HR580-119

What This Bill Does

This bill substantially expands the Unfunded Mandates Reform Act process for major federal rules. It defines a major rule using OIRA determinations tied to a $100 million annual economic effect, major cost or price increases, or significant adverse effects on competition, employment, investment, productivity, innovation, public health and safety, or U.S. enterprise competitiveness. Agencies issuing major rules must prepare initial and final regulatory impact analyses, publish them in the Federal Register, quantify benefits and costs where feasible, examine regulatory alternatives, assess effects on state, local, and Tribal governments, estimate disproportionate effects on regions and private-sector segments, and summarize consultation comments.

The bill expands consultation beyond intergovernmental mandates to include private-sector impacted parties, including small businesses. It requires agencies to select the alternative that maximizes net benefits unless OIRA approves another alternative for specified reasons. OIRA must provide guidance and oversight, identify noncompliance, request agency compliance before final rules, and report annually to Congress. Agencies initiating major-rule rulemakings must create an electronic docket and publish a Federal Register initiation notice at least 90 days before the proposed rule. Independent regulatory agencies are brought under the framework, but Federal Reserve and Federal Open Market Committee monetary-policy rules are exempt. The bill also adds judicial review and expands congressional points of order to private-sector mandates.

Who Benefits and How

Small business owners benefit because agencies must consult private-sector impacted parties, consider flexible alternatives, and address cumulative regulatory burdens. State governments, local governments, and Tribal governments benefit from earlier consultation and clearer summaries of their comments and concerns. Regulated businesses benefit from regulatory impact analyses, initiation notices, and judicial review when agencies fail to follow UMRA analysis requirements. Administrative-law attorneys benefit from a new review pathway for major-rule compliance claims. OIRA reviewers benefit from explicit oversight authority over agency compliance and interagency conflicts. House and Senate Members concerned about private-sector mandates benefit from broader point-of-order coverage.

Who Bears the Burden and How

Agency rulemaking offices must prepare initial and final analyses, run earlier dockets, publish initiation notices, consult more parties, quantify effects where feasible, and explain selected alternatives. Agency economists must evaluate benefits, costs, job effects, regulatory alternatives, and disproportionate impacts. OIRA staff must review compliance, notify agencies of noncompliance, request corrections, and file annual reports. Independent regulatory agency staff must comply with UMRA processes for covered rules except monetary-policy rules. Federal courts must hear claims that major rules failed to comply with specified UMRA provisions. Federal Reserve regulatory staff must separate exempt monetary-policy work from other covered agency rules.

Key Provisions

• Defines major rule using OIRA determinations and $100 million or significant-effect thresholds.
• Requires initial and final regulatory impact analyses for proposed and final major rules.
• Expands agency consultation to private-sector impacted parties, including small businesses.
• Requires agencies to select the alternative that maximizes net benefits unless OIRA approves an exception.
• Gives OIRA compliance oversight, agency notification duties, and annual reporting to Congress.
• Requires electronic dockets and Federal Register initiation notices at least 90 days before proposed major rules.
• Applies UMRA to independent regulatory agencies while exempting Federal Reserve monetary-policy rules.
• Provides judicial review and expands congressional points of order to private-sector mandates.