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 NeugebauerOvernight Finance: GOP's budget 'SWAT' team | What to watch at IRS impeachment hearing | Sanders bucks Dem leaders on Puerto Rico bill Overnight Cybersecurity: Clinton email hacker to plead guilty Financial industry spars with retailers over data breach bill MORE (R-Texas), Steve Pearce (R-N.M.), Tom Rice (R-S.C.), Mac Thornberry (R-Texas) and Roger WilliamsRoger WilliamsSmall Business Week: celebrate business owners, don't break them GOP campaign chief: We won’t lose the House Texan running for GOP leadership spot MORE (R-Texas).