[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                 H. R. 5

 To curb the practice of imposing unfunded Federal mandates on States 
 and local governments, to ensure that the Federal Government pays the 
     costs incurred by those governments in complying with certain 
  requirements under Federal statutes and regulations, and to provide 
information on the cost of Federal mandates on the private sector, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

 Mr. Clinger, Mr. Portman, Mr. Condit, and Mr. Davis (for themselves, 
 Mr. Shays, Mr. McHugh, Mr. Mica, Mr. Horn, Mr. Zeliff, Mr. Burton of 
Indiana, Mr. Schiff, Mr. Blute, Mr. Fox, Mr. Walsh, and Mr. Cunningham) 
 introduced the following bill; which was referred to the Committee on 
 Government Reform and Oversight, and in addition to the Committees on 
 Rules, the Budget, and the Judiciary, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To curb the practice of imposing unfunded Federal mandates on States 
 and local governments, to ensure that the Federal Government pays the 
     costs incurred by those governments in complying with certain 
  requirements under Federal statutes and regulations, and to provide 
information on the cost of Federal mandates on the private sector, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Unfunded Mandate Reform Act of 
1995''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
            (1) to strengthen the partnership between the Federal 
        Government and States, local governments, and tribal 
        governments;
            (2) to end the imposition, in the absence of full 
        consideration by Congress, of Federal mandates on States, local 
        governments, and tribal governments in a manner that may 
        displace other essential State, local, and tribal governmental 
        priorities;
            (3) to assist Congress in its consideration of proposed 
        legislation establishing or revising Federal programs 
        containing Federal mandates affecting States, local 
        governments, tribal governments, and the private sector by--
                    (A) providing for the development of information 
                about the nature and size of mandates in proposed 
                legislation; and
                    (B) establishing a mechanism to bring such 
                information to the attention of the Senate and House of 
                Representatives before the Senate and House of 
                Representatives votes on proposed legislation;
            (4) to promote informed and deliberate decisions by 
        Congress on the appropriateness of Federal mandates in any 
        particular instance;
            (5) to establish a point-of-order vote on the consideration 
        in the Senate and House of Representatives of legislation 
        containing significant Federal mandates;
            (6) to assist Federal agencies in their consideration of 
        proposed regulations affecting States, local governments, and 
        tribal governments, by--
                    (A) requiring that Federal agencies develop a 
                process to enable the elected and other officials of 
                States, local governments, and tribal governments to 
                provide input when Federal agencies are developing 
                regulations; and
                    (B) requiring that Federal agencies prepare and 
                consider better estimates of the budgetary impact of 
                regulations containing Federal mandates upon States, 
                local governments, and tribal governments before 
                adopting such regulations, and ensuring that small 
                governments are given special consideration in that 
                process; and
            (7) to establish the general rule that Congress shall not 
        impose Federal mandates on States, local governments, and 
        tribal governments without providing adequate funding to comply 
        with such mandates.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) the terms ``agency'', ``Federal financial assistance'', 
        ``Federal private sector mandate'', ``Federal mandate'' (except 
        as provided by section 108), ``local government'', ``private 
        sector'', ``regulation'' or ``rule'', and ``State'' have the 
        meaning given those terms by section 421 of the Congressional 
        Budget Act of 1974; and
            (2) the term ``small government'' means any small 
        governmental jurisdiction as defined in section 601(5) of title 
        5, United States Code, and any tribal government.

SEC. 4. LIMITATION ON APPLICATION.

    This Act shall not apply to any provision in a Federal statute or a 
proposed or final Federal regulation, that--
            (1) enforces constitutional rights of individuals;
            (2) establishes or enforces any statutory rights that 
        prohibit discrimination on the basis of race, religion, gender, 
        national origin, or handicapped or disability status;
            (3) requires compliance with accounting and auditing 
        procedures with respect to grants or other money or property 
        provided by the Federal Government;
            (4) provides for emergency assistance or relief at the 
        request of any State, local government, or tribal government or 
        any official of such a government;
            (5) is necessary for the national security or the 
        ratification or implementation of international treaty 
        obligations; or
            (6) the President designates as emergency legislation and 
        that the Congress so designates in statute.

              TITLE I--REVIEW OF UNFUNDED FEDERAL MANDATES

SEC. 101. ESTABLISHMENT.

    There is established a commission which shall be known as the 
``Commission on Unfunded Federal Mandates'' (in this title referred to 
as the ``Commission'').

SEC. 102. REPORT ON UNFUNDED FEDERAL MANDATES BY THE COMMISSION.

    (a) In General.--The Commission shall in accordance with this 
section--
            (1) investigate and review the role of unfunded Federal 
        mandates in intergovernmental relations and their impact on 
        State, local, tribal, and Federal government objectives and 
        responsibilities; and
            (2) make recommendations to the President and the Congress 
        regarding--
                    (A) allowing flexibility for State, local, and 
                tribal governments in complying with specific unfunded 
                Federal mandates for which terms of compliance are 
                unnecessarily rigid or complex;
                    (B) reconciling any 2 or more unfunded Federal 
                mandates which impose contradictory or inconsistent 
                requirements;
                    (C) terminating unfunded Federal mandates which are 
                duplicative, obsolete, or lacking in practical utility;
                    (D) suspending, on a temporary basis, unfunded 
                Federal mandates which are not vital to public health 
                and safety and which compound the fiscal difficulties 
                of State, local, and tribal governments, including 
                recommendations for triggering such suspension;
                    (E) consolidating or simplifying unfunded Federal 
                mandates, or the planning or reporting requirements of 
                such mandates, in order to reduce duplication and 
                facilitate compliance by State, local, and tribal 
                governments with those mandates; and
                    (F) establishing common Federal definitions or 
                standards to be used by State, local, and tribal 
                governments in complying with unfunded Federal mandates 
                that use different definitions or standards for the 
                same terms or principles.
            (3) Identification of relevant unfunded federal mandates.--
        Each recommendation under paragraph (2) shall, to the extent 
        practicable, identify the specific unfunded Federal mandates to 
        which the recommendation applies.
    (b) Criteria.--
            (1) In general.--The Commission shall establish criteria 
        for making recommendations under subsection (a).
            (2) Issuance of proposed criteria.--The Commission shall 
        issue proposed criteria under this subsection not later than 60 
        days after the date of the enactment of this Act, and 
        thereafter provide a period of 30 days for submission by the 
        public of comments on the proposed criteria.
            (3) Final criteria.--Not later than 45 days after the date 
        of issuance of proposed criteria, the Commission shall--
                    (A) consider comments on the proposed criteria 
                received under paragraph (2);
                    (B) adopt and incorporate in final criteria any 
                recommendations submitted in those comments that the 
                Commission determines will aid the Commission in 
                carrying out its duties under this section; and
                    (C) issue final criteria under this subsection.
    (c) Preliminary Report.--
            (1) In general.--Not later than 9 months after the date of 
        the enactment of this Act, the Commission shall--
                    (A) prepare and publish a preliminary report on its 
                activities under this title, including preliminary 
                recommendations pursuant to subsection (a);
                    (B) publish in the Federal Register a notice of 
                availability of the preliminary report; and
                    (C) provide copies of the preliminary report to the 
                public upon request.
            (2) Public hearings.--The Commission shall hold public 
        hearings on the preliminary recommendations contained in the 
        preliminary report of the Commission under this subsection.
    (d) Final Report.--Not later than 3 months after the date of the 
publication of the preliminary report under subsection (c), the 
Commission shall submit to the Congress, including the Committee on 
Government Reform and Oversight of the House of Representatives and the 
Committee on Governmental Affairs of the Senate, and to the President a 
final report on the findings, conclusions, and recommendations of the 
Commission under this section.

SEC. 103. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be composed of 9 
members appointed from individuals who possess extensive leadership 
experience in and knowledge of State, local, and tribal governments and 
intergovernmental relations, including State and local elected 
officials, as follows:
            (1) 3 members appointed by the Speaker of the House of 
        Representatives, in consultation with the minority leader of 
        the House of Representatives.
            (2) 3 members appointed by the majority leader of the 
        Senate, in consultation with the minority leader of the Senate.
            (3) 3 members appointed by the President.
    (b) Waiver of Limitation on Executive Schedule Positions.--
Appointments may be made under this section without regard to section 
5311(b) of title 5, United States Code.
    (c) Terms.--
            (1) In general.--Each member of the Commission shall be 
        appointed for the life of the Commission.
            (2) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made.
    (d) Basic Pay.--
            (1) Rates of pay.--Members of the Commission shall serve 
        without pay.
            (2) Prohibition of compensation of federal employees.--
        Members of the Commission who are full-time officers or 
        employees of the United States may not receive additional pay, 
        allowances, or benefits by reason of their service on the 
        Commission.
    (e) Travel Expenses.--Each member of the Commission shall receive 
travel expenses, including per diem in lieu of subsistence, in 
accordance with sections 5702 and 5703 of title 5, United States Code.
    (f) Chairperson.--The President shall designate a member of the 
Commission as Chairperson at the time of the appointment of that 
member.
    (g) Meetings.--
            (1) In general.--Subject to paragraph (2), the Commission 
        shall meet at the call of the Chairperson or a majority of its 
        members.
            (2) First meeting.--The Commission shall convene its first 
        meeting by not later than 45 days after the date of the 
        completion of appointment of the members of the Commission.
            (3) Quorum.--A majority of members of the Commission shall 
        constitute a quorum but a lesser number may hold hearings.

SEC. 104. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

    (a) Director.--The Commission shall have a Director who shall be 
appointed by the Commission. The Director shall be paid at the rate of 
basic pay payable for level IV of the Executive Schedule.
    (b) Staff.--With the approval of the Commission, and without regard 
to section 5311(b) of title 5, United States Code, the Director may 
appoint and fix the pay of such staff as is sufficient to enable the 
Commission to carry out its duties.
    (c) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Commission may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the annual 
rate payable under section 5376 of title 5, United States Code.
    (d) Experts and Consultants.--The Commission may procure temporary 
and intermittent services of experts or consultants under section 
3109(b) of title 5, United States Code.
    (e) Staff of Federal Agencies.--Upon request of the Director, the 
head of any Federal department or agency may detail, on a reimbursable 
basis, any of the personnel of that department or agency to the 
Commission to assist it in carrying out its duties under this title.

SEC. 105. POWERS OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the purpose of 
carrying out this title, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Commission 
considers appropriate.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized to take by this section.
    (c) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information 
necessary to enable it to carry out this title, except information--
            (1) which is specifically exempted from disclosure by law; 
        or
            (2) which that department or agency determines will 
        disclose--
                    (A) matters necessary to be kept secret in the 
                interests of national defense or the confidential 
                conduct of the foreign relations of the United States;
                    (B) information relating to trade secrets or 
                financial or commercial information pertaining 
                specifically to a given person if the information has 
                been obtained by the Government on a confidential 
                basis, other than through an application by such person 
                for a specific financial or other benefit, and is 
                required to be kept secret in order to prevent undue 
                injury to the competitive position of such person; or
                    (C) personnel or medical data or similar data the 
                disclosure of which would constitute a clearly 
                unwarranted invasion of personal privacy;
        unless the portions containing such matters, information, or 
        data have been excised.
Upon request of the Chairperson of the Commission, the head of that 
department or agency shall furnish that information to the Commission.
    (d) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (e) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out its duties under 
this title.
    (f) Contract Authority.--The Commission may, subject to 
appropriations, contract with and compensate government and private 
agencies or persons for property and services used to carry out its 
duties under this title.

SEC. 106. TERMINATION.

    The Commission shall terminate 90 days after submitting its final 
report pursuant to section 102(d).

SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Commission $1,000,000 
to carry out this title.

SEC. 108. DEFINITION.

    As used in this title, the term ``Federal mandate'' means any 
provision in statute or regulation that imposes an enforceable duty 
upon States, local governments, or tribal governments including a 
condition of Federal assistance or a duty arising from participation in 
a voluntary Federal program.

SEC. 109. EFFECTIVE DATE.

    This title shall take effect 60 days after the date of the 
enactment of this Act.

             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

SEC. 201. REGULATORY PROCESS.

    (a) In General.--Each agency shall, to the extent permitted by 
subchapter II of chapter 5 of title 5, United States Code--
            (1) assess the effects of Federal regulations on States, 
        local governments, tribal governments, and the private sector 
        (other than to the extent that such regulations incorporate 
        requirements specifically set forth in legislation), including 
        specifically the availability of resources to carry out any 
        Federal mandates in those regulations; and
            (2) seek to minimize those burdens that uniquely or 
        significantly affect such governmental entities or the private 
sector, consistent with achieving statutory and regulatory objectives.
    (b) State, Local Government, and Tribal Government Input.--Each 
agency shall develop an effective process to permit elected officials 
(or their designated representatives) of States, local governments, and 
tribal governments to provide meaningful and timely input in the 
development of regulatory proposals containing significant Federal 
intergovernmental mandates.
    (c) Agency Plan.--
            (1) In general.--Before establishing any regulatory 
        requirements that might significantly or uniquely affect small 
        governments, an agency shall have developed a plan under which 
        the agency shall--
                    (A) provide notice of the contemplated requirements 
                to potentially affected small governments, if any;
                    (B) enable officials of affected small governments 
                to provide input pursuant to subsection (b); and
                    (C) inform, educate, and advise small governments 
                on compliance with the requirements.
            (2) Effects on private sector.--Before establishing any 
        regulatory requirements, agencies shall prepare estimates, 
        based on available data, of the effect of Federal private 
        sector mandates on the national economy, including the effect 
        on productivity, economic growth, full employment, creation of 
        productive jobs, and international competitiveness of United 
        States goods and services.

SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.

    (a) In General.--Before promulgating any final rule that includes 
any Federal mandate that may result in the expenditure by States, local 
governments, or tribal governments, in the aggregate, or the private 
sector of at least $100,000,000 (adjusted annually for inflation) in 
any 1 year, and before promulgating any general notice of proposed 
rulemaking that is likely to result in promulgation of any such rule, 
the agency shall prepare a written statement containing--
            (1) estimates by the agency, including the underlying 
        analysis, of the anticipated costs to States, local 
        governments, tribal governments, and the private sector of 
        complying with the Federal mandates, and of the extent to which 
        such costs may be paid with funds provided by the Federal 
        Government or otherwise paid through Federal financial 
        assistance;
            (2) estimates by the agency, if and to the extent that the 
        agency determines that accurate estimates are reasonably 
        feasible, of--
                    (A) the future costs of the Federal mandate; and
                    (B) any disproportionate budgetary effects of the 
                Federal mandates upon any particular regions of the 
                country or particular States, local governments, tribal 
                governments, urban or rural or other types of 
                communities, or particular segments of the private 
                sector;
            (3) a qualitative, and if possible, a quantitative 
        assessment of costs and benefits anticipated from the Federal 
        mandates (such as the enhancement of health and safety and the 
        protection of the natural environment);
            (4) the effect of Federal private sector mandates on the 
        national economy, including the effect on productivity, 
        economic growth, full employment, creation of productive jobs, 
        and international competitiveness of United States goods and 
        services;
            (5) a description of the extent of the agency's prior 
        consultation with elected representatives (or their designated 
        representatives) of the affected States, local governments, and 
        tribal governments, and designated representatives of the 
        private sector;
            (6) a summary of the comments and concerns that were 
        presented by States, local governments, or tribal governments 
        and the private sector either orally or in writing to the 
        agency;
            (7) a summary of the agency's evaluation of those comments 
        and concerns; and
            (8) the agency's position supporting the need to issue the 
        regulation containing the Federal mandates (considering, among 
        other things, the extent to which costs may or may not be paid 
        with funds provided by the Federal Government).
    (b) Promulgation.--In promulgating a general notice of proposed 
rulemaking or a final rule for which a statement under subsection (a) 
is required, the agency shall include in the promulgation a summary of 
the information contained in the statement.
    (c) Preparation in Conjunction With Other Statement.--Any agency 
may prepare any statement required by subsection (a) in conjunction 
with or as part of any other statement or analysis, if the statement or 
analysis satisfies the provisions of subsection (a).

SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE.

    The Director of the Office of Management and Budget shall--
            (1) collect from agencies the statements prepared under 
        section 202; and
            (2) periodically forward copies of them to the Director of 
        the Congressional Budget Office on a reasonably timely basis 
        after promulgation of the general notice of proposed rulemaking 
        or of the final rule for which the statement was prepared.

SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY.

    (a) In General.--The Director of the Office of Management and 
Budget, in consultation with Federal agencies, shall establish pilot 
programs in at least 2 agencies to test innovative and more flexible 
regulatory approaches that--
            (1) reduce reporting and compliance burdens on small 
        governments; and
            (2) meet overall statutory goals and objectives.
    (b) Program Focus.--The pilot programs shall focus on rules in 
effect or proposed rules, or on a combination thereof.

            TITLE III--LEGISLATIVE ACCOUNTABILITY AND REFORM

SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.

    Title IV of the Congressional Budget Act of 1974 is amended by--
            (1) inserting before section 401 the following:

                  ``Part A--General Provisions''; and

            (2) adding at the end the following new part:

                       ``Part B--Federal Mandates

``SEC. 421. DEFINITIONS.

    ``For purposes of this part:
            ``(1) Agency.--The term `agency' has the meaning stated in 
        section 551(1) of title 5, United States Code, but does not 
        include independent regulatory agencies, as defined by section 
        3502(10) of title 44, United States Code.
            ``(2) Director.--The term `Director' means the Director of 
        the Congressional Budget Office.
            ``(3) Federal financial assistance.--The term `Federal 
        financial assistance' means the amount of budget authority for 
        any Federal grant assistance or any Federal program providing 
        loan guarantees or direct loans.
            ``(4) Federal intergovernmental mandate.--The term `Federal 
        intergovernmental mandate' means--
                    ``(A) any provision in legislation, statute, or 
                regulation that--
                            ``(i) would impose an enforceable duty upon 
                        States, local governments, or tribal 
                        governments, except--
                                    ``(I) a condition of Federal 
                                assistance; or
                                    ``(II) a duty arising from 
                                participation in a voluntary Federal 
                                program, except as provided in 
                                subparagraph (B); or
                            ``(ii) would reduce or eliminate the amount 
                        of authorization of appropriations for Federal 
                        financial assistance that would be provided to 
                        States, local governments, or tribal 
                        governments for the purpose of complying with 
                        any such previously imposed duty unless such 
                        duty is reduced or eliminated by a 
                        corresponding amount; or
                    ``(B) any provision in legislation, statute, or 
                regulation that relates to a then-existing Federal 
                program under which $500,000,000 or more is provided 
                annually to States, local governments, and tribal 
                governments under entitlement authority, if--
                            ``(i)(I) the provision would increase the 
                        stringency of conditions of assistance to 
                        States, local governments, or tribal 
                        governments under the program; or
                            ``(II) would place caps upon, or otherwise 
                        decrease, the Federal Government's 
                        responsibility to provide funding to States, 
                        local governments, or tribal governments under 
                        the program; and
                            ``(ii) the States, local governments, or 
                        tribal governments that participate in the 
                        Federal program lack authority under that 
                        program to amend their financial or 
                        programmatic responsibilities to continue 
                        providing required services that are affected 
                        by the legislation, statute, or regulation.
            ``(5) Federal private sector mandate.--The term `Federal 
        private sector mandate' means any provision in legislation, 
        statute, or regulation that--
                    ``(A) would impose an enforceable duty on the 
                private sector except--
                            ``(i) a condition of Federal assistance; or
                            ``(ii) a duty arising from participation in 
                        a voluntary Federal program; or
                    ``(B) would reduce or eliminate the amount of 
                authorization of appropriations for Federal financial 
                assistance that will be provided to the private sector 
                for the purpose of ensuring compliance with such duty.
            ``(6) Federal mandate.--The term `Federal mandate' means a 
        Federal intergovernmental mandate or a Federal private sector 
        mandate, as defined in paragraphs (4) and (5).
            ``(7) Federal mandate direct costs.--
                    ``(A) Federal intergovernmental direct costs.--In 
                the case of a Federal intergovernmental mandate, the 
                term `direct costs' means the aggregate estimated 
                amounts that all States, local governments, and tribal 
                governments would be required to spend or would be 
                required to forego in revenues in order to comply with 
                the Federal intergovernmental mandate, or, in the case 
                of a provision referred to in paragraph (4)(A)(ii), the 
                amount of Federal financial assistance eliminated or 
                reduced.
                    ``(B) Private sector direct costs.--In the case of 
                a Federal private sector mandate, the term `direct 
                costs' means the aggregate estimated amounts that the 
                private sector would be required to spend in order to 
                comply with a Federal private sector mandate.
                    ``(C) Exclusion from direct costs.--The term 
                `direct costs' does not include--
                            ``(i) estimated amounts that the States, 
                        local governments, and tribal governments (in 
                        the case of a Federal intergovernmental 
                        mandate), or the private sector (in the case of 
                        a Federal private sector mandate), would 
                        spend--
                                    ``(I) to comply with or carry out 
                                all applicable Federal, State, local, 
                                and tribal laws and regulations in 
                                effect at the time of the adoption of a 
                                Federal mandate for the same activity 
                                as is affected by that Federal mandate; 
                                or
                                    ``(II) to comply with or carry out 
                                State, local governmental, and tribal 
                                governmental programs, or private-
                                sector business or other activities 
in effect at the time of the adoption of a Federal mandate for the same 
activity as is affected by that mandate; or
                            ``(ii) expenditures to the extent that they 
                        will be offset by any direct savings to be 
                        enjoyed by the States, local governments, and 
                        tribal governments, or by the private sector, 
                        as a result of--
                                    ``(I) their compliance with the 
                                Federal mandate; or
                                    ``(II) other changes in Federal law 
                                or regulation that are enacted or 
                                adopted in the same bill or joint 
                                resolution or proposed or final Federal 
                                regulation and that govern the same 
                                activity as is affected by the Federal 
                                mandate.
                    ``(D) Determination of costs.--Direct costs shall 
                be determined based on the assumption that States, 
                local governments, tribal governments, and the private 
                sector will take all reasonable steps necessary to 
                mitigate the costs resulting from the Federal mandate, 
                and will comply with applicable standards of practice 
                and conduct established by recognized professional or 
                trade associations. Reasonable steps to mitigate the 
                costs shall not include increases in State, local, or 
                tribal taxes or fees.
            ``(8) Local government.--The term `local government' has 
        the same meaning as in section 6501(6) of title 31, United 
        States Code.
            ``(9) Private sector.--The term `private sector' means 
        individuals, partnerships, associations, corporations, business 
        trusts, or legal representatives, organized groups of 
        individuals, and educational and other nonprofit institutions.
            ``(10) Regulation.--The term `regulation' or `rule' has the 
        meaning of `rule' as defined in section 601(2) of title 5, 
        United States Code.
            ``(11) State.--The term `State' has the same meaning as in 
        section 6501(9) of title 31, United States Code.

``SEC. 422. LIMITATION ON APPLICATION.

    ``This part shall not apply to any provision in a bill, joint 
resolution, motion, amendment, or conference report before Congress 
that--
            ``(1) enforces constitutional rights of individuals;
            ``(2) establishes or enforces any statutory rights that 
        prohibit discrimination on the basis of race, religion, gender, 
        national origin, or handicapped or disability status;
            ``(3) requires compliance with accounting and auditing 
        procedures with respect to grants or other money or property 
        provided by the Federal Government;
            ``(4) provides for emergency assistance or relief at the 
        request of any State, local government, or tribal government or 
        any official of such a government;
            ``(5) is necessary for the national security or the 
        ratification or implementation of international treaty 
        obligations; or
            ``(6) the President designates as emergency legislation and 
        that the Congress so designates in statute.

``SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

    ``(a) Submission of Bills to the Director.--When a committee of 
authorization of the House of Representatives or the Senate orders a 
bill or joint resolution of a public character reported, the committee 
shall promptly provide the text of the bill or joint resolution to the 
Director and shall identify to the Director any Federal mandate 
contained in the bill or resolution.
    ``(b) Committee Report.--
            ``(1) Information regarding federal mandates.--When a 
        committee of authorization of the House of Representatives or 
        the Senate reports a bill or joint resolution of a public 
        character that includes any Federal mandate, the report of the 
        committee accompanying the bill or joint resolution shall 
        contain the information required by paragraph (2) and, in the 
        case of a Federal intergovernmental mandate, paragraph (3).
            ``(2) Reports on federal mandates.--Each report referred to 
        in paragraph (1) shall contain--
                    ``(A) an identification and description of each 
                Federal mandate in the bill or joint resolution, 
                including the statement, if available, from the 
                Director pursuant to section 424(a);
                    ``(B) a qualitative assessment, and if practicable, 
                a quantitative assessment of costs and benefits 
                anticipated from the Federal mandate (including the 
                effects on health and safety and protection of the 
                natural environment); and
                    ``(C) a statement of the degree to which the 
                Federal mandate affects each of the public and private 
                sectors and the extent to which Federal payment of 
                public sector costs would affect the competitive 
                balance between States, local governments, or tribal 
                governments and privately owned businesses.
            ``(3) Intergovernmental mandates.--If any of the Federal 
        mandates in the bill or joint resolution are Federal 
        intergovernmental mandates, the report referred to in paragraph 
        (1) shall also contain--
                    ``(A)(i) a statement of the amount, if any, of 
                increase or decrease in authorization of appropriations 
                under existing Federal financial assistance programs or 
                for new Federal financial assistance, provided by the 
                bill or joint resolution and usable for activities of 
                States, local governments, or tribal governments 
                subject to Federal intergovernmental mandates; and
                    ``(ii) a statement of whether the committee intends 
                that the Federal intergovernmental mandates be partly 
                or entirely unfunded, and, if so, the reasons for that 
                intention; and
                    ``(B) a statement of any existing sources of 
                Federal financial assistance in addition to those 
                identified in subparagraph (A) that may assist States, 
                local governments, and tribal governments in paying the 
                direct costs of the Federal intergovernmental mandates.
            ``(4) Information regarding preemption.--When a committee 
        of authorization of the House of Representatives or the Senate 
        reports a bill or joint resolution of a public character, the 
        committee report accompanying the bill or joint resolution 
        shall contain, if relevant to the bill or joint resolution, an 
        explicit statement on whether the bill or joint resolution, in 
        whole or in part, is intended to preempt any State, local, or 
        tribal law, and if so, an explanation of the reasons for such 
        intention.
    ``(c) Publication of Statement From the Director.--
            ``(1) In general.--Upon receiving a statement (including 
        any supplemental statement) from the Director pursuant to 
        section 424(a), a committee of the House of Representatives or 
        the Senate shall publish the statement in the committee report 
        accompanying the bill or joint resolution to which the 
        statement relates if the statement is available to be included 
        in the printed report.
            ``(2) Other publication of statement of director.--If the 
        statement is not published in the report, or if the bill or 
        joint resolution to which the statement relates is expected to 
        be considered by the House of Representatives or the Senate 
        before the report is published, the committee shall cause the 
        statement, or a summary thereof, to be published in the 
        Congressional Record in advance of floor consideration of the 
        bill or joint resolution.

``SEC. 424. DUTIES OF THE DIRECTOR.

    ``(a) Statements on Bills and Joint Resolutions Other Than 
Appropriations Bills and Joint Resolutions.--
            ``(1) Federal intergovernmental mandates in reported bills 
        and resolutions.--For each bill or joint resolution of a public 
        character reported by any committee of authorization of the 
        House of Representatives or the Senate, the Director shall 
        prepare and submit to the committee a statement as follows:
                    ``(A) If the Director estimates that the direct 
                cost of all Federal intergovernmental mandates in the 
                bill or joint resolution will equal or exceed 
                $50,000,000 (adjusted annually for inflation) in the 
                fiscal year in which such a Federal intergovernmental 
                mandate (or in any necessary implementing regulation) 
                would first be effective or in any of the 4 fiscal 
                years following such year, the Director shall so state, 
                specify the estimate, and briefly explain the basis of 
                the estimate.
                    ``(B) The estimate required by subparagraph (A) 
                shall include estimates (and brief explanations of the 
                basis of the estimates) of--
                            ``(i) the total amount of direct cost of 
                        complying with the Federal intergovernmental 
                        mandates in the bill or joint resolution; and
                            ``(ii) the amount, if any, of increase in 
                        authorization of appropriations or budget 
                        authority or entitlement authority under 
                        existing Federal financial assistance programs, 
                        or of authorization of appropriations for new 
                        Federal financial assistance, provided by the 
                        bill or joint resolution and usable by States, 
                        local governments, or tribal governments for 
                        activities subject to the Federal 
                        intergovernmental mandates.
            ``(2) Federal private sector mandates in reported bills and 
        joint resolutions.--For each bill or joint resolution of a 
        public character reported by any committee of authorization of 
        the House of Representatives or the Senate, the Director shall 
        prepare and submit to the committee a statement as follows:
                    ``(A) If the Director estimates that the direct 
                cost of all Federal private sector mandates in the bill 
                or joint resolution will equal or exceed $100,000,000 
                (adjusted annually for inflation) in the fiscal year in 
                which any Federal private sector mandate in the bill or 
                joint resolution (or in any necessary implementing 
                regulation) would first be effective or in any of the 4 
                fiscal years following such fiscal year, the Director 
                shall so state, specify the estimate, and briefly 
                explain the basis of the estimate.
                    ``(B) The estimate required by subparagraph (A) 
                shall include estimates (and brief explanations of the 
                basis of the estimates) of--
                            ``(i) the total amount of direct costs of 
                        complying with the Federal private sector 
                        mandates in the bill or joint resolution; and
                            ``(ii) the amount, if any, of increase in 
                        authorization of appropriations under existing 
                        Federal financial assistance programs, or of 
                        authorization of appropriations for new Federal 
                        financial assistance, provided by the bill or 
                        joint resolution usable by the private sector 
                        for the activities subject to the Federal 
                        private sector mandates.
                    ``(C) If the Director determines that it is not 
                feasible to make a reasonable estimate that would be 
                required under subparagraphs (A) and (B), the Director 
                shall not make the estimate, but shall report in the 
                statement that the reasonable estimate cannot be made 
                and shall include the reasons for that determination in 
                the statement.
            ``(3) Legislation falling below the direct costs 
        thresholds.--If the Director estimates that the direct costs of 
        a Federal mandate will not equal or exceed the threshold 
        specified in paragraph (1)(A) or (2)(A), the Director shall so 
        state and shall briefly explain the basis of the estimate.
            ``(4) Amended bills and joint resolutions; conference 
        reports.--If the Director has prepared the statement pursuant 
        to subsection (a) for a bill or joint resolution, and if that 
        bill or joint resolution is reported or passed in an amended 
        form (including if passed by one House as an amendment in the 
nature of a substitute for the text of a bill or joint resolution from 
the other House) or is reported by a committee of conference in an 
amended form, the committee of conference shall ensure, to the greatest 
extent practicable, that the Director shall prepare a supplemental 
statement for the bill or joint resolution in that amended form.
    ``(b) Assistance to Committees and Studies.--
            ``(1) In general.--At the request of any committee of the 
        House of Representatives or of the Senate, the Director shall, 
        to the extent practicable, consult with and assist such 
        committee in analyzing the budgetary or financial impact of any 
        proposed legislation that may have--
                    ``(A) a significant budgetary impact on State, 
                local, or tribal governments; or
                    ``(B) a significant financial impact on the private 
                sector.
            ``(2) Continuing studies.--The Director shall conduct 
        continuing studies to enhance comparisons of budget outlays, 
        credit authority, and tax expenditures.
            ``(3) Federal mandate studies.--
                    ``(A) At the request of any committee of the House 
                of Representatives or the Senate, the Director shall, 
                to the extent practicable, conduct a study of a 
                legislative proposal containing a Federal mandate.
                    ``(B) In conducting a study under subparagraph (A), 
                the Director shall--
                            ``(i) solicit and consider information or 
                        comments from elected officials (including 
                        their designated representatives) of States, 
                        local governments, tribal governments, 
                        designated representatives of the private 
                        sector, and such other persons as may provide 
                        helpful information or comments;
                            ``(ii) consider establishing advisory 
                        panels of elected officials (including their 
                        designated representatives) of States, local 
                        governments, tribal governments, designated 
                        representatives of the private sector, and 
                        other persons if the Director determines, in 
                        the Director's discretion, that such advisory 
                        panels would be helpful in performing the 
                        Director's responsibilities under this section; 
                        and
                            ``(iii) include estimates, if and to the 
                        extent that the Director determines that 
                        accurate estimates are reasonably feasible, 
                        of--
                                    ``(I) the future direct cost of the 
                                Federal mandates concerned to the 
                                extent that they significantly differ 
                                from or extend beyond the 5-year period 
                                after the mandate is first effective; 
                                and
                                    ``(II) any disproportionate 
                                budgetary effects of the Federal 
                                mandates concerned upon particular 
                                industries or sectors of the economy, 
                                States, regions, and urban, or rural or 
                                other types of communities, as 
                                appropriate.
                    ``(C) In conducting a study on private sector 
                mandates under subparagraph (A), the Director shall 
                provide estimates, if and to the extent that the 
                Director determines that such estimates are reasonably 
                feasible, of--
                            ``(i) future costs of Federal private 
                        sector mandates to the extent that such 
                        mandates differ significantly from or extend 
                        beyond the 5-year period referred to in 
                        subparagraph (B)(iii)(I);
                            ``(ii) any disproportionate financial 
                        effects of Federal private sector mandates and 
                        of any Federal financial assistance in the bill 
                        or joint resolution upon any particular 
                        industries or sectors of the economy, States, 
                        regions, and urban or rural or other types of 
                        communities; and
                            ``(iii) the effect of Federal private 
                        sector mandates in the bill or joint resolution 
                        on the national economy, including the effect 
                        on productivity, economic growth, full 
                        employment, creation of productive jobs, and 
                        international competitiveness of United States 
                        goods and services.
    ``(c) Views and Estimates of Committees.--Any committee of the 
House of Representatives or the Senate that anticipates that it will 
consider any proposed legislation establishing, amending, or 
reauthorizing any Federal program likely to have a significant 
budgetary impact on any State, local, or tribal government, or likely 
to have a significant financial impact on the private sector, including 
any legislative proposal submitted by the executive branch likely to 
have such a budgetary or financial impact, shall include that 
information in its views and estimates on that proposal to the 
Committee on the Budget of the applicable House pursuant to section 
301(d).
    ``(d) Views of Committees.--Any committee of the House of 
Representatives or the Senate which anticipates that the committee will 
consider any proposed legislation establishing, amending, or 
reauthorizing any Federal program likely to have a significant 
budgetary impact on the States, local governments, or tribal 
governments, or likely to have a significant financial impact on the 
private sector, including any legislative proposal submitted by the 
executive branch likely to have such a budgetary or financial impact, 
shall provide its views and estimates on such proposal to the Committee 
on the Budget of its House.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Congressional Budget Office to carry out this part 
$4,500,000 for each of fiscal years 1996 through 2002.

``SEC. 425. POINT OF ORDER.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider--
            ``(1) any bill or joint resolution that is reported by a 
        committee unless the committee has published the statement of 
        the Director pursuant to section 424(a) prior to such 
        consideration, except that this paragraph shall not apply to 
        any supplemental statement prepared by the Director under 
        section 424(a)(4); or
            ``(2) any bill, joint resolution, amendment, motion, or 
        conference report that contains a Federal intergovernmental 
        mandate having direct costs that exceed the threshold specified 
        in section 424(a)(1)(A), or that would cause the direct costs 
        of any other Federal intergovernmental mandate to exceed the 
        threshold specified in section 424(a)(1)(A), unless--
                    ``(A) the bill, joint resolution, amendment, 
                motion, or conference report provides new budget 
                authority or new entitlement authority in the House of 
                Representatives or direct spending authority in the 
                Senate for each fiscal year for the Federal 
                intergovernmental mandates included in the bill, joint 
                resolution, amendment, motion, or conference report in 
                an amount that equals or exceeds the estimated direct 
                costs of such mandate; or
                    ``(B) the bill, joint resolution, amendment, 
                motion, or conference report provides an increase in 
                receipts or a decrease in new budget authority or new 
                entitlement authority in the House of Representatives 
                or direct spending authority in the Senate and an 
                increase in new budget authority or new entitlement 
                authority in the House of Representatives or an 
                increase direct spending authority for each fiscal year 
                for the Federal intergovernmental mandates included in 
                the bill, joint resolution, amendment, motion, or 
                conference report in an amount that equals or exceeds 
                the estimated direct costs of such mandate; or
                    ``(C) the bill, joint resolution, amendment, 
                motion, or conference report--
                            ``(i) provides that--
                                    ``(I) such mandate shall be 
                                effective for any fiscal year only if 
                                all direct costs of such mandate in the 
                                fiscal year are provided in 
                                appropriations Acts, and
                                    ``(II) in the case of such a 
                                mandate contained in the bill, joint 
                                resolution, amendment, motion, or 
                                conference report, the mandate is 
                                repealed effective on the first day of 
                                any fiscal year for which all direct 
                                costs of such mandate are not provided 
                                in appropriations Acts; or
                            ``(ii) requires a Federal agency to reduce 
                        programmatic and financial responsibilities of 
                        State, local, and tribal governments for 
                        meeting the objectives of the mandate such that 
                        the estimated direct costs of the mandate to 
                        such governments do not exceed the amount of 
                        Federal funding provided to those governments 
                        to carry out the mandate in the form of 
                        appropriations or new budget authority or new 
                        entitlement authority in the House of 
                        Representatives or direct spending authority in 
                        the Senate, and establishes criteria and 
                        procedures for that reduction.
    ``(b) Limitation on Application to Appropriations Bills.--
Subsection (a) shall not apply to a bill that is reported by the 
Committee on Appropriations or an amendment thereto.
    ``(c) Determination of Direct Costs Based on Estimates by Budget 
Committees.--For the purposes of this section, the amount of direct 
costs of a Federal mandate for a fiscal year shall be determined based 
on estimates made by the Committee on the Budget, in consultation with 
the Director, of the House of Representatives or the Senate, as the 
case may be.
    ``(d) Determination of Existence of Federal Mandate by Government 
Reform and Oversight and Governmental Affairs Committees.--For the 
purposes of this section, the Committee on Government Reform and 
Oversight of the House of Representatives or the Committee on 
Governmental Affairs of the Senate, as applicable, shall have the 
authority to make final determinations of whether a bill, joint 
resolution, amendment, motion, or conference report contains a Federal 
intergovernmental mandate.

``SEC. 426. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

    ``It shall not be in order in the House of Representatives to 
consider a rule or order that waives the application of section 425(a) 
to a bill or joint resolution reported by a committee of 
authorization.''.

SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

    (a) Motions To Strike in the Committee of the Whole.--Clause 5 of 
rule XXIII of the Rules of the House of Representatives is amended by 
adding at the end the following:
    ``(c) In the consideration of any measure for amendment in the 
Committee of the Whole containing any Federal mandate the direct costs 
of which exceed the threshold in section 424(a)(1)(A) of the Unfunded 
Mandate Reform Act of 1995, it shall always be in order, unless 
specifically waived by terms of a rule governing consideration of that 
measure, to move to strike such Federal mandate from the portion of the 
bill then open to amendment.''.
    (b) Committee on Rules Reports on Waived Points of Order.--The 
Committee on Rules shall include in the report required by clause 1(d) 
of Rule XI (relating to its activities during the Congress) of the 
Rules of the House of Representatives a separate item identifying all 
waivers of points of order relating to Federal mandates, listed by bill 
or joint resolution number and the subject matter of that measure.

SEC. 303. EXERCISE OF RULEMAKING POWERS.

    The provisions of this title (except section 305) are enacted by 
Congress--
            (1) as an exercise of the rulemaking powers of the House of 
        Representatives and the Senate, and as such they shall be 
        considered as part of the rules of the House of Representatives 
        and the Senate, respectively, and such rules shall supersede 
        other rules only to the extent that they are inconsistent 
        therewith; and
            (2) with full recognition of the constitutional right of 
        the House of Representatives and the Senate to change such 
        rules at anytime, in the same manner, and to the same extent as 
        in the case of any other rule of the House of Representatives 
        or the Senate, respectively.

SEC. 304. CONFORMING AMEMDMENT TO TABLE OF CONTENTS.

    Section 1(b) of the Congressional Budget and Impoundment Control 
Act of 1974 is amended by inserting ``Part A--General Provisions'' 
before the item relating to section 401 and by inserting after the item 
relating to section 407 the following:

                       ``Part B--Federal Mandates

``Sec. 421. Definitions.
``Sec. 422. Limitation on application.
``Sec. 423. Duties of congressional committees.
``Sec. 424. Duties of the Director.
``Sec. 425. Point of order.
``Sec. 426. Enforcement in the House of Representatives.''.

SEC. 305. TECHNICAL AMENDMENT.

    The State and Local Government Cost Estimate Act of 1981 (Public 
Law 97-108) is repealed.

SEC. 306. EFFECTIVE DATE.

    This title shall take effect on October 1, 1995.
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