analysis required under subsection (b) in con-
junction with, or as a part of, any other state-
ment or analysis if the other statement or anal-
ysis satisfies the requirements of subsections 
(b) and (c)’’. 
SEC. 4. ENHANCED STAKEHOLDER CONSULTATION. 
Section 204 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1534) is amended— 
(1) in the section heading, by inserting ‘‘AND 
PRIVATE SECTOR’’ before ‘‘INPUT’’; 
(2) in subsection (a)— 
(A) by inserting ‘‘, and impacted parties 
within the private sector (including small busi-
nesses),’’ after ‘‘on their behalf)’’; and 
(B) by striking ‘‘Federal intergovernmental 
mandates’’ and inserting ‘‘Federal mandates’’; 
and 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) GUIDELINES.—For appropriate implementation 
of subsections (a) and (b) consistent with applicable laws 
and regulations, the following guidelines shall be followed: 
‘‘(1) Consultations shall take place as early as 
possible, before issuance of a notice of proposed rule-
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making, continue through the final rule stage, and 
be integrated explicitly into the rulemaking process. 
‘‘(2) Agencies shall consult with a wide variety 
of State, local, and Tribal officials and impacted 
parties within the private sector (including small 
businesses). Geographic, political, and other factors 
that may differentiate varying points of view should 
be considered. 
‘‘(3) Agencies should estimate benefits and 
costs to assist with these consultations. The scope of 
the consultation should reflect the cost and signifi-
cance of the Federal mandate being considered. 
‘‘(4) Agencies shall, to the extent practicable— 
‘‘(A) seek out the views of State, local, and 
Tribal governments, and impacted parties with-
in the private sector (including small busi-
nesses), on costs, benefits, and risks; and 
‘‘(B) solicit ideas about alternative meth-
ods of compliance and potential flexibilities, and 
input on whether the Federal regulation will 
harmonize with and not duplicate similar laws 
in other levels of government. 
‘‘(5) Consultations shall address the cumulative 
impact of regulations on the affected entities. 
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‘‘(6) Agencies may accept electronic submis-
sions of comments by relevant parties but may not 
use those comments as the sole method of satisfying 
the guidelines in this subsection.’’. 
SEC. 5. MAXIMIZE NET BENEFITS OR PROVIDE EXPLA-
NATION. 
Title II of the Unfunded Mandates Reform Act of 
1995 (2 U.S.C. 1531 et seq.) is amended by striking sec-
tion 205 (2 U.S.C. 1535) and inserting the following: 
‘‘SEC. 205. MAXIMIZE NET BENEFITS. 
‘‘(a) DEFINITION OF COST.—In this section, the term 
‘cost’ has the meaning given the term in section 202(a). 
‘‘(b) REQUIREMENT.—Before promulgating any pro-
posed or final major rule for which a regulatory impact 
analysis is required under section 202, an agency shall 
from the alternatives identified and considered under sec-
tion 202(c)(1)(B), select the alternative that maximizes 
net benefits, taking into consideration only the costs and 
benefits that arise within the scope of the statutory provi-
sion that authorizes the rulemaking. 
‘‘(c) EXCEPTIONS.—An agency may adopt an alter-
native other than as required under subsection (b) only 
if— 
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