaningful guidance and oversight so that each agency’s regulations for which a written statement is required under section 202 are consistent with the principles and requirements of this title, as well as other applicable laws, and do not conflict with the policies or actions of another agency. If the Administrator determines that an agency’s regulations for which a written statement is required under section 202 do not comply with such principles and requirements, are not consistent with other applicable laws, or conflict with the policies or actions of another agency, the Administrator shall identify areas of non-compliance, notify the agency, and request that the agency comply before the agency finalizes the regulation concerned.

(b)

Annual Statements to Congress on Agency Compliance

The Director of the Office of Information and Regulatory Affairs annually shall submit to Congress, including the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives, a written report detailing compliance by each agency with the requirements of this title that relate to regulations for which a written statement is required by section 202, including activities undertaken at the request of the Director to improve compliance, during the preceding reporting period. The report shall also contain an appendix detailing compliance by each agency with section 204.

.

112.

Retrospective analysis of existing Federal regulations

The Unfunded Mandates Reform Act of 1995 ( Public Law 104–4 ; 2 U.S.C. 1511 et seq. ) is amended—

(1)

by redesignating section 209 as section 210; and

(2)

by inserting after section 208 the following new section 209:

209.

Retrospective analysis of existing Federal regulations

(a)

Requirement

At the request of the chairman or ranking minority member of a standing or select committee of the House of Representatives or the Senate, an agency shall conduct a retrospective analysis of an existing Federal regulation promulgated by an agency.

(b)

Report

Each agency conducting a retrospective analysis of existing Federal regulations pursuant to subsection (a) shall submit to the chairman of the relevant committee, Congress, and the Comptroller General a report containing, with respect to each Federal regulation covered by the analysis—

(1)

a copy of the Federal regulation;

(2)

the continued need for the Federal regulation;

(3)

the nature of comments or complaints received concerning the Federal regulation from the public since the Federal regulation was promulgated;

(4)

the extent to which the Federal regulation overlaps, duplicates, or conflicts with other Federal regulations, and, to the extent feasible, with State and local governmental rules;

(5)

the degree to which technology, economic conditions, or other factors have changed in the area affected by the Federal regulation;

(6)

a complete analysis of the retrospective direct costs and benefits of the Federal regulation that considers studies done outside the Federal Government (if any) estimating such costs or benefits; and

(7)

any litigation history challenging the Federal regulation.

.

113.

Expansion of judicial review

Section 401(a) of the Unfunded Mandates Reform Act of 1995 ( 2 U.S.C. 1571(a) ) is amended—

(1)

in paragraphs (1) and (2)(A)—

(A)

by striking sections 202 and 203(a)(1) and (2) each place it appears and inserting sections 201, 202, 203(a)(1) and (2), and 205(a) and (b) ; and

(B)

by striking only each place it appears;

(2)

in paragraph (2)(B), by striking section 202 and all that follows through the period at the end and inserting the following: section 202, prepare the written plan under section 203(a)(1) and (2), or comply with section 205(a) and (b), a court may compel the agency to prepare such written statement, prepare such written plan, or comply with such section.; and

(3)

in paragraph (3), by striking written statement or plan is required and all that follows through shall not and inserting the following: written statement under section 202, a written plan under section 203(a)(1) and (2), or compliance with sections 201 and 205(a) and (b) is required, the inadequacy or failure to prepare such statement (including the inadequacy or failure to prepare any estimate, analysis, statement, or description), to prepare such written plan, or to comply with such section may.

B

Achieving Less Excess in Regulation and Requiring Transparency

100.

Short title; table of contents

This subdivision may be cited as the Achieving Less Excess in Regulation and Requiring Transparency Act of 2014 or as the ALERRT Act of 2014 .

I

All Economic Regulations are Transparent Act

101.

Short title

This title may be cited as the All Economic Regulations are Transparent Act of 2014 or the ALERT Act of 2014 .

102.

Office of Information and Regulatory Affairs publication of information relating to rules

(a)

Amendment

Title 5, United States Code, is amended by inserting after chapter 6, the following new chapter:

6A

Office of Information and Regulatory Affairs Publication of Information Relating to Rules

Sec.

651. Agency monthly submission to Office of Information and Regulatory Affairs.

652. Office of Information and Regulatory Affairs Publications.

653. Requirement for rules to appear in agency-specific monthly publication.

654. Definitions.

651.

Agency monthly submission to Office of Information and Regulatory Affairs

On a monthly basis, the head of each agency shall submit to the Administrator of the Office of Information and Regulatory Affairs (referred to in this chapter as 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 pursuant to section 553(b)(B).

(D)

The stage of the rule making as of the date of submission.

(E)

Whether the rule is subject to review under section 610.

(2)

For any rule for which the agency expects to finalize during the following year 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; and

(C)

any estimate of the economic effects of the rule, including 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. If such estimate is not 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.

652.

Office of Information and Regulatory Affairs Publications

(a)

Agency-Specific information published monthly

Not later than 30 days after the submission of information pursuant to section 651, the Administrator shall make such information publicly available on the Internet.

(b)

Cumulative assessment of agency rule making published annually

(1)

Publication in the Federal Register

Not later than October 1 of each year, the Administrator shall publish in the Federal Register, for the previous year the following:

(A)

The information that the Administrator received from the head of each agency under section 651.

(B)

The number of rules and a list of each such rule—

(i)

that was proposed by each agency, including, for each such rule, an indication of whether the issuing agency conducted an analysis of the costs or benefits of the rule; and

(ii)

that was finalized by each agency, including for each such rule an indication of whether—

(I)

the issuing agency conducted an analysis of the costs or benefits of the rule;

(II)

the agency claimed an exemption from the procedures under section 553 pursuant to section 553(b)(B); and

(III)

the rule was issued pursuant to a statutory mandate or the rule making is committed to agency discretion by law.

(C)

The number of agency actions and a list of each such action taken by each agency that—

(i)

repealed a rule;

(ii)

reduced the scope of a rule;

(iii)

reduced the cost of a rule; or

(iv)

accelerated the expiration date of a rule.

(D)

The total cost (without reducing the cost by any offsetting benefits) of all rules proposed or finalized, and the number of rules for which an estimate of the cost of the rule was not available.

(2)

Publication on the Internet

Not later than October 1 of each year, the Administrator shall make publicly available on the Internet the following:

(A)

The analysis of the costs or benefits, if conducted, for each proposed rule or final rule issued by an agency for the previous year.

(B)

The docket number and regulation identifier number for each proposed or final rule issued by an agency for the previous year.

(C)

The number of rules and a list of each such rule reviewed by the Director of the Office of Management and Budget for the previous year, and the authority under which each such review was conducted.

(D)

The number of rules and a list of each such rule for which the head of an agency completed a review under section 610 for the previous year.

(E)

The number of rules and a list of each such rule submitted to the Comptroller General under section 801.

(F)

The number of rules and a list of each such rule for which a resolution of disapproval was introduced in either the House of Representatives or the Senate under section 802.

653.

Requirement for rules to appear in agency-specific monthly publication

(a)

In general

Subject to subsection (b), a rule may not take effect until the information required to be made publicly available on the Internet regarding such rule pursuant to section 652(a) has been so available for not less than 6 months.

(b)

Exceptions

The requirement of subsection (a) shall not apply in the case of a rule—

(1)

for which the agency issuing the rule claims an exception under section 553(b)(B); or

(2)

which the President determines by Executive order should take effect because the rule is—

(A)

necessary because of an imminent threat to health or safety or other emergency;

(B)

necessary for the enforcement of criminal laws;

(C)

necessary for national security; or

(D)

issued pursuant to any statute implementing an international trade agreement.

654.

Definitions

In this chapter, the terms agency, agency action, rule, and rule making have the meanings given those terms in section 551.

.

(b)

Technical and conforming amendment

The table of chapters for part I of title 5, United States Code, is amended by inserting after the item relating to chapter 5, the following:

6. The Analysis of Regulatory Functions 601 6A. Office of Information and Regulatory Affairs Publication of Information Relating to Rules 651

.

(c)

Effective dates

(1)

Agency monthly submission to the Office of Information and Regulatory Affairs

The first submission required pursuant to section 651 of title 5, United States Code, as added by subsection (a), shall be submitted not later than 30 days after the date of the enactment of this title, and monthly thereafter.

(2)

Cumulative assessment of agency rule making

(A)

In general

Subsection (b) of section 652 of title 5, United States Code, as added by subsection (a), shall take effect on the date that is 60 days after the date of the enactment of this title.

(B)

Deadline

The first requirement to publish or make available, as the case may be, under subsection (b) of section 652 of title 5, United States Code, as added by subsection (a), shall be the first October 1 after the effective date of such subsection.

(C)

First publication

The requirement under section 652(b)(2)(A) of title 5, United States Code, as added by subsection (a), shall include for the first publication, any analysis of the costs or benefits conducted for a proposed or final rule, for the 10 years before the date of the enactment of this title.

(3)

Requirement for rules to appear in agency-specific monthly publication

Section 653 of title 5, United States Code, as added by subsection (a), shall take effect on the date that is 8 months after the date of the enactment of this title.

II

Regulatory Accountability Act

201.

Short title

This title may be cited as the Regulatory Accountability Act of 2014 .

202.

Definitions

Section 551 of title 5, United States Code, is amended—

(1)

in paragraph (13), by striking and at the end;

(2)

in paragraph (14), by striking the period at the end and inserting a semicolon; and

(3)

by adding at the end the following:

(15)

major rule means any rule that the Administrator of the Office of Information and Regulatory Affairs determines is likely to impose—

(A)

an annual cost on the economy of $100,000,000 or more, adjusted annually for inflation;

(B)

a major increase in costs or prices for consumers, individual industries, Federal, State, local, or tribal government agencies, or geographic regions;

(C)

significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or

(D)

significant impacts on multiple sectors of the economy;

(16)

high-impact rule means any rule that the Administrator of the Office of Information and Regulatory Affairs determines is likely to impose an annual cost on the economy of $1,000,000,000 or more, adjusted annually for inflation;

(17)

negative-impact on jobs and wages rule means any rule that the agency that made the rule or the Administrator of the Office of Information and Regulatory Affairs determines is likely to—

(A)

in one or more sectors of the economy that has a 6-digit code under the North American Industry Classification System, reduce employment not related to new regulatory compliance by 1 percent or more annually during the 1-year, 5-year, or 10-year period after implementation;

(B)

in one or more sectors of the economy that has a 6-digit code under the North American Industry Classification System, reduce average weekly wages for employment not related to new regulatory compliance by 1 percent or more annually during the 1-year, 5-year, or 10-year period after implementation;

(C)

in any industry area (as such term is defined in the Current Population Survey conducted by the Bureau of Labor Statistics) in which the most recent annual unemployment rate for the industry area is greater than 5 percent, as determined by the Bureau of Labor Statistics in the Current Population Survey, reduce employment not related to new regulatory compliance during the first year after implementation; or

(D)

in any industry area in which the Bureau of Labor Statistics projects in the Occupational Employment Statistics program that the employment level will decrease by 1 percent or more, further reduce employment not related to new regulatory compliance during the first year after implementation;

(18)

guidance means an agency statement of general applicability and future effect, other than a regulatory action, that sets forth a policy on a statutory, regulatory or technical issue or an interpretation of a statutory or regulatory issue;

(19)

major guidance means guidance that the Administrator of the Office of Information and Regulatory Affairs finds is likely to lead to—

(A)

an annual cost on the economy of $100,000,000 or more, adjusted annually for inflation;

(B)

a major increase in costs or prices for consumers, individual industries, Federal, State, local or tribal government agencies, or geographic regions;

(C)

significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or

(D)

significant impacts on multiple sectors of the economy;

(20)

the Information Quality Act means section 515 of Public Law 106–554 , the Treasury and General Government Appropriations Act for Fiscal Year 2001, and guidelines issued by the Administrator of the Office of Information and Regulatory Affairs or other agencies pursuant to the Act; and

(21)

the Office of Information and Regulatory Affairs means the office established under section 3503 of chapter 35 of title 44 and any successor to that office.

.

203.

Rule making

(a)

Section 553(a) of title 5, United States Code, is amended by striking (a) This section applies and inserting (a) Applicability.—This section applies.

(b)

Section 553 of title 5, United States Code, is amended by striking subsections (b) through (e) and inserting the following:

(b)

Rule making considerations

In a rule making, an agency shall make all preliminary and final factual determinations based on evidence and consider, in addition to other applicable considerations, the following:

(1)

The legal authority under which a rule may be proposed, including whether a rule making is required by statute, and if so, whether by a specific date, or whether the agency has discretion to commence a rule making.

(2)

Other statutory considerations applicable to whether the agency can or should propose a rule or undertake other agency action.

(3)

The specific nature and significance of the problem the agency may address with a rule (including the degree and nature of risks the problem poses and the priority of addressing those risks compared to other matters or activities within the agency’s jurisdiction), whether the problem warrants new agency action, and the countervailing risks that may be posed by alternatives for new agency action.

(4)

Whether existing rules have created or contributed to the problem the agency may address with a rule and whether those rules could be amended or rescinded to address the problem in whole or part.

(5)

Any reasonable alternatives for a new rule or other response identified by the agency or interested persons, including not only responses that mandate particular conduct or manners of compliance, but also—

(A)

the alternative of no Federal response;

(B)

amending or rescinding existing rules;

(C)

potential regional, State, local, or tribal regulatory action or other responses that could be taken in lieu of agency action; and

(D)

potential responses that—

(i)

specify performance objectives rather than conduct or manners of compliance;

(ii)

establish economic incentives to encourage desired behavior;

(iii)

provide information upon which choices can be made by the public; or

(iv)

incorporate other innovative alternatives rather than agency actions that specify conduct or manners of compliance.

(6)

Notwithstanding any other provision of law—

(A)

the potential costs and benefits associated with potential alternative rules and other responses considered under section 553(b)(5), including direct, indirect, and cumulative costs and benefits and estimated impacts on jobs (including an estimate of the net gain or loss in domestic jobs), wages, economic growth, innovation, and economic competitiveness;

(B)

means to increase the cost-effectiveness of any Federal response; and

(C)

incentives for innovation, consistency, predictability, lower costs of enforcement and compliance (to government entities, regulated entities, and the public), and flexibility.

(c)

Advance notice of proposed rule making for major rules, high-Impact rules, negative-Impact on jobs and wages rules, and rules involving novel legal or policy issues

In the case of a rule making for a major rule, a high-impact rule, a negative-impact on jobs and wages rule, or a rule that involves a novel legal or policy issue arising out of statutory mandates, not later than 90 days before a notice of proposed rule making is published in the Federal Register, an agency shall publish advance notice of proposed rule making in the Federal Register. In publishing such advance notice, the agency shall—

(1)

include a written statement identifying, at a minimum—

(A)

the nature and significance of the problem the agency may address with a rule, including data and other evidence and information on which the agency expects to rely for the proposed rule;

(B)

the legal authority under which a rule may be proposed, including whether a rule making is required by statute, and if so, whether by a specific date, or whether the agency has discretion to commence a rule making;

(C)

preliminary information available to the agency concerning the other considerations specified in subsection (b);

(D)

in the case of a rule that involves a novel legal or policy issue arising out of statutory mandates, the nature of and potential reasons to adopt the novel legal or policy position upon which the agency may base a proposed rule; and

(E)

an achievable objective for the rule and metrics by which the agency will measure progress toward that objective;

(2)

solicit written data, views or argument from interested persons concerning the information and issues addressed in the advance notice; and

(3)

provide for a period of not fewer than 60 days for interested persons to submit such written data, views, or argument to the agency.

(d)

Notices of proposed rule making; determinations of other agency course

(1)

Before it determines to propose a rule, and following completion of procedures under subsection (c), if applicable, the agency shall consult with the Administrator of the Office of Information and Regulatory Affairs. If the agency thereafter determines to propose a rule, the agency shall publish a notice of proposed rule making, which shall include—

(A)

a statement of the time, place, and nature of public rule making proceedings;

(B)

reference to the legal authority under which the rule is proposed;

(C)

the terms of the proposed rule;

(D)

a description of information known to the agency on the subject and issues of the proposed rule, including but not limited to—

(i)

a summary of information known to the agency concerning the considerations specified in subsection (b);

(ii)

a summary of additional information the agency provided to and obtained from interested persons under subsection (c);

(iii)

a summary of any preliminary risk assessment or regulatory impact analysis performed by the agency; and

(iv)

information specifically identifying all data, studies, models, and other evidence or information considered or used by the agency in connection with its determination to propose the rule;

(E)
(i)

a reasoned preliminary determination of need for the rule based on the information described under subparagraph (D);

(ii)

an additional statement of whether a rule is required by statute; and

(iii)

an achievable objective for the rule and metrics by which the agency will measure progress toward that objective;

(F)

a reasoned preliminary determination that the benefits of the proposed rule meet the relevant statutory objectives and justify the costs of the proposed rule (including all costs to be considered under subsection (b)(6)), based on the information described under subparagraph (D);

(G)

a discussion of—

(i)

the alternatives to the proposed rule, and other alternative responses, considered by the agency under subsection (b);

(ii)

the costs and benefits of those alternatives (including all costs to be considered under subsection (b)(6));

(iii)

whether those alternatives meet relevant statutory objectives; and

(iv)

why the agency did not propose any of those alternatives; and

(H)
(i)

a statement of whether existing rules have created or contributed to the problem the agency seeks to address with the proposed rule; and

(ii)

if so, whether or not the agency proposes to amend or rescind any such rules, and why.

All information provided to or considered by the agency, and steps to obtain information by the agency, in connection with its determination to propose the rule, including any preliminary risk assessment or regulatory impact analysis prepared by the agency and all other information prepared or described by the agency under subparagraph (D) and, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, information provided by that Office in consultations with the agency, shall be placed in the docket for the proposed rule and made accessible to the public by electronic means and otherwise for the public’s use when the notice of proposed rule making is published.
(2)
(A)

If the agency undertakes procedures under subsection (c) and determines thereafter not to propose a rule, the agency shall, following consultation with the Office of Information and Regulatory Affairs, publish a notice of determination of other agency course. A notice of determination of other agency course shall include information required by paragraph (1)(D) to be included in a notice of proposed rule making and a description of the alternative response the agency determined to adopt.

(B)

If in its determination of other agency course the agency makes a determination to amend or rescind an existing rule, the agency need not undertake additional proceedings under subsection (c) before it publishes a notice of proposed rule making to amend or rescind the existing rule.

All information provided to or considered by the agency, and steps to obtain information by the agency, in connection with its determination of other agency course, including but not limited to any preliminary risk assessment or regulatory impact analysis prepared by the agency and all other information that would be required to be prepared or described by the agency under paragraph (1)(D) if the agency had determined to publish a notice of proposed rule making and, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, information provided by that Office in consultations with the agency, shall be placed in the docket for the determination and made accessible to the public by electronic means and otherwise for the public’s use when the notice of determination is published.
(3)

After notice of proposed rule making required by this section, the agency shall provide interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity for oral presentation, except that—

(A)

if a hearing is required under paragraph (4)(B) or subsection (e), opportunity for oral presentation shall be provided pursuant to that requirement; or

(B)

when other than under subsection (e) of this section rules are required by statute or at the discretion of the agency to be made on the record after opportunity for an agency hearing, sections 556 and 557 shall apply, and paragraph (4), the requirements of subsection (e) to receive comment outside of the procedures of sections 556 and 557, and the petition procedures of subsection (e)(6) shall not apply.

The agency shall provide not fewer than 60 days for interested persons to submit written data, views, or argument (or 120 days in the case of a proposed major or high-impact rule).
(4)
(A)

Within 30 days of publication of notice of proposed rule making, a member of the public may petition for a hearing in accordance with section 556 to determine whether any evidence or other information upon which the agency bases the proposed rule fails to comply with the Information Quality Act.

(B)
(i)

The agency may, upon review of the petition, determine without further process to exclude from the rule making the evidence or other information that is the subject of the petition and, if appropriate, withdraw the proposed rule. The agency shall promptly publish any such determination.

(ii)

If the agency does not resolve the petition under the procedures of clause (i), it shall grant any such petition that presents a prima facie case that evidence or other information upon which the agency bases the proposed rule fails to comply with the Information Quality Act, hold the requested hearing not later than 30 days after receipt of the petition, provide a reasonable opportunity for cross-examination at the hearing, and decide the issues presented by the petition not later than 60 days after receipt of the petition. The agency may deny any petition that it determines does not present such a prima facie case.

(C)

There shall be no judicial review of the agency’s disposition of issues considered and decided or determined under subparagraph (B)(ii) until judicial review of the agency’s final action. There shall be no judicial review of an agency’s determination to withdraw a proposed rule under subparagraph (B)(i) on the basis of the petition.

(D)

Failure to petition for a hearing under this paragraph shall not preclude judicial review of any claim based on the Information Quality Act under chapter 7 of this title.

(e)

Hearings for high-Impact rules

Following notice of a proposed rule making, receipt of comments on the proposed rule, and any hearing held under subsection (d)(4), and before adoption of any high-impact rule, the agency shall hold a hearing in accordance with sections 556 and 557, unless such hearing is waived by all participants in the rule making other than the agency. The agency shall provide a reasonable opportunity for cross-examination at such hearing. The hearing shall be limited to the following issues of fact, except that participants at the hearing other than the agency may waive determination of any such issue:

(1)

Whether the agency’s asserted factual predicate for the rule is supported by the evidence.

(2)

Whether there is an alternative to the proposed rule that would achieve the relevant statutory objectives at a lower cost (including all costs to be considered under subsection (b)(6)) than the proposed rule.

(3)

If there is more than one alternative to the proposed rule that would achieve the relevant statutory objectives at a lower cost than the proposed rule, which alternative would achieve the relevant statutory objectives at the lowest cost.

(4)

Whether, if the agency proposes to adopt a rule that is more costly than the least costly alternative that would achieve the relevant statutory objectives (including all costs to be considered under subsection (b)(6)), the additional benefits of the more costly rule exceed the additional costs of the more costly rule.

(5)

Whether the evidence and other information upon which the agency bases the proposed rule meets the requirements of the Information Quality Act.

(6)

Upon petition by an interested person who has participated in the rule making, other issues relevant to the rule making, unless the agency determines that consideration of the issues at the hearing would not advance consideration of the rule or would, in light of the nature of the need for agency action, unreasonably delay completion of the rule making. An agency shall grant or deny a petition under this paragraph within 30 days of its receipt of the petition.

No later than 45 days before any hearing held under this subsection or sections 556 and 557, the agency shall publish in the Federal Register a notice specifying the proposed rule to be considered at such hearing, the issues to be considered at the hearing, and the time and place for such hearing, except that such notice may be issued not later than 15 days before a hearing held under subsection (d)(4)(B).
(f)

Final rules

(1)

The agency shall adopt a rule only following consultation with the Administrator of the Office of Information and Regulatory Affairs to facilitate compliance with applicable rule making requirements.

(2)

The agency shall adopt a rule only on the basis of the best reasonably obtainable scientific, technical, economic, and other evidence and information concerning the need for, consequences of, and alternatives to the rule.

(3)
(A)

Except as provided in subparagraph (B), the agency shall adopt the least costly rule considered during the rule making (including all costs to be considered under subsection (b)(6)) that meets relevant statutory objectives.

(B)

The agency may adopt a rule that is more costly than the least costly alternative that would achieve the relevant statutory objectives only if the additional benefits of the more costly rule justify its additional costs and only if the agency explains its reason for doing so based on interests of public health, safety or welfare that are clearly within the scope of the statutory provision authorizing the rule.

(4)

When it adopts a final rule, the agency shall publish a notice of final rule making. The notice shall include—

(A)

a concise, general statement of the rule’s basis and purpose;

(B)

the agency’s reasoned final determination of need for a rule to address the problem the agency seeks to address with the rule, including a statement of whether a rule is required by statute and a summary of any final risk assessment or regulatory impact analysis prepared by the agency;

(C)

the agency’s reasoned final determination that the benefits of the rule meet the relevant statutory objectives and justify the rule’s costs (including all costs to be considered under subsection (b)(6));

(D)

the agency’s reasoned final determination not to adopt any of the alternatives to the proposed rule considered by the agency during the rule making, including—

(i)

the agency’s reasoned final determination that no alternative considered achieved the relevant statutory objectives with lower costs (including all costs to be considered under subsection (b)(6)) than the rule; or

(ii)

the agency’s reasoned determination that its adoption of a more costly rule complies with subsection (f)(3)(B);

(E)

the agency’s reasoned final determination—

(i)

that existing rules have not created or contributed to the problem the agency seeks to address with the rule; or

(ii)

that existing rules have created or contributed to the problem the agency seeks to address with the rule, and, if so—

(I)

why amendment or rescission of such existing rules is not alone sufficient to respond to the problem; and

(II)

whether and how the agency intends to amend or rescind the existing rule separate from adoption of the rule;

(F)

the agency’s reasoned final determination that the evidence and other information upon which the agency bases the rule complies with the Information Quality Act;

(G)

the agency’s reasoned final determination that the rule meets the objectives that the agency identified in subsection (d)(1)(E)(iii) or that other objectives are more appropriate in light of the full administrative record and the rule meets those objectives;

(H)

the agency’s reasoned final determination that it did not deviate from the metrics the agency included in subsection (d)(1)(E)(iii) or that other metrics are more appropriate in light of the full administrative record and the agency did not deviate from those metrics;

(I)
(i)

for any major rule, high-impact rule, or negative-impact on jobs and wages rule, the agency’s plan for review of the rule no less than every ten years to determine whether, based upon evidence, there remains a need for the rule, whether the rule is in fact achieving statutory objectives, whether the rule’s benefits continue to justify its costs, and whether the rule can be modified or rescinded to reduce costs while continuing to achieve statutory objectives; and

(ii)

review of a rule under a plan required by clause (i) of this subparagraph shall take into account the factors and criteria set forth in subsections (b) through (f) of section 553 of this title; and

(J)

for any negative-impact on jobs and wages rule, a statement that the head of the agency that made the rule approved the rule knowing about the findings and determination of the agency or the Administrator of the Office of Information and Regulatory Affairs that qualified the rule as a negative impact on jobs and wages rule.

All information considered by the agency in connection with its adoption of the rule, and, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, information provided by that Office in consultations with the agency, shall be placed in the docket for the rule and made accessible to the public for the public’s use no later than when the rule is adopted.
(g)

Exceptions from notice and hearing requirements

(1)

Except when notice or hearing is required by statute, the following do not apply to interpretive rules, general statements of policy, or rules of agency organization, procedure, or practice:

(A)

Subsections (c) through (e).

(B)

Paragraphs (1) through (3) of subsection (f).

(C)

Subparagraphs (B) through (H) of subsection (f)(4).

(2)
(A)

When the agency for good cause, based upon evidence, finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that compliance with subsection (c), (d), or (e) or requirements to render final determinations under subsection (f) of this section before the issuance of an interim rule is impracticable or contrary to the public interest, including interests of national security, such subsections or requirements to render final determinations shall not apply to the agency’s adoption of an interim rule.

(B)

If, following compliance with subparagraph (A) of this paragraph, the agency adopts an interim rule, it shall commence proceedings that comply fully with subsections (d) through (f) of this section immediately upon publication of the interim rule, shall treat the publication of the interim rule as publication of a notice of proposed rule making and shall not be required to issue supplemental notice other than to complete full compliance with subsection (d). No less than 270 days from publication of the interim rule (or 18 months in the case of a major rule or high-impact rule), the agency shall complete rule making under subsections (d) through (f) of this subsection and take final action to adopt a final rule or rescind the interim rule. If the agency fails to take timely final action, the interim rule will cease to have the effect of law.

(C)

Other than in cases involving interests of national security, upon the agency’s publication of an interim rule without compliance with subsection (c), (d), or (e) or requirements to render final determinations under subsection (f) of this section, an interested party may seek immediate judicial review under chapter 7 of this title of the agency’s determination to adopt such interim rule. The record on such review shall include all documents and information considered by the agency and any additional information presented by a party that the court determines necessary to consider to assure justice.

(3)

When the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are unnecessary, including because agency rule making is undertaken only to correct a de minimis technical or clerical error in a previously issued rule or for other noncontroversial purposes, the agency may publish a rule without compliance with subsection (c), (d), (e), or (f)(1)–(3) and (f)(4)(B)–(F). If the agency receives significant adverse comment within 60 days after publication of the rule, it shall treat the notice of the rule as a notice of proposed rule making and complete rule making in compliance with subsections (d) and (f).

(h)

Additional requirements for hearings

When a hearing is required under subsection (e) or is otherwise required by statute or at the agency’s discretion before adoption of a rule, the agency shall comply with the requirements of sections 556 and 557 in addition to the requirements of subsection (f) in adopting the rule and in providing notice of the rule’s adoption.

(i)

Date of publication of rule

The required publication or service of a substantive final or interim rule shall be made not less than 30 days before the effective date of the rule, except—

(1)

a substantive rule which grants or recognizes an exemption or relieves a restriction;

(2)

interpretive rules and statements of policy; or

(3)

as otherwise provided by the agency for good cause found and published with the rule.

(j)

Right To petition

Each agency shall give an interested person the right to petition for the issuance, amendment, or repeal of a rule.

(k)

Rule making guidelines

(1)
(A)

The Administrator of the Office of Information and Regulatory Affairs shall establish guidelines for the assessment, including quantitative and qualitative assessment, of the costs and benefits of proposed and final rules and other economic issues or issues related to risk that are relevant to rule making under this title. The rigor of cost-benefit analysis required by such guidelines shall be commensurate, in the Administrator’s determination, with the economic impact of the rule.

(B)

To ensure that agencies use the best available techniques to quantify and evaluate anticipated present and future benefits, costs, other economic issues, and risks as accurately as possible, the Administrator of the Office of Information and Regulatory Affairs shall regularly update guidelines established under paragraph (1)(A) of this subsection.

(2)

The Administrator of the Office of Information and Regulatory Affairs shall also issue guidelines to promote coordination, simplification and harmonization of agency rules during the rule making process and otherwise. Such guidelines shall assure that each agency avoids regulations that are inconsistent or incompatible with, or duplicative of, its other regulations and those of other Federal agencies and drafts its regulations to be simple and easy to understand, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty.

(3)

To ensure consistency in Federal rule making, the Administrator of the Office of Information and Regulatory Affairs shall—

(A)

issue guidelines and otherwise take action to ensure that rule makings conducted in whole or in part under procedures specified in provisions of law other than those of subchapter II of this title conform to the fullest extent allowed by law with the procedures set forth in section 553 of this title; and

(B)

issue guidelines for the conduct of hearings under subsections 553(d)(4) and 553(e) of this section, including to assure a reasonable opportunity for cross-examination. Each agency shall adopt regulations for the conduct of hearings consistent with the guidelines issued under this subparagraph.

(4)

The Administrator of the Office of Information and Regulatory Affairs shall issue guidelines pursuant to the Information Quality Act to apply in rule making proceedings under sections 553, 556, and 557 of this title. In all cases, such guidelines, and the Administrator’s specific determinations regarding agency compliance with such guidelines, shall be entitled to judicial deference.

(l)

Inclusion in the record of certain documents and information

The agency shall include in the record for a rule making, and shall make available by electronic means and otherwise, all documents and information prepared or considered by the agency during the proceeding, including, at the discretion of the President or the Administrator of the Office of Information and Regulatory Affairs, documents and information communicated by that Office during consultation with the Agency.

(m)

Monetary policy exemption

Nothing in subsection (b)(6), subparagraphs (F) and (G) of subsection (d)(1), subsection (e), subsection (f)(3), and subparagraphs (C) and (D) of subsection (f)(5) shall apply to rule makings that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee.

.

204.

Agency guidance; procedures to issue major guidance; presidential authority to issue guidelines for issuance of guidance

(a)

In general

Chapter 5 of title 5, United States Code, is amended by inserting after section 553 the following new section:

553a.

Agency guidance; procedures to issue major guidance; authority to issue guidelines for issuance of guidance

(a)

Before issuing any major guidance, or guidance that involves a novel legal or policy issue arising out of statutory mandates, an agency shall—

(1)

make and document a reasoned determination that—

(A)

assures that such guidance is understandable and complies with relevant statutory objectives and regulatory provisions (including any statutory deadlines for agency action);

(B)

summarizes the evidence and data on which the agency will base the guidance;

(C)

identifies the costs and benefits (including all costs to be considered during a rule making under section 553(b) of this title) of conduct conforming to such guidance and assures that such benefits justify such costs; and

(D)

describes alternatives to such guidance and their costs and benefits (including all costs to be considered during a rule making under section 553(b) of this title) and explains why the agency rejected those alternatives; and

(2)

confer with the Administrator of the Office of Information and Regulatory Affairs on the issuance of such guidance to assure that the guidance is reasonable, understandable, consistent with relevant statutory and regulatory provisions and requirements or practices of other agencies, does not produce costs that are unjustified by the guidance’s benefits, and is otherwise appropriate.

Upon issuing major guidance, or guidance that involves a novel legal or policy issue arising out of statutory mandates, the agency shall publish the documentation required by subparagraph (1) by electronic means and otherwise.
(b)

Agency guidance—

(1)

is not legally binding and may not be relied upon by an agency as legal grounds for agency action;

(2)

shall state in a plain, prominent and permanent manner that it is not legally binding; and

(3)

shall, at the time it is issued or upon request, be made available by the issuing agency to interested persons and the public by electronic means and otherwise.

Agencies shall avoid the issuance of guidance that is inconsistent or incompatible with, or duplicative of, the agency’s governing statutes or regulations, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty.
(c)

The Administrator of the Office of Information and Regulatory Affairs shall have authority to issue guidelines for use by the agencies in the issuance of major guidance and other guidance. Such guidelines shall assure that each agency avoids issuing guidance documents that are inconsistent or incompatible with, or duplicative of, the law, its other regulations, or the regulations of other Federal agencies and drafts its guidance documents to be simple and easy to understand, with the goal of minimizing the potential for uncertainty and litigation arising from such uncertainty.

.

(b)

Clerical amendment

The table of sections for chapter 5 of title 5, United States Code, is amended by inserting after the item relating to section 553 the following new item:

553a. Agency guidance; procedures to issue major guidance; authority to issue guidelines for issuance of guidance.

.

205.

Hearings; presiding employees; powers and duties; burden of proof; evidence; record as basis of decision

Section 556 of title 5, United States Code, is amended by striking subsection (e) and inserting the following:

(e)
(1)

The transcript of testimony and exhibits, together with all papers and requests filed in the proceeding, constitutes the exclusive record for decision in accordance with section 557 and shall be made available to the parties and the public by electronic means and, upon payment of lawfully prescribed costs, otherwise. When an agency decision rests on official notice of a material fact not appearing in the evidence in the record, a party is entitled, on timely request, to an opportunity to show the contrary.

(2)

Notwithstanding paragraph (1) of this subsection, in a proceeding held under this section pursuant to section 553(d)(4) or 553(e), the record for decision shall also include any information that is part of the record of proceedings under section 553.

(f)

When an agency conducts rule making under this section and section 557 directly after concluding proceedings upon an advance notice of proposed rule making under section 553(c), the matters to be considered and determinations to be made shall include, among other relevant matters and determinations, the matters and determinations described in subsections (b) and (f) of section 553.

(g)

Upon receipt of a petition for a hearing under this section, the agency shall grant the petition in the case of any major rule, unless the agency reasonably determines that a hearing would not advance consideration of the rule or would, in light of the need for agency action, unreasonably delay completion of the rule making. The agency shall publish its decision to grant or deny the petition when it renders the decision, including an explanation of the grounds for decision. The information contained in the petition shall in all cases be included in the administrative record. This subsection shall not apply to rule makings that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee.

.

206.

Actions reviewable

Section 704 of title 5, United States Code, is amended—

(1)

by striking Agency action made and inserting (a) Agency action made; and

(2)

by adding at the end the following: “Denial by an agency of a correction request or, where administrative appeal is provided for, denial of an appeal, under an administrative mechanism described in subsection (b)(2)(B) of the Information Quality Act, or the failure of an agency within 90 days to grant or deny such request or appeal, shall be final action for purposes of this section.

(b)

Other than in cases involving interests of national security, notwithstanding subsection (a) of this section, upon the agency’s publication of an interim rule without compliance with section 553(c), (d), or (e) or requirements to render final determinations under subsection (f) of section 553, an interested party may seek immediate judicial review under this chapter of the agency’s determination to adopt such rule on an interim basis. Review shall be limited to whether the agency abused its discretion to adopt the interim rule without compliance with section 553(c), (d), or (e) or without rendering final determinations under subsection (f) of section 553.

.

207.

Scope of review

Section 706 of title 5, United States Code is amended—

(1)

by striking To the extent necessary and inserting (a) To the extent necessary;

(2)

in paragraph (2)(A) of subsection (a) (as designated by paragraph (1) of this section), by inserting after in accordance with law the following: (including the Information Quality Act); and

(3)

by adding at the end the following:

(b)

The court shall not defer to the agency’s—

(1)

interpretation of an agency rule if the agency did not comply with the procedures of section 553 or sections 556–557 of chapter 5 of this title to issue the interpretation;

(2)

determination of the costs and benefits or other economic or risk assessment of the action, if the agency failed to conform to guidelines on such determinations and assessments established by the Administrator of the Office of Information and Regulatory Affairs under section 553(k);

(3)

determinations made in the adoption of an interim rule; or

(4)

guidance.

(c)

The court shall review agency denials of petitions under section 553(e)(6) or any other petition for a hearing under sections 556 and 557 for abuse of agency discretion.

.

208.

Added definition

Section 701(b) of title 5, United States Code, is amended—

(1)

in paragraph (1), by striking and at the end;

(2)

in paragraph (2), by striking the period at the end, and inserting ; and; and

(3)

by adding at the end the following:

(3)

substantial evidence means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion in light of the record considered as a whole, taking into account whatever in the record fairly detracts from the weight of the evidence relied upon by the agency to support its decision.

.

209.

Effective date

The amendments made by this title to—

(1)

sections 553, 556, and 704 of title 5, United States Code;

(2)

subsection (b) of section 701 of such title;

(3)

paragraphs (2) and (3) of section 706(b) of such title; and

(4)

subsection (c) of section 706 of such title,

shall not apply to any rule makings pending or completed on the date of enactment of this title.
III

Regulatory Flexibility Improvements Act

301.

Short title

This title may be cited as the Regulatory Flexibility Improvements Act of 2014 .

302.

Clarification and expansion of rules covered by the Regulatory Flexibility Act

(a)

In general

Paragraph (2) of section 601 of title 5, United States Code, is amended to read as follows:

(2)

Rule

The term rule has the meaning given such term in section 551(4) of this title, except that such term does not include a rule pertaining to the protection of the rights of and benefits for veterans or a rule of particular (and not general) applicability relating to rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services, or allowances therefor or to valuations, costs or accounting, or practices relating to such rates, wages, structures, prices, appliances, services, or allowances.

.

(b)

Inclusion of rules with indirect effects

Section 601 of title 5, United States Code, is amended by adding at the end the following new paragraph:

(9)

Economic impact

The term economic impact means, with respect to a proposed or final rule—

(A)

any direct economic effect on small entities of such rule; and

(B)

any indirect economic effect (including compliance costs and effects on revenue) on small entities which is reasonably foreseeable and results from such rule (without regard to whether small entities will be directly regulated by the rule).

.

(c)

Inclusion of rules with beneficial effects

(1)

Initial regulatory flexibility analysis

Subsection (c) of section 603 of title 5, United States Code, is amended by striking the first sentence and inserting Each initial regulatory flexibility analysis shall also contain a detailed description of alternatives to the proposed rule which minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities..

(2)

Final regulatory flexibility analysis

The first paragraph (6) of section 604(a) of title 5, United States Code, is amended by striking minimize the significant economic impact and inserting minimize the adverse significant economic impact or maximize the beneficial significant economic impact.

(d)

Inclusion of rules affecting tribal organizations

Paragraph (5) of section 601 of title 5, United States Code, is amended by inserting and tribal organizations (as defined in section 4(l) of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 450b(l) )), after special districts,.

(e)

Inclusion of land management plans and formal rulemaking

(1)

Initial regulatory flexibility analysis

Subsection (a) of section 603 of title 5, United States Code, is amended in the first sentence—

(A)

by striking or after proposed rule,; and

(B)

by inserting or publishes a revision or amendment to a land management plan, after United States,.

(2)

Final regulatory flexibility analysis

Subsection (a) of section 604 of title 5, United States Code, is amended in the first sentence—

(A)

by striking or after proposed rulemaking,; and

(B)

by inserting or adopts a revision or amendment to a land management plan, after section 603(a),.

(3)

Land management plan defined

Section 601 of title 5, United States Code, is amended by adding at the end the following new paragraph:

(10)

Land management plan

(A)

In general

The term land management plan means—

(i)

any plan developed by the Secretary of Agriculture under section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604 ); and

(ii)

any plan developed by the Secretary of the Interior under section 202 of the Federal Land Policy and Management Act of 1976 ( 43 U.S.C. 1712 ).

(B)

Revision

The term revision means any change to a land management plan which—

(i)

in the case of a plan described in subparagraph (A)(i), is made under section 6(f)(5) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604(f)(5) ); or

(ii)

in the case of a plan described in subparagraph (A)(ii), is made under section 1610.5–6 of title 43, Code of Federal Regulations (or any successor regulation).

(C)

Amendment

The term amendment means any change to a land management plan which—

(i)

in the case of a plan described in subparagraph (A)(i), is made under section 6(f)(4) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1604(f)(4) ) and with respect to which the Secretary of Agriculture prepares a statement described in section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ); or

(ii)

in the case of a plan described in subparagraph (A)(ii), is made under section 1610.5–5 of title 43, Code of Federal Regulations (or any successor regulation) and with respect to which the Secretary of the Interior prepares a statement described in section 102(2)(C) of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4332(2)(C) ).

.

(f)

Inclusion of certain interpretive rules involving the internal revenue laws

(1)

In general

Subsection (a) of section 603 of title 5, United States Code, is amended by striking the period at the end and inserting or a recordkeeping requirement, and without regard to whether such requirement is imposed by statute or regulation..

(2)

Collection of information

Paragraph (7) of section 601 of title 5, United States Code, is amended to read as follows:

(7)

Collection of information

The term collection of information has the meaning given such term in section 3502(3) of title 44.

.

(3)

Recordkeeping requirement

Paragraph (8) of section 601 of title 5, United States Code, is amended to read as follows:

(8)

Recordkeeping requirement

The term recordkeeping requirement has the meaning given such term in section 3502(13) of title 44.

.

(g)

Definition of small organization

Paragraph (4) of section 601 of title 5, United States Code, is amended to read as follows:

(4)

Small organization

(A)

In general

The term small organization means any not-for-profit enterprise which, as of the issuance of the notice of proposed rulemaking—

(i)

in the case of an enterprise which is described by a classification code of the North American Industrial Classification System, does not exceed the size standard established by the Administrator of the Small Business Administration pursuant to section 3 of the Small Business Act ( 15 U.S.C. 632 ) for small business concerns described by such classification code; and

(ii)

in the case of any other enterprise, has a net worth that does not exceed $7,000,000 and has not more than 500 employees.

(B)

Local labor organizations

In the case of any local labor organization, subparagraph (A) shall be applied without regard to any national or international organization of which such local labor organization is a part.

(C)

Agency definitions

Subparagraphs (A) and (B) shall not apply to the extent that an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions for such term which are appropriate to the activities of the agency and publishes such definitions in the Federal Register.

.

303.

Expansion of report of regulatory agenda

Section 602 of title 5, United States Code, is amended—

(1)

in subsection (a)—

(A)

in paragraph (2), by striking , and at the end and inserting ;;

(B)

by redesignating paragraph (3) as paragraph (4); and

(C)

by inserting after paragraph (2) the following:

(3)

a brief description of the 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 substantial number of small entities; and

; and

(2)

in subsection (c), to read as follows:

(c)

Each agency shall prominently display a plain language summary of the information contained in the regulatory flexibility agenda published under subsection (a) on its website within 3 days of its publication in the Federal Register. The Office of Advocacy of the Small Business Administration shall compile and prominently display a plain language summary of the regulatory agendas referenced in subsection (a) for each agency on its website within 3 days of their publication in the Federal Register.

.

304.

Requirements providing for more detailed analyses

(a)

Initial regulatory flexibility analysis

Subsection (b) of section 603 of title 5, United States Code, is amended to read as follows:

(b)

Each initial regulatory flexibility analysis required under this section shall contain a detailed statement—

(1)

describing the reasons why action by the agency is being considered;

(2)

describing the objectives of, and legal basis for, the proposed rule;

(3)

estimating the number and type of small entities to which the proposed rule will apply;

(4)

describing the projected reporting, recordkeeping, and other compliance requirements of the proposed rule, including an estimate of the classes of small entities which will be subject to the requirement and the type of professional skills necessary for preparation of the report and record;

(5)

describing all relevant Federal rules which may duplicate, overlap, or conflict with the proposed rule, or the reasons why such a description could not be provided;

(6)

estimating the additional cumulative economic impact of the proposed rule on small entities beyond that already imposed on the class of small entities by the agency or why such an estimate is not available;

(7)

describing any disproportionate economic impact on small entities or a specific class of small entities; and

(8)

describing any impairment of the ability of small entities to have access to credit.

.

(b)

Final regulatory flexibility analysis

(1)

In general

Section 604(a) of title 5, United States Code, is amended—

(A)

in paragraph (4), by striking an explanation and inserting a detailed explanation;

(B)

in each of paragraphs (4), (5), and the first paragraph (6), by inserting detailed before description;

(C)

in the second paragraph (6), by striking the period and inserting ; and;

(D)

by redesignating the second paragraph (6) as paragraph (7); and

(E)

by adding at the end the following:

(8)

a detailed description of any disproportionate economic impact on small entities or a specific class of small entities.

.

(2)

Inclusion of response to comments on certification of proposed rule

Paragraph (2) of section 604(a) of title 5, United States Code, is amended by inserting (or certification of the proposed rule under section 605(b)) after initial regulatory flexibility analysis.

(3)

Publication of analysis on website

Subsection (b) of section 604 of title 5, United States Code, is amended to read as follows:

(b)

The agency shall make copies of the final regulatory flexibility analysis available to the public, including placement of the entire analysis on the agency’s website, and shall publish in the Federal Register the final regulatory flexibility analysis, or a summary thereof which includes the telephone number, mailing address, and link to the website where the complete analysis may be obtained.

.

(c)

Cross-References to other analyses

Subsection (a) of section 605 of title 5, United States Code, is amended to read as follows:

(a)

A Federal agency shall be treated as satisfying any requirement regarding the content of an agenda or regulatory flexibility analysis under section 602, 603, or 604, if such agency provides in such agenda or analysis a cross-reference to the specific portion of another agenda or analysis which is required by any other law and which satisfies such requirement.

.

(d)

Certifications

Subsection (b) of section 605 of title 5, United States Code, is amended—

(1)

by inserting detailed before statement the first place it appears; and

(2)

by inserting and legal after factual.

(e)

Quantification requirements

Section 607 of title 5, United States Code, is amended to read as follows:

607.

Quantification requirements

In complying with sections 603 and 604, an agency shall provide—

(1)

a quantifiable or numerical description of the effects of the proposed or final rule and alternatives to the proposed or final rule; or

(2)

a more general descriptive statement and a detailed statement explaining why quantification is not practicable or reliable.

.

305.

Repeal of waiver and delay authority; additional powers of the Chief Counsel for Advocacy

(a)

In general

Section 608 is amended to read as follows:

608.

Additional powers of Chief Counsel for Advocacy

(a)
(1)

Not later than 270 days after the date of the enactment of this section, the Chief Counsel for Advocacy of the Small Business Administration shall, after opportunity for notice and comment under section 553, issue rules governing agency compliance with this chapter. The Chief Counsel may modify or amend such rules after notice and comment under section 553. This chapter (other than this subsection) shall not apply with respect to the issuance, modification, and amendment of rules under this paragraph.

(2)

An agency shall not issue rules which supplement the rules issued under subsection (a) unless such agency has first consulted with the Chief Counsel for Advocacy to ensure that such supplemental rules comply with this chapter and the rules issued under paragraph (1).

(b)

Notwithstanding any other law, the Chief Counsel for Advocacy of the Small Business Administration may intervene in any agency adjudication (unless such agency is authorized to impose a fine or penalty under such adjudication), and may inform the agency of the impact that any decision on the record may have on small entities. The Chief Counsel shall not initiate an appeal with respect to any adjudication in which the Chief Counsel intervenes under this subsection.

(c)

The Chief Counsel for Advocacy may file comments in response to any agency notice requesting comment, regardless of whether the agency is required to file a general notice of proposed rulemaking under section 553.

.

(b)

Conforming amendments

(1)

Section 611(a)(1) of such title is amended by striking 608(b),.

(2)

Section 611(a)(2) of such title is amended by striking 608(b),.

(3)

Section 611(a)(3) of such title is amended—

(A)

by striking subparagraph (B); and

(B)

by striking (3)(A) A small entity and inserting the following:

(3)

A small entity

.

306.

Procedures for gathering comments

Section 609 of title 5, United States Code, is amended by striking subsection (b) and all that follows through the end of the section and inserting the following:

(b)
(1)

Prior to publication of any proposed rule described in subsection (e), an agency making such rule shall notify the Chief Counsel for Advocacy of the Small Business Administration and provide the Chief Counsel with—

(A)

all materials prepared or utilized by the agency in making the proposed rule, including the draft of the proposed rule; and

(B)

information on the potential adverse and beneficial economic impacts of the proposed rule on small entities and the type of small entities that might be affected.

(2)

An agency shall not be required under paragraph (1) to provide the exact language of any draft if the rule—

(A)

relates to the internal revenue laws of the United States; or

(B)

is proposed by an independent regulatory agency (as defined in section 3502(5) of title 44).

(c)

Not later than 15 days after the receipt of such materials and information under subsection (b), the Chief Counsel for Advocacy of the Small Business Administration shall—

(1)

identify small entities or representatives of small entities or a combination of both for the purpose of obtaining advice, input, and recommendations from those persons about the potential economic impacts of the proposed rule and the compliance of the agency with section 603; and

(2)

convene a review panel consisting of an employee from the Office of Advocacy of the Small Business Administration, an employee from the agency making the rule, and in the case of an agency other than an independent regulatory agency (as defined in section 3502(5) of title 44), an employee from the Office of Information and Regulatory Affairs of the Office of Management and Budget to review the materials and information provided to the Chief Counsel under subsection (b).

(d)
(1)

Not later than 60 days after the review panel described in subsection (c)(2) is convened, the Chief Counsel for Advocacy of the Small Business Administration shall, after consultation with the members of such panel, submit a report to the agency and, in the case of an agency other than an independent regulatory agency (as defined in section 3502(5) of title 44), the Office of Information and Regulatory Affairs of the Office of Management and Budget.

(2)

Such report shall include an assessment of the economic impact of the proposed rule on small entities, including an assessment of the proposed rule’s impact on the cost that small entities pay for energy, an assessment of the proposed rule’s impact on start-up costs for small entities, and a discussion of any alternatives that will minimize adverse significant economic impacts or maximize beneficial significant economic impacts on small entities.

(3)

Such report shall become part of the rulemaking record. In the publication of the proposed rule, the agency shall explain what actions, if any, the agency took in response to such report.

(e)

A proposed rule is described by this subsection if the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget, the head of the agency (or the delegatee of the head of the agency), or an independent regulatory agency determines that the proposed rule is likely to result in—

(1)

an annual effect on the economy of $100,000,000 or more;

(2)

a major increase in costs or prices for consumers, individual industries, Federal, State, or local governments, tribal organizations, or geographic regions;

(3)

significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or

(4)

a significant economic impact on a substantial number of small entities.

(f)

Upon application by the agency, the Chief Counsel for Advocacy of the Small Business Administration may waive the requirements of subsections (b) through (e) if the Chief Counsel determines that compliance with the requirements of such subsections are impracticable, unnecessary, or contrary to the public interest.

(g)

A small entity or a representative of a small entity may submit a request that the agency provide a copy of the report prepared under subsection (d) and all materials and information provided to the Chief Counsel for Advocacy of the Small Business Administration under subsection (b). The agency receiving such request shall provide the report, materials and information to the requesting small entity or representative of a small entity not later than 10 business days after receiving such request, except that the agency shall not disclose any information that is prohibited from disclosure to the public pursuant to section 552(b) of this title.

.

307.

Periodic review of rules

Section 610 of title 5, United States Code, is amended to read as follows:

610.

Periodic review of rules

(a)

Not later than 180 days after the enactment of this section, each agency shall publish in the Federal Register and place on its website a plan for the periodic review of rules issued by the agency which the head of the agency determines have a significant economic impact on a substantial number of small entities. Such determination shall be made without regard to whether the agency performed an analysis under section 604. The purpose of the review shall be to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objectives of applicable statutes, to minimize any adverse significant economic impacts or maximize any beneficial significant economic impacts on a substantial number of small entities. Such plan may be amended by the agency at any time by publishing the revision in the Federal Register and subsequently placing the amended plan on the agency’s website.

(b)

The plan shall provide for the review of all such agency rules existing on the date of the enactment of this section within 10 years of the date of publication of the plan in the Federal Register and for review of rules adopted after the date of enactment of this section within 10 years after the publication of the final rule in the Federal Register. If the head of the agency determines that completion of the review of existing rules is not feasible by the established date, the head of the agency shall so certify in a statement published in the Federal Register and may extend the review for not longer than 2 years after publication of notice of extension in the Federal Register. Such certification and notice shall be sent to the Chief Counsel for Advocacy of the Small Business Administration and the Congress.

(c)

The plan shall include a section that details how an agency will conduct outreach to and meaningfully include small businesses (including small business concerns owned and controlled by women, small business concerns owned and controlled by veterans, and small business concerns owned and controlled by socially and economically disadvantaged individuals (as such terms are defined in the Small Business Act)) for the purposes of carrying out this section. The agency shall include in this section a plan for how the agency will contact small businesses and gather their input on existing agency rules.

(d)

Each agency shall annually submit a report regarding the results of its review pursuant to such plan to the Congress, the Chief Counsel for Advocacy of the Small Business Administration, and, in the case of agencies other than independent regulatory agencies (as defined in section 3502(5) of title 44) to the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget. Such report shall include the identification of any rule with respect to which the head of the agency made a determination described in paragraph (5) or (6) of subsection (e) and a detailed explanation of the reasons for such determination.

(e)

In reviewing a rule pursuant to subsections (a) through (d), the agency shall amend or rescind the rule to minimize any adverse significant economic impact on a substantial number of small entities or disproportionate economic impact on a specific class of small entities, or maximize any beneficial significant economic impact of the rule on a substantial number of small entities to the greatest extent possible, consistent with the stated objectives of applicable statutes. In amending or rescinding the rule, the agency shall consider the following factors:

(1)

The continued need for the rule.

(2)

The nature of complaints received by the agency from small entities concerning the rule.

(3)

Comments by the Regulatory Enforcement Ombudsman and the Chief Counsel for Advocacy of the Small Business Administration.

(4)

The complexity of the rule.

(5)

The extent to which the rule overlaps, duplicates, or conflicts with other Federal rules and, unless the head of the agency determines it to be infeasible, State, territorial, and local rules.

(6)

The contribution of the rule to the cumulative economic impact of all Federal rules on the class of small entities affected by the rule, unless the head of the agency determines that such calculations cannot be made and reports that determination in the annual report required under subsection (d).

(7)

The length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule.

(f)

Each year, each agency shall publish in the Federal Register and on its website a list of rules to be reviewed pursuant to such plan. The agency shall include in the publication a solicitation of public comments on any further inclusions or exclusions of rules from the list, and shall respond to such comments. Such publication shall include a brief description of the rule, the reason why the agency determined that it has a significant economic impact on a substantial number of small entities (without regard to whether it had prepared a final regulatory flexibility analysis for the rule), and request comments from the public, the Chief Counsel for Advocacy of the Small Business Administration, and the Regulatory Enforcement Ombudsman concerning the enforcement of the rule.

.

308.

Judicial review of compliance with the requirements of the Regulatory Flexibility Act available after publication of the final rule

(a)

In general

Paragraph (1) of section 611(a) of title 5, United States Code, is amended by striking final agency action and inserting such rule.

(b)

Jurisdiction

Paragraph (2) of such section is amended by inserting (or which would have such jurisdiction if publication of the final rule constituted final agency action) after provision of law,.

(c)

Time for bringing action

Paragraph (3) of such section is amended—

(1)

by striking final agency action and inserting publication of the final rule; and

(2)

by inserting , in the case of a rule for which the date of final agency action is the same date as the publication of the final rule, after except that.

(d)

Intervention by Chief Counsel for Advocacy

Subsection (b) of section 612 of title 5, United States Code, is amended by inserting before the first period or agency compliance with section 601, 603, 604, 605(b), 609, or 610 .

309.

Jurisdiction of court of appeals over rules implementing the Regulatory Flexibility Act

(a)

In general

Section 2342 of title 28, United States Code, is amended—

(1)

in paragraph (6), by striking and at the end;

(2)

in paragraph (7), by striking the period at the end and inserting ; and; and

(3)

by inserting after paragraph (7) the following new paragraph:

(8)

all final rules under section 608(a) of title 5.

.

(b)

Conforming amendments

Paragraph (3) of section 2341 of title 28, United States Code, is amended—

(1)

in subparagraph (D), by striking and at the end;

(2)

in subparagraph (E), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following new subparagraph:

(F)

the Office of Advocacy of the Small Business Administration, when the final rule is under section 608(a) of title 5.

.

(c)

Authorization To intervene and comment on agency compliance with administrative procedure

Subsection (b) of section 612 of title 5, United States Code, is amended by inserting chapter 5, and chapter 7, after this chapter,.

310.

Establishment and approval of small business concern size standards by Chief Counsel for Advocacy

(a)

In general

Subparagraph (A) of section 3(a)(2) of the Small Business Act ( 15 U.S.C. 632(a)(2)(A) ) is amended to read as follows:

(A)

In general

In addition to the criteria specified in paragraph (1)—

(i)

the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for purposes of this Act or the Small Business Investment Act of 1958; and

(ii)

the Chief Counsel for Advocacy may specify such definitions or standards for purposes of any other Act.

.

(b)

Approval by chief counsel

Clause (iii) of section 3(a)(2)(C) of the Small Business Act ( 15 U.S.C. 632(a)(2)(C)(iii) ) is amended to read as follows:

(iii)

except in the case of a size standard prescribed by the Administrator, is approved by the Chief Counsel for Advocacy.

.

(c)

Industry variation

Paragraph (3) of section 3(a) of the Small Business Act ( 15 U.S.C. 632(a)(3) ) is amended—

(1)

by inserting or Chief Counsel for Advocacy, as appropriate before shall ensure; and

(2)

by inserting or Chief Counsel for Advocacy before the period at the end.

(d)

Judicial review of size standards approved by chief counsel

Section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ) is amended by adding at the end the following new paragraph:

(9)

Judicial review of standards approved by chief counsel

In the case of an action for judicial review of a rule which includes a definition or standard approved by the Chief Counsel for Advocacy under this subsection, the party seeking such review shall be entitled to join the Chief Counsel as a party in such action.

.

311.

Clerical amendments

(a)

Definitions

Section 601 of title 5, United States Code, is amended—

(1)

in paragraph (1)—

(A)

by striking the semicolon at the end and inserting a period; and

(B)

by striking (1) the term and inserting the following:

(1)

Agency

The term

;

(2)

in paragraph (3)—

(A)

by striking the semicolon at the end and inserting a period; and

(B)

by striking (3) the term and inserting the following:

(3)

Small business

The term

;

(3)

in paragraph (5)—

(A)

by striking the semicolon at the end and inserting a period; and

(B)

by striking (5) the term and inserting the following:

(5)

Small governmental jurisdiction

The term

; and

(4)

in paragraph (6)—

(A)

by striking ; and and inserting a period; and

(B)

by striking (6) the term and inserting the following:

(6)

Small entity

The term

.

(b)

Incorporations by reference and certifications

The heading of section 605 of title 5, United States Code, is amended to read as follows:

605.

Incorporations by reference and certifications

.

(c)

Table of sections

The table of sections for chapter 6 of title 5, United States Code, is amended—

(1)

by striking the item relating to section 605 and inserting the following new item:

605. Incorporations by reference and certifications.

;

(2)

by striking the item relating to section 607 and inserting the following new item:

607. Quantification requirements.

;

and
(3)

by striking the item relating to section 608 and inserting the following:

608. Additional powers of Chief Counsel for Advocacy.

.

(d)

Other clerical amendments to chapter 6

Chapter 6 of title 5, United States Code, is amended in section 603(d)

(1)

by striking paragraph (2);

(2)

by striking (1) For a covered agency, and inserting For a covered agency,;

(3)

by striking (A) any and inserting (1) any;

(4)

by striking (B) any and inserting (2) any; and

(5)

by striking (C) advice and inserting (3) advice.

312.

Agency preparation of guides

Section 212(a)(5) the Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note) is amended to read as follows:

(5)

Agency preparation of guides

The agency shall, in its sole discretion, taking into account the subject matter of the rule and the language of relevant statutes, ensure that the guide is written using sufficiently plain language likely to be understood by affected small entities. Agencies may prepare separate guides covering groups or classes of similarly affected small entities and may cooperate with associations of small entities to distribute such guides. In developing guides, agencies shall solicit input from affected small entities or associations of affected small entities. An agency may prepare guides and apply this section with respect to a rule or a group of related rules.

.

313.

Comptroller General report

Not later than 90 days after the date of enactment of this title, the Comptroller General of the United States shall complete and publish a study that examines whether the Chief Counsel for Advocacy of the Small Business Administration has the capacity and resources to carry out the duties of the Chief Counsel under this title and the amendments made by this title.

IV

Sunshine for Regulatory Decrees and Settlements Act

401.

Short title

This title may be cited as the Sunshine for Regulatory Decrees and Settlements Act of 2014 .

402.

Definitions

In this title—

(1)

the terms agency and agency action have the meanings given those terms under section 551 of title 5, United States Code;

(2)

the term covered civil action means a civil action—

(A)

seeking to compel agency action;

(B)

alleging that the agency is unlawfully withholding or unreasonably delaying an agency action relating to a regulatory action that would affect the rights of—

(i)

private persons other than the person bringing the action; or

(ii)

a State, local, or tribal government; and

(C)

brought under—

(i)

chapter 7 of title 5, United States Code; or

(ii)

any other statute authorizing such an action;

(3)

the term covered consent decree means—

(A)

a consent decree entered into in a covered civil action; and

(B)

any other consent decree that requires agency action relating to a regulatory action that affects the rights of—

(i)

private persons other than the person bringing the action; or

(ii)

a State, local, or tribal government;

(4)

the term covered consent decree or settlement agreement means a covered consent decree and a covered settlement agreement; and

(5)

the term covered settlement agreement means—

(A)

a settlement agreement entered into in a covered civil action; and

(B)

any other settlement agreement that requires agency action relating to a regulatory action that affects the rights of—

(i)

private persons other than the person bringing the action; or

(ii)

a State, local, or tribal government.

403.

Consent decree and settlement reform

(a)

Pleadings and preliminary matters

(1)

In general

In any covered civil action, the agency against which the covered civil action is brought shall publish the notice of intent to sue and the complaint in a readily accessible manner, including by making the notice of intent to sue and the complaint available online not later than 15 days after receiving service of the notice of intent to sue or complaint, respectively.

(2)

Entry of a covered consent decree or settlement agreement

A party may not make a motion for entry of a covered consent decree or to dismiss a civil action pursuant to a covered settlement agreement until after the end of proceedings in accordance with paragraph (1) and subparagraphs (A) and (B) of paragraph (2) of subsection (d) or subsection (d)(3)(A), whichever is later.

(b)

Intervention

(1)

Rebuttable presumption

In considering a motion to intervene in a covered civil action or a civil action in which a covered consent decree or settlement agreement has been proposed that is filed by a person who alleges that the agency action in dispute would affect the person, the court shall presume, subject to rebuttal, that the interests of the person would not be represented adequately by the existing parties to the action.

(2)

State, local, and tribal governments

In considering a motion to intervene in a covered civil action or a civil action in which a covered consent decree or settlement agreement has been proposed that is filed by a State, local, or tribal government, the court shall take due account of whether the movant—

(A)

administers jointly with an agency that is a defendant in the action the statutory provisions that give rise to the regulatory action to which the action relates; or

(B)

administers an authority under State, local, or tribal law that would be preempted by the regulatory action to which the action relates.

(c)

Settlement negotiations

Efforts to settle a covered civil action or otherwise reach an agreement on a covered consent decree or settlement agreement shall—

(1)

be conducted pursuant to the mediation or alternative dispute resolution program of the court or by a district judge other than the presiding judge, magistrate judge, or special master, as determined appropriate by the presiding judge; and

(2)

include any party that intervenes in the action.

(d)

Publication of and comment on covered consent decrees or settlement agreements

(1)

In general

Not later than 60 days before the date on which a covered consent decree or settlement agreement is filed with a court, the agency seeking to enter the covered consent decree or settlement agreement shall publish in the Federal Register and online—

(A)

the proposed covered consent decree or settlement agreement; and

(B)

a statement providing—

(i)

the statutory basis for the covered consent decree or settlement agreement; and

(ii)

a description of the terms of the covered consent decree or settlement agreement, including whether it provides for the award of attorneys’ fees or costs and, if so, the basis for including the award.

(2)

Public comment

(A)

In general

An agency seeking to enter a covered consent decree or settlement agreement shall accept public comment during the period described in paragraph (1) on any issue relating to the matters alleged in the complaint in the applicable civil action or addressed or affected by the proposed covered consent decree or settlement agreement.

(B)

Response to comments

An agency shall respond to any comment received under subparagraph (A).

(C)

Submissions to court

When moving that the court enter a proposed covered consent decree or settlement agreement or for dismissal pursuant to a proposed covered consent decree or settlement agreement, an agency shall—

(i)

inform the court of the statutory basis for the proposed covered consent decree or settlement agreement and its terms;

(ii)

submit to the court a summary of the comments received under subparagraph (A) and the response of the agency to the comments;

(iii)

submit to the court a certified index of the administrative record of the notice and comment proceeding; and

(iv)

make the administrative record described in clause (iii) fully accessible to the court.

(D)

Inclusion in record

The court shall include in the court record for a civil action the certified index of the administrative record submitted by an agency under subparagraph (C)(iii) and any documents listed in the index which any party or amicus curiae appearing before the court in the action submits to the court.

(3)

Public hearings permitted

(A)

In general

After providing notice in the Federal Register and online, an agency may hold a public hearing regarding whether to enter into a proposed covered consent decree or settlement agreement.

(B)

Record

If an agency holds a public hearing under subparagraph (A)—

(i)

the agency shall—

(I)

submit to the court a summary of the proceedings;

(II)

submit to the court a certified index of the hearing record; and

(III)

provide access to the hearing record to the court; and

(ii)

the full hearing record shall be included in the court record.

(4)

Mandatory deadlines

If a proposed covered consent decree or settlement agreement requires an agency action by a date certain, the agency shall, when moving for entry of the covered consent decree or settlement agreement or dismissal based on the covered consent decree or settlement agreement, inform the court of—

(A)

any required regulatory action the agency has not taken that the covered consent decree or settlement agreement does not address;

(B)

how the covered consent decree or settlement agreement, if approved, would affect the discharge of the duties described in subparagraph (A); and

(C)

why the effects of the covered consent decree or settlement agreement on the manner in which the agency discharges its duties is in the public interest.

(e)

Submission by the Government

(1)

In general

For any proposed covered consent decree or settlement agreement that contains a term described in paragraph (2), the Attorney General or, if the matter is being litigated independently by an agency, the head of the agency shall submit to the court a certification that the Attorney General or head of the agency approves the proposed covered consent decree or settlement agreement. The Attorney General or head of the agency shall personally sign any certification submitted under this paragraph.

(2)

Terms

A term described in this paragraph is—

(A)

in the case of a covered consent decree, a term that—

(i)

converts into a nondiscretionary duty a discretionary authority of an agency to propose, promulgate, revise, or amend regulations;

(ii)

commits an agency to expend funds that have not been appropriated and that have not been budgeted for the regulatory action in question;

(iii)

commits an agency to seek a particular appropriation or budget authorization;

(iv)

divests an agency of discretion committed to the agency by statute or the Constitution of the United States, without regard to whether the discretion was granted to respond to changing circumstances, to make policy or managerial choices, or to protect the rights of third parties; or

(v)

otherwise affords relief that the court could not enter under its own authority upon a final judgment in the civil action; or

(B)

in the case of a covered settlement agreement, a term—

(i)

that provides a remedy for a failure by the agency to comply with the terms of the covered settlement agreement other than the revival of the civil action resolved by the covered settlement agreement; and

(ii)

that—

(I)

interferes with the authority of an agency to revise, amend, or issue rules under the procedures set forth in chapter 5 of title 5, United States Code, or any other statute or Executive order prescribing rulemaking procedures for a rulemaking that is the subject of the covered settlement agreement;

(II)

commits the agency to expend funds that have not been appropriated and that have not been budgeted for the regulatory action in question; or

(III)

for such a covered settlement agreement that commits the agency to exercise in a particular way discretion which was committed to the agency by statute or the Constitution of the United States to respond to changing circumstances, to make policy or managerial choices, or to protect the rights of third parties.

(f)

Review by court

(1)

Amicus

A court considering a proposed covered consent decree or settlement agreement shall presume, subject to rebuttal, that it is proper to allow amicus participation relating to the covered consent decree or settlement agreement by any person who filed public comments or participated in a public hearing on the covered consent decree or settlement agreement under paragraph (2) or (3) of subsection (d).

(2)

Review of deadlines

(A)

Proposed covered consent decrees

For a proposed covered consent decree, a court shall not approve the covered consent decree unless the proposed covered consent decree allows sufficient time and incorporates adequate procedures for the agency to comply with chapter 5 of title 5, United States Code, and other applicable statutes that govern rulemaking and, unless contrary to the public interest, the provisions of any Executive order that governs rulemaking.

(B)

Proposed covered settlement agreements

For a proposed covered settlement agreement, a court shall ensure that the covered settlement agreement allows sufficient time and incorporates adequate procedures for the agency to comply with chapter 5 of title 5, United States Code, and other applicable statutes that govern rulemaking and, unless contrary to the public interest, the provisions of any Executive order that governs rulemaking.

(g)

Annual reports

Each agency shall submit to Congress an annual report that, for the year covered by the report, includes—

(1)

the number, identity, and content of covered civil actions brought against and covered consent decrees or settlement agreements entered against or into by the agency; and

(2)

a description of the statutory basis for—

(A)

each covered consent decree or settlement agreement entered against or into by the agency; and

(B)

any award of attorneys fees or costs in a civil action resolved by a covered consent decree or settlement agreement entered against or into by the agency.

404.

Motions to modify consent decrees

If an agency moves a court to modify a covered consent decree or settlement agreement and the basis of the motion is that the terms of the covered consent decree or settlement agreement are no longer fully in the public interest due to the obligations of the agency to fulfill other duties or due to changed facts and circumstances, the court shall review the motion and the covered consent decree or settlement agreement de novo.

405.

Effective date

This title shall apply to—

(1)

any covered civil action filed on or after the date of enactment of this title; and

(2)

any covered consent decree or settlement agreement proposed to a court on or after the date of enactment of this title.

IV

Judiciary

I

Regulations From the Executive in Need of Scrutiny

101.

Short title

This title may be cited as the Regulations From the Executive in Need of Scrutiny Act of 2014 .

102.

Purpose

The purpose of this title is to increase accountability for and transparency in the Federal regulatory process. Section 1 of article I of the United States Constitution grants all legislative powers to Congress. Over time, Congress has excessively delegated its constitutional charge while failing to conduct appropriate oversight and retain accountability for the content of the laws it passes. By requiring a vote in Congress, the REINS Act will result in more carefully drafted and detailed legislation, an improved regulatory process, and a legislative branch that is truly accountable to the American people for the laws imposed upon them. Moreover, as a tax on carbon emissions increases energy costs on consumers, reduces economic growth and is therefore detrimental to individuals, families and businesses, the REINS Act includes in the definition of a major rule, any rule that implements or provides for the imposition or collection of a tax on carbon emissions.

103.

Congressional review of agency rulemaking

Chapter 8 of title 5, United States Code, is amended to read as follows:

8

Congressional Review of Agency Rulemaking

Sec.

801. Congressional review.

802. Congressional approval procedure for major rules.

803. Congressional disapproval procedure for nonmajor rules.

804. Definitions.

805. Judicial review.

806. Exemption for monetary policy.

807. Effective date of certain rules.

801.

Congressional review

(a)
(1)
(A)

Before a rule may take effect, the Federal agency promulgating such rule shall submit to each House of the Congress and to the Comptroller General a report containing—

(i)

a copy of the rule;

(ii)

a concise general statement relating to the rule;

(iii)

a classification of the rule as a major or nonmajor rule, including an explanation of the classification specifically addressing each criteria for a major rule contained within clauses (i) through (iii) of section 804(2)(A) or within section 804(2)(B);

(iv)

a list of any other related regulatory actions taken by or that will be taken by the Federal agency promulgating the rule that are intended to implement the same statutory provision or regulatory objective as well as the individual and aggregate economic effects of those actions;

(v)

a list of any other related regulatory actions taken by or that will be taken by any other Federal agency with authority to implement the same statutory provision or regulatory objective that are intended to implement such provision or objective, of which the Federal agency promulgating the rule is aware, as well as the individual and aggregate economic effects of those actions; and

(vi)

the proposed effective date of the rule.

(B)

On the date of the submission of the report under subparagraph (A), the Federal agency promulgating the rule shall submit to the Comptroller General and make available to each House of Congress—

(i)

a complete copy of the cost-benefit analysis of the rule, if any, including an analysis of any jobs added or lost, differentiating between public and private sector jobs;

(ii)

the agency’s actions pursuant to sections 603, 604, 605, 607, and 609 of this title;

(iii)

the agency’s actions pursuant to sections 202, 203, 204, and 205 of the Unfunded Mandates Reform Act of 1995; and

(iv)

any other relevant information or requirements under any other Act and any relevant Executive orders.

(C)

Upon receipt of a report submitted under subparagraph (A), each House shall provide copies of the report to the chairman and ranking member of each standing committee with jurisdiction under the rules of the House of Representatives or the Senate to report a bill to amend the provision of law under which the rule is issued.

(2)
(A)

The Comptroller General shall provide a report on each major rule to the committees of jurisdiction by the end of 15 calendar days after the submission or publication date. The report of the Comptroller General shall include an assessment of the agency’s compliance with procedural steps required by paragraph (1)(B) and an assessment of whether the major rule imposes any new limits or mandates on private-sector activity.

(B)

Federal agencies shall cooperate with the Comptroller General by providing information relevant to the Comptroller General’s report under subparagraph (A).

(3)

A major rule relating to a report submitted under paragraph (1) shall take effect upon enactment of a joint resolution of approval described in section 802 or as provided for in the rule following enactment of a joint resolution of approval described in section 802, whichever is later.

(4)

A nonmajor rule shall take effect as provided by section 803 after submission to Congress under paragraph (1).

(5)

If a joint resolution of approval relating to a major rule is not enacted within the period provided in subsection (b)(2), then a joint resolution of approval relating to the same rule may not be considered under this chapter in the same Congress by either the House of Representatives or the Senate.

(b)
(1)

A major rule shall not take effect unless the Congress enacts a joint resolution of approval described under section 802.

(2)

If a joint resolution described in subsection (a) is not enacted into law by the end of 70 session days or legislative days, as applicable, beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), then the rule described in that resolution shall be deemed not to be approved and such rule shall not take effect.

(c)
(1)

Notwithstanding any other provision of this section (except subject to paragraph (3)), a major rule may take effect for one 90-calendar-day period if the President makes a determination under paragraph (2) and submits written notice of such determination to the Congress.

(2)

Paragraph (1) applies to a determination made by the President by Executive order that the major rule should take effect because such rule is—

(A)

necessary because of an imminent threat to health or safety or other emergency;

(B)

necessary for the enforcement of criminal laws;

(C)

necessary for national security; or

(D)

issued pursuant to any statute implementing an international trade agreement.

(3)

An exercise by the President of the authority under this subsection shall have no effect on the procedures under section 802.

(d)
(1)

In addition to the opportunity for review otherwise provided under this chapter, in the case of any rule for which a report was submitted in accordance with subsection (a)(1)(A) during the period beginning on the date occurring—

(A)

in the case of the Senate, 60 session days, or

(B)

in the case of the House of Representatives, 60 legislative days,

before the date the Congress is scheduled to adjourn a session of Congress through the date on which the same or succeeding Congress first convenes its next session, sections 802 and 803 shall apply to such rule in the succeeding session of Congress.
(2)
(A)

In applying sections 802 and 803 for purposes of such additional review, a rule described under paragraph (1) shall be treated as though—

(i)

such rule were published in the Federal Register on—

(I)

in the case of the Senate, the 15th session day, or

(II)

in the case of the House of Representatives, the 15th legislative day,

after the succeeding session of Congress first convenes; and
(ii)

a report on such rule were submitted to Congress under subsection (a)(1) on such date.

(B)

Nothing in this paragraph shall be construed to affect the requirement under subsection (a)(1) that a report shall be submitted to Congress before a rule can take effect.

(3)

A rule described under paragraph (1) shall take effect as otherwise provided by law (including other subsections of this section).

802.

Congressional approval procedure for major rules

(a)
(1)

For purposes of this section, the term joint resolution means only a joint resolution addressing a report classifying a rule as major pursuant to section 801(a)(1)(A)(iii) that—

(A)

bears no preamble;

(B)

bears the following title (with blanks filled as appropriate): Approving the rule submitted by ___ relating to ___.;

(C)

includes after its resolving clause only the following (with blanks filled as appropriate): That Congress approves the rule submitted by ___ relating to ___.; and

(D)

is introduced pursuant to paragraph (2).

(2)

After a House of Congress receives a report classifying a rule as major pursuant to section 801(a)(1)(A)(iii), the majority leader of that House (or his or her respective designee) shall introduce (by request, if appropriate) a joint resolution described in paragraph (1)—

(A)

in the case of the House of Representatives, within three legislative days; and

(B)

in the case of the Senate, within three session days.

(3)

A joint resolution described in paragraph (1) shall not be subject to amendment at any stage of proceeding.

(b)

A joint resolution described in subsection (a) shall be referred in each House of Congress to the committees having jurisdiction over the provision of law under which the rule is issued.

(c)

In the Senate, if the committee or committees to which a joint resolution described in subsection (a) has been referred have not reported it at the end of 15 session days after its introduction, such committee or committees shall be automatically discharged from further consideration of the resolution and it shall be placed on the calendar. A vote on final passage of the resolution shall be taken on or before the close of the 15th session day after the resolution is reported by the committee or committees to which it was referred, or after such committee or committees have been discharged from further consideration of the resolution.

(d)
(1)

In the Senate, when the committee or committees to which a joint resolution is referred have reported, or when a committee or committees are discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.

(2)

In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.

(3)

In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.

(4)

Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.

(e)

In the House of Representatives, if any committee to which a joint resolution described in subsection (a) has been referred has not reported it to the House at the end of 15 legislative days after its introduction, such committee shall be discharged from further consideration of the joint resolution, and it shall be placed on the appropriate calendar. On the second and fourth Thursdays of each month it shall be in order at any time for the Speaker to recognize a Member who favors passage of a joint resolution that has appeared on the calendar for at least 5 legislative days to call up that joint resolution for immediate consideration in the House without intervention of any point of order. When so called up a joint resolution shall be considered as read and shall be debatable for 1 hour equally divided and controlled by the proponent and an opponent, and the previous question shall be considered as ordered to its passage without intervening motion. It shall not be in order to reconsider the vote on passage. If a vote on final passage of the joint resolution has not been taken by the third Thursday on which the Speaker may recognize a Member under this subsection, such vote shall be taken on that day.

(f)
(1)

If, before passing a joint resolution described in subsection (a), one House receives from the other a joint resolution having the same text, then—

(A)

the joint resolution of the other House shall not be referred to a committee; and

(B)

the procedure in the receiving House shall be the same as if no joint resolution had been received from the other House until the vote on passage, when the joint resolution received from the other House shall supplant the joint resolution of the receiving House.

(2)

This subsection shall not apply to the House of Representatives if the joint resolution received from the Senate is a revenue measure.

(g)

If either House has not taken a vote on final passage of the joint resolution by the last day of the period described in section 801(b)(2), then such vote shall be taken on that day.

(h)

This section and section 803 are enacted by Congress—

(1)

as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such is deemed to be part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a joint resolution described in subsection (a) and superseding other rules only where explicitly so; and

(2)

with full recognition of the Constitutional right of either House to change the rules (so far as they relate to the procedure of that House) at any time, in the same manner and to the same extent as in the case of any other rule of that House.

803.

Congressional disapproval procedure for nonmajor rules

(a)

For purposes of this section, the term joint resolution means only a joint resolution introduced in the period beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress and ending 60 days thereafter (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: That Congress disapproves the nonmajor rule submitted by the ___ relating to ___ , and such rule shall have no force or effect. (The blank spaces being appropriately filled in).

(b)

A joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction.

(c)

In the Senate, if the committee to which is referred a joint resolution described in subsection (a) has not reported such joint resolution (or an identical joint resolution) at the end of 15 session days after the date of introduction of the joint resolution, such committee may be discharged from further consideration of such joint resolution upon a petition supported in writing by 30 Members of the Senate, and such joint resolution shall be placed on the calendar.

(d)
(1)

In the Senate, when the committee to which a joint resolution is referred has reported, or when a committee is discharged (under subsection (c)) from further consideration of a joint resolution described in subsection (a), it is at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) for a motion to proceed to the consideration of the joint resolution, and all points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the joint resolution is agreed to, the joint resolution shall remain the unfinished business of the Senate until disposed of.

(2)

In the Senate, debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing the joint resolution. A motion to further limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.

(3)

In the Senate, immediately following the conclusion of the debate on a joint resolution described in subsection (a), and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate, the vote on final passage of the joint resolution shall occur.

(4)

Appeals from the decisions of the Chair relating to the application of the rules of the Senate to the procedure relating to a joint resolution described in subsection (a) shall be decided without debate.

(e)

In the Senate the procedure specified in subsection (c) or (d) shall not apply to the consideration of a joint resolution respecting a nonmajor rule—

(1)

after the expiration of the 60 session days beginning with the applicable submission or publication date, or

(2)

if the report under section 801(a)(1)(A) was submitted during the period referred to in section 801(d)(1), after the expiration of the 60 session days beginning on the 15th session day after the succeeding session of Congress first convenes.

(f)

If, before the passage by one House of a joint resolution of that House described in subsection (a), that House receives from the other House a joint resolution described in subsection (a), then the following procedures shall apply:

(1)

The joint resolution of the other House shall not be referred to a committee.

(2)

With respect to a joint resolution described in subsection (a) of the House receiving the joint resolution—

(A)

the procedure in that House shall be the same as if no joint resolution had been received from the other House; but

(B)

the vote on final passage shall be on the joint resolution of the other House.

804.

Definitions

For purposes of this chapter—

(1)

The term Federal agency means any agency as that term is defined in section 551(1).

(2)

The term major rule means any rule, including an interim final rule, that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds—

(A)

has resulted in or is likely to result in—

(i)

an annual effect on the economy of $50,000,000 or more;

(ii)

a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or

(iii)

significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets; or

(B)

is made by the Administrator of the Environmental Protection Agency and that would have a significant impact on a substantial number of agricultural entities, as determined by the Secretary of Agriculture (who shall publish such determination in the Federal Register);

(C)

is a rule that implements or provides for the imposition or collection of a carbon tax; or

(D)

is made under the Patient Protection and Affordable Care Act ( Public Law 111–148 ).

(3)

The term nonmajor rule means any rule that is not a major rule.

(4)

The term rule has the meaning given such term in section 551, except that such term does not include any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefore, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing.

(5)

The term submission date or publication date, except as otherwise provided in this chapter, means—

(A)

in the case of a major rule, the date on which the Congress receives the report submitted under section 801(a)(1); and

(B)

in the case of a nonmajor rule, the later of—

(i)

the date on which the Congress receives the report submitted under section 801(a)(1); and

(ii)

the date on which the nonmajor rule is published in the Federal Register, if so published.

(6)

The term agricultural entity means any entity involved in or related to agricultural enterprise, including enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries.

(7)

The term carbon tax means a fee, levy, or price on—

(A)

emissions, including carbon dioxide emissions generated by the burning of coal, natural gas, or oil; or

(B)

coal, natural gas, or oil based on emissions, including carbon dioxide emissions that would be generated through the fuel's combustion.

805.

Judicial review

(a)

No determination, finding, action, or omission under this chapter shall be subject to judicial review.

(b)

Notwithstanding subsection (a), a court may determine whether a Federal agency has completed the necessary requirements under this chapter for a rule to take effect.

(c)

The enactment of a joint resolution of approval under section 802 shall not be interpreted to serve as a grant or modification of statutory authority by Congress for the promulgation of a rule, shall not extinguish or affect any claim, whether substantive or procedural, against any alleged defect in a rule, and shall not form part of the record before the court in any judicial proceeding concerning a rule except for purposes of determining whether or not the rule is in effect.

806.

Exemption for monetary policy

Nothing in this chapter shall apply to rules that concern monetary policy proposed or implemented by the Board of Governors of the Federal Reserve System or the Federal Open Market Committee.

807.

Effective date of certain rules

Notwithstanding section 801—

(1)

any rule that establishes, modifies, opens, closes, or conducts a regulatory program for a commercial, recreational, or subsistence activity related to hunting, fishing, or camping; or

(2)

any rule other than a major rule which an agency for good cause finds (and incorporates the finding and a brief statement of reasons therefore in the rule issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest,

shall take effect at such time as the Federal agency promulgating the rule determines.

.

104.

Budgetary effects of rules subject to section 802 of title 5, United States Code

Section 257(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following new subparagraph:

(E)

Budgetary effects of rules subject to section 802 of title 5, United States Code

Any rules subject to the congressional approval procedure set forth in section 802 of chapter 8 of title 5, United States Code, affecting budget authority, outlays, or receipts shall be assumed to be effective unless it is not approved in accordance with such section.

.

105.

Government Accountability Office study of rules

(a)

In general

The Comptroller General of the United States shall conduct a study to determine, as of the date of the enactment of this Act—

(1)

how many rules (as such term is defined in section 804 of title 5, United States Code) were in effect;

(2)

how many major rules (as such term is defined in section 804 of title 5, United States Code) were in effect; and

(3)

the total estimated economic cost imposed by all such rules.

(b)

Report

Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to Congress that contains the findings of the study conducted under subsection (a).

II

Permanent Internet Tax Freedom

201.

Short title

This title may be cited as the Permanent Internet Tax Freedom Act .

202.

Permanent moratorium on Internet access taxes and multiple and discriminatory taxes on electronic commerce

(a)

In general

Section 1101(a) of the Internet Tax Freedom Act ( 47 U.S.C. 151 note) is amended by striking during the period beginning November 1, 2003, and ending November 1, 2014.

(b)

Effective date

The amendment made by this section shall apply to taxes imposed after the date of the enactment of this Act.

V

Natural Resources

A

Restoring Healthy Forests for Healthy Communities

100.

Short title

This subdivision may be cited as the Restoring Healthy Forests for Healthy Communities Act .

I

Restoring the Commitment to Rural Counties and Schools

101.

Purposes

The purposes of this title are as follows:

(1)

To restore employment and educational opportunities in, and improve the economic stability of, counties containing National Forest System land.

(2)

To ensure that such counties have a dependable source of revenue from National Forest System land.

(3)

To reduce Forest Service management costs while also ensuring the protection of United States forests resources.

102.

Definitions

In this title:

(1)

Annual volume requirement

(A)

In general

The term annual volume requirement, with respect to a Forest Reserve Revenue Area, means a volume of national forest materials no less than 50 percent of the sustained yield of the Forest Reserve Revenue Area.

(B)

Exclusions

In determining the volume of national forest materials or the sustained yield of a Forest Reserve Revenue Area, the Secretary may not include non-commercial post and pole sales and personal use firewood.

(2)

Beneficiary county

The term beneficiary county means a political subdivision of a State that, on account of containing National Forest System land, was eligible to receive payments through the State under title I of the Secure Rural Schools and Community Self-Determination Act of 2000 (16 U.S.C. 7111 et seq.).

(3)

Catastrophic event

The term catastrophic event means an event (including severe fire, insect or disease infestations, windthrow, or other extreme weather or natural disaster) that the Secretary determines will cause or has caused substantial damage to National Forest System land or natural resources on National Forest System land.

(4)

Covered forest reserve project

The terms covered forest reserve project and covered project mean a project involving the management or sale of national forest materials within a Forest Reserve Revenue Area to generate forest reserve revenues and achieve the annual volume requirement for the Forest Reserve Revenue Area.

(5)

Forest reserve revenue area

(A)

In general

The term Forest Reserve Revenue Area means National Forest System land in a unit of the National Forest System designated for sustainable forest management for the production of national forest materials and forest reserve revenues.

(B)

Inclusions

Subject to subparagraph (C), but otherwise notwithstanding any other provision of law, including executive orders and regulations, the Secretary shall include in Forest Reserve Revenue Areas not less than 50 percent of the National Forest System lands identified as commercial forest land capable of producing twenty cubic feet of timber per acre.

(C)

Exclusions

A Forest Reserve Revenue Area may not include National Forest System land—

(i)

that is a component of the National Wilderness Preservation System;

(ii)

on which the removal of vegetation is specifically prohibited by Federal statute; or

(iii)

that is within a National Monument as of the date of the enactment of this Act.

(6)

Forest reserve revenues

The term forest reserve revenues means revenues derived from the sale of national forest materials in a Forest Reserve Revenue Area.

(7)

National forest materials

The term national forest materials has the meaning given that term in section 14(e)(1) of the National Forest Management Act of 1976 ( 16 U.S.C. 472a(e)(1) ).

(8)

National forest system

The term National Forest System has the meaning given that term in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1609(a) ), except that the term does not include the National Grasslands and land utilization projects designated as National Grasslands administered pursuant to the Act of July 22, 1937 ( 7 U.S.C. 1010–1012 ).

(9)

Secretary

The term Secretary means the Secretary of Agriculture.

(10)

Sustained yield

The term sustained yield means the maximum annual growth potential of the forest calculated on the basis of the culmination of mean annual increment using cubic measurement.

(11)

State

The term State includes the Commonwealth of Puerto Rico.

(12)

25-percent payment

The term 25-percent payment means the payment to States required by the sixth paragraph under the heading of FOREST SERVICE in the Act of May 23, 1908 (35 Stat. 260; 16 U.S.C. 500 ), and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500 ).

103.

Establishment of Forest Reserve Revenue Areas and annual volume requirements

(a)

Establishment of Forest Reserve Revenue Areas

Notwithstanding any other provision of law, the Secretary shall establish one or more Forest Reserve Revenue Areas within each unit of the National Forest System.

(b)

Deadline for establishment

The Secretary shall complete establishment of the Forest Reserve Revenue Areas not later than 60 days after the date of enactment of this Act,

(c)

Purpose

The purpose of a Forest Reserve Revenue Area is to provide a dependable source of 25-percent payments and economic activity through sustainable forest management for each beneficiary county containing National Forest System land.

(d)

Fiduciary responsibility

The Secretary shall have a fiduciary responsibility to beneficiary counties to manage Forest Reserve Revenue Areas to satisfy the annual volume requirement.

(e)

Determination of annual volume requirement

Not later than 30 days after the date of the establishment of a Forest Reserve Revenue Area, the Secretary shall determine the annual volume requirement for that Forest Reserve Revenue Area.

(f)

Limitation on reduction of forest reserve revenue areas

Once a Forest Reserve Revenue Area is established under subsection (a), the Secretary may not reduce the number of acres of National Forest System land included in that Forest Reserve Revenue Area.

(g)

Map

The Secretary shall provide a map of all Forest Reserve Revenue Areas established under subsection (a) for each unit of the National Forest System

(1)

to the Committee on Agriculture and the Committee on Natural Resources of the House of Representatives; and

(2)

to the Committee on Agriculture, Nutrition, and Forestry and the Committee on Energy and Natural Resources of the Senate.

(h)

Recognition of Valid and Existing Rights

Neither the establishment of Forest Reserve Revenue Areas under subsection (a) nor any other provision of this title shall be construed to limit or restrict—

(1)

access to National Forest System land for hunting, fishing, recreation, and other related purposes; or

(2)

valid and existing rights regarding National Forest System land, including rights of any federally recognized Indian tribe.

104.

Management of Forest Reserve Revenue Areas

(a)

Requirement To achieve annual volume requirement

Immediately upon the establishment of a Forest Reserve Revenue Area, the Secretary shall manage the Forest Reserve Revenue Area in the manner necessary to achieve the annual volume requirement for the Forest Reserve Revenue Area. The Secretary is authorized and encouraged to commence covered forest reserve projects as soon as practicable after the date of the enactment of this Act to begin generating forest reserve revenues.

(b)

Standards for projects within forest reserve revenue areas

The Secretary shall conduct covered forest reserve projects within Forest Reserve Revenue Areas in accordance with this section, which shall serve as the sole means by which the Secretary will comply with the National Environmental Policy Act of 1969 ( 42 U.S.C. 4331 et seq. ) and other laws applicable to the covered projects.

(c)

Environmental analysis process for projects in forest reserve revenue areas

(1)

Environmental Assessment

The Secretary shall give published notice and complete an environmental assessment pursuant to section 102(2) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)) for a covered forest reserve project proposed to be conducted within a Forest Reserve Revenue Area, except that the Secretary is not required to study, develop, or describe any alternative to the proposed agency action.

(2)

Cumulative effects

The Secretary shall consider cumulative effects solely by evaluating the impacts of a proposed covered forest reserve project combined with the impacts of any other projects that were approved with a Decision Notice or Record of Decision before the date on which the Secretary published notice of the proposed covered project. The cumulative effects of past projects may be considered in the environmental assessment by using a description of the current environmental conditions.

(3)

Length

The environmental assessment prepared for a proposed covered forest reserve project shall not exceed 100 pages in length. The Secretary may incorporate in the environmental assessment, by reference, any documents that the Secretary determines, in the sole discretion of the Secretary, are relevant to the assessment of the environmental effects of the covered project.

(4)

Deadline for completion

The Secretary shall complete the environmental assessment for a covered forest reserve project within 180 days after the date on which the Secretary published notice of the proposed covered project.

(5)

Treatment of decision notice

The decision notice for a covered forest reserve project shall be considered a final agency action and no additional analysis under the National Environmental Policy Act of 1969 ( 42 U.S.C. 4331 et seq. ) shall be required to implement any portion of the covered project.

(6)

Categorical exclusion

A covered forest reserve project that is proposed in response to a catastrophic event, that covers an area of 10,000 acres or less, or an eligible hazardous fuel reduction or forest health project proposed under title II that involves the removal of insect-infected trees, dead or dying trees, trees presenting a threat to public safety, or other hazardous fuels within 500 feet of utility or telephone infrastructure, campgrounds, roadsides, heritage sites, recreation sites, schools, or other infrastructure, shall be categorically excluded from the requirements of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4331 et seq. ).

(d)

Application of land and resource management plan

The Secretary may modify the standards and guidelines contained in the land and resource management plan for the unit of the National Forest System in which the covered forest reserve project will be carried out as necessary to achieve the requirements of this subdivision. Section 6(g)(3)(E)(iv) of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604(g)(3)(E)(iv)) shall not apply to a covered forest reserve project.

(e)

Compliance with endangered species act

(1)

Non-jeopardy assessment

If the Secretary determines that a proposed covered forest reserve project may affect the continued existence of any species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533 ), the Secretary shall issue a determination explaining the view of the Secretary that the proposed covered project is not likely to jeopardize the continued existence of the species.

(2)

Submission, review, and response

(A)

Submission

The Secretary shall submit a determination issued by the Secretary under paragraph (1) to the Secretary of the Interior or the Secretary of Commerce, as appropriate.

(B)

Review and response

Within 30 days after receiving a determination under subparagraph (A), the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall provide a written response to the Secretary concurring in or rejecting the Secretary’s determination. If the Secretary of the Interior or the Secretary of Commerce rejects the determination, the written response shall include recommendations for measures that—

(i)

will avoid the likelihood of jeopardy to an endangered or threatened species;

(ii)

can be implemented in a manner consistent with the intended purpose of the covered forest reserve project;

(iii)

can be implemented consistent with the scope of the Secretary’s legal authority and jurisdiction; and

(iv)

are economically and technologically feasible.

(3)

Formal consultation

If the Secretary of the Interior or the Secretary of Commerce rejects a determination issued by the Secretary under paragraph (1), the Secretary of the Interior or the Secretary of Commerce also is required to engage in formal consultation with the Secretary. The Secretaries shall complete such consultation pursuant to section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) within 90 days after the submission of the written response under paragraph (2).

(f)

Administrative and judicial review

(1)

Administrative review

Administrative review of a covered forest reserve project shall occur only in accordance with the special administrative review process established under section 105 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6515 ).

(2)

Judicial review

(A)

In general

Judicial review of a covered forest reserve project shall occur in accordance with section 106 of the Healthy Forests Restoration Act of 2003 ( 16 U.S.C. 6516 ), except that a court of the United States may not issue a restraining order, preliminary injunction, or injunction pending appeal covering a covered forest reserve project in response to an allegation that the Secretary violated any procedural requirement applicable to how the project was selected, planned, or analyzed.

(B)

Bond required

A plaintiff challenging a covered forest reserve project shall be required to post a bond or other security acceptable to the court for the reasonably estimated costs, expenses, and attorneys fees of the Secretary as defendant. All proceedings in the action shall be stayed until the security is given. If the plaintiff has not complied with the order to post such bond or other security within 90 days after the date of service of the order, then the action shall be dismissed with prejudice.

(C)

Recovery

If the Secretary prevails in the case, the Secretary shall submit to the court a motion for payment of all litigation expenses.

(g)

Use of all-Terrain vehicles for management activities

The Secretary may allow the use of all-terrain vehicles within the Forest Reserve Revenue Areas for the purpose of activities associated with the sale of national forest materials in a Forest Reserve Revenue Area.

105.

Distribution of forest reserve revenues

(a)

25-Percent Payments

The Secretary shall use forest reserve revenues generated by a covered forest reserve project to make 25-percent payments to States for the benefit of beneficiary counties.

(b)

Deposit in knutson-Vandenberg and salvage sale funds

After compliance with subsection (a), the Secretary shall use forest reserve revenues to make deposits into the fund established under section 3 of the Act of June 9, 1930 ( 16 U.S.C. 576b ; commonly known as the Knutson-Vandenberg Fund) and the fund established under section 14(h) of the National Forest Management Act of 1976 ( 16 U.S.C. 472a(h) ; commonly known as the salvage sale fund) in contributions equal to the monies otherwise collected under those Acts for projects conducted on National Forest System land.

(c)

Deposit in general fund of the Treasury

After compliance with subsections (a) and (b), the Secretary shall deposit remaining forest reserve revenues into the general fund of the Treasury.

106.

Annual report

(a)

Report required

Not later than 60 days after the end of each fiscal year, the Secretary shall submit to Congress an annual report specifying the annual volume requirement in effect for that fiscal year for each Forest Reserve Revenue Area, the volume of board feet actually harvested for each Forest Reserve Revenue Area, the average cost of preparation for timber sales, the forest reserve revenues generated from such sales, and the amount of receipts distributed to each beneficiary county.

(b)

Form of report

The information required by subsection (a) to be provided with respect to a Forest Reserve Revenue Area shall be presented on a single page. In addition to submitting each report to Congress, the Secretary shall also make the report available on the website of the Forest Service.

II

Healthy Forest Management and Catastrophic Wildfire Prevention

201.

Purposes

The purposes of this title are as follows:

(1)

To provide the Secretary of Agriculture and the Secretary of the Interior with the tools necessary to reduce the potential for wildfires.

(2)

To expedite wildfire prevention projects to reduce the chances of wildfire on certain high-risk Federal lands.

(3)

To protect communities and forest habitat from uncharacteristic wildfires.

(4)

To enhance aquatic conditions and terrestrial wildlife habitat.

(5)

To restore diverse and resilient landscapes through improved forest conditions.

202.

Definitions

In this title:

(1)

At-risk community

The term at-risk community has the meaning given that term in section 101 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).

(2)

At-risk forest

The term at-risk forest means—

(A)

Federal land in condition class II or III, as those classes were developed by the Forest Service Rocky Mountain Research Station in the general technical report titled Development of Coarse-Scale Spatial Data for Wildland Fire and Fuel Management (RMRS–87) and dated April 2000 or any subsequent revision of the report; or

(B)

Federal land where there exists a high risk of losing an at-risk community, key ecosystem, water supply, wildlife, or wildlife habitat to wildfire, including catastrophic wildfire and post-fire disturbances, as designated by the Secretary concerned.

(3)

Federal land

(A)

Covered land

The term Federal land means—

(i)

land of the National Forest System (as defined in section 11(a) of the Forest and Rangeland Renewable Resources Planning Act of 1974 ( 16 U.S.C. 1609(a) )); or

(ii)

public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)).

(B)

Excluded land

The term does not include land—

(i)

that is a component of the National Wilderness Preservation System;

(ii)

on which the removal of vegetation is specifically prohibited by Federal statute; or

(iii)

that is within a National Monument as of the date of the enactment of this Act.

(4)

High-risk area

The term high-risk area means an area of Federal land identified under section 205 as an area suffering from the bark beetle epidemic, drought, or deteriorating forest health conditions, with the resulting imminent risk of devastating wildfires, or otherwise at high risk for bark beetle infestation, drought, or wildfire.

(5)

Secretary concerned

The term Secretary concerned means—

(A)

the Secretary of Agriculture, in the case of National Forest System land; and

(B)

the Secretary of the Interior, in the case of public lands.

(6)

Eligible hazardous fuel reduction and forest health projects

The terms hazardous fuel reduction project or forest health project mean the measures and methods developed for a project to be carried out on Federal land—

(A)

in an at-risk forest under section 203 for hazardous fuels reduction, forest health, forest restoration, or watershed restoration, using ecological restoration principles consistent with the forest type where such project will occur; or

(B)

in a high-risk area under section 206.

203.

Hazardous fuel reduction projects and forest health projects in at-risk forests

(a)

Implementation

As soon as practicable after the date of the enactment of this Act, the Secretary concerned is authorized to implement a hazardous fuel reduction project or a forest health project in at-risk forests in a manner that focuses on surface, ladder, and canopy fuels reduction activities using ecological restoration principles consistent with the forest type in the location where such project will occur.

(b)

Authorized practices

(1)

Inclusion of livestock grazing and timber harvesting

A hazardous fuel reduction project or a forest health project may include livestock grazing and timber harvest projects carried out for the purposes of hazardous fuels reduction, forest health, forest restoration, watershed restoration, or threatened and endangered species habitat protection or improvement, if the management action is consistent with achieving long-term ecological restoration of the forest type in the location where such project will occur.

(2)

Grazing

Domestic livestock grazing may be used in a hazardous fuel reduction project or a forest health project to reduce surface fuel loads and to recover burned areas. Utilization standards shall not apply when domestic livestock grazing is used in such a project.

(3)

Timber harvesting and thinning

Timber harvesting and thinning, where the ecological restoration principles are consistent with the forest type in the location where such project will occur, may be used in a hazardous fuel reduction project or a forest health project to reduce ladder and canopy fuel loads to prevent unnatural fire.

(c)

Priority

The Secretary concerned shall give priority to hazardous fuel reduction projects and forest health projects submitted by the Governor of a State as provided in section 206(c) and to projects submitted under the Tribal Forest Protection Act of 2004 ( 25 U.S.C. 3115a ).

204.

Environmental analysis

Subsections (b) through (f) of section 104 shall apply to the implementation of a hazardous fuel reduction project or a forest health project under this title. In addition, if the primary purpose of a hazardous fuel reduction project or a forest health project under this title is the salvage of dead, damaged, or down timber resulting from wildfire occurring in 2013 or 2014, the hazardous fuel reduction project or forest health project, and any decision of the Secretary concerned in connection with the project, shall not be subject to judicial review or to any restraining order or injunction issued by a United States court.

205.

State designation of high-risk areas of National Forest System and public lands

(a)

Designation authority

The Governor of a State may designate high-risk areas of Federal land in the State for the purposes of addressing—

(1)

deteriorating forest health conditions in existence as of the date of the enactment of this Act due to the bark beetle epidemic or drought, with the resulting imminent risk of devastating wildfires; and

(2)

the future risk of insect infestations or disease outbreaks through preventative treatments to improve forest health conditions.

(b)

Consultation

In designating high-risk areas, the Governor of a State shall consult with county government from affected counties and with affected Indian tribes.

(c)

Exclusion of certain areas

The following Federal land may not be designated as a high-risk area:

(1)

A component of the National Wilderness Preservation System.

(2)

Federal land on which the removal of vegetation is specifically prohibited by Federal statute.

(3)

Federal land within a National Monument as of the date of the enactment of this Act.

(d)

Standards for designation

Designation of high-risk areas shall be consistent with standards and guidelines contained in the land and resource management plan or land use plan for the unit of Federal land for which the designation is being made, except that the Secretary concerned may modify such standards and guidelines to correspond with a specific high-risk area designation.

(e)

Time for initial designations

The first high-risk areas should be designated not later than 60 days after the date of the enactment of this Act, but high-risk areas may be designated at any time consistent with subsection (a).

(f)

Duration of designation

The designation of a high-risk area in a State shall expire 20 years after the date of the designation, unless earlier terminated by the Governor of the State.

(g)

Redesignation

The expiration of the 20-year period specified in subsection (f) does not prohibit the Governor from redesignating an area of Federal land as a high-risk area under this section if the Governor determines that the Federal land continues to be subject to the terms of this section.

(h)

Recognition of valid and existing rights

The designation of a high-risk area shall not be construed to limit or restrict—

(1)

access to Federal land included in the area for hunting, fishing, and other related purposes; or

(2)

valid and existing rights regarding the Federal land.

206.

Use of hazardous fuels reduction or forest health projects for high-risk areas

(a)

Project proposals

(1)

Proposals authorized

Upon designation of a high-risk area in a State, the Governor of the State may provide for the development of proposed hazardous fuel reduction projects or forest health projects for the high-risk area.

(2)

Project criteria

In preparing a proposed hazardous fuel reduction project or a forest health project, the Governor of a State and the Secretary concerned shall—

(A)

take into account managing for rights of way, protection of watersheds, protection of wildlife and endangered species habitat, safe-guarding water resources, and protecting at-risk communities from wildfires; and

(B)

emphasize activities that thin the forest to provide the greatest health and longevity of the forest.

(b)

Consultation

In preparing a proposed hazardous fuel reduction project or a forest health project, the Governor of a State shall consult with county government from affected counties, and with affected Indian tribes.

(c)

Submission and implementation

The Governor of a State shall submit proposed emergency hazardous fuel reduction projects and forest health projects to the Secretary concerned for implementation as provided in section 203.

207.

Moratorium on use of prescribed fire in Mark Twain National Forest, Missouri, pending report

(a)

Moratorium

Except as provided in subsection (b), the Secretary of Agriculture may not conduct any prescribed fire in Mark Twain National Forest, Missouri, under the Collaborative Forest Landscape Restoration Project until the report required by subsection (c) is submitted to Congress.

(b)

Exception for wildfire suppression

Subsection (a) does not prohibit the use of prescribed fire as part of wildfire suppression activities.

(c)

Report required

Not later than one year after the date of the enactment of this Act, the Secretary of Agriculture shall submit to Congress a report containing an evaluation of recent and current Forest Service management practices for Mark Twain National Forest, including lands in the National Forest enrolled, or under consideration for enrollment, in the Collaborative Forest Landscape Restoration Project to convert certain lands into shortleaf pine-oak woodlands, to determine the impact of such management practices on forest health and tree mortality. The report shall specifically address—

(1)

the economic costs associated with the failure to utilize hardwoods cut as part of the Collaborative Forest Landscape Restoration Project and the subsequent loss of hardwood production from the treated lands in the long term;

(2)

the extent of increased tree mortality due to excessive heat generated by prescribed fires;

(3)

the impacts to water quality and rate of water run off due to erosion of the scorched earth left in the aftermath of the prescribed fires; and

(4)

a long-term plan for evaluation of the impacts of prescribed fires on lands previously burned within the Eleven Point Ranger District.

III

Oregon and California Railroad Grant Lands Trust, Conservation, and Jobs

301.

Short title

This title may be cited as the O Trust, Conservation, and Jobs Act .

302.

Definitions

In this title:

(1)

Affiliates

The term “Affiliates” has the meaning given such term in part 121 of title 13, Code of Federal Regulations.

(2)

Board of trustees

The term Board of Trustees means the Board of Trustees for the Oregon and California Railroad Grant Lands Trust appointed under section 313.

(3)

Coos Bay Wagon Road Grant lands

The term Coos Bay Wagon Road Grant lands means the lands reconveyed to the United States pursuant to the first section of the Act of February 26, 1919 (40 Stat. 1179).

(4)

Fiscal year

The term fiscal year means the Federal fiscal year, October 1 through the next September 30.

(5)

Governor

The term Governor means the Governor of the State of Oregon.

(6)

O Region Public Domain lands

The term O Region Public Domain lands means all the land managed by the Bureau of Land Management in the Salem District, Eugene District, Roseburg District, Coos Bay District, and Medford District in the State of Oregon, excluding the Oregon and California Railroad Grant lands and the Coos Bay Wagon Road Grant lands.

(7)

O Trust

The terms Oregon and California Railroad Grant Lands Trust and O Trust mean the trust created by section 311, which has fiduciary responsibilities to act for the benefit of the O Trust counties in the management of O Trust lands.

(8)

O trust county

The term O Trust county means each of the 18 counties in the State of Oregon that contained a portion of the Oregon and California Railroad Grant lands as of January 1, 2013, each of which are beneficiaries of the O Trust.

(9)

O trust lands

The term O Trust lands means the surface estate of the lands over which management authority is transferred to the O Trust pursuant to section 311(c)(1). The term does not include any of the lands excluded from the O Trust pursuant to section 311(c)(2), transferred to the Forest Service under section 321, or Tribal lands transferred under subtitle D.

(10)

Oregon and California Railroad Grant lands

The term Oregon and California Railroad Grant lands means the following lands:

(A)

All lands in the State of Oregon revested in the United States under the Act of June 9, 1916 (39 Stat. 218), regardless of whether the lands are—

(i)

administered by the Secretary of the Interior, acting through the Bureau of Land Management, pursuant to the first section of the Act of August 28, 1937 (43 U.S.C. 1181a); or

(ii)

administered by the Secretary of Agriculture as part of the National Forest System pursuant to the first section of the Act of June 24, 1954 ( 43 U.S.C. 1181g ).

(B)

All lands in the State obtained by the Secretary of the Interior pursuant to the land exchanges authorized and directed by section 2 of the Act of June 24, 1954 (43 U.S.C. 1181h).

(C)

All lands in the State acquired by the United States at any time and made subject to the provisions of title II of the Act of August 28, 1937 ( 43 U.S.C. 1181f ).

(11)

Reserve Fund

The term Reserve Fund means the reserve fund created by the Board of Trustees under section 315(b).

(12)

Secretary concerned

The term Secretary concerned means—

(A)

the Secretary of the Interior, with respect to Oregon and California Railroad Grant lands that are transferred to the management authority of the O Trust and, immediately before such transfer, were managed by the Bureau of Land Management; and

(B)

the Secretary of Agriculture, with respect to Oregon and California Railroad Grant lands that—

(i)

are transferred to the management authority of the O Trust and, immediately before such transfer, were part of the National Forest System; or

(ii)

are transferred to the Forest Service under section 321.

(13)

State

The term State means the State of Oregon.

(14)

Transition period

The term transition period means the three fiscal-year period specified in section 331 following the appointment of the Board of Trustees during which—

(A)

the O Trust is created; and

(B)

interim funding of the O Trust is secured.

(15)

Tribal lands

The term Tribal lands means any of the lands transferred to the Cow Creek Band of the Umpqua Tribe of Indians or the Confederated Tribes of Coos, Lower Umpqua, and Siuslaw Indians under subtitle D.

A

Trust, Conservation, and Jobs

1

Creation and Terms of O Trust

311.

Creation of O Trust and designation of O Trust lands

(a)

Creation

The Oregon and California Railroad Grant Lands Trust is established effective on October 1 of the first fiscal year beginning after the appointment of the Board of Trustees. As management authority over the surface of estate of the O Trust lands is transferred to the O Trust during the transition period pursuant to section 331, the transferred lands shall be held in trust for the benefit of the O Trust counties.

(b)

Trust purpose

The purpose of the O Trust is to produce annual maximum sustained revenues in perpetuity for O Trust counties by managing the timber resources on O Trust lands on a sustained-yield basis subject to the management requirements of section 314.

(c)

Designation of O trust lands

(1)

Lands included

Except as provided in paragraph (2), the O Trust lands shall include all of the lands containing the stands of timber described in subsection (d) that are located, as of January 1, 2013, on Oregon and California Railroad Grant lands and O Region Public Domain lands.

(2)

Lands excluded

O Trust lands shall not include any of the following Oregon and California Railroad Grant lands and O Region Public Domain lands (even if the lands are otherwise described in subsection (d)):

(A)

Federal lands within the National Landscape Conservation System as of January 1, 2013.

(B)

Federal lands designated as Areas of Critical Environmental Concern as of January 1, 2013.

(C)

Federal lands that were in the National Wilderness Preservation System as of January 1, 2013.

(D)

Federal lands included in the National Wild and Scenic Rivers System of January 1, 2013.

(E)

Federal lands within the boundaries of a national monument, park, or other developed recreation area as of January 1, 2013.

(F)

Oregon treasures addressed in subtitle C, any portion of which, as of January 1, 2013, consists of Oregon and California Railroad Grant lands or O Region Public Domain lands.

(G)

Tribal lands addressed in subtitle D.

(d)

Covered stands of timber

(1)

Description

The O Trust lands consist of stands of timber that have previously been managed for timber production or that have been materially altered by natural disturbances since 1886. Most of these stands of timber are 80 years old or less, and all of such stands can be classified as having a predominant stand age of 125 years or less.

(2)

Delineation of boundaries by bureau of land management

The Oregon and California Railroad Grant lands and O Region Public Domain lands that, immediately before transfer to the O Trust, were managed by the Bureau of Land Management are timber stands that have predominant birth date attributes of 1886 or later, with boundaries that are defined by polygon spatial data layer in and electronic data compilation filed by the Bureau of Land Management pursuant to paragraph (4). Except as provided in paragraph (5), the boundaries of all timber stands constituting the O Trust lands are finally and conclusively determined for all purposes by coordinates in or derived by reference to the polygon spatial data layer prepared by the Bureau of Land Management and filed pursuant to paragraph (4), notwithstanding anomalies that might later be discovered on the ground. The boundary coordinates are locatable on the ground by use of global positioning system signals. In cases where the location of the stand boundary is disputed or is inconsistent with paragraph (1), the location of boundary coordinates on the ground shall be, except as otherwise provided in paragraph (5), finally and conclusively determined for all purposes by the direct or indirect use of global positioning system equipment with accuracy specification of one meter or less.

(3)

Delineation of boundaries by forest service

The O Trust lands that, immediately before transfer to the O Trust, were managed by the Forest Service are timber stands that can be classified as having predominant stand ages of 125 years old or less. Within 30 days after the date of the enactment of this Act, the Secretary of Agriculture shall commence identification of the boundaries of such stands, and the boundaries of all such stands shall be identified and made available to the Board of Trustees not later than 180 days following the creation of the O Trust pursuant to subsection (a). In identifying the stand boundaries, the Secretary may use geographic information system data, satellite imagery, cadastral survey coordinates, or any other means available within the time allowed. The boundaries shall be provided to the Board of Trustees within the time allowed in the form of a spatial data layer from which coordinates can be derived that are locatable on the ground by use of global positioning system signals. Except as provided in paragraph (5), the boundaries of all timber stands constituting the O Trust lands are finally and conclusively determined for all purposes by coordinates in or derived by reference to the data provided by the Secretary within the time provided by this paragraph, notwithstanding anomalies that might later be discovered on the ground. In cases where the location of the stand boundary is disputed or inconsistent with paragraph (1), the location of boundary coordinates on the ground shall be, except as otherwise provided in paragraph (5), finally and conclusively determined for all purposes by the boundary coordinates provided by the Secretary as they are located on the ground by the direct or indirect use of global positioning system equipment with accuracy specifications of one meter or less. All actions taken by the Secretary under this paragraph shall be deemed to not involve Federal agency action or Federal discretionary involvement or control.

(4)

Data and maps

Copies of the data containing boundary coordinates for the stands included in the O Trust lands, or from which such coordinates are derived, and maps generally depicting the stand locations shall be filed with the Committee on Energy and Natural Resources of the Senate, the Committee on Natural Resources of the House of Representatives, and the office of the Secretary concerned. The maps and data shall be filed—

(A)

not later than 90 days after the date of the enactment of this Act, in the case of the lands identified pursuant to paragraph (2); and

(B)

not later than 180 days following the creation of the O Trust pursuant to subsection (a), in the case of lands identified pursuant to paragraph (3).

(5)

Adjustment authority and limitations

(A)

No impact on determining title or property ownership boundaries

Stand boundaries identified under paragraph (2) or (3) shall not be relied upon for purposes of determining title or property ownership boundaries. If the boundary of a stand identified under paragraph (2) or (3) extends beyond the property ownership boundaries of Oregon and California Railroad Grant lands or O Region Public Domain lands, as such property boundaries exist on the date of enactment of this Act, then that stand boundary is deemed adjusted by this subparagraph to coincide with the property ownership boundary.

(B)

Effect of data errors or inconsistencies

Data errors or inconsistencies may result in parcels of land along property ownership boundaries that are unintentionally omitted from the O Trust lands that are identified under paragraph (2) or (3). In order to correct such errors, any parcel of land that satisfies all of the following criteria is hereby deemed to be O Trust land:

(i)

The parcel is within the ownership boundaries of Oregon and California Railroad Grant lands or O Region Public Domain lands on the date of the enactment of this Act.

(ii)

The parcel satisfies the description in paragraph (1) on the date of enactment of this Act.

(iii)

The parcel is not excluded from the O Trust lands pursuant to subsection (c)(2).

(C)

No impact on land exchange authority

Nothing in this subsection is intended to limit the authority of the Trust and the Forest Service to engage in land exchanges between themselves or with owners of non-Federal land as provided elsewhere in this title.

312.

Legal effect of O Trust and judicial review

(a)

Legal status of trust lands

Subject to the other provisions of this section, all right, title, and interest in and to the O Trust lands remain in the United States, except that—

(1)

the Board of Trustees shall have all authority to manage the surface estate of the O Trust lands and the resources found thereon;

(2)

actions on the O Trust lands shall be deemed to involve no Federal agency action or Federal discretionary involvement or control and the laws of the State shall apply to the surface estate of the O Trust lands in the manner applicable to privately owned timberlands in the State; and

(3)

the O Trust shall be treated as the beneficial owner of the surface estate of the O Trust lands for purposes of all legal proceedings involving the O Trust lands.

(b)

Minerals

(1)

In general

Mineral and other subsurface rights in the O Trust lands are retained by the United States or other owner of such rights as of the date on which management authority over the surface estate of the lands are transferred to the O Trust.

(2)

Rock and gravel

(A)

Use authorized; purpose

For maintenance or construction on the road system under the control of the O Trust or for non-Federal lands intermingled with O Trust lands, the Board of Trustees may—

(i)

utilize rock or gravel found within quarries in existence immediately before the date of the enactment of this Act on any Oregon and California Railroad Grant lands and O Region Public Domain lands, excluding those lands designated under subtitle C or transferred under subtitle D; and

(ii)

construct new quarries on O Trust lands, except that any quarry so constructed may not exceed 5 acres.

(B)

Exception

The Board of Trustees shall not construct new quarries on any of the lands transferred to the Forest Service under section 321 or lands designated under subtitle D.

(c)

Roads

(1)

In general

Except as provided in subsection (b), the Board of Trustees shall assume authority and responsibility over, and have authority to use, all roads and the road system specified in the following subparagraphs:

(A)

All roads and road systems on the Oregon and California Railroad and Grant lands and O Region Public Domain lands owned or administered by the Bureau of Land Management immediately before the date of the enactment of this Act, except that the Secretary of Agriculture shall assume the Secretary of Interior’s obligations for pro-rata maintenance expense and road use fees under reciprocal right-of-way agreements for those lands transferred to the Forest Service under section 321. All of the lands transferred to the Forest Service under section 321 shall be considered as part of the tributary area used to calculate pro-rata maintenance expense and road use fees.

(B)

All roads and road systems owned or administered by the Forest Service immediately before the date of the enactment of this Act and subsequently included within the boundaries of the O Trust lands.

(C)

All roads later added to the road system for management of the O Trust lands.

(2)

Lands transferred to forest service

The Secretary of Agriculture shall assume the obligations of the Secretary of Interior for pro-rata maintenance expense and road use fees under reciprocal rights-of-way agreements for those Oregon and California Railroad Grant lands or O Region Public Domain lands transferred to the Forest Service under section 321.

(3)

Compliance with Clean Water Act

All roads used, constructed, or reconstructed under the jurisdiction of the O Trust must comply with requirements of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) applicable to private lands through the use of Best Management Practices under the Oregon Forest Practices Act.

(d)

Public access

(1)

In general

Subject to paragraph (2), public access to O Trust lands shall be preserved consistent with the policies of the Secretary concerned applicable to the O Trust lands as of the date on which management authority over the surface estate of the lands is transferred to the O Trust.

(2)

Restrictions

The Board of Trustees may limit or control public access for reasons of public safety or to protect the resources on the O Trust lands.

(e)

Limitations

The assets of the O Trust shall not be subject to the creditors of an O Trust county, or otherwise be distributed in an unprotected manner or be subject to anticipation, encumbrance, or expenditure other than for a purpose for which the O Trust was created.

(f)

Remedy

An O Trust county shall have all of the rights and remedies that would normally accrue to a beneficiary of a trust. An O Trust county shall provide the Board of Trustees, the Secretary concerned, and the Attorney General with not less than 60 days notice of an intent to sue to enforce the O Trust county’s rights under the O Trust.

(g)

Judicial review

(1)

In general

Except as provided in paragraph (2), judicial review of any provision of this title shall be sought in the United States Court of Appeals for the District of Columbia Circuit. Parties seeking judicial review of the validity of any provision of this title must file suit within 90 days after the date of the enactment of this Act and no preliminary injunctive relief or stays pending appeal will be permitted. If multiple cases are filed under this paragraph, the Court shall consolidate the cases. The Court must rule on any action brought under this paragraph within 180 days.

(2)

Decisions of Board of Trustees

Decisions made by the Board of Trustees shall be subject to judicial review only in an action brought by an O County, except that nothing in this title precludes bringing a legal claim against the Board of Trustees that could be brought against a private landowner for the same action.

313.

Board of Trustees

(a)

Appointment authorization

Subject to the conditions on appointment imposed by this section, the Governor is authorized to appoint the Board of Trustees to administer the O Trust and O Trust lands. Appointments by the Governor shall be made within 60 days after the date of the enactment of this Act.

(b)

Members and eligibility

(1)

Number

Subject to subsection (c), the Board of Trustees shall consist of seven members.

(2)

Residency requirement

Members of the Board of Trustees must reside within an O Trust county.

(3)

Geographical representation

To the extent practicable, the Governor shall ensure broad geographic representation among the O Trust counties in appointing members to the Board of Trustees.

(c)

Composition

The Board of Trustees shall include the following members:

(1)
(A)

Two forestry and wood products representatives, consisting of—

(i)

one member who represents the commercial timber, wood products, or milling industries and who represents an Oregon-based company with more than 500 employees, taking into account its affiliates, that has submitted a bid for a timber sale on the Oregon and California Railroad Grant lands, O Region Public Domain lands, Coos Bay Wagon Road Grant lands, or O Trust lands in the preceding five years; and

(ii)

one member who represents the commercial wood products or milling industries and who represents an Oregon-based company with 500 or fewer employees, taking into account its affiliates, that has submitted a bid for a timber sale on the Oregon and California Railroad Grant lands, O Region Public Domain lands, Coos Bay Wagon Road Grant lands, or O Trust lands in the preceding five years.

(B)

At least one of the two representatives selected in this paragraph must own commercial forest land that is adjacent to the O Trust lands and from which the representative has not exported unprocessed timber in the preceding five years.

(2)

One representative of the general public who has professional experience in one or more of the following fields:

(A)

Business management.

(B)

Law.

(C)

Accounting.

(D)

Banking.

(E)

Labor management.

(F)

Transportation.

(G)

Engineering.

(H)

Public policy.

(3)

One representative of the science community who, at a minimum, holds a Doctor of Philosophy degree in wildlife biology, forestry, ecology, or related field and has published peer-reviewed academic articles in the representative’s field of expertise.

(4)

Three governmental representatives, consisting of—

(A)

two members who are serving county commissioners of an O Trust county and who are nominated by the governing bodies of a majority of the O Trust counties and approved by the Governor, except that the two representatives may not be from the same county; and

(B)

one member who holds State-wide elected office (or is a designee of such a person) or who represents a federally recognized Indian tribe or tribes within one or more O Trust counties.

(d)

Term, initial appointment, vacancies

(1)

Term

Except in the case of initial appointments, members of the Board of Trustees shall serve for five-year terms and may be reappointed for one consecutive term.

(2)

Initial appointments

In making the first appointments to the Board of Trustees, the Governor shall stagger initial appointment lengths so that two members have three-year terms, two members have four-year terms, and three members have a full five-year term.

(3)

Vacancies

Any vacancy on the Board of Trustees shall be filled within 45 days by the Governor for the unexpired term of the departing member.

(4)

Board of Trustees Management Costs

Members of the Board of Trustees may receive annual compensation from the O Trust at a rate not to exceed 50 percent of the average annual salary for commissioners of the O Trust counties for that year.

(e)

Chairperson and operations

(1)

Chairperson

A majority of the Board of Trustees shall select the chairperson for the Board of Trustees each year.

(2)

Meetings

The Board of Trustees shall establish proceedings to carry out its duties. The Board shall meet at least quarterly. Except for meetings substantially involving personnel and contractual decisions, all meetings of the Board shall comply with the public meetings law of the State.

(f)

Quorum and decision-Making

(1)

Quorum

A quorum shall consist of five members of the Board of Trustees. The presence of a quorum is required to constitute an official meeting of the board of trustees to satisfy the meeting requirement under subsection (e)(2).

(2)

Decisions

All actions and decisions by the Board of Trustees shall require approval by a majority of members.

(g)

Annual audit

Financial statements regarding operation of the O Trust shall be independently prepared and audited annually for review by the O Trust counties, Congress, and the State.

314.

Management of O Trust lands

(a)

In general

Except as otherwise provided in this title, the O Trust lands will be managed by the Board of Trustees in compliance with all Federal and State laws in the same manner as such laws apply to private forest lands.

(b)

Timber sale plans

The Board of Trustees shall approve and periodically update management and sale plans for the O Trust lands consistent with the purpose specified in section 311(b). The Board of Trustees may defer sale plans during periods of depressed timber markets if the Board of Trustees, in its discretion, determines that such delay until markets improve is financially prudent and in keeping with its fiduciary obligation to the O Trust counties.

(c)

Stand rotation

(1)

100–120 year rotation

The Board of Trustees shall manage not less than 50 percent of the harvestable acres of the O Trust lands on a 100–120 year rotation. The acreage subject to 100–120 year management shall be geographically dispersed across the O Trust lands in a manner that the Board of Trustees, in its discretion, determines will contribute to aquatic and terrestrial ecosystem values.

(2)

Balance

The balance of the harvestable acreage of the O Trust lands shall be managed on any rotation age the Board of Trustees, in its discretion and in compliance with applicable State law, determines will best satisfy its fiduciary obligation to provide revenue to the O Trust counties.

(3)

Thinning

Nothing in this subsection is intended to limit the ability of the Board of Trustees to decide, in its discretion, to thin stands of timber on O Trust lands.

(d)

Sale terms

(1)

In general

Subject to paragraphs (2) and (3), the Board of Trustees is authorized to establish the terms for sale contracts of timber or other forest products from O Trust lands.

(2)

Set aside

The Board of Trustees shall establish a program consistent with the program of the Bureau of Land Management under a March 10, 1959 Memorandum of Understanding, as amended, regarding calculation of shares and sale of timber set aside for purchase by business entities with 500 or fewer employees and consistent with the regulations in part 121 of title 13, Code of Federal Regulations applicable to timber sale set asides, except that existing shares in effect on the date of enactment of this Act shall apply until the next scheduled recomputation of shares. In implementing its program that is consistent with such Memorandum of Understanding, the Board of Trustees shall utilize the Timber Sale Procedure Handbook and other applicable procedures of the Bureau of Land Management, including the Operating Procedures for Conducting the Five-Year Recomputation of Small Business Share Percentages in effect on January 1, 2013.

(3)

Competitive bidding

The Board of Trustees must sell timber on a competitive bid basis. No less than 50 percent of the total volume of timber sold by the Board of Trustees each year shall be sold by oral bidding consistent with practices of the Bureau of Land Management as of January 1, 2013.

(e)

Prohibition on export

(1)

In general

As a condition on the sale of timber or other forest products from O Trust lands, unprocessed timber harvested from O Trust lands may not be exported.

(2)

Violations

Any person who knowingly exports unprocessed timber harvested from O Trust lands, who knowingly provides such unprocessed timber for export by another person, or knowingly sells timber harvested from O Trust lands to a person who is disqualified from purchasing timber from such lands pursuant to this section shall be disqualified from purchasing timber or other forest products from O Trust lands or from Federal lands administered under this subtitle. Any person who uses unprocessed timber harvested from O Trust lands in substitution for exported unprocessed timber originating from private lands shall be disqualified from purchasing timber or other forest products from O Trust lands or from Federal lands administered under this subtitle.

(3)

Unprocessed timber defined

In this subsection, the term unprocessed timber has the meaning given such term in section 493(9) of the Forest Resources Conservation and Shortage Relief Act of 1990 ( 16 U.S.C. 620e(9) ).

(f)

Integrated Pest, Disease, and Weed Management Plan

The Board of Trustees shall develop an integrated pest and vegetation management plan to assist forest managers in prioritizing and minimizing the use of pesticides and herbicides approved by the Environmental Protection Agency and used in compliance with the Oregon Forest Practices Act. The plan shall optimize the ability of the O Trust to re-establish forest stands after harvest in compliance with the Oregon Forest Practices Act and to create diverse early seral stage forests. The plan shall allow for the eradication, containment and suppression of disease, pests, weeds and noxious plants, and invasive species as found on the State Noxious Weed List and prioritize ground application of herbicides and pesticides to the greatest extent practicable. The plan shall be completed before the start of the second year of the transition period. The planning process shall be open to the public and the Board of Trustees shall hold not less than two public hearings on the proposed plan before final adoption.

(g)

Access to lands transferred to Forest Service

Persons acting on behalf of the O Trust shall have a right of timely access over lands transferred to the Forest Service under section 321 and Tribal lands transferred under subtitle D as is reasonably necessary for the Board of Trustees to carry out its management activities with regard to the O Trust lands and the O Trust to satisfy its fiduciary duties to O counties.

(h)

Harvest area tree and retention requirements

(1)

In general

The O Trust lands shall include harvest area tree and retention requirements consistent with State law.

(2)

Use of old growth definition

To the greatest extent practicable, and at the discretion of the Board of Trustees, old growth, as defined by the Old Growth Review Panel created by section 324, shall be used to meet the retention requirements applicable under paragraph (1).

(i)

Riparian area management

(1)

In general

The O Trust lands shall be managed with timber harvesting limited in riparian areas as follows:

(A)

Streams

For all fish bearing streams and all perennial non-fish-bearing streams, there shall be no removal of timber within a distance equal to the height of one site potential tree on both sides of the stream channel. For intermittent, non-fish-bearing streams, there shall be no removal of timber within a distance equal to one-half the height of a site potential tree on both sides of the stream channel. For purposes of this subparagraph, the stream channel boundaries are the lines of ordinary high water.

(B)

Larger lakes, ponds and reservoirs

For all lakes, ponds, and reservoirs with surface area larger than one quarter of one acre, there shall be no removal of timber within a distance equal to the height of one site potential tree from the line of ordinary high water of the water body.

(C)

Small ponds and natural wetlands, springs and seeps

For all ponds with surface area one quarter acre or less, and for all natural wetlands, springs and seeps, there shall be no removal of timber within the area dominated by riparian vegetation.

(2)

Measurements

For purposes of paragraph (1), all distances shall be measured along slopes, and all site potential tree heights shall be average height at maturity of the dominant species of conifer determined at a scale no finer than the applicable fifth field watershed.

(3)

Rules of construction

Nothing in paragraph (1) shall be construed—

(A)

to prohibit the falling or placement of timber into streams to create large woody debris for the benefit of aquatic ecosystems; or

(B)

to prohibit the falling of trees within riparian areas as may be reasonably necessary for safety or operational reasons in areas adjacent to the riparian areas, or for road construction or maintenance pursuant to section 312(c)(3).

(j)

Fire protection and emergency response

(1)

Reciprocal fire protection agreements

(A)

Continuation of agreements

Subject to subparagraphs (B), (C), and (D), any reciprocal fire protection agreement between the State or any other entity and the Secretary concerned with regard to Oregon and California Railroad Grant lands and O Region Public Domain lands in effect on the date of the enactment of this Act shall remain in place for a period of ten years after such date unless earlier terminated by the State or other entity.

(B)

Assumption of BLM rights and duties

The Board of Trustees shall exercise the rights and duties of the Bureau of Land Management under the agreements described in subparagraph (A), except as such rights and duties might apply to Tribal lands under subtitle D.

(C)

Effect of expiration of period

Following the expiration of the ten-year period under subparagraph (A), the Board of Trustees shall continue to provide for fire protection of the Oregon and California Railroad Grant lands and O Region Public Domain lands, including those transferred to the Forest Service under section 331, through continuation of the reciprocal fire protection agreements, new cooperative agreements, or by any means otherwise permitted by law. The means selected shall be based on the review by the Board of Trustees of whether the reciprocal fire protection agreements were effective in protecting the lands from fire.

(D)

Emergency response

Nothing in this paragraph shall prevent the Secretary of Agriculture from an emergency response to a fire on the O Trust lands or lands transferred to the Forest Service under section 321.

(2)

Emergency response to fire

Subject to paragraph (1), if the Secretary of Agriculture determines that fire on any of the lands transferred under section 321 is burning uncontrolled or the Secretary, the Board of Trustees, or contracted party does not have readily and immediately available personnel and equipment to control or extinguish the fire, the Secretary, or any forest protective association or agency under contract or agreement with the Secretary or the Board of Trustees for the protection of forestland against fire, shall summarily and aggressively abate the nuisance thus controlling and extinguishing the fire.

(k)

Northern spotted owl

So long as the O Trust maintains the 100–120 year rotation on 50 percent of the harvestable acres required in subsection (c), the section 321 lands representing the best quality habitat for the owl are transferred to the Forest Service, and the O Trust protects currently occupied northern spotted owl nest sites consistent with the forest practices in the Oregon Forest Practices Act, management of the O Trust land by the Board of Trustees shall be considered to comply with section 9 of Public Law 93–205 ( 16 U.S.C. 1538 ) for the northern spotted owl. A currently occupied northern spotted owl nest site shall be considered abandoned if there are no northern spotted owl responses following three consecutive years of surveys using the Protocol for Surveying Management Activities that May Impact Northern Spotted Owls dated February 2, 2013.

315.

Distribution of revenues from O Trust lands

(a)

Annual distribution of revenues

(1)

Time for distribution; use

Payments to each O Trust county shall be made available to the general fund of the O Trust county as soon as practicable following the end of each fiscal year, to be used as are other unrestricted county funds.

(2)

Amount

The amount paid to an O Trust county in relation to the total distributed to all O Trust counties for a fiscal year shall be based on the proportion that the total assessed value of the Oregon and California Railroad Grant lands in each of the O Trust counties for fiscal year 1915 bears to the total assessed value of all of the Oregon and California Railroad Grant lands in the State for that same fiscal year. However, for the purposes of this subsection the portion of the revested Oregon and California Railroad Grant lands in each of the O Trust counties that was not assessed for fiscal year 1915 shall be deemed to have been assessed at the average assessed value of the Oregon and California Railroad Grant lands in the county.

(3)

Limitation

After the fifth payment made under this subsection, the payment to an O Trust county for a fiscal year shall not exceed 110 percent of the previous year’s payment to the O Trust county, adjusted for inflation based on the consumer price index applicable to the geographic area in which the O Trust counties are located.

(b)

Reserve fund

(1)

Establishment of reserve fund

The Board of Trustees shall generate and maintain a reserve fund.

(2)

Deposits to reserve fund

Within 10 years after creation of the O Trust or as soon thereafter as is practicable, the Board of Trustees shall establish and seek to maintain an annual balance of $125,000,000 in the Reserve Fund, to be derived from revenues generated from management activities involving O Trust lands. All annual revenues generated in excess of operating costs and payments to O Trust counties required by subsection (a) and payments into the Conservation Fund as provided in subsection (c) shall be deposited in the Reserve Fund.

(3)

Expenditures from reserve fund

The Board of Trustees shall use amounts in the Reserve Fund only—

(A)

to pay management and administrative expenses or capital improvement costs on O Trust lands; and

(B)

to make payments to O Trust counties when payments to the counties under subsection (a) are projected to be 90 percent or less of the previous year’s payments.

(c)

O trust conservation fund

(1)

Establishment of conservation fund

The Board of Trustees shall use a portion of revenues generated from activity on the O Trust lands, consistent with paragraph (2), to establish and maintain a O Trust Conservation Fund. The O Trust Conservation Fund shall include no Federal appropriations.

(2)

Revenues

Following the transition period, five percent of the O Trust’s annual net operating revenue, after deduction of all management costs and expenses, including the payment required under section 317, shall be deposited to the O Trust Conservation Fund.

(3)

Expenditures from conservation fund

The Board of Trustees shall use amounts from the O Trust Conservation Fund only—

(A)

to fund the voluntary acquisition of conservation easements from willing private landowners in the State;

(B)

to fund watershed restoration, remediation and enhancement projects within the State; or

(C)

to contribute to balancing values in a land exchange with willing private landowners proposed under section 323(b), if the land exchange will result in a net increase in ecosystem benefits for fish, wildlife, or rare native plants.

316.

Land exchange authority

(a)

Authority

Subject to approval by the Secretary concerned, the Board of Trustees may negotiate proposals for land exchanges with owners of lands adjacent to O Trust lands in order to create larger contiguous blocks of land under management by the O Trust to facilitate resource management, to improve conservation value of such lands, or to improve the efficiency of management of such lands.

(b)

Approval required; criteria

The Secretary concerned may approve a land exchange proposed by the Board of Trustees administratively if the exchange meets the following criteria:

(1)

The non-Federal lands are completely within the State.

(2)

The non-Federal lands have high timber production value, or are necessary for more efficient or effective management of adjacent or nearby O Trust lands.

(3)

The non-Federal lands have equal or greater value to the O Trust lands proposed for exchange.

(4)

The proposed exchange is reasonably likely to increase the net income to the O Trust counties over the next 20 years and not decrease the net income to the O Trust counties over the next 10 years.

(c)

Acreage limitation

The Secretary concerned shall not approve land exchanges under this section that, taken together with all previous exchanges involving the O Trust lands, have the effect of reducing the total acreage of the O Trust lands by more than five percent from the total acreage to be designated as O Trust land under section 311(c)(1).

(d)

Inapplicability of certain laws

Section 3 of the Oregon Public Lands Transfer and Protection Act of 1998 ( Public Law 105–321 ; 112 Stat. 3022), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et. seq.), including the amendments made by the Federal Land Exchange Facilitation Act of 1988 ( Public Law 100–409 ; 102 Stat. 1086), the Act of March 20, 1922 ( 16 U.S.C. 485 , 486), and the Act of March 1, 1911 (commonly known as the Weeks Act; 16 U.S.C. 480 et seq. ) shall not apply to the land exchange authority provided by this section.

(e)

Exchanges with forest service

(1)

Exchanges authorized

The Board of Trustees is authorized to engage in land exchanges with the Forest Service if approved by the Secretary pursuant to section 323(c).

(2)

Management of exchanged lands

Following completion of a land exchange under paragraph (1), the management requirements applicable to the newly acquired lands by the O Trust or the Forest Service shall be the same requirements under this subtitle applicable to the other lands that are managed by the O Board or the Forest Service.

317.

Payments to the United States Treasury

As soon as practicable after the end of the third fiscal year of the transition period and in each of the subsequent seven fiscal years, the O Trust shall submit a payment of $10,000,000 to the United States Treasury.

2

Transfer of Certain Lands to Forest Service

321.

Transfer of certain Oregon and California Railroad Grant lands to Forest Service

(a)

Transfer required

The Secretary of the Interior shall transfer administrative jurisdiction over all Oregon and California Railroad Grant lands and O Region Public Domain lands not designated as O Trust lands by subparagraphs (A) through (F) of section 311(c)(1), including those lands excluded by section 311(c)(2), to the Secretary of Agriculture for inclusion in the National Forest System and administration by the Forest Service as provided in section 322.

(b)

Exception

This section does not apply to Tribal lands transferred under subtitle D.

322.

Management of transferred lands by Forest Service

(a)

Assignment to existing national forests

To the greatest extent practicable, management responsibilities for the lands transferred under section 321 shall be assigned to the unit of the National Forest System geographically closest to the transferred lands. The Secretary of Agriculture shall have ultimate decision-making authority, but shall assign the transferred lands to a unit not later than the applicable transfer date provided in the transition period.

(b)

Application of Northwest Forest Plan

(1)

In general

Except as provided in paragraph (2), the lands transferred under section 321 shall be managed under the Northwest Forest Plan and shall retain Northwest Forest Plan land use designations until or unless changed in the manner provided by Federal laws applicable to the administration and management of the National Forest System.

(2)

Exception for certain designated lands

The lands excluded from the O Trust by subparagraphs (A) through (F) of section 311(c)(2) and transferred to the Forest Service under section 321 shall be managed as provided by Federal laws applicable to the lands.

(c)

Protection of old growth

Old growth, as defined by the Old Growth Review Panel pursuant to rulemaking conducted in accordance with section 553 of title 5, United States Code, shall not be harvested by the Forest Service on lands transferred under section 321.

(d)

Emergency response to fire

Subject to section 314(i), if the Secretary of Agriculture determines that fire on any of the lands transferred under section 321 is burning uncontrolled or the Secretary or contracted party does not have readily and immediately available personnel and equipment to control or extinguish the fire, the Secretary, or any forest protective association or agency under contract or agreement with the Secretary for the protection of forestland against fire, and within whose protection area the fire exists, shall summarily and aggressively abate the nuisance thus controlling and extinguishing the fire.

323.

Management efficiencies and expedited land exchanges

(a)

Land exchange authority

The Secretary of Agriculture may conduct land exchanges involving lands transferred under section 321, other than the lands excluded from the O Trust by subparagraphs (A) through (F) of section 311(c)(2), in order create larger contiguous blocks of land under management of the Secretary to facilitate resource management, to improve conservation value of such lands, or to improve the efficiency of management of such lands.

(b)

Criteria for exchanges with non-Federal owners

The Secretary of Agriculture may conduct a land exchange administratively under this section with a non-Federal owner (other than the O Trust) if the land exchange meets the following criteria:

(1)

The non-Federal lands are completely within the State.

(2)

The non-Federal lands have high wildlife conservation or recreation value or the exchange is necessary to increase management efficiencies of lands administered by the Forest Service for the purposes of the National Forest System.

(3)

The non-Federal lands have equal or greater value to the Federal lands purposed for exchange or a balance of values can be achieved—

(A)

with a grant of funds provided by the O Trust pursuant to section 315(c); or

(B)

from other sources.

(c)

Criteria for exchanges with O trust

The Secretary of Agriculture may conduct land exchanges with the Board of Trustees administratively under this subsection, and such an exchange shall be deemed to not involve any Federal action or Federal discretionary involvement or control if the land exchange with the O Trust meets the following criteria:

(1)

The O Trust lands to be exchanged have high wildlife value or ecological value or the exchange would facilitate resource management or otherwise contribute to the management efficiency of the lands administered by the Forest Service.

(2)

The exchange is requested or approved by the Board of Trustees for the O Trust and will not impair the ability of the Board of Trustees to meet its fiduciary responsibilities.

(3)

The lands to be exchanged by the Forest Service do not contain stands of timber meeting the definition of old growth established by the Old Growth Review Panel pursuant to section 324.

(4)

The lands to be exchanged are equal in acreage.

(d)

Acreage limitation

The Secretary of Agriculture shall not approve land exchanges under this section that, taken together with all previous exchanges involving the lands described in subsection (a), have the effect of reducing the total acreage of such lands by more than five percent from the total acreage originally transferred to the Secretary.

(e)

Inapplicability of certain laws

Section 3 of the Oregon Public Lands Transfer and Protection Act of 1998 ( Public Law 105–321 ; 112 Stat. 3022 ), the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 et. seq.), including the amendments made by the Federal Land Exchange Facilitation Act of 1988 ( Public Law 100–409 ; 102 Stat. 1086), the Act of March 20, 1922 ( 16 U.S.C. 485 , 486), and the Act of March 1, 1911 (commonly known as the Weeks Act; 16 U.S.C. 480 et seq. ) shall not apply to the land exchange authority provided by this section.

324.

Review panel and old growth protection

(a)

Appointment; members

Within 60 days after the date of the enactment of this Act the Secretary of Agriculture shall appoint an Old Growth Review Panel consisting of five members. At a minimum, the members must hold a Doctor of Philosophy degree in wildlife biology, forestry, ecology, or related field and published peer-reviewed academic articles in their field of expertise.

(b)

Purpose of review

Members of the Old Growth Review Panel shall review existing, published, peer-reviewed articles in relevant academic journals and establish a definition or definitions of old growth as it applies to the ecologically, geographically and climatologically unique Oregon and California Railroad Grant lands and O Region Public Domain lands managed by the O Trust or the Forest Service only. The definition or definitions shall bear no legal force, shall not be used as a precedent for, and shall not apply to any lands other than the Oregon and California Railroad Grant lands and O Region Public Domain lands managed by the O Trust or the Forest Service in western Oregon. The definition or definitions shall not apply to Tribal lands.

(c)

Submission of results

The definition or definitions for old growth in western Oregon established under subsection (b), if approved by at least four members of the Old Growth Review Panel, shall be submitted to the Secretary of Agriculture within six months after the date of the enactment of this Act.

325.

Uniqueness of old growth protection on Oregon and California Railroad Grant lands

All sections of this subtitle referring to the term old growth are uniquely suited to resolve management issues for the lands covered by this subtitle only, and shall not be construed as precedent for any other situation involving management of other Federal, State, Tribal, or private lands.

3

Transition

331.

Transition period and operations

(a)

Transition period

(1)

Commencement; duration

Effective on October 1 of the first fiscal year beginning after the appointment of the Board of Trustees under section 313, a transition period of three fiscal years shall commence.

(2)

Exceptions

Unless specifically stated in the following subsections, any action under this section shall be deemed not to involve Federal agency action or Federal discretionary involvement or control.

(b)

Year one

(1)

Applicability

During the first fiscal year of the transition period, the activities described in this subsection shall occur.

(2)

Board of Trustees activities

The Board of Trustees shall employ sufficient staff or contractors to prepare for beginning management of O Trust lands and O Region Public Domain lands in the second fiscal year of the transition period, including preparation of management plans and a harvest schedule for the lands over which management authority is transferred to the O Trust in the second fiscal year.

(3)

Forest service activities

The Forest Service shall begin preparing to assume management authority of all Oregon and California Railroad Grant lands and O Region Public Domain lands transferred under section 321 in the second fiscal year.

(4)

Secretary concerned activities

The Secretary concerned shall continue to exercise management authority over all Oregon and California Railroad Grant lands and O Region Public Domain lands under all existing Federal laws.

(5)

Information sharing

Upon written request from the Board of Trustees, the Secretary of the Interior shall provide copies of any documents or data, however stored or maintained, that includes the requested information concerning O Trust lands. The copies shall be provided as soon as practicable and to the greatest extent possible, but in no event later than 30 days following the date of the request.

(6)

Exception

This subsection does not apply to Tribal lands transferred under subtitle D.

(c)

Year two

(1)

Applicability

During the second fiscal year of the transition period, the activities described in this subsection shall occur.

(2)

Transfer of O Trust lands

Effective on October 1 of the second fiscal year of the transition period, management authority over the O Trust lands shall be transferred to the O Trust.

(3)

Transfer of lands to forest service

The transfers required by section 321 shall occur.

(4)

Information sharing

The Secretary of Agriculture shall obtain and manage, as soon as practicable, all documents and data relating to the Oregon and California Railroad Grant lands, O Region Public Domain lands, and Coos Bay Wagon Road lands previously managed by the Bureau of Land Management. Upon written request from the Board of Trustees, the Secretary of Agriculture shall provide copies of any documents or data, however stored or maintained, that includes the requested information concerning O Trust lands. The copies shall be provided as soon as practicable and to the greatest extent possible, but in no event later than 30 days following the date of the request.

(5)

Implementation of management plan

The Board of Trustees shall begin implementing its management plan for the O Trust lands and revise the plan as necessary. Distribution of revenues generated from all activities on the O Trust lands shall be subject to section 315.

(d)

Year three and subsequent years

(1)

Applicability

During the third fiscal year of the transition period and all subsequent fiscal years, the activities described in this subsection shall occur.

(2)

Board of trustees management

The Board of Trustees shall manage the O Trust lands pursuant to subtitle A.

332.

O Trust management capitalization

(a)

Borrowing authority

The Board of Trustees is authorized to borrow from any available private sources and non-Federal, public sources in order to provide for the costs of organization, administration, and management of the O Trust during the three-year transition period provided in section 331.

(b)

Support

Notwithstanding any other provision of law, O Trust counties are authorized to loan to the O Trust, and the Board of Trustees is authorized to borrow from willing O Trust counties, amounts held on account by such counties that are required to be expended in accordance with the Act of May 23,1908 (35 Stat. 260; 16 U.S.C. 500 ) and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500 ), except that, upon repayment by the O Trust, the obligation of such counties to expend the funds in accordance with such Acts shall continue to apply.

333.

Existing Bureau of Land Management and Forest Service contracts

(a)

Treatment of existing contracts

Any work or timber contracts sold or awarded by the Bureau of Land Management or Forest Service on or with respect to Oregon and California Railroad Grant lands or O Region Public Domain lands before the transfer of the lands to the O Trust or the Forest Service, or Tribal lands transferred under subtitle D, shall remain binding and effective according to the terms of the contracts after the transfer of the lands. The Board of Trustees and Secretary concerned shall make such accommodations as are necessary to avoid interfering in any way with the performance of the contracts.

(b)

Treatment of Payments under contracts

Payments made pursuant to the contracts described in subsection (a), if any, shall be made as provided in those contracts and not made to the O Trust.

334.

Protection of valid existing rights and access to non-Federal land

(a)

Valid rights

Nothing in this title, or any amendment made by this title, shall be construed as terminating any valid lease, permit, patent, right-of-way, agreement, or other right of authorization existing on the date of the enactment of this Act with regard to Oregon and California Railroad Grant lands or O Region Public Domain lands, including O Trust lands over which management authority is transferred to the O Trust pursuant to section 311(c)(1), lands transferred to the Forest Service under section 321, and Tribal lands transferred under subtitle D.

(b)

Access to lands

(1)

Existing access rights

The Secretary concerned shall preserve all rights of access and use, including (but not limited to) reciprocal right-of-way agreements, tail hold agreements, or other right-of-way or easement obligations existing on the date of the enactment of this Act, and such rights shall remain applicable to lands covered by this subtitle in the same manner and to the same extent as such rights applied before the date of the enactment of this Act.

(2)

New access rights

If a current or future landowner of land intermingled with Oregon and California Railroad Grant lands or O Region Public Domain lands does not have an existing access agreement related to the lands covered by this subtitle, the Secretary concerned shall enter into an access agreement, including appurtenant lands, to secure the landowner the reasonable use and enjoyment of the landowner’s land, including the harvest and hauling of timber.

(c)

Management cooperation

The Board of Trustees and the Secretary concerned shall provide current and future landowners of land intermingled with Oregon and California Railroad Grant lands or O Region Public Domain lands the permission needed to manage their lands, including to locate tail holds, tramways, and logging wedges, to purchase guylines, and to cost-share property lines surveys to the lands covered by this subtitle, within 30 days after receiving notification of the landowner’s plan of operation.

(d)

Judicial review

Notwithstanding section 312(g)(2), a private landowner may obtain judicial review of a decision of the Board of Trustees to deny—

(1)

the landowner the rights provided by subsection (b) regarding access to the landowner’s land; or

(2)

the landowner the reasonable use and enjoyment of the landowner’s land.

335.

Repeal of superseded law relating to Oregon and California Railroad Grant lands

(a)

Repeal

Except as provided in subsection (b), the Act of August 28, 1937 ( 43 U.S.C. 1181a et seq. ) is repealed effective on October 1 of the first fiscal year beginning after the appointment of the Board of Trustees.

(b)

Effect of certain court rulings

If, as a result of judicial review authorized by section 312, any provision of this subtitle is held to be invalid and implementation of the provision or any activity conducted under the provision is then enjoined, the Act of August 28, 1937 ( 43 U.S.C. 1181a et seq. ), as in effect immediately before its repeal by subsection (a), shall be restored to full legal force and effect as if the repeal had not taken effect.

B

Coos Bay Wagon Roads

341.

Transfer of management authority over certain Coos Bay Wagon Road Grant lands to Coos County, Oregon

(a)

Transfer required

Except in the case of the lands described in subsection (b), the Secretary of the Interior shall transfer management authority over the Coos Bay Wagon Road Grant lands reconveyed to the United States pursuant to the first section of the Act of February 26, 1919 (40 Stat. 1179), and the surface resources thereon, to the Coos County government. The transfer shall be completed not later than one year after the date of the enactment of this Act.

(b)

Lands excluded

The transfer under subsection (a) shall not include any of the following Coos Bay Wagon Road Grant lands:

(1)

Federal lands within the National Landscape Conservation System as of January 1, 2013.

(2)

Federal lands designated as Areas of Critical Environmental Concern as of January 1, 2013.

(3)

Federal lands that were in the National Wilderness Preservation System as of January 1, 2013.

(4)

Federal lands included in the National Wild and Scenic Rivers System of January 1, 2013.

(5)

Federal lands within the boundaries of a national monument, park, or other developed recreation area as of January 1, 2013.

(6)

All stands of timber generally older than 125 years old, as of January 1, 2011, which shall be conclusively determined by reference to the polygon spatial data layer in the electronic data compilation filed by the Bureau of Land Management based on the predominant birth-date attribute, and the boundaries of such stands shall be conclusively determined for all purposes by the global positioning system coordinates for such stands.

(7)

Tribal lands addressed in subtitle D.

(c)

Management

(1)

In general

Coos County shall manage the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a) consistent with section 314, and for purposes of applying such section, Board of Trustees shall be deemed to mean Coos County and O Trust lands shall be deemed to mean the transferred lands.

(2)

Responsibility for management costs

Coos County shall be responsible for all management and administrative costs of the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a).

(3)

Management contracts

Coos County may contract, if competitively bid, with one or more public, private, or tribal entities, including (but not limited to) the Coquille Indian Tribe, if such entities are substantially based in Coos or Douglas Counties, Oregon, to manage and administer the lands.

(d)

Treatment of revenues

(1)

In general

All revenues generated from the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a) shall be deposited in the general fund of the Coos County treasury to be used as are other unrestricted county funds.

(2)

Treasury

As soon as practicable after the end of the third fiscal year of the transition period and in each of the subsequent seven fiscal years, Coos County shall submit a payment of $400,000 to the United States Treasury.

(3)

Douglas county

Beginning with the first fiscal year for which management of the Coos Bay Wagon Road Grant lands over which management authority is transferred under subsection (a) generates net positive revenues, and for all subsequent fiscal years, Coos County shall transmit a payment to the general fund of the Douglas County treasury from the net revenues generated from the lands. The payment shall be made as soon as practicable following the end of each fiscal year and the amount of the payment shall bear the same proportion to total net revenues for the fiscal year as the proportion of the Coos Bay Wagon Road Grant lands in Douglas County in relation to all Coos Bay Wagon Road Grant lands in Coos and Douglas Counties as of January 1, 2013.

342.

Transfer of certain Coos Bay Wagon Road Grant lands to Forest Service

The Secretary of the Interior shall transfer administrative jurisdiction over the Coos Bay Wagon Road Grant lands excluded by paragraphs (1) through (6) of section 341(b) to the Secretary of Agriculture for inclusion in the National Forest System and administration by the Forest Service as provided in section 322.

343.

Land exchange authority

Coos County may recommend land exchanges to the Secretary of Agriculture and carry out such land exchanges in the manner provided in section 316.

C

Oregon Treasures

1

Wilderness Areas

351.

Designation of Devil's Staircase Wilderness

(a)

Designation

In furtherance of the purposes of the Wilderness Act ( 16 U.S.C. 1131 et seq. ), the Federal land in the State of Oregon administered by the Forest Service and the Bureau of Land Management, comprising approximately 30,520 acres, as generally depicted on the map titled Devil's Staircase Wilderness Proposal, dated October 26, 2009, are designated as a wilderness area for inclusion in the National Wilderness Preservation System and to be known as the Devil's Staircase Wilderness.

(b)

Map and Legal Description

As soon as practicable after the date of the enactment of this Act, the Secretary shall file with the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a map and legal description of wilderness area designated by subsection (a). The map and legal description shall have the same force and effect as if included in this subdivision, except that the Secretary may correct clerical and typographical errors in the map and description. In the case of any discrepancy between the acreage specified in subsection (a) and the map, the map shall control. The map and legal description shall be on file and available for public inspection in the Office of the Chief of the Forest Service.

(c)

Administration

(1)

In general

Subject to valid existing rights, the Devil's Staircase Wilderness Area shall be administered by the Secretaries of Agriculture and the Interior, in accordance with the Wilderness Act and the Oregon Wilderness Act of 1984, except that, with respect to the wilderness area, any reference in the Wilderness Act to the effective date of that Act shall be deemed to be a reference to the date of the enactment of this Act.

(2)

Forest service roads

As provided in section 4(d)(1) of the Wilderness Act ( 16 U.S.C. 1133(d)(1) ), the Secretary of Agriculture shall—

(A)

decommission any National Forest System road within the wilderness boundaries; and

(B)

convert Forest Service Road 4100 within the wilderness boundary to a trail for primitive recreational use.

(d)

Incorporation of Acquired Land and Interests

Any land within the boundary of the wilderness area designated by this section that is acquired by the United States shall—

(1)

become part of the Devil's Staircase Wilderness Area; and

(2)

be managed in accordance with this section and any other applicable law.

(e)

Fish and wildlife

Nothing in this section shall be construed as affecting the jurisdiction or responsibilities of the State of Oregon with respect to wildlife and fish in the national forests.

(f)

Withdrawal

Subject to valid rights in existence on the date of enactment of this Act, the Federal land designated as wilderness area by this section is withdrawn from all forms of—

(1)

entry, appropriation, or disposal under the public land laws;

(2)

location, entry, and patent under the mining laws; and

(3)

disposition under all laws pertaining to mineral and geothermal leasing or mineral materials.

(g)

Protection of tribal rights

Nothing in this section shall be construed to diminish—

(1)

the existing rights of any Indian tribe; or

(2)

tribal rights regarding access to Federal lands for tribal activities, including spiritual, cultural, and traditional food gathering activities.

352.

Expansion of Wild Rogue Wilderness Area

(a)

Expansion

In accordance with the Wilderness Act ( 16 U.S.C. 1131 et seq. ), certain Federal land managed by the Bureau of Land Management, comprising approximately 58,100 acres, as generally depicted on the map entitled Wild Rogue, dated September 16, 2010, are hereby included in the Wild Rogue Wilderness, a component of the National Wilderness Preservation System.

(b)

Maps and legal descriptions

(1)

In general

As soon as practicable after the date of enactment of this Act, the Secretary of the Interior shall file a map and a legal description of the wilderness area designated by this section, with—

(A)

the Committee on Energy and Natural Resources of the Senate; and

(B)

the Committee on Natural Resources of the House of Representatives.

(2)

Force of law

The maps and legal descriptions filed under paragraph (1) shall have the same force and effect as if included in this subtitle, except that the Secretary may correct typographical errors in the maps and legal descriptions.

(3)

Public availability

Each map and legal description filed under paragraph (1) shall be on file and available for public inspection in the appropriate offices of the Forest Service.

(c)

Administration

Subject to valid existing rights, the area designated as wilderness by this section shall be administered by the Secretary of Agriculture in accordance with the Wilderness Act ( 16 U.S.C. 1131 et seq. ).

(d)

Withdrawal

Subject to valid rights in existence on the date of enactment of this Act, the Federal land designated as wilderness by this section is withdrawn from all forms of—

(1)

entry, appropriation, or disposal under the public land laws;

(2)

location, entry, and patent under the mining laws; and

(3)

disposition under all laws pertaining to mineral and geothermal leasing or mineral materials.

2

Wild and Scenic River Designated and Related Protections

361.

Wild and scenic river designations, Molalla River

(a)

Designations

Section 3(a) of the Wild and Scenic Rivers Act ( 16 U.S.C. 1274(a) ) is amended by adding at the end the following: