Economics and Finance Resolutions

BE IT THEREFORE RESOLVED, that The Council of State Governments encourages Congress to amend the Unfunded Mandates Reform Act to:

1. Apply UMRA’s cost estimation requirements to legislation that alters the conditions for receiving already existing federal grant assistance such as Medicaid and federal grants under the No Child Left Behind Act.

2. Expand the scope of cost estimates to include indirect costs imposed by new legislation and rule making such as lost revenue.

3. Remove the exception for mandates issued by independent regulatory agencies such as the Securities and Exchange Commission (SEC).

4. Remove the current exception for urgent federal regulations issued without prior notice by requiring cost estimates to be issued for such urgent rule making decisions within six months after their adoption.