Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 899. Mr. Chairman, I yield…
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 899.
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.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I am submitting for the Record letters of exchange between the Committee on Oversight and Government Reform and the Committees on Budget and Judiciary and Rules regarding the committees' jurisdictional interest in H.R. 899.
House of Representatives,
Committee on Rules,
Washington, DC, February 11, 2013.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform,
Washington, DC.
Dear Chairman Issa: On July 24, 2013, the Committee on
Oversight and Government Reform ordered reported H.R. 899,
the Unfunded Mandates Information and Transparency Act of
2013. As you know, the Committee on Rules was granted an
additional referral upon the bill's introduction pursuant to
the Committee's jurisdiction under rule X of the Rules of the
House of Representatives over rules and joint rules of the
House.
Because of your willingness to consult with my committee
regarding this matter, I will waive consideration of the bill
by the Rules Committee. By agreeing to waive its
consideration of the bill, the Rules Committee does not waive
its jurisdiction over H.R. 899. In addition, the Committee on
Rules reserves its authority to seek conferees on any
provisions of the bill that are within its jurisdiction
during any House-Senate conference that may be convened on
this legislation. I ask your commitment to support any
request by the Committee on Rules for conferees on H.R. 899
or related legislation.
I also request that you include this letter and your
response as part of your committee's report on the bill and
in the Congressional Record during consideration of the
legislation on the House floor.
Thank you for your attention to these matters.
Sincerely,
Pete Sessions.
Mr. Chairman, I yield 6 minutes to the gentlelady from North Carolina (Ms. Foxx), who is the author of H.R. 899 and has worked on this concept for years, to try to repair the inconsistencies in the original law.
Mr. Chairman, I yield 3 minutes to the gentleman from Georgia (Mr. Woodall).
Mr. Chairman, I want to make a few brief comments. I yield myself as much time as I may consume.
Mr. Chairman, I wanted to have the opportunity to be able to just dialogue a little bit about some of the things we
just heard about, things like judicial review.
It is a belief of many people on this side of the aisle and the other side of the aisle that agencies are not infallible. They do make mistakes at times, and there are times that an agency will make an estimate on a cost, and it is, let's say, $90 million, just under the $100 million threshold. And someone wants to challenge it and says, how did you do the math on that that you ended up just under the major rule threshold?
There is a reason to be able to go back and evaluate some of these things and to have the opportunity to go through a judicial review so in a moment of judicial review there can be a conversation to say, let's check the math before these decisions are made to be able to evaluate, because there has been a large increase in major rules. And while I understand that around election time there was a slowdown of regulations that came up, if you look at the first 5 years of this administration, of their 13,000 rules that were promulgated, 330 of them are classified as major rules--330 of those, major rules--defined as having an estimated annual economic impact of $100 million or more.
It is a very serious issue to be able to put that many new rules with that large of an impact. It does have a change. And while I understand that some would say this benefits to the economy, what has happened is, year after year for the last several years, CBO comes back and looks at our long-term economic forecast and gives a slower forecast.
In 2014 again, they have come out and said that, in this current economy with what is happening, it is another slowdown and another over $1 trillion loss in our economy that CBO has estimated over the next 10 years because the economy continues to slow down. We are just asking the question, is it possible? Because so many major regulations are coming out and no one has had a check on that.
With that, Mr. Chairman, I yield 3 minutes to my colleague from North Carolina (Mr. Meadows).
We do not, sir. We are prepared to close.
Mr. Chairman, I yield myself such time as I may consume.
I encourage my colleagues on both sides of the aisle to support this bill. It is a simple, straightforward bill that asks a couple of quick questions: Do the people of America work for the Federal Government, or does the Federal Government work for the people of America? It is a straightforward question. This bill requires that the Federal Government and every agency have a conversation with the people they regulate to make sure that they actually understand what they are doing when they regulate.
I understand full well, there are plenty of well-meaning people here in Washington, D.C., who are serving our Nation faithfully, but they do not know every State in the country. They don't know every business in the country. That is not what they do full time. They manage here for the Federal Government full time, but they are given the responsibility to be able to promulgate rules and regulations that they may or may not have any idea even how that will be accomplished when they get there, or the real cost of that. The estimates that occasionally come up for the different costs we find out later are much, much higher than were ever estimated by a Federal agency.
So this bill does a few things.
In 1995, we said we are not going to put unfunded mandates on cities, States, and counties or tribes unless there is a compelling reason to do so, and then we could override and do that. This bill says that should be true of the American people as a whole, that we should not pour out some unfunded mandates across the entire economy unless there is some compelling reason to do so, and then Congress still has the authority to do that at that point, if needed.
This also says there should be some sort of judicial review so if someone in some agency makes a mistake, which we all as humans do, there is an opportunity to be able to respond to that, and an outlet where they can go to get justification for that, rather than having to go back to the agency that created the rule to say, Would you please change it? They say, No, but you can appeal it to the person in the cubicle next to me, appeal it to them. They says let's go to an outside entity. That seems to be an American system, that when you have a difference of opinion, you have an opportunity to be able to resolve that with someone outside the system.
This is an opportunity to reconnect the Federal Government back to the people that we are sent to represent and to say it is essential that we close the loopholes that exempt out some agencies, that we close the loopholes that allow agencies to move forward on putting down major regulations without evaluating those things, and we allow a distinct opportunity for the American people and their own government to have dialogue again and to say if we are going to resolve our differences on this and we are going to provide safety and security for people across the Nation, let's do it together in the least costly, least burdensome way possible.
I support this bill, and I encourage my colleagues to stand with me to provide greater transparency and greater conversation to the American people and their own government.
I yield back the balance of my time.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, independent regulatory agencies impose significant costs on our economy and often impose Federal mandates on State and local governments and the private sector. The Securities and Exchange Commission, the National Labor Relations Board, and the Federal Communications Commission are just a few examples of agencies that impose regulations without consideration of the actual cost or impact on the public.
Now, this bill does not prevent agencies from creating regulations. The amendment gives the impression that this will be a wild West, and all of these agencies will be limited. It only asks them to consider the cost and the impact of those regulations and to have some conversation with people on how it could be done less burdensome or less expensive.
According to a 2011 Administrative Law Review article:
Analysis conducted by independent regulatory agencies is
generally the minimum required by statute. In many instances,
the independent regulatory agencies appear to be issuing
major regulations without reporting any quantitative
information on benefits and costs.
OMB's 2013 draft report to Congress on the benefits and costs of Federal regulations and unfunded mandates provides a limited view of the cost-benefit analyses conducted by a limited number of independent regulatory agencies. For major rules issued by agencies included in the report, more than 35 percent were issued without any cost-benefit analysis at all.
CRS reports that from fiscal year 2010 through fiscal year 2012, 57 major rules were issued by nine independent agencies, but none of those rules included monetized cost-benefit analyses, and less than 50 percent provided any estimate as to costs at all.
The cost-benefit analyses under UMRA are essential for a transparent and accountable regulatory system. Reporting on the analyses does nothing to compromise the independence of these agencies, and we know this because OMB already reports on whether or not several independent agencies are conducting the analyses--including the Federal Trade Commission, the Federal Reserve, and the Commodity Futures Trading Commission.
Requiring that these agencies are covered by UMRA does not require that OMB review or approve of the analyses, only that the agencies are accountable for considering the costs and the benefits of imposing unfunded mandates on State and local governments and the private sector.
With that, I reserve the balance of my time.
Mr. Chairman, as I have stated before, it is entirely appropriate for independent agencies to have to also review the cost in the actual context of what they are accomplishing and the economy itself. That is an appropriate thing for every agency to do. We should count the costs before regulations are actually imposed on our economy. So I oppose this amendment. I have great respect for my colleague, but I have to oppose this amendment.
I yield back the balance of my time.
Mr. Chair, it may be a good moment to shine some facts into this debate. I agree that expanding the consultation requirements for the impacted parties is important. Those parties directed affected by the regulation should have an opportunity to be able to voice concerns about feasibility and offer sensible corrections from people with expertise from years of experience. That is a large part of what this bill does; when a regulation comes down, impacted individuals should be able to come to the table to be able to discuss what is the impact of this.
This particular amendment is completely redundant. It requires that any opportunity for consultation afforded to impacted parties within the private sector under the section shall be afforded to representatives of all other impacted parties.
Well, UMRA already defines the private sector as individuals, partnerships, associations, corporations, educational and nonprofit institutions, but it shall not include State, local, and tribal governments since State, local, and tribal governments are already covered in the Unfunded Mandates Reform Act, the original one. So I have to ask the question: Who is left? If it already covers individuals, partnerships, associations, corporations, educational and nonprofit institutions, State, local, and tribal governments, it covers everyone already.
If you are impacted by legislation and by regulation, you should have the opportunity to respond to that. We completely agree.
It is important to note this is not the only opportunity to offer suggestions and critiques though. Those not directly regulated by the rule have an opportunity for input during the comment period as required by the Administrative Procedures Act in the executive order.
This perception that somehow people are being locked out of the process is incorrect. It is the people that are impacted, though, that should have the first voice. That would be people impacted in the community, that would be people impacted in business, or any kind of government.
For example, under current law, taxpayers and public workers are not required to be consulted prior to an agency proposing a rule that will put a Federal mandate on the States and local governments, a mandate that could require public entities to ship resources that could affect hiring decisions or a reduction in public services.
Taxpayers, public workers, consumer groups, and anyone else who is interested--but not directly impacted--have that opportunity to provide input at notice and comment stage; but this amendment, however, appears to repeat the consultation requirement that H.R. 899 seeks to provide.
Those Members who want impacted parties to have an early voice in development of regulations that impose burdensome mandates on the private sector ought to just vote for the bill. Adding a repetitive requirement creates ambiguity about the intent of Congress, and for that reason, I oppose this amendment.
I reserve the balance of my time.
Mr. Chairman, there are a lot of things that I oppose in government. Duplication is one of those. Clarity is best done when it is clear and it is said one time and it is consistent.
It is already very clear. Individuals, partnerships, associations, corporations, and educational and nonprofit
institutions are included in this. All those who are impacted can step up in front of an agency and say: we will be impacted.
You are a person; you are a citizen; you are an individual. You have an opportunity to be able to come and join into that conversation.
We believe strongly that you should have the opportunity, if you are impacted, to get your voice heard. Again, the Federal Government works for people; people don't work for the Federal Government. So when you are impacted, you should also have a voice as well.
With that, I yield back the balance of my time.
Mr. Chairman, I can tell you I am all for a cost- benefit analysis, but the challenge of doing a cost-benefit analysis comes down to who is doing the cost-benefit analysis and what are they putting into it.
There have been multiple times that we have had conversations about a cost-benefit analysis, and there has been a push back to say: well, let's go back and check the math on that later and see if we actually got the benefit that was proposed that we will receive for that benefit.
A benefit analysis, in particular, is kind of under scrutiny by academics, even under the Obama administration. As an example, the EPA issued a new standard for mercury emissions and reported that benefits of the rule were up to $90 billion a year, far above their $10 billion a year cost.
Less than .01 of that $90 billion in benefits was attributable to actual reduction in mercury, though; instead, nearly all the benefits came from reductions in fine particles, a pollutant that was not even the purposed target of the regulation itself. Fine particle cobenefits accounted for two-thirds of the benefits of the economically significant rules in 2010.
This administration has padded the benefit analysis with private benefits. In the fuel economy standards, for instance, for cars and light trucks, nearly 90 percent of the $338 billion in lifetime benefits were benefits to consumers, such as reduced fuel consumption, and--how about this one--shorter refueling times.
Private benefits account for 92 percent of the benefits in energy efficiency standards for washing machines and 70 percent of the benefits in energy efficiency standards for refrigerators.
Essentially, the private benefit accounting is a claim that depriving consumers of preferred choices will make them better off because benefits like fuel savings are worth more to consumers than consumers actually realized.
To exclude regulations from an UMRA analysis, based on faulty and misleading benefits analysis, would only encourage distortion. Further, the point of UMRA is to identify burdensome new mandates for the parties that have to bear the burden.
You see, that company bears the burden. That cost gets passed on directly to consumers. So this ``private benefits''--that you are going to get more benefit than you thought you would ever get or will ever see--doesn't offset the cost they do see coming out of their paycheck when gasoline is more expensive, groceries are more expensive, and electricity if more expensive.
Often, parties who pay the cost of these regulations are not the same parties that actually enjoy the benefits. Even if a rule is predicted to have a net benefit, impacted entities should be made aware of sizable new burdens imposed by Federal mandates.
For this reason, I do oppose this amendment, and I reserve the balance of my time.
Mr. Chairman, I want us to be able to move forward on this bill. I want the American people to know that their government serves them and that individuals are able to be able to speak back to their own government when their government is imposing a regulation on them.
I think that is entirely reasonable for any affected party to be able to engage in conversation with their own government. I think it is entirely appropriate.
This is long overdue. The 1995 UMRA bill was written with large loopholes that exempted out agencies, exempted out different entities. It created an environment where it is beneficial to the agency to distort the cost. Let's clear that.
Let's just get back to doing what we should do, not people trying to sneak in rules, not people trying to sneak in a different cost-benefit analysis. Let's just have conversation again between the American people and the government that they are in charge of.
With that, I yield back the balance of my time.
Mr. Speaker, I rise in opposition to the motion.
Mr. Speaker, this bill assumes one simple thing: that regulators are not infallible, they are just people. We believe that the Nation will not fall apart if Washington doesn't have more and more growing power. We believe that this Nation became strong because the Federal Government had limited power. You see, I believe and we believe the American people aren't looking for much from us; they just want the unfunded mandates to stop. Someone in Washington decides they have a good idea and suddenly everyone has to pay for their new good idea.
It seems obvious that before a major rule is put into place, the regulators should actually have a consultation with the people that will be affected to see if there is a better way to do the same thing.
It was 3 years ago that I walked into this Chamber. Many people know I don't come from a political background. I have served in churches, where, of course, there are no politics. I can tell you that the American people do not want this city to tell them what to do. They want this city to protect their rights and leave them alone.
As a new Representative, I was surprised that the vast majority of businesses that I interacted with didn't come to me asking for something; they came and said, how can you make this stop? Thousands of small regulations are coming every day. In fact, I am sure everyone read the Federal Register today. There is a new regulation that came out today that decreases the size of an orange. You cannot be an orange in America unless the Department of Agriculture tells you that you are an orange, and there is a new regulation today defining an orange.
There are also 330 major rules that have come out in the last few years that increase and have an impact on the economy of over $100 million each. The American people are fed up with Washington, not because we can get nothing done, but because we are already doing too much.
Every day, people wake up to a new regulation. They can't wait to read the Federal Register to see what happened to their business and their life last night.
The opposition to this bill seems to be a fear that it will make the government work harder. Our fear is that the government is already making the American people's work harder every single day. People are worried about how to be able to pay for things, and it is slowing down the economy.
Every mandate that is passed, the economy slows down even more. In fact, the CBO once again this year, just weeks ago, laid out their forecast for the next 10 years, that the economy is going to continue to slow down even more.
Listen, the prevailing attitude in this town that Washington knows best has to stop. It is the responsibility of the States and the Nation to carry out their own wishes. It is not the responsibility of the States and the people to carry out the wishes of Washington, DC.
A lot of people all over this Nation can make good decisions, and this perception that Washington is smarter than everyone else is absolutely not true.
I come from a place that many in this town call flyover country. It may surprise you that planes actually land in flyover country. And when you get off the plane, do you know what you find? You find smart people. People who balance their budgets, serve their neighbors, and love their kids.
They are not helpless. Right when they finally get their budget to balance or get their family back in place, Washington has a new plan for their budget.
When the President said in his State of the Union that, ``The shift to a cleaner energy economy won't happen overnight, and it will require tough choices along the way,'' many people didn't realize that those tough choices would be on their own budgets.
In my State, electricity prices are going up. One of the electricity producers faces new compliance costs of over $1,500 per meter--per meter--simply because of a new aesthetic air quality regulation. It is not dealing with health. It is just dealing with aesthetic air quality regulations by this administration.
When families try to figure out their paycheck and why it is not going as far anymore, they should ask the question: Why does gas cost more? Why does electricity cost more? Why does corn cost more? Why does beef cost more? Why does health care cost more? Why are local taxes going up? And why is insurance costing more?
It is not the evil capitalists on Wall Street. It is the oceans of new regulations that are taking every spare dime from Americans' budgets because someone here in Washington thinks they know better.
Listen, whether it is a farm or whether it is on an energy platform or whether it is this Chamber that passed a bill 2 years ago straight down a party-line vote that told every American that they could not pick the health care they wanted, they had to pick the one Washington approved; they couldn't have the same doctor, they had to pick one that Washington approved; they couldn't pay what they chose to because they have to go to the hospital that Washington chose--by the way, the costs are going to go up as well because Washington put a new tax on medical devices, like a dental crown, a knee replacement, or a pacemaker, so right when they are getting hit with medical bills, they are also going to get hit with a new tax as well. What a great idea.
The problem is this government has grown and grown over decades. It is time to turn this around. Now is the moment to give the American people back what they need back, that is, freedom from the ongoing regulations.