[2] UMRA was introduced on January 4, 1995, in the Senate by Dirk Kempthorne of Idaho as S. 1 to the Committees on the Budget and Governmental Affairs.

Any bill passed by committee must be submitted to the director of the Congressional Budget Office so that any federal mandates may be identified.

Federal agencies must assess the cost of all new regulations to state, local and tribal governments and the private sector before issuing them.

Where such costs exceed one hundred million dollars, the issuing agency must consult with the affected governments and make sure that no less burdensome alternative exists.

Advisory Commission on Intergovernmental Relations was directed to review the role of mandates in relations between the federal government and state, local and tribal governments and to recommend to Congress and to the president opportunities to simplify or eliminate federal mandates.