Unfunded Mandates Accountability and Transparency Act of 2023

Unfunded Mandates Accountability and Transparency Act

This bill revises rulemaking requirements with respect to unfunded mandates.

Specifically, the bill requires federal agencies to prepare and publish in the Federal Register an initial and final regulatory impact analysis prior to promulgating any proposed or final major rule. The analysis must include regulatory alternatives to the rule.

Major rule means a rule that the Office of Information and Regulatory Affairs determines is likely to cause

• an annual effect on the economy of $100 million or more;
• a major increase in costs or prices for consumers, individual industries, federal, state, local, or tribal government agencies, or geographic regions; or
• significant adverse effects on competition, employment, investment, productivity, innovation, public health and safety, or the ability of U.S.-based enterprises to compete with foreign-based enterprises in domestic and export markets.

Before promulgating any proposed or final major rule, an agency shall select the regulatory 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, with exceptions.

The bill prohibits Congress from considering a bill that increases private sector costs more than a certain amount unless certain conditions are met.

Bill 118 HR 3230, also known as the Unfunded Mandates Accountability and Transparency Act, aims to address the issue of unfunded mandates imposed by the federal government on state, local, and tribal governments. Unfunded mandates are requirements or regulations that the government imposes on these entities without providing the necessary funding to implement them.

The bill requires federal agencies to conduct a cost-benefit analysis of any proposed mandate that would cost state, local, or tribal governments more than $50 million. This analysis must be submitted to Congress and made publicly available before the mandate can be implemented. Additionally, the bill requires agencies to consult with affected entities during the development of the mandate to ensure that their concerns and perspectives are taken into account.

Furthermore, the bill establishes a point of order in Congress against legislation that imposes unfunded mandates exceeding the $50 million threshold. This point of order can be raised by any member of Congress during the consideration of the legislation and would require a three-fifths majority vote to waive. Overall, the Unfunded Mandates Accountability and Transparency Act seeks to promote greater accountability and transparency in the federal government's imposition of mandates on state, local, and tribal governments. By requiring cost-benefit analyses and consultation with affected entities, the bill aims to ensure that mandates are justified and that the entities responsible for implementing them are not burdened with excessive costs.