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 Judici-
ary, 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; com-
mitted to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
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A BILL 
To provide for additional safeguards with respect to imposing 
Federal mandates, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Unfunded Mandates 
Information and Transparency Act of 2013’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is— 
(1) to improve the quality of the deliberations 
of Congress with respect to proposed Federal man-
dates by— 
(A) providing Congress and the public with 
more complete information about the effects of 
such mandates; and 
(B) ensuring that Congress acts on such 
mandates only after focused deliberation on 
their effects; and 
(2) to enhance the ability of Congress and the 
public to identify Federal mandates that may impose 
undue harm on consumers, workers, employers, 
small businesses, and State, local, and tribal govern-
ments. 
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SEC. 3. PROVIDING FOR CONGRESSIONAL BUDGET OFFICE 
STUDIES ON POLICIES INVOLVING CHANGES 
IN CONDITIONS OF GRANT AID. 
Section 202(g) of the Congressional Budget Act of 
1974 (2 U.S.C. 602(g)) is amended by adding at the end 
the following new paragraph: 
‘‘(3) ADDITIONAL STUDIES.—At the request of 
any Chairman or ranking member of the minority of 
a Committee of the Senate or the House of Rep-
resentatives, the Director shall conduct an assess-
ment comparing the authorized level of funding in a 
bill or resolution to the prospective costs of carrying 
out any changes to a condition of Federal assistance 
being imposed on State, local, or tribal governments 
participating in the Federal assistance program con-
cerned or, in the case of a bill or joint resolution 
that authorizes such sums as are necessary, an as-
sessment of an estimated level of funding compared 
to such costs.’’. 
SEC. 4. CLARIFYING THE DEFINITION OF DIRECT COSTS TO 
REFLECT CONGRESSIONAL BUDGET OFFICE 
PRACTICE. 
Section 421(3) of the Congressional Budget Act of 
1974 (2 U.S.C. 658(3)(A)(i)) is amended— 
(1) in subparagraph (A)(i), by inserting ‘‘incur 
or’’ before ‘‘be required’’; and 
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(2) in subparagraph (B), by inserting after ‘‘to 
spend’’ the following: ‘‘or could forgo in profits, in-
cluding costs passed on to consumers or other enti-
ties taking into account, to the extent practicable, 
behavioral changes,’’. 
SEC. 5. EXPANDING THE SCOPE OF REPORTING REQUIRE-
MENTS TO INCLUDE REGULATIONS IMPOSED 
BY INDEPENDENT REGULATORY AGENCIES. 
Paragraph (1) of section 421 of the Congressional 
Budget Act of 1974 (2 U.S.C. 658) is amended by striking 
‘‘, but does not include independent regulatory agencies’’ 
and inserting ‘‘, except it does not include the Board of 
Governors of the Federal Reserve System or the Federal 
Open Market Committee’’. 
SEC. 6. AMENDMENTS TO REPLACE OFFICE OF MANAGE-
MENT AND BUDGET WITH OFFICE OF INFOR-
MATION AND REGULATORY AFFAIRS. 
The Unfunded Mandates Reform Act of 1995 (Public 
Law 104–4; 2 U.S.C. 1511 et seq.) is amended— 
(1) in section 103(c) (2 U.S.C. 1511(c))— 
(A) in the subsection heading, by striking 
‘‘OFFICE OF MANAGEMENT AND BUDGET’’ and 
inserting ‘‘OFFICE OF INFORMATION AND REG-
ULATORY AFFAIRS’’; and 
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(B) by striking ‘‘Director of the Office of 
Management and Budget’’ and inserting ‘‘Ad-
ministrator of the Office of Information and 
Regulatory Affairs’’; 
(2) in section 205(c) (2 U.S.C. 1535(c))— 
(A) in the subsection heading, by striking 
‘‘OMB’’; and 
(B) by striking ‘‘Director of the Office of 
Management and Budget’’ and inserting ‘‘Ad-
ministrator of the Office of Information and 
Regulatory Affairs’’; and 
(3) in section 206 (2 U.S.C. 1536), by striking 
‘‘Director of the Office of Management and Budget’’ 
and inserting ‘‘Administrator of the Office of Infor-
mation and Regulatory Affairs’’. 
SEC. 7. APPLYING SUBSTANTIVE POINT OF ORDER TO PRI-
VATE SECTOR MANDATES. 
Section 425(a)(2) of the Congressional Budget Act 
of 1974 (2 U.S.C. 658d(a)(2)) is amended— 
(1) by striking ‘‘Federal intergovernmental 
mandates’’ and inserting ‘‘Federal mandates’’; and 
(2) by inserting ‘‘or 424(b)(1)’’ after ‘‘section 
424(a)(1)’’. 
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SEC. 8. REGULATORY PROCESS AND PRINCIPLES. 
Section 201 of the Unfunded Mandates Reform Act 
of 1995 (2 U.S.C. 1531) is amended to read as follows: 
‘‘SEC. 201. REGULATORY PROCESS AND PRINCIPLES. 
‘‘(a) IN GENERAL.—Each agency shall, unless other-
wise expressly prohibited by law, assess the effects of Fed-
eral regulatory actions on State, local, and tribal govern-
ments and the private sector (other than to the extent that 
such regulatory actions incorporate requirements specifi-
cally set forth in law) in accordance with the following 
principles: 
‘‘(1) Each agency shall identify the problem 
that it intends to address (including, if applicable, 
the failures of private markets or public institutions 
that warrant new agency action) as well as assess 
the significance of that problem. 
‘‘(2) Each agency shall examine whether exist-
ing regulations (or other law) have created, or con-
tributed to, the problem that a new regulation is in-
tended to correct and whether those regulations (or 
other law) should be modified to achieve the in-
tended goal of regulation more effectively. 
‘‘(3) Each agency shall identify and assess 
available alternatives to direct regulation, including 
providing economic incentives to encourage the de-
sired behavior, such as user fees or marketable per-
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mits, or providing information upon which choices 
can be made by the public. 
‘‘(4) If an agency determines that a regulation 
is the best available method of achieving the regu-
latory objective, it shall design its regulations in the 
most cost-effective manner to achieve the regulatory 
objective. In doing so, each agency shall consider in-
centives for innovation, consistency, predictability, 
the costs of enforcement and compliance (to the gov-
ernment, regulated entities, and the public), flexi-
bility, distributive impacts, and equity. 
‘‘(5) Each agency shall assess both the costs 
and the benefits of the intended regulation and, rec-
ognizing that some costs and benefits are difficult to 
quantify, propose or adopt a regulation, unless ex-
pressly prohibited by law, only upon a reasoned de-
termination that the benefits of the intended regula-
tion justify its costs. 
‘‘(6) Each agency shall base its decisions on the 
best reasonably obtainable scientific, technical, eco-
nomic, and other information concerning the need 
for, and consequences of, the intended regulation. 
‘‘(7) Each agency shall identify and assess al-
ternative forms of regulation and shall, to the extent 
feasible, specify performance objectives, rather than 
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ingful guidance and oversight so that each agency’s regu-
lations for which a written statement is required under 
section 202 are consistent with the principles and require-
ments of this title, as well as other applicable laws, and 
do not conflict with the policies or actions of another agen-
cy. If the Administrator determines that an agency’s regu-
lations for which a written statement is required under 
section 202 do not comply with such principles and re-
quirements, are not consistent with other applicable laws, 
or conflict with the policies or actions of another agency, 
the Administrator shall identify areas of non-compliance, 
notify the agency, and request that the agency comply be-
fore the agency finalizes the regulation concerned. 
‘‘(b) ANNUAL STATEMENTS TO CONGRESS ON AGEN-
CY COMPLIANCE.—The Director of the Office of Informa-
tion and Regulatory Affairs annually shall submit to Con-
gress, including the Committee on Homeland Security and 
Governmental Affairs of the Senate and the Committee 
on Oversight and Government Reform of the House of 
Representatives, a written report detailing compliance by 
each agency with the requirements of this title that relate 
to regulations for which a written statement is required 
by section 202, including activities undertaken at the re-
quest of the Director to improve compliance, during the 
preceding reporting period. The report shall also contain 
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