McCaul says that policy helped the U.K. dramatically reduce the amount of new regulations they imposed.
The bill was introduced just as House Republicans finished off a week of passing several bills aimed at limiting federal overreach. Among those bills were proposals to ensure taxpayer rights when dealing with the IRS, require all ObamaCare regulations to be approved by Congress and limit bonuses for senior government workers.
Co-sponsors of McCaul's bill said the proposal would bring more help to companies that are suffering under expanding federal rules.
"America's small businesses are strapped with too many costly regulations that don't make sense," Rep. Paul Cook (R-Calif.) said. "With our economy still struggling we should be easing regulations on small business, not adding more."
McCaul said it costs companies about $1.75 trillion to comply with federal rules each year. He said the number of new federal rules with an economic cost above $100 million has increased 60 percent in the last decade.
Other co-sponsors of the bill are Reps. Mike Conaway (R-Texas), Lynn Jenkins (R-Kan.), Randy NeugebauerRandy NeugebauerCourt ruling highlights need for new CFPB structure Top CFTC aide joins boutique K Street firm Yahoo hack spurs push for legislation MORE (R-Texas), Steve Pearce (R-N.M.), Tom Rice (R-S.C.), Mac Thornberry (R-Texas) and Roger WilliamsRoger WilliamsLawmakers suggest Wells Fargo chief should face criminal charges NY rep swipes at Kaepernick after NYC bombing suspect caught Overnight Regulation: House bill to block Obama regs advances MORE (R-Texas).