at the end of paragraph (3), and by adding at the end 
the following new paragraph: 
‘‘(4) an assessment of the authorized level of 
funding to determine if the prospective costs of car-
rying out changes to a condition of Federal assist-
ance being imposed on participating State, local, or 
tribal governments, and how these costs compare 
with the funds being authorized or, for reauthoriza-
tions, of the additional costs of changes in those con-
ditions and how they compare with the changes in 
funding being authorized; and in cases where a bill 
or joint resolution provides such sums as are nec-
essary, the assessment shall contain an estimate of 
that amount.’’. 
SEC. 5. EXPANDING THE SCOPE OF LEGISLATIVE REPORT-
ING REQUIREMENTS TO INCLUDE INDIRECT 
COSTS. 
(a) INDIRECT COSTS.—Section 423(c) of the Con-
gressional Budget Act of 1974 (as amended by section 4) 
is further amended— 
(1) in its side heading, by inserting ‘‘and Other 
Costs’’ after ‘‘Mandates’’; and 
(2) by striking ‘‘and’’ at the end of paragraph 
(3), by striking the period and inserting ‘‘; and’’ at 
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the end of paragraph (4), and by adding at the end 
the following new paragraph: 
‘‘(5) an identification and description of any 
reasonably foreseeable indirect costs to State, local, 
or tribal governments, or by the private sector, in-
curred as a result of implementing the Federal man-
date in the bill or joint resolution.’’. 
(b) DEFINITION.—Section 421 of the Congressional 
Budget Act of 1974 is amended by redesignating para-
graphs (10) through (13) as paragraphs (11) through 
(14), respectively, and by adding after paragraph (9) the 
following new paragraph: 
‘‘(10) REASONABLY
FORESEEABLE
INDIRECT 
COSTS.—The term ‘reasonably foreseeable indirect 
costs’ means costs to the affected entities resulting 
from implementation of a Federal mandate other 
than their own direct costs to carry out any such 
mandate. Such costs include lost income and sec-
ondary monetary costs resulting from the Federal 
mandate.’’. 
SEC. 6. EXPANDING THE SCOPE OF REGULATORY REPORT-
ING REQUIREMENTS TO INCLUDE INDIRECT 
COSTS. 
Section 202(a) of the Unfunded Mandates Reform 
Act of 1995 is amended by striking ‘‘the expenditure by’’ 
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and inserting ‘‘direct or reasonably foreseeable indirect 
costs to’’. 
SEC. 7. APPLICATION OF REPORTING REQUIREMENTS TO 
INCLUDE REGULATIONS IMPOSED BY INDE-
PENDENT REGULATORY AGENCIES. 
Paragraph (1) of section 421 of the Congressional 
Budget Act of 1974 is amended by striking ‘‘, but does 
not include independent regulatory agencies’’. 
SEC. 8. CLARIFICATION TO ENSURE REGULATORY AGENCY 
REPORTING REQUIREMENTS APPLIES TO ALL 
RESPECTIVE REGULATORY ACTIONS. 
Section 201 of the Unfunded Mandates Reform Act 
of 1995 is amended by inserting ‘‘expressly’’ after ‘‘other-
wise’’. 
SEC. 9. CLOSE LEGAL LOOPHOLE ALLOWING FOR DIS-
REGARDING OF REPORTING REQUIREMENTS 
BY REGULATORY AGENCIES. 
Section 202(a) of the Unfunded Mandates Reform 
Act of 1995 is amended by— 
(1) striking ‘‘Unless’’ and all that follows 
through ‘‘private sector,’’ the first place it appears 
and inserting the following: ‘‘Unless otherwise ex-
pressly prohibited by law, before promulgating any 
general notice of proposed rulemaking or final rule 
that includes a Federal mandate that may result in 
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direct or reasonably foreseeable indirect costs to 
State, local, and tribal governments, in the aggre-
gate, or to the private sector,’’; and 
(2) striking ‘‘and before promulgating’’ and all 
that follows through ‘‘containing—’’ and inserting 
the following: ‘‘or within six months after promul-
gating any final rule that was not preceded by a 
general notice of proposed rulemaking that includes 
a Federal mandate that may result in direct or rea-
sonably foreseeable indirect costs by State, local, and 
tribal governments, in the aggregate, or by the pri-
vate sector, of such amount or more (adjusted annu-
ally for inflation) in any one year; the agency shall 
prepare a written statement containing—’’. 
Æ 
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