Unfunded Mandates Information and Transparency Act of 2013

Floor Speech

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Mr. LANKFORD. Mr. Chairman, I yield myself as much time as I may consume.

Last Congress, the Oversight and Government Reform Subcommittee that I chaired began studying the effectiveness of the Unfunded Mandates Reform Act, also known as UMRA, which was enacted in 1995.

We held three legislative hearings, and we inquired with the Congressional Budget Office and the Office of Information and Regulatory Affairs about various UMRA provisions and the possible improvements to the law.

During our hearings, representatives from State and local governments, and the private sector, they all came to testify about many of the burdensome mandates that are actually not characterized and not protected under the original Unfunded Mandates Reform Act. The analyses often failed to capture the heavy burdens of those regulatory mandates.

UMRA's limited coverage is a concern because, as the chief economist of the Small Business and Entrepreneurship Council testified: ``Unfunded mandates and regulations continually stifle private sector growth and economic expansion.''

To help raise awareness about unfunded mandates and ensure more of these mandates are captured by the Unfunded Mandates Reform Act, H.R. 899, the Unfunded Mandates Information and Transparency Act, was introduced by Representative Virginia Foxx. It is bipartisan legislation that will close existing loopholes in the law and bring more transparency and accountability to the regulatory process.

The legislation has the support of the National Federation of Independent Businesses, the Small Business and Entrepreneurship Council, the U.S. Chamber of Commerce, and the National Conference of State Legislatures.

The American Action Forum, which is headed by former CBO Director Doug Holtz-Eakin, also supports the concepts of this bill.

H.R. 899 requires that independent regulatory agencies comply with the Unfunded Mandates Reform Act. Independent regulatory agencies are currently excluded from review, but the regulations they promulgate can impose significant costs and burdensome requirements.

Currently, regulations issued by agencies such as the Securities and Exchange Commission, the National Labor Relations Board, they are excluded from cost-benefit analyses otherwise required of other agencies.

The Congressional Research Service found that between 2010 and 2012, nine independent agencies issued 57 major rules. Those are rules with a cost to the economy of over $100 million. But none of those agencies monetized both costs and benefits in estimating the impacts of the rules.
H.R. 899 codifies the principles of regulation in Executive Order 12866, issued by President Clinton and reaffirmed in Executive Order 13563, issued by President Obama. It also codifies Executive Order 12866's requirement that agencies conduct a cost-benefit analysis.

H.R. 899 requires agencies to consult with the private sector prior to proposing a major rule. Currently, this requirement only applies to State, local, and tribal governments.

In light of President Obama's emphasis on early

stakeholder input on the development of Federal regulations, there is no reason to exclude private sector stakeholders from early consultation in this requirement.

H.R. 899 allows the chairman or ranking member of any congressional committee to request that an agency conduct a retrospective analysis of an existing Federal regulatory mandate.

Again, President Obama even has acknowledged the need for retrospective review, stating that each agency ``should periodically review its existing significant regulations to determine whether any such regulations should be modified, streamlined, expanded, or repealed to make the agency's regulatory program more effective or less burdensome in achieving the regulatory objectives.'' This change would ensure existing regulations are actually reviewed.

H.R. 899 extends judicial review to ensure that agencies carefully consider the least costly or least burdensome regulatory alternatives.

According to the Small Business and Entrepreneurship Council, the current judicial review provision included in the original UMRA ``lacks teeth'' and ``offers no real incentives for agencies to deal legitimately with the Unfunded Mandates Reform Act requirements.''

H.R. 899 ensures that Federal agencies and the Congressional Budget Office estimate the entire cost of a Federal mandate, such as forgone profits, costs passed on to consumers, and behavioral changes as a result of a Federal mandate.

The administration said it is ``strongly supportive'' of the first generation of the Unfunded Mandates Reform Act. I am glad that we are here today to make the Unfunded Mandates Reform Act even stronger.

I have stated before, and I will state again, making these reforms is not an attack on the current administration. Many of the issues we are here to deal with today did not originate in this administration, and the solutions we propose will extend well beyond this administration.

It is the role and responsibility of Congress to ensure regulations are consistent with legislative intent and they are written to cause the least amount of burden and the greatest possible benefit.

I encourage all Members to support this bill.

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