H.R. 8227 would prohibit the judicial enforceability in federal, state, and tribal courts of clauses in contracts that limit the ability of people to report or discuss alleged acts of sexual assault or harassment that would harm the reputation of the other party to the contract, such as an employer. The changes would apply to claims that arise on or after the date of enactment of the legislation. Any additional revenues generated from filing fees charged by federal courts for new cases could be spent without further appropriation to cover the administrative costs of those courts. CBO estimates that enacting H.R. 8227 would have an insignificant effect on direct spending and revenues over the 2023-2032 period. CBO has not estimated the discretionary costs of implementing the bill. The bill would impose private-sector and intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA). The cost of the intergovernmental mandate would not exceed the threshold established in UMRA ($92 million in 2022, adjusted annually for inflation). CBO cannot determine whether the cost of the private-sector mandate would exceed the annual threshold of $184 million in 2022 (adjusted annually for inflation).
