I 

113TH CONGRESS 

1ST SESSION H. R. 899 

To provide for additional safeguards with respect to imposing Federal 

mandates, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2013 

Ms. FOXX (for herself, Mr. LANKFORD, Ms. LORETTA SANCHEZ of California, 

Mr. PETERSON, and Mr. MCINTYRE) introduced the following bill; which 

was referred to the Committee on Oversight and Government Reform, 

and in addition to the Committees on the Budget, Rules, and the Judiciary, 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 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, 

3 SECTION 1. SHORT TITLE. 

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

5 Information and Transparency Act of 2013’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is— 


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1 (1) to improve the quality of the deliberations 

2 of Congress with respect to proposed Federal man3 dates by— 

4 (A) providing Congress and the public with 

5 more complete information about the effects of 

6 such mandates; and 

7 (B) ensuring that Congress acts on such 

8 mandates only after focused deliberation on 

9 their effects; and 

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

11 public to identify Federal mandates that may impose 

12 undue harm on consumers, workers, employers, 

13 small businesses, and State, local, and tribal govern14 ments. 

15 SEC. 3. PROVIDING FOR CONGRESSIONAL BUDGET OFFICE 

16 STUDIES ON POLICIES INVOLVING CHANGES 

17 IN CONDITIONS OF GRANT AID. 

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

19 1974 (2 U.S.C. 602(g)) is amended by adding at the end 

20 the following new paragraph: 

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

22 any Chairman or ranking member of the minority of 

23 a Committee of the Senate or the House of Rep24 resentatives, the Director shall conduct an assess25 ment comparing the authorized level of funding in a 


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1 bill or resolution to the prospective costs of carrying 

2 out any changes to a condition of Federal assistance 

3 being imposed on State, local, or tribal governments 

4 participating in the Federal assistance program con5 cerned or, in the case of a bill or joint resolution 

6 that authorizes such sums as are necessary, an as7 sessment of an estimated level of funding compared 

8 to such costs.’’. 

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

10 REFLECT CONGRESSIONAL BUDGET OFFICE 

11 PRACTICE. 

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

13 1974 (2 U.S.C. 658(3)(A)(i)) is amended— 

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

15 or’’ before ‘‘be required’’; and 

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

17 spend’’ the following: ‘‘or could forgo in profits, in18 cluding costs passed on to consumers or other enti19 ties taking into account, to the extent practicable, 

20 behavioral changes,’’. 

21 SEC. 5. EXPANDING THE SCOPE OF REPORTING REQUIRE22 MENTS TO INCLUDE REGULATIONS IMPOSED 

23 BY INDEPENDENT REGULATORY AGENCIES. 

24 Paragraph (1) of section 421 of the Congressional 

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


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

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

3 Governors of the Federal Reserve System or the Federal 

4 Open Market Committee’’. 

5 SEC. 6. AMENDMENTS TO REPLACE OFFICE OF MANAGE6 MENT AND BUDGET WITH OFFICE OF INFOR7 MATION AND REGULATORY AFFAIRS. 

8 The Unfunded Mandates Reform Act of 1995 (Public 

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

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

11 (A) in the subsection heading, by striking 

12 ‘‘OFFICE OF MANAGEMENT AND BUDGET’’ and 

13 inserting ‘‘OFFICE OF INFORMATION AND REG14 ULATORY AFFAIRS’’; and 

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

16 Management and Budget’’ and inserting ‘‘Ad17 ministrator of the Office of Information and 

18 Regulatory Affairs’’; 

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

20 (A) in the subsection heading, by striking 

21 ‘‘OMB’’; and 

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

23 Management and Budget’’ and inserting ‘‘Ad24 ministrator of the Office of Information and 

25 Regulatory Affairs’’; and 


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

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

3 and inserting ‘‘Administrator of the Office of Infor4 mation and Regulatory Affairs’’. 

5 SEC. 7. APPLYING SUBSTANTIVE POINT OF ORDER TO PRI6 VATE SECTOR MANDATES. 

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

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

9 (1) by striking ‘‘Federal intergovernmental 

10 mandates’’ and inserting ‘‘Federal mandates’’; and 

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

12 424(a)(1)’’. 

13 SEC. 8. REGULATORY PROCESS AND PRINCIPLES. 

14 Section 201 of the Unfunded Mandates Reform Act 

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

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

17 ‘‘(a) IN GENERAL.—Each agency shall, unless other18 wise expressly prohibited by law, assess the effects of Fed19 eral regulatory actions on State, local, and tribal govern20 ments and the private sector (other than to the extent that 

21 such regulatory actions incorporate requirements specifi22 cally set forth in law) in accordance with the following 

23 principles: 

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

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


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1 the failures of private markets or public institutions 

2 that warrant new agency action) as well as assess 

3 the significance of that problem. 

4 ‘‘(2) Each agency shall examine whether exist5 ing regulations (or other law) have created, or con6 tributed to, the problem that a new regulation is in7 tended to correct and whether those regulations (or 

8 other law) should be modified to achieve the in9 tended goal of regulation more effectively. 

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

11 available alternatives to direct regulation, including 

12 providing economic incentives to encourage the de13 sired behavior, such as user fees or marketable per14 mits, or providing information upon which choices 

15 can be made by the public. 

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

17 is the best available method of achieving the regu18 latory objective, it shall design its regulations in the 

19 most cost-effective manner to achieve the regulatory 

20 objective. In doing so, each agency shall consider in21 centives for innovation, consistency, predictability, 

22 the costs of enforcement and compliance (to the gov23 ernment, regulated entities, and the public), flexi24 bility, distributive impacts, and equity. 


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

2 and the benefits of the intended regulation and, rec3 ognizing that some costs and benefits are difficult to 

4 quantify, propose or adopt a regulation, unless ex5 pressly prohibited by law, only upon a reasoned de6 termination that the benefits of the intended regula7 tion justify its costs. 

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

9 best reasonably obtainable scientific, technical, eco10 nomic, and other information concerning the need 

11 for, and consequences of, the intended regulation. 

12 ‘‘(7) Each agency shall identify and assess al13 ternative forms of regulation and shall, to the extent 

14 feasible, specify performance objectives, rather than 

15 specifying the behavior or manner of compliance 

16 that regulated entities must adopt. 

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

18 are inconsistent, incompatible, or duplicative with its 

19 other regulations or those of other Federal agencies. 

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

21 minimize the costs of the cumulative impact of regu22 lations. 

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

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


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1 minimizing the potential for uncertainty and litiga2 tion arising from such uncertainty. 

3 ‘‘(b) REGULATORY ACTION DEFINED.—In this sec4 tion, the term ‘regulatory action’ means any substantive 

5 action by an agency (normally published in the Federal 

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

7 promulgation of a final rule or regulation, including ad8 vance notices of proposed rulemaking and notices of pro9 posed rulemaking.’’. 

10 SEC. 9. EXPANDING THE SCOPE OF STATEMENTS TO AC11 COMPANY SIGNIFICANT REGULATORY AC12 TIONS. 

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

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

15 1532) is amended to read as follows: 

16 ‘‘(a) IN GENERAL.—Unless otherwise expressly pro17 hibited by law, before promulgating any general notice of 

18 proposed rulemaking or any final rule, or within six 

19 months after promulgating any final rule that was not pre20 ceded by a general notice of proposed rulemaking, if the 

21 proposed rulemaking or final rule includes a Federal man22 date that may result in an annual effect on State, local, 

23 or tribal governments, or to the private sector, in the ag24 gregate of $100,000,000 or more in any 1 year, the agency 

25 shall prepare a written statement containing the following: 


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

2 or final rule, together with a reasonably detailed de3 scription of the need for the proposed rulemaking or 

4 final rule and an explanation of how the proposed 

5 rulemaking or final rule will meet that need. 

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

7 benefits of the proposed rulemaking or final rule, in8 cluding an explanation of the manner in which the 

9 proposed rulemaking or final rule is consistent with 

10 a statutory requirement and avoids undue inter11 ference with State, local, and tribal governments in 

12 the exercise of their governmental functions. 

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

14 including the underlying analysis, of benefits antici15 pated from the proposed rulemaking or final rule 

16 (such as the promotion of the efficient functioning of 

17 the economy and private markets, the enhancement 

18 of health and safety, the protection of the natural 

19 environment, and the elimination or reduction of dis20 crimination or bias). 

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

22 including the underlying analysis, of costs antici23 pated from the proposed rulemaking or final rule 

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

25 administering the final rule and to businesses and 


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1 others in complying with the final rule, and any ad2 verse effects on the efficient functioning of the econ3 omy, private markets (including productivity, em4 ployment, and international competitiveness), health, 

5 safety, and the natural environment); 

6 ‘‘(5) Estimates by the agency, if and to the ex7 tent that the agency determines that accurate esti8 mates are reasonably feasible, of— 

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

10 Federal mandate; and 

11 ‘‘(B) any disproportionate budgetary ef12 fects of the Federal mandate upon any par13 ticular regions of the Nation or particular 

14 State, local, or tribal governments, urban or 

15 rural or other types of communities, or par16 ticular segments of the private sector. 

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

18 the agency’s prior consultation with the private sec19 tor and elected representatives (under section 204) 

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

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

22 concerns that were presented by the private sector 

23 and State, local, or tribal governments either orally 

24 or in writing to the agency. 


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1 ‘‘(C) A detailed summary of the agency’s eval2 uation of those comments and concerns. 

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

4 complied with each of the regulatory principles de5 scribed in section 201.’’. 

6 (b) REQUIREMENT FOR DETAILED SUMMARY.—Sub7 section (b) of section 202 of such Act is amended by in8 serting ‘‘detailed’’ before ‘‘summary’’. 

9 SEC. 10. ENHANCED STAKEHOLDER CONSULTATION. 

10 Section 204 of the Unfunded Mandates Reform Act 

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

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

13 PRIVATE SECTOR’’ before ‘‘INPUT’’; 

14 (2) in subsection (a)— 

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

16 within the private sector (including small busi17 ness),’’ after ‘‘on their behalf)’’; 

18 (B) by striking ‘‘Federal intergovernmental 

19 mandates’’ and inserting ‘‘Federal mandates’’; 

20 and 

21 (3) by amending subsection (c) to read as fol22 lows: 

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

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

25 and regulations, the following guidelines shall be followed: 


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

2 possible, before issuance of a notice of proposed rule3 making, continue through the final rule stage, and 

4 be integrated explicitly into the rulemaking process. 

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

6 of State, local, and tribal officials and impacted par7 ties within the private sector (including small busi8 nesses). Geographic, political, and other factors that 

9 may differentiate varying points of view should be 

10 considered. 

11 ‘‘(3) Agencies should estimate benefits and 

12 costs to assist with these consultations. The scope of 

13 the consultation should reflect the cost and signifi14 cance of the Federal mandate being considered. 

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

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

17 tribal governments, and impacted parties within 

18 the private sector (including small business), on 

19 costs, benefits, and risks; and 

20 ‘‘(B) solicit ideas about alternative meth21 ods of compliance and potential flexibilities, and 

22 input on whether the Federal regulation will 

23 harmonize with and not duplicate similar laws 

24 in other levels of government. 


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1 ‘‘(5) Consultations shall address the cumulative 

2 impact of regulations on the affected entities. 

3 ‘‘(6) Agencies may accept electronic submis4 sions of comments by relevant parties but may not 

5 use those comments as the sole method of satisfying 

6 the guidelines in this subsection.’’. 

7 SEC. 11. NEW AUTHORITIES AND RESPONSIBILITIES FOR 

8 OFFICE OF INFORMATION AND REGULATORY 

9 AFFAIRS. 

10 Section 208 of the Unfunded Mandates Reform Act 

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

12 ‘‘SEC. 208. OFFICE OF INFORMATION AND REGULATORY AF13 FAIRS RESPONSIBILITIES. 

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

15 of Information and Regulatory Affairs shall provide mean16 ingful guidance and oversight so that each agency’s regu17 lations for which a written statement is required under 

18 section 202 are consistent with the principles and require19 ments of this title, as well as other applicable laws, and 

20 do not conflict with the policies or actions of another agen21 cy. If the Administrator determines that an agency’s regu22 lations for which a written statement is required under 

23 section 202 do not comply with such principles and re24 quirements, are not consistent with other applicable laws, 

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


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1 the Administrator shall identify areas of non-compliance, 

2 notify the agency, and request that the agency comply be3 fore the agency finalizes the regulation concerned. 

4 ‘‘(b) ANNUAL STATEMENTS TO CONGRESS ON AGEN5 CY COMPLIANCE.—The Director of the Office of Informa6 tion and Regulatory Affairs annually shall submit to Con7 gress, including the Committee on Homeland Security and 

8 Governmental Affairs of the Senate and the Committee 

9 on Oversight and Government Reform of the House of 

10 Representatives, a written report detailing compliance by 

11 each agency with the requirements of this title that relate 

12 to regulations for which a written statement is required 

13 by section 202, including activities undertaken at the re14 quest of the Director to improve compliance, during the 

15 preceding reporting period. The report shall also contain 

16 an appendix detailing compliance by each agency with sec17 tion 204.’’. 

18 SEC. 12. RETROSPECTIVE ANALYSIS OF EXISTING FEDERAL 

19 REGULATIONS. 

20 The Unfunded Mandates Reform Act of 1995 (Public 

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

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

23 and 

24 (2) by inserting after section 208 the following 

25 new section 209: 


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1 ‘‘SEC. 209. RETROSPECTIVE ANALYSIS OF EXISTING FED2 ERAL REGULATIONS. 

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

4 or ranking minority member of a standing or select com5 mittee of the House of Representatives or the Senate, an 

6 agency shall conduct a retrospective analysis of an existing 

7 Federal regulation promulgated by an agency. 

8 ‘‘(b) REPORT.—Each agency conducting a retrospec9 tive analysis of existing Federal regulations pursuant to 

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

11 committee, Congress, and the Comptroller General a re12 port containing, with respect to each Federal regulation 

13 covered by the analysis— 

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

15 ‘‘(2) the continued need for the Federal regula16 tion; 

17 ‘‘(3) the nature of comments or complaints re18 ceived concerning the Federal regulation from the 

19 public since the Federal regulation was promulgated; 

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

21 overlaps, duplicates, or conflicts with other Federal 

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

23 and local governmental rules; 

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

25 conditions, or other factors have changed in the area 

26 affected by the Federal regulation; 


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1 ‘‘(6) a complete analysis of the retrospective di2 rect costs and benefits of the Federal regulation that 

3 considers studies done outside the Federal Govern4 ment (if any) estimating such costs or benefits; and 

5 ‘‘(7) any litigation history challenging the Fed6 eral regulation.’’. 

7 SEC. 13. EXPANSION OF JUDICIAL REVIEW. 

8 Section 401(a) of the Unfunded Mandates Reform 

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

10 (1) in paragraphs (1) and (2)(A)— 

11 (A) by striking ‘‘sections 202 and 

12 203(a)(1) and (2)’’ each place it appears and 

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

14 and 205(a) and (b)’’; and 

15 (B) by striking ‘‘only’’ each place it ap16 pears; 

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

18 202’’ and all that follows through the period at the 

19 end and inserting the following: ‘‘section 202, pre20 pare the written plan under section 203(a)(1) and 

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

22 may compel the agency to prepare such written 

23 statement, prepare such written plan, or comply with 

24 such section.’’; and 


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1 (3) in paragraph (3), by striking ‘‘written state2 ment or plan is required’’ and all that follows 

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

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

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

6 sections 201 and 205(a) and (b) is required, the in7 adequacy or failure to prepare such statement (in8 cluding the inadequacy or failure to prepare any es9 timate, analysis, statement, or description), to pre10 pare such written plan, or to comply with such sec11 tion may’’. 

Æ 


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