IIB 

113TH CONGRESS 

2D SESSION H. R. 899 

IN THE SENATE OF THE UNITED STATES 

MARCH 4, 2014 

Received; read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

AN ACT 

To provide for additional safeguards with respect to imposing 

Federal mandates, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Unfunded Mandates 

3 Information and Transparency Act of 2014’’. 

4 SEC. 2. PURPOSE. 

5 The purpose of this Act is— 

6 (1) to improve the quality of the deliberations 

7 of Congress with respect to proposed Federal man8 dates by— 

9 (A) providing Congress and the public with 

10 more complete information about the effects of 

11 such mandates; and 

12 (B) ensuring that Congress acts on such 

13 mandates only after focused deliberation on 

14 their effects; and 

15 (2) to enhance the ability of Congress and the 

16 public to identify Federal mandates that may impose 

17 undue harm on consumers, workers, employers, 

18 small businesses, and State, local, and tribal govern19 ments. 

20 SEC. 3. PROVIDING FOR CONGRESSIONAL BUDGET OFFICE 

21 STUDIES ON POLICIES INVOLVING CHANGES 

22 IN CONDITIONS OF GRANT AID. 

23 Section 202(g) of the Congressional Budget Act of 

24 1974 (2 U.S.C. 602(g)) is amended by adding at the end 

25 the following new paragraph: 

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1 ‘‘(3) ADDITIONAL STUDIES.—At the request of 

2 any Chairman or ranking member of the minority of 

3 a Committee of the Senate or the House of Rep4 resentatives, the Director shall conduct an assess5 ment comparing the authorized level of funding in a 

6 bill or resolution to the prospective costs of carrying 

7 out any changes to a condition of Federal assistance 

8 being imposed on State, local, or tribal governments 

9 participating in the Federal assistance program con10 cerned or, in the case of a bill or joint resolution 

11 that authorizes such sums as are necessary, an as12 sessment of an estimated level of funding compared 

13 to such costs.’’. 

14 SEC. 4. CLARIFYING THE DEFINITION OF DIRECT COSTS TO 

15 REFLECT CONGRESSIONAL BUDGET OFFICE 

16 PRACTICE. 

17 Section 421(3) of the Congressional Budget Act of 

18 1974 (2 U.S.C. 658(3)(A)(i)) is amended— 

19 (1) in subparagraph (A)(i), by inserting ‘‘incur 

20 or’’ before ‘‘be required’’; and 

21 (2) in subparagraph (B), by inserting after ‘‘to 

22 spend’’ the following: ‘‘or could forgo in profits, in23 cluding costs passed on to consumers or other enti24 ties taking into account, to the extent practicable, 

25 behavioral changes,’’. 

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1 SEC. 5. EXPANDING THE SCOPE OF REPORTING REQUIRE2 MENTS TO INCLUDE REGULATIONS IMPOSED 

3 BY INDEPENDENT REGULATORY AGENCIES. 

4 Paragraph (1) of section 421 of the Congressional 

5 Budget Act of 1974 (2 U.S.C. 658) is amended by striking 

6 ‘‘, but does not include independent regulatory agencies’’ 

7 and inserting ‘‘, except it does not include the Board of 

8 Governors of the Federal Reserve System or the Federal 

9 Open Market Committee’’. 

10 SEC. 6. AMENDMENTS TO REPLACE OFFICE OF MANAGE11 MENT AND BUDGET WITH OFFICE OF INFOR12 MATION AND REGULATORY AFFAIRS. 

13 The Unfunded Mandates Reform Act of 1995 (Public 

14 Law 104–4; 2 U.S.C. 1511 et seq.) is amended— 

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

16 (A) in the subsection heading, by striking 

17 ‘‘OFFICE OF MANAGEMENT AND BUDGET’’ and 

18 inserting ‘‘OFFICE OF INFORMATION AND REG19 ULATORY AFFAIRS’’; and 

20 (B) by striking ‘‘Director of the Office of 

21 Management and Budget’’ and inserting ‘‘Ad22 ministrator of the Office of Information and 

23 Regulatory Affairs’’; 

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

25 (A) in the subsection heading, by striking 

26 ‘‘OMB’’; and 

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1 (B) by striking ‘‘Director of the Office of 

2 Management and Budget’’ and inserting ‘‘Ad3 ministrator of the Office of Information and 

4 Regulatory Affairs’’; and 

5 (3) in section 206 (2 U.S.C. 1536), by striking 

6 ‘‘Director of the Office of Management and Budget’’ 

7 and inserting ‘‘Administrator of the Office of Infor8 mation and Regulatory Affairs’’. 

9 SEC. 7. APPLYING SUBSTANTIVE POINT OF ORDER TO PRI10 VATE SECTOR MANDATES. 

11 Section 425(a)(2) of the Congressional Budget Act 

12 of 1974 (2 U.S.C. 658d(a)(2)) is amended— 

13 (1) by striking ‘‘Federal intergovernmental 

14 mandates’’ and inserting ‘‘Federal mandates’’; and 

15 (2) by inserting ‘‘or 424(b)(1)’’ after ‘‘section 

16 424(a)(1)’’. 

17 SEC. 8. REGULATORY PROCESS AND PRINCIPLES. 

18 Section 201 of the Unfunded Mandates Reform Act 

19 of 1995 (2 U.S.C. 1531) is amended to read as follows: 

20 ‘‘SEC. 201. REGULATORY PROCESS AND PRINCIPLES. 

21 ‘‘(a) IN GENERAL.—Each agency shall, unless other22 wise expressly prohibited by law, assess the effects of Fed23 eral regulatory actions on State, local, and tribal govern24 ments and the private sector (other than to the extent that 

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1 cally set forth in law) in accordance with the following 

2 principles: 

3 ‘‘(1) Each agency shall identify the problem 

4 that it intends to address (including, if applicable, 

5 the failures of private markets or public institutions 

6 that warrant new agency action) as well as assess 

7 the significance of that problem. 

8 ‘‘(2) Each agency shall examine whether exist9 ing regulations (or other law) have created, or con10 tributed to, the problem that a new regulation is in11 tended to correct and whether those regulations (or 

12 other law) should be modified to achieve the in13 tended goal of regulation more effectively. 

14 ‘‘(3) Each agency shall identify and assess 

15 available alternatives to direct regulation, including 

16 providing economic incentives to encourage the de17 sired behavior, such as user fees or marketable per18 mits, or providing information upon which choices 

19 can be made by the public. 

20 ‘‘(4) If an agency determines that a regulation 

21 is the best available method of achieving the regu22 latory objective, it shall design its regulations in the 

23 most cost-effective manner to achieve the regulatory 

24 objective. In doing so, each agency shall consider in25 centives for innovation, consistency, predictability, 

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1 the costs of enforcement and compliance (to the gov2 ernment, regulated entities, and the public), flexi3 bility, distributive impacts, and equity. 

4 ‘‘(5) Each agency shall assess both the costs 

5 and the benefits of the intended regulation and, rec6 ognizing that some costs and benefits are difficult to 

7 quantify, propose or adopt a regulation, unless ex8 pressly prohibited by law, only upon a reasoned de9 termination that the benefits of the intended regula10 tion justify its costs. 

11 ‘‘(6) Each agency shall base its decisions on the 

12 best reasonably obtainable scientific, technical, eco13 nomic, and other information concerning the need 

14 for, and consequences of, the intended regulation. 

15 ‘‘(7) Each agency shall identify and assess al16 ternative forms of regulation and shall, to the extent 

17 feasible, specify performance objectives, rather than 

18 specifying the behavior or manner of compliance 

19 that regulated entities must adopt. 

20 ‘‘(8) Each agency shall avoid regulations that 

21 are inconsistent, incompatible, or duplicative with its 

22 other regulations or those of other Federal agencies. 

23 ‘‘(9) Each agency shall tailor its regulations to 

24 minimize the costs of the cumulative impact of regu25 lations. 

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1 ‘‘(10) Each agency shall draft its regulations to 

2 be simple and easy to understand, with the goal of 

3 minimizing the potential for uncertainty and litiga4 tion arising from such uncertainty. 

5 ‘‘(b) REGULATORY ACTION DEFINED.—In this sec6 tion, the term ‘regulatory action’ means any substantive 

7 action by an agency (normally published in the Federal 

8 Register) that promulgates or is expected to lead to the 

9 promulgation of a final rule or regulation, including ad10 vance notices of proposed rulemaking and notices of pro11 posed rulemaking.’’. 

12 SEC. 9. EXPANDING THE SCOPE OF STATEMENTS TO AC13 COMPANY SIGNIFICANT REGULATORY AC14 TIONS. 

15 (a) IN GENERAL.—Subsection (a) of section 202 of 

16 the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 

17 1532) is amended to read as follows: 

18 ‘‘(a) IN GENERAL.—Unless otherwise expressly pro19 hibited by law, before promulgating any general notice of 

20 proposed rulemaking or any final rule, or within six 

21 months after promulgating any final rule that was not pre22 ceded by a general notice of proposed rulemaking, if the 

23 proposed rulemaking or final rule includes a Federal man24 date that may result in an annual effect on State, local, 

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1 gregate of $100,000,000 or more in any 1 year, the agency 

2 shall prepare a written statement containing the following: 

3 ‘‘(1) The text of the draft proposed rulemaking 

4 or final rule, together with a reasonably detailed de5 scription of the need for the proposed rulemaking or 

6 final rule and an explanation of how the proposed 

7 rulemaking or final rule will meet that need. 

8 ‘‘(2) An assessment of the potential costs and 

9 benefits of the proposed rulemaking or final rule, in10 cluding an explanation of the manner in which the 

11 proposed rulemaking or final rule is consistent with 

12 a statutory requirement and avoids undue inter13 ference with State, local, and tribal governments in 

14 the exercise of their governmental functions. 

15 ‘‘(3) A qualitative and quantitative assessment, 

16 including the underlying analysis, of benefits antici17 pated from the proposed rulemaking or final rule 

18 (such as the promotion of the efficient functioning of 

19 the economy and private markets, the enhancement 

20 of health and safety, the protection of the natural 

21 environment, and the elimination or reduction of dis22 crimination or bias). 

23 ‘‘(4) A qualitative and quantitative assessment, 

24 including the underlying analysis, of costs antici25 pated from the proposed rulemaking or final rule 

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1 (such as the direct costs both to the Government in 

2 administering the final rule and to businesses and 

3 others in complying with the final rule, and any ad4 verse effects on the efficient functioning of the econ5 omy, private markets (including productivity, em6 ployment, and international competitiveness), health, 

7 safety, and the natural environment). 

8 ‘‘(5) Estimates by the agency, if and to the ex9 tent that the agency determines that accurate esti10 mates are reasonably feasible, of— 

11 ‘‘(A) the future compliance costs of the 

12 Federal mandate; and 

13 ‘‘(B) any disproportionate budgetary ef14 fects of the Federal mandate upon any par15 ticular regions of the Nation or particular 

16 State, local, or tribal governments, urban or 

17 rural or other types of communities, or par18 ticular segments of the private sector. 

19 ‘‘(6)(A) A detailed description of the extent of 

20 the agency’s prior consultation with the private sec21 tor and elected representatives (under section 204) 

22 of the affected State, local, and tribal governments. 

23 ‘‘(B) A detailed summary of the comments and 

24 concerns that were presented by the private sector 

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1 and State, local, or tribal governments either orally 

2 or in writing to the agency. 

3 ‘‘(C) A detailed summary of the agency’s eval4 uation of those comments and concerns. 

5 ‘‘(7) A detailed summary of how the agency 

6 complied with each of the regulatory principles de7 scribed in section 201.’’. 

8 (b) REQUIREMENT FOR DETAILED SUMMARY.—Sub9 section (b) of section 202 of such Act is amended by in10 serting ‘‘detailed’’ before ‘‘summary’’. 

11 SEC. 10. ENHANCED STAKEHOLDER CONSULTATION. 

12 Section 204 of the Unfunded Mandates Reform Act 

13 of 1995 (2 U.S.C. 1534) is amended— 

14 (1) in the section heading, by inserting ‘‘AND

15 PRIVATE SECTOR’’ before ‘‘INPUT’’; 

16 (2) in subsection (a)— 

17 (A) by inserting ‘‘, and impacted parties 

18 within the private sector (including small busi19 ness),’’ after ‘‘on their behalf)’’; 

20 (B) by striking ‘‘Federal intergovernmental 

21 mandates’’ and inserting ‘‘Federal mandates’’; 

22 and 

23 (3) by amending subsection (c) to read as fol24 lows: 

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1 ‘‘(c) GUIDELINES.—For appropriate implementation 

2 of subsections (a) and (b) consistent with applicable laws 

3 and regulations, the following guidelines shall be followed: 

4 ‘‘(1) Consultations shall take place as early as 

5 possible, before issuance of a notice of proposed rule6 making, continue through the final rule stage, and 

7 be integrated explicitly into the rulemaking process. 

8 ‘‘(2) Agencies shall consult with a wide variety 

9 of State, local, and tribal officials and impacted par10 ties within the private sector (including small busi11 nesses). Geographic, political, and other factors that 

12 may differentiate varying points of view should be 

13 considered. 

14 ‘‘(3) Agencies should estimate benefits and 

15 costs to assist with these consultations. The scope of 

16 the consultation should reflect the cost and signifi17 cance of the Federal mandate being considered. 

18 ‘‘(4) Agencies shall, to the extent practicable— 

19 ‘‘(A) seek out the views of State, local, and 

20 tribal governments, and impacted parties within 

21 the private sector (including small business), on 

22 costs, benefits, and risks; and 

23 ‘‘(B) solicit ideas about alternative meth24 ods of compliance and potential flexibilities, and 

25 input on whether the Federal regulation will 

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1 harmonize with and not duplicate similar laws 

2 in other levels of government. 

3 ‘‘(5) Consultations shall address the cumulative 

4 impact of regulations on the affected entities. 

5 ‘‘(6) Agencies may accept electronic submis6 sions of comments by relevant parties but may not 

7 use those comments as the sole method of satisfying 

8 the guidelines in this subsection.’’. 

9 SEC. 11. NEW AUTHORITIES AND RESPONSIBILITIES FOR 

10 OFFICE OF INFORMATION AND REGULATORY 

11 AFFAIRS. 

12 Section 208 of the Unfunded Mandates Reform Act 

13 of 1995 (2 U.S.C. 1538) is amended to read as follows: 

14 ‘‘SEC. 208. OFFICE OF INFORMATION AND REGULATORY AF15 FAIRS RESPONSIBILITIES. 

16 ‘‘(a) IN GENERAL.—The Administrator of the Office 

17 of Information and Regulatory Affairs shall provide mean18 ingful guidance and oversight so that each agency’s regu19 lations for which a written statement is required under 

20 section 202 are consistent with the principles and require21 ments of this title, as well as other applicable laws, and 

22 do not conflict with the policies or actions of another agen23 cy. If the Administrator determines that an agency’s regu24 lations for which a written statement is required under 

25 section 202 do not comply with such principles and remstockstill on DSK4VPTVN1PROD with BILLS

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1 quirements, are not consistent with other applicable laws, 

2 or conflict with the policies or actions of another agency, 

3 the Administrator shall identify areas of non-compliance, 

4 notify the agency, and request that the agency comply be5 fore the agency finalizes the regulation concerned. 

6 ‘‘(b) ANNUAL STATEMENTS TO CONGRESS ON AGEN7 CY COMPLIANCE.—The Director of the Office of Informa8 tion and Regulatory Affairs annually shall submit to Con9 gress, including the Committee on Homeland Security and 

10 Governmental Affairs of the Senate and the Committee 

11 on Oversight and Government Reform of the House of 

12 Representatives, a written report detailing compliance by 

13 each agency with the requirements of this title that relate 

14 to regulations for which a written statement is required 

15 by section 202, including activities undertaken at the re16 quest of the Director to improve compliance, during the 

17 preceding reporting period. The report shall also contain 

18 an appendix detailing compliance by each agency with sec19 tion 204.’’. 

20 SEC. 12. RETROSPECTIVE ANALYSIS OF EXISTING FEDERAL 

21 REGULATIONS. 

22 The Unfunded Mandates Reform Act of 1995 (Public 

23 Law 104–4; 2 U.S.C. 1511 et seq.) is amended— 

24 (1) by redesignating section 209 as section 210; 

25 and 

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1 (2) by inserting after section 208 the following 

2 new section 209: 

3 ‘‘SEC. 209. RETROSPECTIVE ANALYSIS OF EXISTING FED4 ERAL REGULATIONS. 

5 ‘‘(a) REQUIREMENT.—At the request of the chairman 

6 or ranking minority member of a standing or select com7 mittee of the House of Representatives or the Senate, an 

8 agency shall conduct a retrospective analysis of an existing 

9 Federal regulation promulgated by an agency. 

10 ‘‘(b) REPORT.—Each agency conducting a retrospec11 tive analysis of existing Federal regulations pursuant to 

12 subsection (a) shall submit to the chairman of the relevant 

13 committee, Congress, and the Comptroller General a re14 port containing, with respect to each Federal regulation 

15 covered by the analysis— 

16 ‘‘(1) a copy of the Federal regulation; 

17 ‘‘(2) the continued need for the Federal regula18 tion; 

19 ‘‘(3) the nature of comments or complaints re20 ceived concerning the Federal regulation from the 

21 public since the Federal regulation was promulgated; 

22 ‘‘(4) the extent to which the Federal regulation 

23 overlaps, duplicates, or conflicts with other Federal 

24 regulations, and, to the extent feasible, with State 

25 and local governmental rules; 

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1 ‘‘(5) the degree to which technology, economic 

2 conditions, or other factors have changed in the area 

3 affected by the Federal regulation; 

4 ‘‘(6) a complete analysis of the retrospective di5 rect costs and benefits of the Federal regulation that 

6 considers studies done outside the Federal Govern7 ment (if any) estimating such costs or benefits; and 

8 ‘‘(7) any litigation history challenging the Fed9 eral regulation.’’. 

10 SEC. 13. EXPANSION OF JUDICIAL REVIEW. 

11 Section 401(a) of the Unfunded Mandates Reform 

12 Act of 1995 (2 U.S.C. 1571(a)) is amended— 

13 (1) in paragraphs (1) and (2)(A)— 

14 (A) by striking ‘‘sections 202 and 

15 203(a)(1) and (2)’’ each place it appears and 

16 inserting ‘‘sections 201, 202, 203(a)(1) and (2), 

17 and 205(a) and (b)’’; and 

18 (B) by striking ‘‘only’’ each place it ap19 pears; 

20 (2) in paragraph (2)(B), by striking ‘‘section 

21 202’’ and all that follows through the period at the 

22 end and inserting the following: ‘‘section 202, pre23 pare the written plan under section 203(a)(1) and 

24 (2), or comply with section 205(a) and (b), a court 

25 may compel the agency to prepare such written 

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1 statement, prepare such written plan, or comply with 

2 such section.’’; and 

3 (3) in paragraph (3), by striking ‘‘written state4 ment or plan is required’’ and all that follows 

5 through ‘‘shall not’’ and inserting the following: 

6 ‘‘written statement under section 202, a written plan 

7 under section 203(a)(1) and (2), or compliance with 

8 sections 201 and 205(a) and (b) is required, the in9 adequacy or failure to prepare such statement (in10 cluding the inadequacy or failure to prepare any es11 timate, analysis, statement, or description), to pre12 pare such written plan, or to comply with such sec13 tion may’’. 

Passed the House of Representatives February 28, 

2014. 

Attest: KAREN L. HAAS, 

Clerk. 

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