Providing Retrospective Observations Validating Economics and Increasing Transparency Act of 2021 or the PROVE IT Act of 2021

This bill requires agencies, when publishing a final major rule and biennially thereafter, to assess the impact of the rule on regulated entities, determine how the actual benefits and costs of the rule have varied from those anticipated, and assess the effectiveness of the rule at meeting its regulatory objectives.
If an agency determines that the cost to regulated entities has exceeded the anticipated cost, then the agency must assess and report whether the rule is meeting its objectives and whether the rule is necessary. Further, in such case, the agency must reopen the public comment period for 60 days and consider modifications or alternatives to the rule.
The bill defines a major rule as a rule likely to cause (1) an annual effect on the economy of $100 million or more; (2) a major increase in costs or prices; or (3) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises.
To provide for Federal agency accountability and improve the 
    effectiveness of major rules in accomplishing their regulatory 
objectives by requiring retrospective review and report, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Providing Retrospective Observations 
Validating Economics and Increasing Transparency Act of 2021'' or as 
the ``PROVE IT Act of 2021''.

SEC. 2. INCORPORATING RETROSPECTIVE REVIEW FOR NEW MAJOR RULES.

    (a) In General.--Subchapter II of chapter 5 of title 5, United 
States Code, is amended--
            (1) in section 551--
                    (A) in paragraph (13), by striking ``; and'' and 
                inserting a semicolon;
                    (B) in paragraph (14), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(15) `Administrator' means the Administrator of the 
        Office of Information and Regulatory Affairs of the Office of 
        Management and Budget; and
            ``(16) `major rule' means any rule that the Administrator 
        finds has resulted in or is likely to result in--
                    ``(A) an annual effect on the economy of 
                $100,000,000 or more;
                    ``(B) a major increase in costs or prices for 
                consumers, individual industries, Federal, State, or 
                local government agencies, or geographic regions; or
                    ``(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.''; and
            (2) in section 553, by adding at the end the following:
    ``(f) Regulation-Specific Frameworks.--
            ``(1) In general.--Beginning 180 days after the date of 
        enactment of this subsection, when an agency publishes a final 
        major rule in the Federal Register, the agency shall publish a 
        report on the benefits and costs of the final rule on entities 
        whose conduct is regulated by the rule in the Federal Register 
        biannually thereafter while the rule remains in effect. The 
        report shall--
                    ``(A) assess the impacts, including any costs, of 
                the major rule on regulated entities;
                    ``(B) include a determination about how the actual 
                benefits and costs of the major rule has varied from 
                those anticipated at the time the major rule was 
                issued;
                    ``(C) assess the effectiveness and benefits of the 
                major rule in producing the regulatory objectives of 
                the major rule; and
                    ``(D) be reviewed by the Administrator when 
                required under Executive order.
            ``(2) Report to congress.--The agency shall provide a 
        report to Congress not later than 90 days after the agency 
        makes any determination under paragraph (1)(C) that the cost to 
        regulated entities has exceeded the anticipated cost at the 
        time the final rule was issued. Agencies shall assess in their 
        report--
                    ``(A) whether the major rule is accomplishing its 
                regulatory objective; and
                    ``(B) whether the major rule has been rendered 
                unnecessary, taking into consideration--
                            ``(i) changes in the subject area affected 
                        by the major rule;
                            ``(ii) whether the major rule overlaps, 
                        duplicates, or conflicts with other rules or, 
                        to the extent feasible, State and local 
                        government regulations; and
                            ``(iii) other alternatives to the major 
                        rule or modification of the major rule could 
                        achieve better results while imposing a smaller 
                        burden on society or at a lower cost, taking 
                        into consideration any cost already incurred.
            ``(3) Reopening of public docket.--Upon delivery of the 
        report required in paragraph (2) the agency shall--
                    ``(A) reopen the public docket for 60 days to 
                receive additional comments; and
                    ``(B) consider modifications or alternatives that 
                reduce costs and increase benefits to regulated 
                entities or individuals.
            ``(4) Rule of construction.--Nothing in this subsection may 
        be construed to affect any other provision of law that requires 
        an agency to conduct retrospective reviews of rules issued by 
        the agency.''.
                                 <all>
PROVE IT Act of 2021
To provide for Federal agency accountability and improve the effectiveness of major rules in accomplishing their regulatory objectives by requiring retrospective review and report, and for other purposes.
PROVE IT Act of 2021
Providing Retrospective Observations Validating Economics and Increasing Transparency Act of 2021
Rep. Graves, Garret