IB 

Union Calendar No. 260 

113TH CONGRESS 

2D SESSION H. R. 899 

[Report No. 113–352, Part I] 

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 

FEBRUARY 14, 2014 

Reported from the Committee on Oversight and Government Reform 

FEBRUARY 14, 2014 

The Committees on the Budget, Rules, and the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


emcdonald on DSK67QTVN1PROD with BILLS
2 

•HR 899 RH

A BILL 

To provide for additional safeguards with respect to imposing 

Federal mandates, and for other purposes. 


emcdonald on DSK67QTVN1PROD with BILLS
3 

•HR 899 RH

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— 

8 (1) to improve the quality of the deliberations 

9 of Congress with respect to proposed Federal man10 dates by— 

11 (A) providing Congress and the public with 

12 more complete information about the effects of 

13 such mandates; and 

14 (B) ensuring that Congress acts on such 

15 mandates only after focused deliberation on 

16 their effects; and 

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

18 public to identify Federal mandates that may impose 

19 undue harm on consumers, workers, employers, 

20 small businesses, and State, local, and tribal govern21 ments. 


emcdonald on DSK67QTVN1PROD with BILLS
4 

•HR 899 RH

1 SEC. 3. PROVIDING FOR CONGRESSIONAL BUDGET OFFICE 

2 STUDIES ON POLICIES INVOLVING CHANGES 

3 IN CONDITIONS OF GRANT AID. 

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

5 1974 (2 U.S.C. 602(g)) is amended by adding at the end 

6 the following new paragraph: 

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

8 any Chairman or ranking member of the minority of 

9 a Committee of the Senate or the House of Rep10 resentatives, the Director shall conduct an assess11 ment comparing the authorized level of funding in a 

12 bill or resolution to the prospective costs of carrying 

13 out any changes to a condition of Federal assistance 

14 being imposed on State, local, or tribal governments 

15 participating in the Federal assistance program con16 cerned or, in the case of a bill or joint resolution 

17 that authorizes such sums as are necessary, an as18 sessment of an estimated level of funding compared 

19 to such costs.’’. 

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

21 REFLECT CONGRESSIONAL BUDGET OFFICE 

22 PRACTICE. 

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

24 1974 (2 U.S.C. 658(3)(A)(i)) is amended— 

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

26 or’’ before ‘‘be required’’; and 


emcdonald on DSK67QTVN1PROD with BILLS
5 

•HR 899 RH

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

2 spend’’ the following: ‘‘or could forgo in profits, in3 cluding costs passed on to consumers or other enti4 ties taking into account, to the extent practicable, 

5 behavioral changes,’’. 

6 SEC. 5. EXPANDING THE SCOPE OF REPORTING REQUIRE7 MENTS TO INCLUDE REGULATIONS IMPOSED 

8 BY INDEPENDENT REGULATORY AGENCIES. 

9 Paragraph (1) of section 421 of the Congressional 

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

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

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

13 Governors of the Federal Reserve System or the Federal 

14 Open Market Committee’’. 

15 SEC. 6. AMENDMENTS TO REPLACE OFFICE OF MANAGE16 MENT AND BUDGET WITH OFFICE OF INFOR17 MATION AND REGULATORY AFFAIRS. 

18 The Unfunded Mandates Reform Act of 1995 (Public 

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

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

21 (A) in the subsection heading, by striking 

22 ‘‘OFFICE OF MANAGEMENT AND BUDGET’’ and 

23 inserting ‘‘OFFICE OF INFORMATION AND REG24 ULATORY AFFAIRS’’; and 


emcdonald on DSK67QTVN1PROD with BILLS
6 

•HR 899 RH

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’’; 

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

6 (A) in the subsection heading, by striking 

7 ‘‘OMB’’; and 

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

9 Management and Budget’’ and inserting ‘‘Ad10 ministrator of the Office of Information and 

11 Regulatory Affairs’’; and 

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

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

14 and inserting ‘‘Administrator of the Office of Infor15 mation and Regulatory Affairs’’. 

16 SEC. 7. APPLYING SUBSTANTIVE POINT OF ORDER TO PRI17 VATE SECTOR MANDATES. 

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

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

20 (1) by striking ‘‘Federal intergovernmental 

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

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

23 424(a)(1)’’. 


emcdonald on DSK67QTVN1PROD with BILLS
7 

•HR 899 RH

1 SEC. 8. REGULATORY PROCESS AND PRINCIPLES. 

2 Section 201 of the Unfunded Mandates Reform Act 

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

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

5 ‘‘(a) IN GENERAL.—Each agency shall, unless other6 wise expressly prohibited by law, assess the effects of Fed7 eral regulatory actions on State, local, and tribal govern8 ments and the private sector (other than to the extent that 

9 such regulatory actions incorporate requirements specifi10 cally set forth in law) in accordance with the following 

11 principles: 

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

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

14 the failures of private markets or public institutions 

15 that warrant new agency action) as well as assess 

16 the significance of that problem. 

17 ‘‘(2) Each agency shall examine whether exist18 ing regulations (or other law) have created, or con19 tributed to, the problem that a new regulation is in20 tended to correct and whether those regulations (or 

21 other law) should be modified to achieve the in22 tended goal of regulation more effectively. 

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

24 available alternatives to direct regulation, including 

25 providing economic incentives to encourage the de26 sired behavior, such as user fees or marketable perVerDate Mar 15 2010 19:11 Feb 14, 2014 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H899.RH H899

emcdonald on DSK67QTVN1PROD with BILLS
8 

•HR 899 RH

1 mits, or providing information upon which choices 

2 can be made by the public. 

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

4 is the best available method of achieving the regu5 latory objective, it shall design its regulations in the 

6 most cost-effective manner to achieve the regulatory 

7 objective. In doing so, each agency shall consider in8 centives for innovation, consistency, predictability, 

9 the costs of enforcement and compliance (to the gov10 ernment, regulated entities, and the public), flexi11 bility, distributive impacts, and equity. 

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

13 and the benefits of the intended regulation and, rec14 ognizing that some costs and benefits are difficult to 

15 quantify, propose or adopt a regulation, unless ex16 pressly prohibited by law, only upon a reasoned de17 termination that the benefits of the intended regula18 tion justify its costs. 

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

20 best reasonably obtainable scientific, technical, eco21 nomic, and other information concerning the need 

22 for, and consequences of, the intended regulation. 

23 ‘‘(7) Each agency shall identify and assess al24 ternative forms of regulation and shall, to the extent 

25 feasible, specify performance objectives, rather than 


emcdonald on DSK67QTVN1PROD with BILLS
9 

•HR 899 RH

1 specifying the behavior or manner of compliance 

2 that regulated entities must adopt. 

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

4 are inconsistent, incompatible, or duplicative with its 

5 other regulations or those of other Federal agencies. 

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

7 minimize the costs of the cumulative impact of regu8 lations. 

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

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

11 minimizing the potential for uncertainty and litiga12 tion arising from such uncertainty. 

13 ‘‘(b) REGULATORY ACTION DEFINED.—In this sec14 tion, the term ‘regulatory action’ means any substantive 

15 action by an agency (normally published in the Federal 

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

17 promulgation of a final rule or regulation, including ad18 vance notices of proposed rulemaking and notices of pro19 posed rulemaking.’’. 

20 SEC. 9. EXPANDING THE SCOPE OF STATEMENTS TO AC21 COMPANY SIGNIFICANT REGULATORY AC22 TIONS. 

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

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

25 1532) is amended to read as follows: 


emcdonald on DSK67QTVN1PROD with BILLS
10 

•HR 899 RH

1 ‘‘(a) IN GENERAL.—Unless otherwise expressly pro2 hibited by law, before promulgating any general notice of 

3 proposed rulemaking or any final rule, or within six 

4 months after promulgating any final rule that was not pre5 ceded by a general notice of proposed rulemaking, if the 

6 proposed rulemaking or final rule includes a Federal man7 date that may result in an annual effect on State, local, 

8 or tribal governments, or to the private sector, in the ag9 gregate of $100,000,000 or more in any 1 year, the agency 

10 shall prepare a written statement containing the following: 

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

12 or final rule, together with a reasonably detailed de13 scription of the need for the proposed rulemaking or 

14 final rule and an explanation of how the proposed 

15 rulemaking or final rule will meet that need. 

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

17 benefits of the proposed rulemaking or final rule, in18 cluding an explanation of the manner in which the 

19 proposed rulemaking or final rule is consistent with 

20 a statutory requirement and avoids undue inter21 ference with State, local, and tribal governments in 

22 the exercise of their governmental functions. 

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

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


emcdonald on DSK67QTVN1PROD with BILLS
11 

•HR 899 RH

1 (such as the promotion of the efficient functioning of 

2 the economy and private markets, the enhancement 

3 of health and safety, the protection of the natural 

4 environment, and the elimination or reduction of dis5 crimination or bias). 

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

7 including the underlying analysis, of costs antici8 pated from the proposed rulemaking or final rule 

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

10 administering the final rule and to businesses and 

11 others in complying with the final rule, and any ad12 verse effects on the efficient functioning of the econ13 omy, private markets (including productivity, em14 ployment, and international competitiveness), health, 

15 safety, and the natural environment); 

16 ‘‘(5) Estimates by the agency, if and to the ex17 tent that the agency determines that accurate esti18 mates are reasonably feasible, of— 

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

20 Federal mandate; and 

21 ‘‘(B) any disproportionate budgetary ef22 fects of the Federal mandate upon any par23 ticular regions of the Nation or particular 

24 State, local, or tribal governments, urban or 


emcdonald on DSK67QTVN1PROD with BILLS
12 

•HR 899 RH

1 rural or other types of communities, or par2 ticular segments of the private sector. 

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

4 the agency’s prior consultation with the private sec5 tor and elected representatives (under section 204) 

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

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

8 concerns that were presented by the private sector 

9 and State, local, or tribal governments either orally 

10 or in writing to the agency. 

11 ‘‘(C) A detailed summary of the agency’s eval12 uation of those comments and concerns. 

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

14 complied with each of the regulatory principles de15 scribed in section 201.’’. 

16 (b) REQUIREMENT FOR DETAILED SUMMARY.—Sub17 section (b) of section 202 of such Act is amended by in18 serting ‘‘detailed’’ before ‘‘summary’’. 

19 SEC. 10. ENHANCED STAKEHOLDER CONSULTATION. 

20 Section 204 of the Unfunded Mandates Reform Act 

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

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

23 PRIVATE SECTOR’’ before ‘‘INPUT’’; 

24 (2) in subsection (a)— 


emcdonald on DSK67QTVN1PROD with BILLS
13 

•HR 899 RH

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

2 within the private sector (including small busi3 ness),’’ after ‘‘on their behalf)’’; 

4 (B) by striking ‘‘Federal intergovernmental 

5 mandates’’ and inserting ‘‘Federal mandates’’; 

6 and 

7 (3) by amending subsection (c) to read as fol8 lows: 

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

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

11 and regulations, the following guidelines shall be followed: 

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

13 possible, before issuance of a notice of proposed rule14 making, continue through the final rule stage, and 

15 be integrated explicitly into the rulemaking process. 

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

17 of State, local, and tribal officials and impacted par18 ties within the private sector (including small busi19 nesses). Geographic, political, and other factors that 

20 may differentiate varying points of view should be 

21 considered. 

22 ‘‘(3) Agencies should estimate benefits and 

23 costs to assist with these consultations. The scope of 

24 the consultation should reflect the cost and signifi25 cance of the Federal mandate being considered. 


emcdonald on DSK67QTVN1PROD with BILLS
14 

•HR 899 RH

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

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

3 tribal governments, and impacted parties within 

4 the private sector (including small business), on 

5 costs, benefits, and risks; and 

6 ‘‘(B) solicit ideas about alternative meth7 ods of compliance and potential flexibilities, and 

8 input on whether the Federal regulation will 

9 harmonize with and not duplicate similar laws 

10 in other levels of government. 

11 ‘‘(5) Consultations shall address the cumulative 

12 impact of regulations on the affected entities. 

13 ‘‘(6) Agencies may accept electronic submis14 sions of comments by relevant parties but may not 

15 use those comments as the sole method of satisfying 

16 the guidelines in this subsection.’’. 

17 SEC. 11. NEW AUTHORITIES AND RESPONSIBILITIES FOR 

18 OFFICE OF INFORMATION AND REGULATORY 

19 AFFAIRS. 

20 Section 208 of the Unfunded Mandates Reform Act 

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

22 ‘‘SEC. 208. OFFICE OF INFORMATION AND REGULATORY AF23 FAIRS RESPONSIBILITIES. 

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

25 of Information and Regulatory Affairs shall provide meanVerDate Mar 15 2010 19:11 Feb 14, 2014 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H899.RH H899

emcdonald on DSK67QTVN1PROD with BILLS
15 

•HR 899 RH

1 ingful guidance and oversight so that each agency’s regu2 lations for which a written statement is required under 

3 section 202 are consistent with the principles and require4 ments of this title, as well as other applicable laws, and 

5 do not conflict with the policies or actions of another agen6 cy. If the Administrator determines that an agency’s regu7 lations for which a written statement is required under 

8 section 202 do not comply with such principles and re9 quirements, are not consistent with other applicable laws, 

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

11 the Administrator shall identify areas of non-compliance, 

12 notify the agency, and request that the agency comply be13 fore the agency finalizes the regulation concerned. 

14 ‘‘(b) ANNUAL STATEMENTS TO CONGRESS ON AGEN15 CY COMPLIANCE.—The Director of the Office of Informa16 tion and Regulatory Affairs annually shall submit to Con17 gress, including the Committee on Homeland Security and 

18 Governmental Affairs of the Senate and the Committee 

19 on Oversight and Government Reform of the House of 

20 Representatives, a written report detailing compliance by 

21 each agency with the requirements of this title that relate 

22 to regulations for which a written statement is required 

23 by section 202, including activities undertaken at the re24 quest of the Director to improve compliance, during the 

25 preceding reporting period. The report shall also contain 


emcdonald on DSK67QTVN1PROD with BILLS
16 

•HR 899 RH

1 an appendix detailing compliance by each agency with sec2 tion 204.’’. 

3 SEC. 12. RETROSPECTIVE ANALYSIS OF EXISTING FEDERAL 

4 REGULATIONS. 

5 The Unfunded Mandates Reform Act of 1995 (Public 

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

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

8 and 

9 (2) by inserting after section 208 the following 

10 new section 209: 

11 ‘‘SEC. 209. RETROSPECTIVE ANALYSIS OF EXISTING FED12 ERAL REGULATIONS. 

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

14 or ranking minority member of a standing or select com15 mittee of the House of Representatives or the Senate, an 

16 agency shall conduct a retrospective analysis of an existing 

17 Federal regulation promulgated by an agency. 

18 ‘‘(b) REPORT.—Each agency conducting a retrospec19 tive analysis of existing Federal regulations pursuant to 

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

21 committee, Congress, and the Comptroller General a re22 port containing, with respect to each Federal regulation 

23 covered by the analysis— 

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


emcdonald on DSK67QTVN1PROD with BILLS
17 

•HR 899 RH

1 ‘‘(2) the continued need for the Federal regula2 tion; 

3 ‘‘(3) the nature of comments or complaints re4 ceived concerning the Federal regulation from the 

5 public since the Federal regulation was promulgated; 

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

7 overlaps, duplicates, or conflicts with other Federal 

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

9 and local governmental rules; 

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

11 conditions, or other factors have changed in the area 

12 affected by the Federal regulation; 

13 ‘‘(6) a complete analysis of the retrospective di14 rect costs and benefits of the Federal regulation that 

15 considers studies done outside the Federal Govern16 ment (if any) estimating such costs or benefits; and 

17 ‘‘(7) any litigation history challenging the Fed18 eral regulation.’’. 

19 SEC. 13. EXPANSION OF JUDICIAL REVIEW. 

20 Section 401(a) of the Unfunded Mandates Reform 

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

22 (1) in paragraphs (1) and (2)(A)— 

23 (A) by striking ‘‘sections 202 and 

24 203(a)(1) and (2)’’ each place it appears and 


emcdonald on DSK67QTVN1PROD with BILLS
18 

•HR 899 RH

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

2 and 205(a) and (b)’’; and 

3 (B) by striking ‘‘only’’ each place it ap4 pears; 

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

6 202’’ and all that follows through the period at the 

7 end and inserting the following: ‘‘section 202, pre8 pare the written plan under section 203(a)(1) and 

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

10 may compel the agency to prepare such written 

11 statement, prepare such written plan, or comply with 

12 such section.’’; and 

13 (3) in paragraph (3), by striking ‘‘written state14 ment or plan is required’’ and all that follows 

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

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

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

18 sections 201 and 205(a) and (b) is required, the in19 adequacy or failure to prepare such statement (in20 cluding the inadequacy or failure to prepare any es21 timate, analysis, statement, or description), to pre22 pare such written plan, or to comply with such sec23 tion may’’. 


emcdonald on DSK67QTVN1PROD with BILLS

emcdonald on DSK67QTVN1PROD with BILLS
Union Calendar No. 260 

113TH CONGRESS 

2D SESSION H. R. 899 

[Report No. 113–352, Part I] 

A BILL 

To provide for additional safeguards with respect to 

poses. imposing Federal mandates, and for other purFEBRUARY 14, 2014 

Reported from the Committee on Oversight and 

F

Government Reform 

EBRUARY 14, 2014 

The Committees on the Budget, Rules, and the Judiciary 

printed House on the State of the Union and ordered to be discharged; committed to the Committee of the Whole 


emcdonald on DSK67QTVN1PROD with BILLS