Unfunded Mandates Accountability and Transparency Act of 2023

IB Union Calendar No. 741 118TH CONGRESS 2D SESSION H. R. 3230 [Report No. 118–906, Part I] To amend the Unfunded Mandates Reform Act of 1995 to provide for regulatory impact analyses for certain rules, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 11, 2023 Ms. FOXX (for herself and Mr. CUELLAR) introduced the following bill; which was referred to the Committee on Oversight and Accountability, and in addition to the Committees on Rules, the Budget, 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 com- mittee concerned DECEMBER 18, 2024 Additional sponsors: Mrs. PELTOLA, Mr. GOLDEN of Maine, Mr. MOLINARO, Mr. SESSIONS, and Mrs. HINSON DECEMBER 18, 2024 Reported from the Committee on Oversight and Accountability with an amendment [Strike out all after the enacting clause and insert the part printed in italic] DECEMBER 18, 2024 Committees on Rules, the Budget, and the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and or- dered to be printed [For text of introduced bill, see copy of bill as introduced on May 11, 2023] VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 2 •HR 3230 RH A BILL To amend the Unfunded Mandates Reform Act of 1995 to provide for regulatory impact analyses for certain rules, and for other purposes. VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 3 •HR 3230 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Unfunded Mandates Ac- 4 countability and Transparency Act of 2023’’. 5 SEC. 2. REGULATORY IMPACT ANALYSES FOR CERTAIN 6 RULES. 7 The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 8 1501 et seq.) is amended— 9 (1) by striking ‘‘tribal’’ each place that term ap- 10 pears and inserting ‘‘Tribal’’; 11 (2) in section 3 (2 U.S.C. 1502)— 12 (A) in paragraph (1), by striking ‘‘and’’ at 13 the end; 14 (B) in paragraph (2), by striking the period 15 at the end and inserting ‘‘and’’; and 16 (C) by adding at the end the following: 17 ‘‘(3) the term ‘major rule’ means a rule, as de- 18 fined in section 551 of title 5, United States Code, 19 that the Administrator of the Office of Information 20 and Regulatory Affairs determines is likely to 21 cause— 22 ‘‘(A) an annual effect on the economy of 23 $100,000,000 or more, adjusted once every 5 24 years to reflect increases in the Consumer Price 25 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 4 •HR 3230 RH Index for All Urban Consumers, as published by 1 the Bureau of Labor Statistics of the Department 2 of Labor; 3 ‘‘(B) a major increase in costs or prices for 4 consumers, individual industries, Federal, State, 5 local, or Tribal government agencies, or geo- 6 graphic regions; or 7 ‘‘(C) significant adverse effects on competi- 8 tion, employment, investment, productivity, in- 9 novation, public health and safety, or the ability 10 of United States-based enterprises to compete 11 with foreign-based enterprises in domestic and 12 export markets.’’; and 13 (3) in section 202 (2 U.S.C. 1532)— 14 (A) by striking the section heading and in- 15 serting the following: 16 ‘‘SEC. 202. REGULATORY IMPACT ANALYSES FOR CERTAIN 17 RULES.’’; 18 (B) by redesignating subsections (b) and (c) 19 as subsections (d) and (e), respectively; 20 (C) by striking subsection (a) and inserting 21 the following: 22 ‘‘(a) DEFINITION OF COST.—In this section, the term 23 ‘cost’ means the cost of compliance and any reasonably fore- 24 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 5 •HR 3230 RH seeable indirect costs, including revenues lost, as a result 1 of a major rule of an agency that is subject to this section. 2 ‘‘(b) REGULATORY IMPACT ANALYSES.— 3 ‘‘(1) REQUIREMENT.—Before promulgating any 4 proposed or final major rule, the agency promul- 5 gating the major rule shall prepare and publish in 6 the Federal Register an initial and final regulatory 7 impact analysis with respect to the major rule. 8 ‘‘(2) INITIAL REGULATORY IMPACT ANALYSIS.— 9 An initial regulatory impact analysis required under 10 paragraph (1) shall— 11 ‘‘(A) accompany the notice of proposed rule- 12 making with respect to the major rule that is the 13 subject of the analysis; and 14 ‘‘(B) be open to public comment. 15 ‘‘(3) FINAL REGULATORY IMPACT ANALYSIS.—A 16 final regulatory impact analysis required under 17 paragraph (1) shall accompany the final major rule 18 that is the subject of the analysis. 19 ‘‘(c) CONTENT.—Each initial and final regulatory im- 20 pact analysis prepared and published under subsection (b) 21 shall include, with respect to the major rule that is the sub- 22 ject of the analysis— 23 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 6 •HR 3230 RH ‘‘(1)(A) an analysis of the anticipated benefits 1 and costs of the major rule, which shall be quantified 2 to the extent feasible; 3 ‘‘(B) an analysis of the benefits and costs of a 4 reasonable number of regulatory alternatives within 5 the range of the discretion of the agency under the 6 statute authorizing the major rule, including alter- 7 natives that— 8 ‘‘(i) require no action by the Federal Gov- 9 ernment; and 10 ‘‘(ii)(I) use incentives and market-based 11 means to encourage the desired behavior; 12 ‘‘(II) provide information based upon which 13 the public can make choices; or 14 ‘‘(III) employ other flexible regulatory op- 15 tions that permit the greatest flexibility in 16 achieving the objectives of the statute authorizing 17 the major rule; and 18 ‘‘(C) an explanation of how the major rule com- 19 plies with the requirements of section 205; 20 ‘‘(2) an assessment of the extent to which— 21 ‘‘(A) the costs to State, local, and Tribal 22 governments may be paid with Federal financial 23 assistance (or otherwise paid for by the Federal 24 Government); and 25 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 7 •HR 3230 RH ‘‘(B) Federal resources are available to 1 carry out the major rule; 2 ‘‘(3) estimates of— 3 ‘‘(A) any disproportionate budgetary effects 4 of the major rule upon any particular— 5 ‘‘(i) regions of the United States; 6 ‘‘(ii) State, local, or Tribal govern- 7 ments; 8 ‘‘(iii) types of communities, including 9 urban or rural communities; or 10 ‘‘(iv) segments of the private sector; 11 and 12 ‘‘(B) the effect of the major rule on job cre- 13 ation or job loss, which shall be quantified to the 14 extent feasible; and 15 ‘‘(4)(A) a description of the extent of the prior 16 consultation of the agency under section 204 with 17 elected representatives of each affected State, local, or 18 Tribal government; 19 ‘‘(B) a summary of the comments and concerns 20 that were presented to the agency orally or in writing 21 by State, local, or Tribal governments; and 22 ‘‘(C) a summary of the evaluation by the agency 23 of the comments and concerns described in subpara- 24 graph (B).’’; 25 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 8 •HR 3230 RH (D) in subsection (d), as so redesignated, by 1 striking ‘‘a statement under subsection (a) is re- 2 quired, the agency shall include in the promulga- 3 tion a summary of the information contained in 4 the statement’’ and inserting ‘‘an analysis under 5 subsection (b) is required, the agency promul- 6 gating the major rule shall include in the pro- 7 mulgation a summary of the information con- 8 tained in the analysis’’; and 9 (E) in subsection (e), as so redesignated, by 10 striking ‘‘any statement required under sub- 11 section (a) in conjunction with or as a part of 12 any other statement or analysis, provided that 13 the statement or analysis satisfies the provisions 14 of subsection (a)’’ and inserting ‘‘any analysis 15 required under subsection (b) in conjunction 16 with, or as a part of, any other statement or 17 analysis if the other statement or analysis satis- 18 fies the requirements of subsections (b) and (c)’’. 19 SEC. 3. ENHANCED STAKEHOLDER CONSULTATION. 20 Section 204 of the Unfunded Mandates Reform Act of 21 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)— 25 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 9 •HR 3230 RH (A) by inserting ‘‘, and impacted parties 1 within the private sector (including small busi- 2 nesses),’’ after ‘‘on their behalf)’’; and 3 (B) by striking ‘‘Federal intergovernmental 4 mandates’’ and inserting ‘‘Federal mandates’’; 5 and 6 (3) by amending subsection (c) to read as fol- 7 lows: 8 ‘‘(c) GUIDELINES.—For appropriate implementation 9 of subsections (a) and (b) consistent with applicable laws 10 and regulations, the following guidelines shall be followed: 11 ‘‘(1) Consultations shall take place as early as 12 possible, before issuance of a notice of proposed rule- 13 making, continue through the final rule stage, and be 14 integrated explicitly into the rulemaking process. 15 ‘‘(2) Agencies shall consult with a wide variety 16 of State, local, and Tribal officials and impacted par- 17 ties within the private sector (including small busi- 18 nesses). Geographic, political, and other factors that 19 may differentiate varying points of view should be 20 considered. 21 ‘‘(3) Agencies should estimate benefits and costs 22 to assist with these consultations. The scope of the 23 consultation should reflect the cost and significance of 24 the Federal mandate being considered. 25 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 10 •HR 3230 RH ‘‘(4) Agencies shall, to the extent practicable— 1 ‘‘(A) seek out the views of State, local, and 2 Tribal governments, and impacted parties with- 3 in the private sector (including small busi- 4 nesses), on costs, benefits, and risks; and 5 ‘‘(B) solicit ideas about alternative methods 6 of compliance and potential flexibilities, and 7 input on whether the Federal regulation will 8 harmonize with and not duplicate similar laws 9 in other levels of government. 10 ‘‘(5) Consultations shall address the cumulative 11 impact of regulations on the affected entities. 12 ‘‘(6) Agencies may accept electronic submissions 13 of comments by relevant parties but may not use 14 those comments as the sole method of satisfying the 15 guidelines in this subsection.’’. 16 SEC. 4. MAXIMIZE NET BENEFITS OR PROVIDE EXPLA- 17 NATION. 18 Title II of the Unfunded Mandates Reform Act of 1995 19 (2 U.S.C. 1531 et seq.) is amended by striking section 205 20 (2 U.S.C. 1535) and inserting the following: 21 ‘‘SEC. 205. MAXIMIZE NET BENEFITS. 22 ‘‘(a) DEFINITION OF COST.—In this section, the term 23 ‘cost’ has the meaning given the term in section 202(a). 24 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 11 •HR 3230 RH ‘‘(b) REQUIREMENT.—Before promulgating any pro- 1 posed or final major rule for which a regulatory impact 2 analysis is required under section 202, an agency shall from 3 the alternatives identified and considered under section 4 202(c)(1)(B), select the alternative that maximizes net bene- 5 fits, taking into consideration only the costs and benefits 6 that arise within the scope of the statutory provision that 7 authorizes the rulemaking. 8 ‘‘(c) EXCEPTIONS.—An agency may adopt an alter- 9 native other than as required under subsection (b) only if— 10 ‘‘(1) the Administrator of the Office of Informa- 11 tion and Regulatory Affairs approves the adoption by 12 the agency of the alternative; and 13 ‘‘(2) the alternative is adopted to— 14 ‘‘(A) account for costs or benefits that can- 15 not be quantified, including costs or benefits re- 16 lated to constitutional or civil rights, provided 17 that the agency identifies all such costs and bene- 18 fits and explains why those costs and benefits 19 justify the adoption of the alternative; or 20 ‘‘(B) achieve additional benefits or cost re- 21 ductions, provided that the agency— 22 ‘‘(i) identifies— 23 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 12 •HR 3230 RH ‘‘(I) all such additional benefits 1 and the associated costs of those bene- 2 fits; and 3 ‘‘(II) all such cost reductions and 4 the associated benefits of those cost re- 5 ductions; and 6 ‘‘(ii) explains why— 7 ‘‘(I) the additional benefits justify 8 the additional costs; or 9 ‘‘(II) the additional cost reduc- 10 tions justify any benefits foregone.’’. 11 SEC. 5. NEW AUTHORITIES AND RESPONSIBILITIES FOR OF- 12 FICE OF INFORMATION AND REGULATORY AF- 13 FAIRS. 14 Section 208 of the Unfunded Mandates Reform Act of 15 1995 (2 U.S.C. 1538) is amended to read as follows: 16 ‘‘SEC. 208. OFFICE OF INFORMATION AND REGULATORY AF- 17 FAIRS RESPONSIBILITIES. 18 ‘‘(a) IN GENERAL.—The Administrator of the Office 19 of Information and Regulatory Affairs (in this section re- 20 ferred to as the ‘Administrator’) shall provide meaningful 21 guidance and oversight so that the major rules of an agency 22 for which a regulatory impact analysis is required under 23 section 202— 24 VerDate Sep 11 2014 19:21 Dec 19, 2024 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6203 E:\BILLS\H3230.RH H3230 ssavage on LAPJG3WLY3PROD with BILLS 13 •HR 3230 RH ‘‘(1) are consistent with the principles and re- 1 quirements of this title, as well as other applicable 2 laws; and 3 ‘‘(2) and do not conflict with the policies or ac- 4 tions of another agency. 5 ‘‘(b) NOTIFICATION.—If the Administrator determines 6 that the major rules of an agency for which a regulatory 7 impact analysis is required under section 202 do not com- 8 ply with the principles and requirements of this title, are 9 not consistent with other applicable laws, or conflict [Text truncated for display. Full text available on Congress.gov.]