To amend the Unfunded Mandates Reform Act of 1995 to ensure that actions taken by regulatory agencies are subject to that Act, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Unfunded Mandates Information and 
Transparency Act of 2008''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) before acting on proposed Federal mandates, Congress 
        should carefully consider their effects on consumers, workers, 
        and small businesses;
            (2) Congress has often acted without adequate information 
        concerning the costs of Federal mandates, instead focusing only 
        on their benefits;
            (3) the implementation of the Unfunded Mandates Reform Act 
        of 1995 has resulted in increased awareness of 
        intergovernmental mandates without impacting existing 
        environmental, public health, or safety laws or regulations;
            (4) the implementation of this Act will enhance public 
        awareness of prospective Federal mandates on the private 
        sector, State, local, and tribal governments without adversely 
        affecting the environment, public health, or safety laws or 
        regulations;
            (5) the costs of private sector mandates are often borne in 
        part by consumers, in the form of higher prices and reduced 
        availability of goods and services;
            (6) the costs of private sector mandates are often borne in 
        part by workers, in the form of lower wages, reduced benefits, 
        and fewer job opportunities; and
            (7) the costs of private sector mandates are often borne in 
        part by small businesses, in the form of hiring disincentives 
        and stunted economic growth.

SEC. 3. PURPOSE.

    The purpose of this Act is--
            (1) to improve the quality of Congress' deliberation with 
        respect to proposed mandates on the private sector, 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 
        distinguish between Federal mandates that harm consumers, 
        workers, small businesses, State, local, and tribal governments 
        and mandates that help those groups.

SEC. 4. APPLICATION OF REPORTING REQUIREMENTS TO POLICIES INVOLVING 
              CHANGES IN CONDITIONS OF GRANT AID.

    Section 423(c) of the Congressional Budget Act of 1974 is amended 
by striking ``and'' at the end of paragraph (2), by striking the period 
and inserting ``; and'' 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 carrying out changes to a 
        condition of Federal assistance being imposed on participating 
        State, local, or tribal governments, and how these costs 
        compare with the funds being authorized or, for 
        reauthorizations, of the additional costs of changes in those 
        conditions 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 necessary, the assessment shall 
        contain an estimate of that amount.''.

SEC. 5. EXPANDING THE SCOPE OF LEGISLATIVE REPORTING REQUIREMENTS TO 
              INCLUDE INDIRECT COSTS.

    (a) Indirect Costs.--Section 423(c) of the Congressional 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 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, incurred as a result of 
        implementing the Federal mandate in the bill or joint 
        resolution.''.
    (b) Definition.--Section 421 of the Congressional Budget Act of 
1974 is amended by redesignating paragraphs (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 secondary monetary 
        costs resulting from the Federal mandate.''.

SEC. 6. EXPANDING THE SCOPE OF REGULATORY REPORTING REQUIREMENTS TO 
              INCLUDE INDIRECT COSTS.

    Section 202(a) of the Unfunded Mandates Reform Act of 1995 is 
amended by striking ``the expenditure by'' and inserting ``direct or 
reasonably foreseeable indirect costs to''.

SEC. 7. APPLICATION OF REPORTING REQUIREMENTS TO INCLUDE REGULATIONS 
              IMPOSED BY INDEPENDENT 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 ``otherwise''.

SEC. 9. CLOSE LEGAL LOOPHOLE ALLOWING FOR DISREGARDING 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 expressly prohibited by law, 
        before promulgating any general notice of proposed rulemaking 
        or final rule that includes a Federal mandate that may result 
        in direct or reasonably foreseeable indirect costs to State, 
        local, and tribal governments, in the aggregate, 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 promulgating 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 
        reasonably foreseeable indirect costs by State, local, and 
        tribal governments, in the aggregate, or by the private sector, 
        of such amount or more (adjusted annually for inflation) in any 
        one year; the agency shall prepare a written statement 
        containing--''.

Summary: Unfunded Mandates Information and Transparency Act of 2008 - Amends the Congressional Budget Act of 1974 to require reports on federal mandates to include: (1) an assessment of the prospective costs of carrying out changes to a condition of federal assistance being imposed on participating state, local, or tribal governments and how these costs compare with the funds being authorized; (2) for reauthorizations, an assessment of the additional costs of changes in those conditions compared with the changes in funding being authorized; (3) in cases where a bill or joint resolution provides necessary sums, an estimate of that amount; and (4) an identification and description of any reasonably foreseeable indirect costs to such governments or the private sector from implementing the federal mandate.

Repeals a provision excluding independent regulatory agencies from reporting requirements.

 Makes requirements under this Act applicable to general notice of any final rule that includes such a mandate.