[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 169 Placed on Calendar Senate (PCS)]






                                                        Calendar No. 13
104th CONGRESS
  1st Session
                                 S. 169

 To curb the practice of imposing unfunded Federal mandates on States 
   and local governments; to strengthen the partnership between the 
Federal Government and State, local and tribal governments; to end the 
   imposition, in the absence of full consideration by Congress, of 
   Federal mandates on State, local, and tribal governments without 
    adequate funding, in a manner that may displace other essential 
governmental priorities; and to ensure that the Federal Government pays 
   the costs incurred by those governments in complying with certain 
  requirements under Federal statutes and regulations; and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 5, 1995

Mr. Grassley (for Mr. Kempthorne) introduced the following bill; which 
                        was read the first time

                            January 9, 1995

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To curb the practice of imposing unfunded Federal mandates on States 
   and local governments; to strengthen the partnership between the 
Federal Government and State, local and tribal governments; to end the 
   imposition, in the absence of full consideration by Congress, of 
   Federal mandates on State, local, and tribal governments without 
    adequate funding, in a manner that may displace other essential 
governmental priorities; and to ensure that the Federal Government pays 
   the costs incurred by those governments in complying with certain 
  requirements under Federal statutes and regulations; 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 without adequate Federal 
        funding, 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 the 
                House of Representatives before the Senate and the 
                House of Representatives vote on proposed legislation;
            (4) to promote informed and deliberate decisions by 
        Congress on the appropriateness of Federal mandates in any 
        particular instance;
            (5) to require that Congress consider whether to provide 
        funding to assist State, local, and tribal governments in 
        complying with Federal mandates, to require analyses of the 
        impact of private sector mandates, and through the 
        dissemination of that information provide informed and 
        deliberate decisions by Congress and Federal agencies and 
        retain competitive balance between the public and private 
        sectors;
            (6) to establish a point-of-order vote on the consideration 
        in the Senate and House of Representatives of legislation 
        containing significant Federal mandates; and
            (7) 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.

SEC. 3. DEFINITIONS.

    (a) In General.--For purposes of this Act--
            (1) the terms defined under paragraphs (11) through (21) of 
        section 3 of the Congressional Budget and Impoundment Control 
        Act of 1974 (as added by subsection (b) of this section) shall 
        have the meanings as so defined; and
            (2) the term ``Director'' means the Director of the 
        Congressional Budget Office.
    (b) Congressional Budget and Impoundment Control Act of 1974.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end thereof the following new 
paragraphs:
            ``(11) 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 the 
                provision--
                            ``(i)(I) 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.
            ``(12) The term `Federal private sector mandate' means any 
        provision in legislation, statute, or regulation that--
                    ``(A) would impose an enforceable duty upon 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 purposes of ensuring compliance with such duty.
            ``(13) The term `Federal mandate' means a Federal 
        intergovernmental mandate or a Federal private sector mandate, 
        as defined in paragraphs (11) and (12).
            ``(14) The terms `Federal mandate direct costs' and `direct 
        costs'--
                    ``(A)(i) in the case of a Federal intergovernmental 
                mandate, mean the aggregate estimated amounts that all 
                States, local governments, and tribal governments would 
                be required to spend in order to comply with the 
                Federal intergovernmental mandate; or
                    ``(ii) in the case of a provision referred to in 
                paragraph (11)(A)(ii), mean the amount of Federal 
                financial assistance eliminated or reduced.
                    ``(B) in the case of a Federal private sector 
                mandate, mean the aggregate estimated amounts that the 
                private sector will be required to spend in order to 
                comply with the Federal private sector mandate;
                    ``(C) shall 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 
                                the 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 
                                the Federal mandate for the same 
                                activity as is affected by that 
                                mandate; or
                            ``(ii) expenditures to the extent that such 
                        expenditures will be offset by any direct 
                        savings to the States, local governments, and 
                        tribal governments, or by the private sector, 
                        as a result of--
                                    ``(I) 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; and
                    ``(D) shall be determined on the assumption that 
                State, local, and 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.
            ``(15) The term `amount' means the amount of budget 
        authority for any Federal grant assistance program or any 
        Federal program providing loan guarantees or direct loans.
            ``(16) The term `private sector' means individuals, 
        partnerships, associations, corporations, business trusts, or 
        legal representatives, organized groups of individuals, and 
        educational and other nonprofit institutions.
            ``(17) The term `local government' has the same meaning as 
        in section 6501(6) of title 31, United States Code.
            ``(18) The term `tribal government' means any Indian tribe, 
        band, nation, or other organized group or community, including 
        any Alaska Native village or regional or village corporation as 
        defined in or established pursuant to the Alaska Native Claims 
        Settlement Act (83 Stat. 688; 43 U.S.C. 1601 et seq.) which is 
        recognized as eligible for the special programs and services 
        provided by the United States to Indians because of their 
        special status as Indians.
            ``(19) The term `small government' means any small 
        governmental jurisdictions defined in section 601(5) of title 
        5, United States Code, and any tribal government.
            ``(20) The term `State' has the same meaning as in section 
        6501(9) of title 31, United State Code.''
            ``(21) The term `agency' has the meaning as defined in 
        section 551(1) of title 5, United States Code, but does not 
        include independent regulatory agencies, as defined in section 
        3502(10) of title 44, United States Code.
            ``(22) The term `regulation' or `rule' has the meaning of 
        ``rule'' as defined in section 601(2) of title 5, United States 
        Code.''.

SEC. 4. EXCLUSIONS.

    The provisions of this Act and the amendments made by this Act 
shall not apply to any provision in a bill or joint resolution before 
Congress and any provision in 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 United States Government;
            (4) provides for emergency assistance or relief at the 
        request of any State, local, or tribal government or any 
        official of a State, local, or tribal 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. 5. AGENCY ASSISTANCE.

    Each agency shall provide to the Director of the Congressional 
Budget Office such information and assistance as the Director may 
reasonably request to assist the Director in carrying out this Act.

             TITLE I--LEGISLATIVE ACCOUNTABILITY AND REFORM

SEC. 101. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM .

    (a) In General.--Title IV of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by adding at the end thereof 
the following new section:

``SEC. 408. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM .

    ``(a) Duties of Congressional Committees.--
            ``(1) In general.--When a committee of authorization of the 
        Senate or the House of Representatives reports a bill or joint 
        resolution of public character that includes any Federal 
        mandate, the report of the committee accompanying the bill or 
        joint resolution shall contain the information required by 
        paragraphs (3) and (4).
            ``(2) Submission of bills to the director.--When a 
        committee of authorization of the Senate or the House of 
        Representatives orders reported a bill or joint resolution of a 
        public character, the committee shall promptly provide the bill 
        or joint resolution to the Director of the Congressional Budget 
        Office and shall identify to the Director any Federal mandates 
        contained in the bill or resolution.
            ``(3) Reports on federal mandates.--Each report described 
        under paragraph (1) shall contain--
                    ``(A) an identification and description of any 
                Federal mandates in the bill or joint resolution, 
                including the expected direct costs to State, local, 
                and tribal governments, and to the private sector, 
                required to comply with the Federal mandates;
                    ``(B) a qualitative, and if practicable, a 
                quantitative assessment of costs and benefits 
                anticipated from the Federal mandates (including the 
                effects on health and safety and the protection of the 
                natural environment); and
                    ``(C) a statement of the degree to which a Federal 
                mandate affects both the public and private sectors and 
                the extent to which Federal payment of public sector 
                costs would affect the competitive balance between 
                State, local, or tribal governments and privately owned 
                businesses.
            ``(4) Intergovernmental mandates.--If any of the Federal 
        mandates in the bill or joint resolution are Federal 
        intergovernmental mandates, the report required under 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 of authorization of appropriations for new Federal 
                financial assistance, provided by the bill or joint 
                resolution and usable for activities of State, local, 
                or tribal governments subject to the 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) any existing sources of Federal assistance in 
                addition to those identified in subparagraph (A) that 
                may assist State, local, and tribal governments in 
                meeting the direct costs of the Federal 
                intergovernmental mandates.
            ``(5) Preemption clarification and information.--When a 
        committee of authorization of the Senate or the House of 
        Representatives reports a bill or joint resolution of 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 the extent to which the 
        bill or joint resolution preempts any State, local, or tribal 
        law, and, if so, an explanation of the reasons for such 
        preemption.
            ``(6) Publication of statement from the director.--
                    ``(A) Upon receiving a statement (including any 
                supplemental statement) from the Director under 
                subsection (b)(1), a committee of the Senate or the 
                House of Representatives shall publish the statement in 
                the committee report accompanying the bill or joint 
                resolution to which the statement relates if the 
                statement is available at the time the report is 
                printed.
                    ``(B) 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 
                Senate or the House of Representatives 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.
    ``(b) Duties of the Director.--
            ``(1) Statements on bills and joint resolutions other than 
        appropriations bills and joint resolutions.--
                    ``(A) 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 Senate or the House 
                of Representatives, the Director of the Congressional 
                Budget Office shall prepare and submit to the committee 
                a statement as follows:
                            ``(i) 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 any 
                        Federal intergovernmental 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.
                            ``(ii) The estimate required under clause 
                        (i) 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 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 State, local, or tribal 
                                governments for activities subject to 
                                the Federal intergovernmental mandates.
                    ``(B) Federal private sector mandates in reported 
                bills and joint resolutions.--For each bill or joint 
                resolution of a public character reported by any 
                committees of authorization of the Senate or the House 
                of Representatives, the Director of the Congressional 
                Budget Office shall prepare and submit to the committee 
                a statement as follows:
                            ``(i) If the Director estimates that the 
                        direct cost of all Federal private sector 
                        mandates in the bill or joint resolution will 
                        equal or exceed $200,000,000 (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.
                            ``(ii) Estimates required under this 
                        subparagraph shall include estimates (and a 
                        brief explanation 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.
                            ``(iii) If the Director determines that it 
                        is not feasible to make a reasonable estimate 
                        that would be required under clauses (i) and 
                        (ii), 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.
                    ``(C) 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 
                thresholds specified in paragraphs (A) and (B), the 
                Director shall so state and shall briefly explain the 
                basis of the estimate.
    ``(c) Legislation Subject to Point of Order in the Senate.--
            ``(1) In general.--It shall not be in order in the Senate 
        to consider--
                    ``(A) any bill or joint resolution that is reported 
                by a committee unless the committee has published a 
                statement of the Director on the direct costs of 
                Federal mandates in accordance with subsection (a)(6) 
                before such consideration; and
                    ``(B) any bill, joint resolution, amendment, 
                motion, or conference report that would increase the 
                direct costs of Federal intergovernmental mandates by 
                an amount that causes the thresholds specified in 
                subsection (b)(1)(A)(i) to be exceeded, unless--
                            ``(i) the bill, joint resolution, 
                        amendment, motion, or conference report 
                        provides 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 is equal to the 
                        estimated direct costs of such mandate;
                            ``(ii) the bill, joint resolution, 
                        amendment, motion, or conference report 
                        provides an increase in receipts and an 
                        increase in 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 equal to the estimated 
                        direct costs of such mandate; or
                            ``(iii) the bill, joint resolution, 
                        amendment, motion, or conference report 
                        includes an authorization for appropriations in 
                        an amount equal to the estimated direct costs 
                        of such mandate, and--
                                    ``(I) identifies a specific dollar 
                                amount estimate of the full direct 
                                costs of the mandate for each year or 
                                other period during which the mandate 
                                shall be in effect under the bill, 
                                joint resolution, amendment, motion or 
                                conference report, and such estimate is 
                                consistent with the estimate determined 
                                under paragraph (3) for each fiscal 
                                year;
                                    ``(II) identifies any appropriation 
                                bill that is expected to provide for 
                                Federal funding of the direct cost 
                                referred to under subclause (IV)(aa);
                                    ``(III) identifies the minimum 
                                amount that must be appropriated in 
                                each appropriations bill referred to in 
                                subclause (II), in order to provide for 
                                full Federal funding of the direct 
                                costs referred to in subclause (I); and
                                    ``(IV)(aa) designates a responsible 
                                Federal agency and establishes criteria 
                                and procedures under which such agency 
                                shall implement less costly 
                                programmatic and financial 
                                responsibilities of State, local, and 
                                tribal governments in meeting the 
                                objectives of the mandate, to the 
                                extent that an appropriation Act does 
                                not provide for the estimated direct 
                                costs of such mandate as set forth 
                                under subclause (III); or
                                    ``(bb) designates a responsible 
                                Federal agency and establishes criteria 
                                and procedures to direct that, if an 
                                appropriation Act does not provide for 
                                the estimated direct costs of such 
                                mandate as set forth under subclause 
                                (III), such agency shall declare such 
                                mandate to be ineffective as of October 
                                1 of the fiscal year for which the 
                                appropriation is not at least equal to 
                                the direct costs of the mandate.
            ``(2) Rule of construction.--The provisions of paragraph 
        (1)(B)(iii)(IV)(aa) shall not be construed to prohibit or 
        otherwise restrict a State, local, or tribal government from 
        voluntarily electing to remain subject to the original Federal 
        intergovernmental mandate, complying with the programmatic or 
        financial responsibilities of the original Federal 
        intergovernmental mandate and providing the funding necessary 
        consistent with the costs of Federal agency assistance, 
        monitoring, and enforcement.
            ``(3) Committee on appropriations.--Paragraph (1) shall not 
        apply to matters that are within the jurisdiction of the 
        Committee on Appropriations of the Senate or the House of 
        Representatives.
            ``(4) Determination of applicability to pending 
        legislation.--For purposes of this subsection, on questions 
        regarding the applicability of this Act to a pending bill, 
        joint resolution, amendment, motion, or conference report, the 
        Committee on Governmental Affairs of the Senate, or the 
        Committee on Government Reform and Oversight of the House of 
        Representatives, as applicable, shall have the authority to 
        make the final determination.
            ``(5) Determinations of federal mandate levels.--For the 
        purposes of this subsection, the levels of Federal mandates for 
        a fiscal year shall be determined based on the estimates made 
        by the Committee on the Budget of the Senate or the House of 
        Representatives, as the case may be.
    ``(d) 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 subsection (c) to a bill or joint 
resolution reported by a committee of authorization.''.
    (b) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding after the item relating to section 407 the 
following new item:

        ``Sec. 408. Legislative mandate accountability and reform.''.

SEC. 102. 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 408(c) 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. 103. ASSISTANCE TO COMMITTEES AND STUDIES.

    The Congressional Budget and Impoundment Control Act of 1974 is 
amended--
            (1) in section 202--
                    (A) in subsection (c)--
                            (i) by redesignating paragraph (2) as 
                        paragraph (3); and
                            (ii) by inserting after paragraph (1) the 
                        following new paragraph:
            ``(2) At the request of any committee of the Senate or the 
        House of Representatives, the Office 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.'';
                    (B) by amending subsection (h) to read as follows:
    ``(h) Studies.--
            ``(1) Continuing studies.--The Director of the 
        Congressional Budget Office shall conduct continuing studies to 
        enhance comparisons of budget outlays, credit authority, and 
        tax expenditures.
            ``(2) Federal mandate studies.--
                    ``(A) At the request of any Chairman or ranking 
                member of the minority of a Committee of the Senate or 
                the House of Representatives, the Director shall, to 
                the extent practicable, conduct a study of a Federal 
                mandate legislative proposal.
                    ``(B) In conducting a study on intergovernmental 
                mandates under subparagraph (A), the Director shall--
                            ``(i) solicit and consider information or 
                        comments from elected officials (including 
                        their designated representatives) of State, 
                        local, or tribal governments as may provide 
                        helpful information or comments;
                            ``(ii) consider establishing advisory 
                        panels of elected officials or their designated 
                        representatives, of State, local, or tribal 
                        governments if the Director determines that 
                        such advisory panels would be helpful in 
                        performing responsibilities of the Director 
                        under this section; and
                            ``(iii) if, and to the extent that the 
                        Director determines that accurate estimates are 
                        reasonably feasible, include estimates of--
                                    ``(I) the future direct cost of the 
                                Federal mandate to the extent that such 
                                costs significantly differ from or 
                                extend beyond the 5-year period after 
                                the mandate is first effective; and
                                    ``(II) any disproportionate 
                                budgetary effects of Federal mandates 
                                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 time 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.''; and
            (2) in section 301(d) by adding at the end thereof the 
        following new sentence: ``Any Committee of the House of 
        Representatives or the Senate that anticipates that the 
        committee 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 its views and 
        estimates on that proposal to the Committee on the Budget of 
        the applicable House.''.

SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Congressional Budget 
Office $4,500,000 for each of the fiscal years 1996, 1997, 1998, 1999, 
2000, 2001, and 2002 to carry out the provisions of this Act.

SEC. 105. EXERCISE OF RULEMAKING POWERS.

    The provisions of sections 101, 102, 103, 104, and 107 are enacted 
by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and as such 
        they shall be considered as part of the rules of such House, 
        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 
        either House to change such rules (so far as relating to such 
        House) at any time, in the same manner, and to the same extent 
        as in the case of any other rule of each House.

SEC. 106. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.

    (a) In General.--Section 403 of the Congressional Budget Act of 
1974 (2 U.S.C. 653) is repealed.
    (b) Technical and Conforming Amendment.--The table of contents in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by striking out the item relating to section 403.

SEC. 107. EFFECTIVE DATE.

    This title shall take effect on January 1, 1996 and shall apply 
only to legislation introduced on and after such date.

             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

SEC. 201. REGULATORY PROCESS.

    (a) In General.--Each agency shall, to the extent permitted in 
law--
            (1) assess the effects of Federal regulations on State, 
        local, and tribal governments (other than to the extent that 
        such regulations incorporate requirements specifically set 
        forth in legislation), and the private sector including 
        specifically the availability of resources to carry out any 
        Federal intergovernmental mandates in those regulations; and
            (2) seek to minimize those burdens that uniquely or 
        significantly affect such governmental entities, consistent 
        with achieving statutory and regulatory objectives.
    (b) State, Local, and Tribal Government Input.--Each agency shall, 
to the extent permitted in law, develop an effective process to permit 
elected officials (or their designated representatives) of State, 
local, and tribal governments to provide meaningful and timely input in 
the development of regulatory proposals containing significant Federal 
intergovernmental mandates. Such a process shall be consistent with all 
applicable laws.
    (c) Agency Plan.--
            (1) Effects on state, local and tribal governments.--Before 
        establishing any regulatory requirements that might 
        significantly or uniquely affect small governments, agencies 
        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 under subsection (b); and
                    (C) inform, educate, and advise small governments 
                on compliance with the requirements.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to each agency to carry out the provisions 
        of this section, and for no other purpose, such sums as are 
        necessary.

SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.

    (a) In General.--Before promulgating any final rule that includes 
any Federal intergovernmental mandate that may result in the 
expenditure by State, local, or tribal governments, and the private 
sector, in the aggregate, of $100,000,000 or more (adjusted annually 
for inflation by the Consumer Price Index) 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 State, local, and tribal 
        governments and the private sector of complying with the 
        Federal intergovernmental mandate, 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 
                intergovernmental mandate; and
                    (B) any disproportionate budgetary effects of the 
                Federal intergovernmental mandate upon any particular 
                regions of the Nation or particular State, local, or 
                tribal governments, urban or rural or other types of 
                communities;
            (3) a qualitative, and if possible, a quantitative 
        assessment of costs and benefits anticipated from the Federal 
        intergovernmental mandate (such as the enhancement of health 
        and safety and the protection of the natural environment);
            (4) the effect of the Federal private sector mandate 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; and
            (5)(A) a description of the extent of the agency's prior 
        consultation with elected representatives (or their designated 
        representatives) of the affected State, local, and tribal 
        governments;
            (B) a summary of the comments and concerns that were 
        presented by State, local, or tribal governments either orally 
        or in writing to the agency;
            (C) a summary of the agency's evaluation of those comments 
        and concerns; and
            (D) the agency's position supporting the need to issue the 
        regulation containing the Federal intergovernmental 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 under subsection (a) in conjunction 
with or as a part of any other statement or analysis, provided that 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 such statements 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 a combination thereof.

             TITLE III--REVIEW OF UNFUNDED FEDERAL MANDATES

SEC. 301. 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. 302. 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 
        local, State, and Federal government objectives and 
        responsibilities; and
            (2) make recommendations to the President and the Congress 
        regarding--
                    (A) allowing flexibility for States, 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 States, 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 States, local, and tribal 
                governments with those mandates; and
                    (F) establishing common Federal definitions or 
                standards to be used by States, 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 subtitle, 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. 303. MEMBERSHIP.

    (a) Number and Appointment.--
            (1) In general.--The Commission shall be composed of 9 
        members appointed from individuals who possess extensive 
        leadership experience in and knowledge of States, local, and 
        tribal governments and intergovernmental relations, including 
        State and local elected officials, as follows:
                    (A) 3 members appointed by the Speaker of the House 
                of Representatives, in consultation with the minority 
                leader of the House of Representatives.
                    (B) 3 members appointed by the majority leader of 
                the Senate, in consultation with the minority leader of 
                the Senate.
                    (C) 3 members appointed by the President.
            (2) Limitation.--An individual who is a Member or employee 
        of the Congress may not be appointed or serve as a member of 
        the Commission.
    (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. 304. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

    (a) Director.--The Commission shall, without regard to section 
5311(b) of title 5, United States Code, 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. 305. 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. 306. TERMINATION.

    The Commission shall terminate 90 days after submitting its final 
report pursuant to section 302(d).

SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 308. DEFINITION.

    As used in this title, the term ``unfunded Federal mandate'' 
means--
            (1) 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;
            (2) relates to a Federal program under which Federal 
        financial assistance is provided to States, local governments, 
        or tribal governments under entitlement authority; or
            (3) that imposes any other unfunded obligation on States, 
        local governments, or tribal governments.

SEC. 309. EFFECTIVE DATE.

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

                       TITLE IV--JUDICIAL REVIEW

SEC. 401. JUDICIAL REVIEW.

    (a) In General.--Any statement or report prepared under this Act, 
and any compliance or noncompliance with the provisions of this Act, 
and any determination concerning the applicability of the provisions of 
this Act shall not be subject to judicial review.
    (b) Rule of Construction.--No provision of this Act or amendment 
made by this Act shall be construed to create any right or benefit, 
substantive or procedural, enforceable by any person in any 
administrative or judicial action. No ruling or determination made 
under the provisions of this Act or amendments made by this Act shall 
be considered by any court in determining the intent of Congress or for 
any other purpose.
S 169 PCS----2
S 169 PCS----3
S 169 PCS----4
                                     





                                                        Calendar No. 13

104th CONGRESS

  1st Session

                                 S. 169

_______________________________________________________________________

                                 A BILL

 To curb the practice of imposing unfunded Federal mandates on States 
   and local governments; to strengthen the partnership between the 
Federal Government and State, local and tribal governments; to end the 
   imposition, in the absence of full consideration by Congress, of 
   Federal mandates on State, local, and tribal governments without 
    adequate funding, in a manner that may displace other essential 
governmental priorities; and to ensure that the Federal Government pays 
   the costs incurred by those governments in complying with certain 
  requirements under Federal statutes and regulations; and for other 
                               purposes.

_______________________________________________________________________

                            January 9, 1995

            Read the second time and placed on the calendar