[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 580 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 580
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
January 21, 2025
Ms. Foxx (for herself, Mr. Cuellar, Mr. Golden of Maine, Mrs. Hinson,
and Mr. Sessions) introduced the following bill; which was referred to
the Committee on Oversight and Government Reform, 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
committee concerned
_______________________________________________________________________
A BILL
To amend the Unfunded Mandates Reform Act of 1995 to provide for
regulatory impact analyses for certain rules, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Unfunded Mandates Accountability and
Transparency Act of 2025''.
SEC. 2. REGULATORY IMPACT ANALYSES FOR CERTAIN RULES.
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) is
amended--
(1) by striking ``tribal'' each place that term appears and
inserting ``Tribal'';
(2) in section 3 (2 U.S.C. 1502)--
(A) in paragraph (1), by striking ``and'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``and''; and
(C) by adding at the end the following:
``(3) the term `major rule' means a rule, as defined in
section 551 of title 5, United States Code, that the
Administrator of the Office of Information and Regulatory
Affairs determines is likely to cause--
``(A) an annual effect on the economy of
$100,000,000 or more, adjusted once every 5 years to
reflect increases in the Consumer Price Index for All
Urban Consumers, as published by the Bureau of Labor
Statistics of the Department of Labor;
``(B) a major increase in costs or prices for
consumers, individual industries, Federal, State,
local, or Tribal government agencies, or geographic
regions; or
``(C) significant adverse effects on competition,
employment, investment, productivity, innovation,
public health and safety, or the ability of United
States-based enterprises to compete with foreign-based
enterprises in domestic and export markets.''; and
(3) in section 202 (2 U.S.C. 1532)--
(A) by striking the section heading and inserting
the following:
``SEC. 202. REGULATORY IMPACT ANALYSES FOR CERTAIN RULES.'';
(B) by redesignating subsections (b) and (c) as
subsections (d) and (e), respectively;
(C) by striking subsection (a) and inserting the
following:
``(a) Definition of Cost.--In this section, the term `cost' means
the cost of compliance and any reasonably foreseeable indirect costs,
including revenues lost, as a result of a major rule of an agency that
is subject to this section.
``(b) Regulatory Impact Analyses.--
``(1) Requirement.--Before promulgating any proposed or
final major rule, the agency promulgating the major rule shall
prepare and publish in the Federal Register an initial and
final regulatory impact analysis with respect to the major
rule.
``(2) Initial regulatory impact analysis.--An initial
regulatory impact analysis required under paragraph (1) shall--
``(A) accompany the notice of proposed rulemaking
with respect to the major rule that is the subject of
the analysis; and
``(B) be open to public comment.
``(3) Final regulatory impact analysis.--A final regulatory
impact analysis required under paragraph (1) shall accompany
the final major rule that is the subject of the analysis.
``(c) Content.--Each initial and final regulatory impact analysis
prepared and published under subsection (b) shall include, with respect
to the major rule that is the subject of the analysis--
``(1)(A) an analysis of the anticipated benefits and costs
of the major rule, which shall be quantified to the extent
feasible;
``(B) an analysis of the benefits and costs of a reasonable
number of regulatory alternatives within the range of the
discretion of the agency under the statute authorizing the
major rule, including alternatives that--
``(i) require no action by the Federal Government;
and
``(ii)(I) use incentives and market-based means to
encourage the desired behavior;
``(II) provide information based upon which the
public can make choices; or
``(III) employ other flexible regulatory options
that permit the greatest flexibility in achieving the
objectives of the statute authorizing the major rule;
and
``(C) an explanation of how the major rule complies with
the requirements of section 205;
``(2) an assessment of the extent to which--
``(A) the costs to State, local, and Tribal
governments may be paid with Federal financial
assistance (or otherwise paid for by the Federal
Government); and
``(B) Federal resources are available to carry out
the major rule;
``(3) estimates of--
``(A) any disproportionate budgetary effects of the
major rule upon any particular--
``(i) regions of the United States;
``(ii) State, local, or Tribal governments;
``(iii) types of communities, including
urban or rural communities; or
``(iv) segments of the private sector; and
``(B) the effect of the major rule on job creation
or job loss, which shall be quantified to the extent
feasible; and
``(4)(A) a description of the extent of the prior
consultation of the agency under section 204 with elected
representatives of each affected State, local, or Tribal
government;
``(B) a summary of the comments and concerns that were
presented to the agency orally or in writing by State, local,
or Tribal governments; and
``(C) a summary of the evaluation by the agency of the
comments and concerns described in subparagraph (B).'';
(D) in subsection (d), as so redesignated, by
striking ``a statement under subsection (a) is
required, the agency shall include in the promulgation
a summary of the information contained in the
statement'' and inserting ``an analysis under
subsection (b) is required, the agency promulgating the
major rule shall include in the promulgation a summary
of the information contained in the analysis''; and
(E) in subsection (e), as so redesignated, by
striking ``any statement required under subsection (a)
in conjunction with or as a part of any other statement
or analysis, provided that the statement or analysis
satisfies the provisions of subsection (a)'' and
inserting ``any analysis required under subsection (b)
in conjunction with, or as a part of, any other
statement or analysis if the other statement or
analysis satisfies the requirements of subsections (b)
and (c)''.
SEC. 3. 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 businesses),''
after ``on their behalf)''; and
(B) by striking ``Federal intergovernmental
mandates'' and inserting ``Federal mandates''; and
(3) by amending subsection (c) to read as follows:
``(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 rulemaking, 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 significance 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 within the
private sector (including small businesses), on costs,
benefits, and risks; and
``(B) solicit ideas about alternative methods 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.
``(6) Agencies may accept electronic submissions of
comments by relevant parties but may not use those comments as
the sole method of satisfying the guidelines in this
subsection.''.
SEC. 4. MAXIMIZE NET BENEFITS OR PROVIDE EXPLANATION.
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531
et seq.) is amended by striking section 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 proposed 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 section 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 provision that authorizes the
rulemaking.
``(c) Exceptions.--An agency may adopt an alternative other than as
required under subsection (b) only if--
``(1) the Administrator of the Office of Information and
Regulatory Affairs approves the adoption by the agency of the
alternative; and
``(2) the alternative is adopted to--
``(A) account for costs or benefits that cannot be
quantified, including costs or benefits related to
constitutional or civil rights, provided that the
agency identifies all such costs and benefits and
explains why those costs and benefits justify the
adoption of the alternative; or
``(B) achieve additional benefits or cost
reductions, provided that the agency--
``(i) identifies--
``(I) all such additional benefits
and the associated costs of those
benefits; and
``(II) all such cost reductions and
the associated benefits of those cost
reductions; and
``(ii) explains why--
``(I) the additional benefits
justify the additional costs; or
``(II) the additional cost
reductions justify any benefits
foregone.''.
SEC. 5. NEW AUTHORITIES AND RESPONSIBILITIES FOR OFFICE OF INFORMATION
AND REGULATORY AFFAIRS.
Section 208 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1538) is amended to read as follows:
``SEC. 208. OFFICE OF INFORMATION AND REGULATORY AFFAIRS
RESPONSIBILITIES.
``(a) In General.--The Administrator of the Office of Information
and Regulatory Affairs (in this section referred to as the
`Administrator') shall provide meaningful guidance and oversight so
that the major rules of an agency for which a regulatory impact
analysis is required under section 202--
``(1) are consistent with the principles and requirements
of this title, as well as other applicable laws; and
``(2) and do not conflict with the policies or actions of
another agency.
``(b) Notification.--If the Administrator determines that the major
rules of an agency for which a regulatory impact analysis is required
under section 202 do not comply with the principles and requirements of
this title, are not consistent with other applicable laws, or conflict
with the policies or actions of another agency, the Administrator
shall--
``(1) identify areas of noncompliance;
``(2) notify the agency; and
``(3) request that the agency comply before the agency
finalizes the major rule concerned.
``(c) Annual Statements to Congress on Agency Compliance.--The
Administrator shall submit to Congress, 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, an annual written report that, for the 1-year period
preceding the report--
``(1) details compliance by each agency with the
requirements of this title that relate to major rules for which
a regulatory impact analysis is required by section 202,
including activities undertaken at the request of the
Administrator to improve compliance; and
``(2) contains an appendix detailing compliance by each
agency with section 204.''.
SEC. 6. INITIATION OF RULEMAKING.
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) is
amended--
(1) by redesignating section 209 (2 U.S.C. 1531 note) as
section 210; and
(2) by inserting after section 208 (2 U.S.C. 1548) the
following:
``SEC. 209. INITIATION OF RULEMAKING FOR MAJOR RULES.
``When an agency determines to initiate a rulemaking that may
result in a major rule, the agency shall--
``(1) establish an electronic docket for that rulemaking,
which may have a physical counterpart; and
``(2) publish a notice of initiation of rulemaking in the
Federal Register, which shall--
``(A) briefly describe the subject and objectives
of, and the problem to be solved by, the major rule;
``(B) refer to the legal authority under which the
major rule would be proposed, including the specific
statutory provision that authorizes the rulemaking;
``(C) invite interested persons to propose
alternatives and other ideas regarding how best to
accomplish the objectives of the agency in the most
effective manner;
``(D) indicate how interested persons may submit
written material for the docket; and
``(E) appear in the Federal Register not later than
90 days before the date on which the agency publishes a
notice of proposed rulemaking for the major rule.''.
SEC. 7. INCLUSION OF APPLICATION TO INDEPENDENT REGULATORY AGENCIES.
(a) In General.--Section 421(1) of the Congressional Budget Act of
1974 (2 U.S.C. 658(1)) is amended by striking ``, but does not include
independent regulatory agencies''.
(b) Exemption for Monetary Policy.--The Unfunded Mandates Reform
Act of 1995 (2 U.S.C. 1501 et seq.) is amended by inserting after
section 5 the following:
``SEC. 6. EXEMPTION FOR MONETARY POLICY.
``Nothing in title II, III, or IV shall apply to rules that concern
monetary policy proposed or implemented by the Board of Governors of
the Federal Reserve System or the Federal Open Market Committee.''.
SEC. 8. JUDICIAL REVIEW.
Title IV of the Unfunded Mandates Reform Act of 1995 is amended by
striking section 401 (2 U.S.C. 1571) and inserting the following:
``SEC. 401. JUDICIAL REVIEW.
``(a) In General.--A person that is aggrieved by final agency
action in adopting a major rule that is subject to section 202 is
entitled to judicial review of whether the agency complied with section
202(b), 202(c)(1), or 205 with respect to the rule.
``(b) Scope of Review.--Chapter 7 of title 5, United States Code,
shall govern the scope of judicial review under subsection (a).
``(c) Jurisdiction.--Each court that has jurisdiction to review a
rule for compliance with section 553 of title 5, United States Code, or
under any other provision of law, shall have jurisdiction to review a
claim brought under subsection (a).
``(d) Relief Available.--In granting relief in an action under this
section, a court shall order the agency that promulgated the major rule
that is under review to take remedial action consistent with chapter 7
of title 5, United States Code.''.
SEC. 9. APPLYING SUBSTANTIVE POINT OF ORDER TO PRIVATE 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 striking ``section 424(a)(1)'' and inserting
``subsection (a)(1) or (b)(1) of section 424''.
SEC. 10. EFFECTIVE DATE.
Sections 3, 4, 5, and 7 of this Act and the amendments made by
those sections shall take effect on the date that is 120