standards. (4) When decentralization increases the costs of government thus imposing additional burdens on the taxpayer. (5) When States have not adequately protected individual rights and liberties. (6) When States would be reluctant to impose necessary regulations because of fears that regulated business activity will relocate to other States. (7) When placing regulatory authority at the State or local level would undermine regulatory goals because high costs or demands for specialized expertise will effectively place the regulatory matter beyond the resources of State authorities. (8) When the matter relates to Federally owned or managed property or natural resources, trust obligations, or international obligations. (9) When the matter to be regulated significantly or uniquely affects Indian tribal governments. Sec. 4. Consultation.(a) Each agency shall have an effective process to permit electedofficials and other representatives of State and local governments toprovide meaningful and timely input in the development of regulatory policies that have federalism implications. (b) To the extent practicable and permitted by law, no agency shall promulgate any regulation that is not required by statute, that has federalism implications, and that imposes substantial direct compliance costs on States and local governments, unless: (1) funds necessary to pay the direct costs incurred by the State or local government in complying with the regulation are provided by the Federal Government; or (2) the agency, prior to the formal promulgation of the regulation (A) in a separately identified portion of the preamble to the regulation as it is to be issued in the Federal Register, provides to the Director of the Office of Management and Budget a description of the extent of the agency's prior consultation with representatives of affected States and local governments, a summary of the nature of their concerns, and the agency's position supporti...
