[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1 Enrolled Bill (ENR)]

        S.1

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
  the fourth day of January, one thousand nine hundred and ninety-five


                                 An Act


 
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 Mandates Reform Act of 
1995''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
        (1) to strengthen the partnership between the Federal 
    Government and State, local, and tribal governments;
        (2) to end the imposition, in the absence of full consideration 
    by Congress, of Federal mandates on State, local, 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 State, local, and 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 intergovernmental mandates without providing 
    adequate funding to comply with such mandates;
        (7) to assist Federal agencies in their consideration of 
    proposed regulations affecting State, local, and tribal 
    governments, by--
            (A) requiring that Federal agencies develop a process to 
        enable the elected and other officials of State, local, and 
        tribal governments to provide input when Federal agencies are 
        developing regulations; and
            (B) requiring that Federal agencies prepare and consider 
        estimates of the budgetary impact of regulations containing 
        Federal mandates upon State, local, and tribal governments and 
        the private sector before adopting such regulations, and 
        ensuring that small governments are given special consideration 
        in that process; and
        (8) to begin consideration of the effect of previously imposed 
    Federal mandates, including the impact on State, local, and tribal 
    governments of Federal court interpretations of Federal statutes 
    and regulations that impose Federal intergovernmental mandates.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
        (1) except as provided in section 305 of this Act, the terms 
    defined under section 421 of the Congressional Budget and 
    Impoundment Control Act of 1974 (as added by section 101 of this 
    Act) shall have the meanings as so defined; and
        (2) the term ``Director'' means the Director of the 
    Congressional Budget Office.

SEC. 4. EXCLUSIONS.

    This Act shall not apply to any provision in a bill, joint 
resolution, amendment, motion, or conference report 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, color, religion, sex, national 
    origin, age, handicap, or disability;
        (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, 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;
        (6) the President designates as emergency legislation and that 
    the Congress so designates in statute; or
        (7) relates to the old-age, survivors, and disability insurance 
    program under title II of the Social Security Act (including taxes 
    imposed by sections 3101(a) and 3111(a) of the Internal Revenue 
    Code of 1986 (relating to old-age, survivors, and disability 
    insurance)).

SEC. 5. AGENCY ASSISTANCE.

    Each agency shall provide to the Director 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--
        (1) inserting before section 401 the following:

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

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

                       ``Part B--Federal Mandates

``SEC. 421. DEFINITIONS.

    ``For purposes of this part:
        ``(1) Agency.--The term `agency' has the same meaning as 
    defined in section 551(1) of title 5, United States Code, but does 
    not include independent regulatory agencies.
        ``(2) Amount.--The term `amount', with respect to an 
    authorization of appropriations for Federal financial assistance, 
    means the amount of budget authority for any Federal grant 
    assistance program or any Federal program providing loan guarantees 
    or direct loans.
        ``(3) Direct costs.--The term `direct costs'--
            ``(A)(i) in the case of a Federal intergovernmental 
        mandate, means the aggregate estimated amounts that all State, 
        local, and tribal governments would be required to spend or 
        would be prohibited from raising in revenues in order to comply 
        with the Federal intergovernmental mandate; or
            ``(ii) in the case of a provision referred to in paragraph 
        (5)(A)(ii), means the amount of Federal financial assistance 
        eliminated or reduced;
            ``(B) in the case of a Federal private sector mandate, 
        means 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 be determined on the assumption that--
                ``(i) 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; and
                ``(ii) reasonable steps to mitigate the costs shall not 
            include increases in State, local, or tribal taxes or fees; 
            and
            ``(D) shall not include--
                ``(i) estimated amounts that the State, local, 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, 
                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 
            State, local, 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.

        ``(4) Direct savings.--The term `direct savings', when used 
    with respect to the result of compliance with the Federal mandate--
            ``(A) in the case of a Federal intergovernmental mandate, 
        means the aggregate estimated reduction in costs to any State, 
        local, or tribal government as a result of compliance with the 
        Federal intergovernmental mandate; and
            ``(B) in the case of a Federal private sector mandate, 
        means the aggregate estimated reduction in costs to the private 
        sector as a result of compliance with the Federal private 
        sector mandate.
        ``(5) 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 State, 
            local, 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--

                    ``(I) Federal financial assistance that would be 
                provided to State, local, 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
                    ``(II) the control of borders by the Federal 
                Government; or reimbursement to State, local, or tribal 
                governments for the net cost associated with illegal, 
                deportable, and excludable aliens, including court-
                mandated expenses related to emergency health care, 
                education or criminal justice; when such a reduction or 
                elimination would result in increased net costs to 
                State, local, or tribal governments in providing 
                education or emergency health care to, or incarceration 
                of, illegal aliens; except that this subclause shall 
                not be in effect with respect to a State, local, or 
                tribal government, to the extent that such government 
                has not fully cooperated in the efforts of the Federal 
                Government to locate, apprehend, and deport illegal 
                aliens;

            ``(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 State, local, and 
        tribal governments under entitlement authority, if the 
        provision--
                ``(i)(I) would increase the stringency of conditions of 
            assistance to State, local, or tribal governments under the 
            program; or
                ``(II) would place caps upon, or otherwise decrease, 
            the Federal Government's responsibility to provide funding 
            to State, local, or tribal governments under the program; 
            and
                ``(ii) the State, local, 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.
        ``(6) Federal mandate.--The term `Federal mandate' means a 
    Federal intergovernmental mandate or a Federal private sector 
    mandate, as defined in paragraphs (5) and (7).
        ``(7) 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 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.
        ``(8) Local government.--The term `local government' has the 
    same meaning as defined in section 6501(6) of title 31, United 
    States Code.
        ``(9) Private sector.--The term `private sector' means all 
    persons or entities in the United States, including individuals, 
    partnerships, associations, corporations, and educational and 
    nonprofit institutions, but shall not include State, local, or 
    tribal governments.
        ``(10) Regulation; rule.--The term `regulation' or `rule' 
    (except with respect to a rule of either House of the Congress) has 
    the meaning of `rule' as defined in section 601(2) of title 5, 
    United States Code.
        ``(11) Small government.--The term `small government' means any 
    small governmental jurisdictions defined in section 601(5) of title 
    5, United States Code, and any tribal government.
        ``(12) State.--The term `State' has the same meaning as defined 
    in section 6501(9) of title 31, United States Code.
        ``(13) Tribal government.--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 (85 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.

``SEC. 422. EXCLUSIONS.

    ``This part shall not apply to any provision in a bill, joint 
resolution, amendment, motion, 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, color, religion, sex, 
    national origin, age, handicap, or disability;
        ``(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, 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;
        ``(6) the President designates as emergency legislation and 
    that the Congress so designates in statute; or
        ``(7) relates to the old-age, survivors, and disability 
    insurance program under title II of the Social Security Act 
    (including taxes imposed by sections 3101(a) and 3111(a) of the 
    Internal Revenue Code of 1986 (relating to old-age, survivors, and 
    disability insurance)).

``SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

    ``(a) 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 subsections (c) and (d).
    ``(b) 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.
    ``(c) Reports on Federal Mandates.--Each report described under 
subsection (a) shall contain--
        ``(1) an identification and description of any Federal mandates 
    in the bill or joint resolution, including the direct costs to 
    State, local, and tribal governments, and to the private sector, 
    required to comply with the Federal mandates;
        ``(2) 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
        ``(3) 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 or the modification or 
    termination of the Federal mandate as provided under section 
    425(a)(2) would affect the competitive balance between State, 
    local, or tribal governments and the private sector including a 
    description of the actions, if any, taken by the committee to avoid 
    any adverse impact on the private sector or the competitive balance 
    between the public sector and the private sector.
    ``(d) Intergovernmental Mandates.--If any of the Federal mandates 
in the bill or joint resolution are Federal intergovernmental mandates, 
the report required under subsection (a) shall also contain--
        ``(1)(A) 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;
        ``(B) 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
        ``(C) if funded in whole or in part, a statement of whether and 
    how the committee has created a mechanism to allocate the funding 
    in a manner that is reasonably consistent with the expected direct 
    costs among and between the respective levels of State, local, and 
    tribal government; and
        ``(2) any existing sources of Federal assistance in addition to 
    those identified in paragraph (1) that may assist State, local, and 
    tribal governments in meeting the direct costs of the Federal 
    intergovernmental mandates.
    ``(e) 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 is intended to preempt any State, 
local, or tribal law, and, if so, an explanation of the effect of such 
preemption.
    ``(f) Publication of Statement From the Director.--
        ``(1) In general.--Upon receiving a statement from the Director 
    under section 424, 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.
        ``(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 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.

``SEC. 424. DUTIES OF THE DIRECTOR; 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:
        ``(1) Contents.--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.
        ``(2) Estimates.--Estimates required under paragraph (1) shall 
    include estimates (and brief explanations of the basis of the 
    estimates) of--
            ``(A) the total amount of direct cost of complying with the 
        Federal intergovernmental mandates in the bill or joint 
        resolution;
            ``(B) if the bill or resolution contains an authorization 
        of appropriations under section 425(a)(2)(B), the amount of new 
        budget authority for each fiscal year for a period not to 
        exceed 10 years beyond the effective date necessary for the 
        direct cost of the intergovernmental mandate; and
            ``(C) 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.
        ``(3) Estimate not feasible.--If the Director determines that 
    it is not feasible to make a reasonable estimate that would be 
    required under paragraphs (1) and (2), 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. If such determination is made by 
    the Director, a point of order under this part shall lie only under 
    section 425(a)(1) and as if the requirement of section 425(a)(1) 
    had not been met.
    ``(b) 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 Senate or the House 
of Representatives, the Director of the Congressional Budget Office 
shall prepare and submit to the committee a statement as follows:
        ``(1) Contents.--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.
        ``(2) Estimates.--Estimates required under paragraph (1) shall 
    include estimates (and a brief explanation of the basis of the 
    estimates) of--
            ``(A) the total amount of direct costs of complying with 
        the Federal private sector mandates in the bill or joint 
        resolution; and
            ``(B) 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.
        ``(3) Estimate not feasible.--If the Director determines that 
    it is not feasible to make a reasonable estimate that would be 
    required under paragraphs (1) and (2), 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 subsections (a) and 
(b), the Director shall so state and shall briefly explain the basis of 
the estimate.
    ``(d) Amended Bills and Joint Resolutions; Conference Reports.--If 
a bill or joint resolution is 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 amended form, and the amended 
form contains a Federal mandate not previously considered by either 
House or which contains an increase in the direct cost of a previously 
considered Federal mandate, then the committee of conference shall 
ensure, to the greatest extent practicable, that the Director shall 
prepare a statement as provided in this subsection or a supplemental 
statement for the bill or joint resolution in that amended form.

``SEC. 425. LEGISLATION SUBJECT TO POINT OF ORDER.

    ``(a) In General.--It shall not be in order in the Senate or the 
House of Representatives to consider--
        ``(1) 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 
    section 423(f) before such consideration, except this paragraph 
    shall not apply to any supplemental statement prepared by the 
    Director under section 424(d); and
        ``(2) 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 section 424(a)(1) to be exceeded, 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 such 
        mandates included in the bill, joint resolution, amendment, 
        motion, or conference report in an amount equal to or exceeding 
        the direct costs of such mandate; or
            ``(B) the bill, joint resolution, amendment, motion, or 
        conference report includes an authorization for appropriations 
        in an amount equal to or exceeding the direct costs of such 
        mandate, and--
                ``(i) identifies a specific dollar amount of the direct 
            costs of such mandate for each year up to 10 years during 
            which such 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 subsection (e) for each fiscal year;
                ``(ii) identifies any appropriation bill that is 
            expected to provide for Federal funding of the direct cost 
            referred to under clause (i); and
                ``(iii)(I) provides that for any fiscal year the 
            responsible Federal agency shall determine whether there 
            are insufficient appropriations for that fiscal year to 
            provide for the direct costs under clause (i) of such 
            mandate, and shall (no later than 30 days after the 
            beginning of the fiscal year) notify the appropriate 
            authorizing committees of Congress of the determination and 
            submit either--

                    ``(aa) a statement that the agency has determined, 
                based on a re-estimate of the direct costs of such 
                mandate, after consultation with State, local, and 
                tribal governments, that the amount appropriated is 
                sufficient to pay for the direct costs of such mandate; 
                or
                    ``(bb) legislative recommendations for either 
                implementing a less costly mandate or making such 
                mandate ineffective for the fiscal year;

                ``(II) provides for expedited procedures for the 
            consideration of the statement or legislative 
            recommendations referred to in subclause (I) by Congress no 
            later than 30 days after the statement or recommendations 
            are submitted to Congress; and
                ``(III) provides that such mandate shall--

                    ``(aa) in the case of a statement referred to in 
                subclause (I)(aa), cease to be effective 60 days after 
                the statement is submitted unless Congress has approved 
                the agency's determination by joint resolution during 
                the 60-day period;
                    ``(bb) cease to be effective 60 days after the date 
                the legislative recommendations of the responsible 
                Federal agency are submitted to Congress under 
                subclause (I)(bb) unless Congress provides otherwise by 
                law; or
                    ``(cc) in the case that such mandate that has not 
                yet taken effect, continue not to be effective unless 
                Congress provides otherwise by law.

    ``(b) Rule of Construction.--The provisions of subsection 
(a)(2)(B)(iii) 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.
    ``(c) Committee on Appropriations.--
        ``(1) Application.--The provisions of subsection (a)--
            ``(A) shall not apply to any bill or resolution reported by 
        the Committee on Appropriations of the Senate or the House of 
        Representatives; except
            ``(B) shall apply to--
                ``(i) any legislative provision increasing direct costs 
            of a Federal intergovernmental mandate contained in any 
            bill or resolution reported by the Committee on 
            Appropriations of the Senate or House of Representatives;
                ``(ii) any legislative provision increasing direct 
            costs of a Federal intergovernmental mandate contained in 
            any amendment offered to a bill or resolution reported by 
            the Committee on Appropriations of the Senate or House of 
            Representatives;
                ``(iii) any legislative provision increasing direct 
            costs of a Federal intergovernmental mandate in a 
            conference report accompanying a bill or resolution 
            reported by the Committee on Appropriations of the Senate 
            or House of Representatives; and
                ``(iv) any legislative provision increasing direct 
            costs of a Federal intergovernmental mandate contained in 
            any amendments in disagreement between the two Houses to 
            any bill or resolution reported by the Committee on 
            Appropriations of the Senate or House of Representatives.
        ``(2) Certain provisions stricken in senate.--Upon a point of 
    order being made by any Senator against any provision listed in 
    paragraph (1)(B), and the point of order being sustained by the 
    Chair, such specific provision shall be deemed stricken from the 
    bill, resolution, amendment, amendment in disagreement, or 
    conference report and may not be offered as an amendment from the 
    floor.
    ``(d) Determinations of Applicability to Pending Legislation.--For 
purposes of this section, in the Senate, the presiding officer of the 
Senate shall consult with the Committee on Governmental Affairs, to the 
extent practicable, on questions concerning the applicability of this 
part to a pending bill, joint resolution, amendment, motion, or 
conference report.
    ``(e) Determinations of Federal Mandate Levels.--For purposes of 
this section, in the Senate, the levels of Federal mandates for a 
fiscal year shall be determined based on the estimates made by the 
Committee on the Budget.

``SEC. 426. PROVISIONS RELATING TO THE HOUSE OF REPRESENTATIVES.

    ``(a) 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.
    ``(b) Disposition of Points of Order.--
        ``(1) Application to the house of representatives.--This 
    subsection shall apply only to the House of Representatives.
        ``(2) Threshold burden.--In order to be cognizable by the 
    Chair, a point of order under section 425 or subsection (a) of this 
    section must specify the precise language on which it is premised.
        ``(3) Question of consideration.--As disposition of points of 
    order under section 425 or subsection (a) of this section, the 
    Chair shall put the question of consideration with respect to the 
    proposition that is the subject of the points of order.
        ``(4) Debate and intervening motions.--A question of 
    consideration under this section shall be debatable for 10 minutes 
    by each Member initiating a point of order and for 10 minutes by an 
    opponent on each point of order, but shall otherwise be decided 
    without intervening motion except one that the House adjourn or 
    that the Committee of the Whole rise, as the case may be.
        ``(5) Effect on amendment in order as original text.--The 
    disposition of the question of consideration under this subsection 
    with respect to a bill or joint resolution shall be considered also 
    to determine the question of consideration under this subsection 
    with respect to an amendment made in order as original text.

``SEC. 427. REQUESTS TO THE CONGRESSIONAL BUDGET OFFICE FROM SENATORS.

    ``At the written request of a Senator, the Director shall, to the 
extent practicable, prepare an estimate of the direct costs of a 
Federal intergovernmental mandate contained in an amendment of such 
Senator.

``SEC. 428. CLARIFICATION OF APPLICATION.

    ``(a) In General.--This part applies to any bill, joint resolution, 
amendment, motion, or conference report that reauthorizes 
appropriations, or that amends existing authorizations of 
appropriations, to carry out any statute, or that otherwise amends any 
statute, only if enactment of the bill, joint resolution, amendment, 
motion, or conference report--
        ``(1) would result in a net reduction in or elimination of 
    authorization of appropriations for Federal financial assistance 
    that would be provided to State, local, or tribal governments for 
    use for the purpose of complying with any Federal intergovernmental 
    mandate, or to the private sector for use to comply with any 
    Federal private sector mandate, and would not eliminate or reduce 
    duties established by the Federal mandate by a corresponding 
    amount; or
        ``(2) would result in a net increase in the aggregate amount of 
    direct costs of Federal intergovernmental mandates or Federal 
    private sector mandates other than as described in paragraph (1).
    ``(b) Direct Costs.--
        ``(1) In general.--For purposes of this part, the direct cost 
    of the Federal mandates in a bill, joint resolution, amendment, 
    motion, or conference report that reauthorizes appropriations, or 
    that amends existing authorizations of appropriations, to carry out 
    a statute, or that otherwise amends any statute, means the net 
    increase, resulting from enactment of the bill, joint resolution, 
    amendment, motion, or conference report, in the amount described 
    under paragraph (2)(A) over the amount described under paragraph 
    (2)(B).
        ``(2) Amounts.--The amounts referred to under paragraph (1) 
    are--
            ``(A) the aggregate amount of direct costs of Federal 
        mandates that would result under the statute if the bill, joint 
        resolution, amendment, motion, or conference report is enacted; 
        and
            ``(B) the aggregate amount of direct costs of Federal 
        mandates that would result under the statute if the bill, joint 
        resolution, amendment, motion, or conference report were not 
        enacted.
        ``(3) Extension of authorization of appropriations.--For 
    purposes of this section, in the case of legislation to extend 
    authorization of appropriations, the authorization level that would 
    be provided by the extension shall be compared to the authorization 
    level for the last year in which authorization of appropriations is 
    already provided.''.
    (b) Technical and Conforming Amendments.--Section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended--
        (1) by inserting ``Part A--General Provisions'' before the item 
    relating to section 401; and
        (2) by inserting after the item relating to section 407 the 
    following:

                       ``Part B--Federal Mandates

``Sec. 421. Definitions.
``Sec. 422. Exclusions.
``Sec. 423. Duties of congressional committees.
``Sec. 424. Duties of the Director; statements on bills and joint 
          resolutions other than appropriations bills and joint 
          resolutions.
``Sec. 425. Legislation subject to point of order.
``Sec. 426. Provisions relating to the House of Representatives.
``Sec. 427. Requests to the Congressional Budget Office from Senators.
``Sec. 428. Clarification of application.''.

SEC. 102. 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;
            ``(B) a significant financial impact on the private sector; 
        or
            ``(C) a significant employment impact on the private 
        sector.''; and
            (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 legislative proposal containing a Federal 
        mandate.
            ``(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. 103. COST OF REGULATIONS.

    (a) Sense of the Congress.--It is the sense of the Congress that 
Federal agencies should review and evaluate planned regulations to 
ensure that the cost estimates provided by the Congressional Budget 
Office will be carefully considered as regulations are promulgated.
    (b) Statement of Cost.--At the request of a committee chairman or 
ranking minority member, the Director shall, to the extent practicable, 
prepare a comparison between--
        (1) an estimate by the relevant agency, prepared under section 
    202 of this Act, of the costs of regulations implementing an Act 
    containing a Federal mandate; and
        (2) the cost estimate prepared by the Congressional Budget 
    Office for such Act when it was enacted by the Congress.
    (c) Cooperation of Office of Management and Budget.--At the request 
of the Director of the Congressional Budget Office, the Director of the 
Office of Management and Budget shall provide data and cost estimates 
for regulations implementing an Act containing a Federal mandate 
covered by part B of title IV of the Congressional Budget and 
Impoundment Control Act of 1974 (as added by section 101 of this Act).

SEC. 104. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.

    Section 403 of the Congressional Budget and Impoundment Control Act 
of 1974 is amended--
        (1) in subsection (a)--
            (A) by striking out paragraph (2);
            (B) in paragraph (3) by striking out ``paragraphs (1) and 
        (2)'' and inserting in lieu thereof ``paragraph (1)''; and
            (C) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
        (2) by striking out ``(a)''; and
        (3) by striking out subsections (b) and (c).

SEC. 105. CONSIDERATION FOR FEDERAL FUNDING.

    Nothing in this Act shall preclude a State, local, or tribal 
government that already complies with all or part of the Federal 
intergovernmental mandates included in the bill, joint resolution, 
amendment, motion, or conference report from consideration for Federal 
funding under section 425(a)(2) of the Congressional Budget and 
Impoundment Control Act of 1974 (as added by section 101 of this Act) 
for the cost of the mandate, including the costs the State, local, or 
tribal government is currently paying and any additional costs 
necessary to meet the mandate.

SEC. 106. IMPACT ON LOCAL GOVERNMENTS.

    (a) Findings.--The Senate finds that--
        (1) the Congress should be concerned about shifting costs from 
    Federal to State and local authorities and should be equally 
    concerned about the growing tendency of States to shift costs to 
    local governments;
        (2) cost shifting from States to local governments has, in many 
    instances, forced local governments to raise property taxes or 
    curtail sometimes essential services; and
        (3) increases in local property taxes and cuts in essential 
    services threaten the ability of many citizens to attain and 
    maintain the American dream of owning a home in a safe, secure 
    community.
    (b) Sense of the Senate.--It is the sense of the Senate that--
        (1) the Federal Government should not shift certain costs to 
    the State, and States should end the practice of shifting costs to 
    local governments, which forces many local governments to increase 
    property taxes;
        (2) States should end the imposition, in the absence of full 
    consideration by their legislatures, of State issued mandates on 
    local governments without adequate State funding, in a manner that 
    may displace other essential government priorities; and
        (3) one primary objective of this Act and other efforts to 
    change the relationship among Federal, State, and local governments 
    should be to reduce taxes and spending at all levels and to end the 
    practice of shifting costs from one level of government to another 
    with little or no benefit to taxpayers.

SEC. 107. 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) 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. 108. EXERCISE OF RULEMAKING POWERS.

    The provisions of sections 101 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. 109. 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 title.

SEC. 110. EFFECTIVE DATE.

    This title shall take effect on January 1, 1996 or on the date 90 
days after appropriations are made available as authorized under 
section 109, whichever is earlier and shall apply to legislation 
considered on and after such date.

             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

SEC. 201. REGULATORY PROCESS.

    Each agency shall, unless otherwise prohibited by law, assess the 
effects of Federal regulatory actions on State, local, and tribal 
governments, and the private sector (other than to the extent that such 
regulations incorporate requirements specifically set forth in law).

SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.

    (a) In General.--Unless otherwise prohibited by law, before 
promulgating any general notice of proposed rulemaking that is likely 
to result in promulgation of any rule that includes any Federal mandate 
that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of 
$100,000,000 or more (adjusted annually for inflation) in any 1 year, 
and before promulgating any final rule for which a general notice of 
proposed rulemaking was published, the agency shall prepare a written 
statement containing--
        (1) an identification of the provision of Federal law under 
    which the rule is being promulgated;
        (2) a qualitative and quantitative assessment of the 
    anticipated costs and benefits of the Federal mandate, including 
    the costs and benefits to State, local, and tribal governments or 
    the private sector, as well as the effect of the Federal mandate on 
    health, safety, and the natural environment and such an assessment 
    shall include--
            (A) an analysis of the extent to which such costs to State, 
        local, and tribal governments may be paid with Federal 
        financial assistance (or otherwise paid for by the Federal 
        Government); and
            (B) the extent to which there are available Federal 
        resources to carry out the intergovernmental mandate;
        (3) estimates by the agency, if and to the extent that the 
    agency determines that accurate estimates are reasonably feasible, 
    of--
            (A) the future compliance costs of the Federal mandate; and
            (B) any disproportionate budgetary effects of the Federal 
        mandate upon any particular regions of the nation or particular 
        State, local, or tribal governments, urban or rural or other 
        types of communities, or particular segments of the private 
        sector;
        (4) estimates by the agency of the effect on the national 
    economy, such as the effect on productivity, economic growth, full 
    employment, creation of productive jobs, and international 
    competitiveness of United States goods and services, if and to the 
    extent that the agency in its sole discretion determines that 
    accurate estimates are reasonably feasible and that such effect is 
    relevant and material; and
        (5)(A) a description of the extent of the agency's prior 
    consultation with elected representatives (under section 204) 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; and
        (C) a summary of the agency's evaluation of those comments and 
    concerns.
    (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. SMALL GOVERNMENT AGENCY PLAN.

    (a) Effects on Small 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--
        (1) provide notice of the requirements to potentially affected 
    small governments, if any;
        (2) enable officials of affected small governments to provide 
    meaningful and timely input in the development of regulatory 
    proposals containing significant Federal intergovernmental 
    mandates; and
        (3) inform, educate, and advise small governments on compliance 
    with the requirements.
    (b) 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. 204. STATE, LOCAL, AND TRIBAL GOVERNMENT INPUT.

    (a) In General.--Each agency shall, to the extent permitted in law, 
develop an effective process to permit elected officers of State, 
local, and tribal governments (or their designated employees with 
authority to act on their behalf) to provide meaningful and timely 
input in the development of regulatory proposals containing significant 
Federal intergovernmental mandates.
    (b) Meetings Between State, Local, Tribal and Federal Officers.--
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to 
actions in support of intergovernmental communications where--
        (1) meetings are held exclusively between Federal officials and 
    elected officers of State, local, and tribal governments (or their 
    designated employees with authority to act on their behalf) acting 
    in their official capacities; and
        (2) such meetings are solely for the purposes of exchanging 
    views, information, or advice relating to the management or 
    implementation of Federal programs established pursuant to public 
    law that explicitly or inherently share intergovernmental 
    responsibilities or administration.
    (c) Implementing Guidelines.--No later than 6 months after the date 
of enactment of this Act, the President shall issue guidelines and 
instructions to Federal agencies for appropriate implementation of 
subsections (a) and (b) consistent with applicable laws and 
regulations.

SEC. 205. LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED.

    (a) In General.--Except as provided in subsection (b), before 
promulgating any rule for which a written statement is required under 
section 202, the agency shall identify and consider a reasonable number 
of regulatory alternatives and from those alternatives select the least 
costly, most cost-effective or least burdensome alternative that 
achieves the objectives of the rule, for--
        (1) State, local, and tribal governments, in the case of a rule 
    containing a Federal intergovernmental mandate; and
        (2) the private sector, in the case of a rule containing a 
    Federal private sector mandate.
    (b) Exception.--The provisions of subsection (a) shall apply 
unless--
        (1) the head of the affected agency publishes with the final 
    rule an explanation of why the least costly, most cost-effective or 
    least burdensome method of achieving the objectives of the rule was 
    not adopted; or
        (2) the provisions are inconsistent with law.
    (c) OMB Certification.--No later than 1 year after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall certify to Congress, with a written explanation, agency 
compliance with this section and include in that certification agencies 
and rulemakings that fail to adequately comply with this section.

SEC. 206. 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. 207. 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.

SEC. 208. ANNUAL STATEMENTS TO CONGRESS ON AGENCY COMPLIANCE.

    No later than 1 year after the effective date of this title and 
annually thereafter, the Director of the Office of Management and 
Budget shall submit to the Congress, including the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform and Oversight of the House of Representatives, a written report 
detailing compliance by each agency during the preceding reporting 
period with the requirements of this title.

SEC. 209. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on the date of the enactment of this Act.

                 TITLE III--REVIEW OF FEDERAL MANDATES

SEC. 301. BASELINE STUDY OF COSTS AND BENEFITS.

    (a) In General.--No later than 18 months after the date of 
enactment of this Act, the Advisory Commission on Intergovernmental 
Relations (hereafter in this title referred to as the ``Advisory 
Commission''), in consultation with the Director, shall complete a 
study to examine the measurement and definition issues involved in 
calculating the total costs and benefits to State, local, and tribal 
governments of compliance with Federal law.
    (b) Considerations.--The study required by this section shall 
consider--
        (1) the feasibility of measuring indirect costs and benefits as 
    well as direct costs and benefits of the Federal, State, local, and 
    tribal relationship; and
        (2) how to measure both the direct and indirect benefits of 
    Federal financial assistance and tax benefits to State, local, and 
    tribal governments.

SEC. 302. REPORT ON FEDERAL MANDATES BY ADVISORY COMMISSION ON 
              INTERGOVERNMENTAL RELATIONS.

    (a) In General.--The Advisory Commission on Intergovernmental 
Relations shall in accordance with this section--
        (1) investigate and review the role of Federal mandates in 
    intergovernmental relations and their impact on State, local, 
    tribal, and Federal government objectives and responsibilities, and 
    their impact on the competitive balance between State, local, and 
    tribal governments, and the private sector and consider views of 
    and the impact on working men and women on those same matters;
        (2) investigate and review the role of unfunded State mandates 
    imposed on local governments;
        (3) make recommendations to the President and the Congress 
    regarding--
            (A) allowing flexibility for State, local, and tribal 
        governments in complying with specific Federal mandates for 
        which terms of compliance are unnecessarily rigid or complex;
            (B) reconciling any 2 or more Federal mandates which impose 
        contradictory or inconsistent requirements;
            (C) terminating Federal mandates which are duplicative, 
        obsolete, or lacking in practical utility;
            (D) suspending, on a temporary basis, 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 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;
            (F) establishing common Federal definitions or standards to 
        be used by State, local, and tribal governments in complying 
        with Federal mandates that use different definitions or 
        standards for the same terms or principles; and
            (G)(i) the mitigation of negative impacts on the private 
        sector that may result from relieving State, local, and tribal 
        governments from Federal mandates (if and to the extent that 
        such negative impacts exist on the private sector); and
            (ii) the feasibility of applying relief from Federal 
        mandates in the same manner and to the same extent to private 
        sector entities as such relief is applied to State, local, and 
        tribal governments; and
        (4) identify and consider in each recommendation made under 
    paragraph (3), to the extent practicable--
            (A) the specific Federal mandates to which the 
        recommendation applies, including requirements of the 
        departments, agencies, and other entities of the Federal 
        Government that State, local, and tribal governments utilize 
        metric systems of measurement; and
            (B) any negative impact on the private sector that may 
        result from implementation of the recommendation.
    (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 no 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.--No 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.--No 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.--No 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, the 
Committee on Governmental Affairs of the Senate, the Committee on the 
Budget of the Senate, and the Committee on the Budget of the House of 
Representatives, and to the President a final report on the findings, 
conclusions, and recommendations of the Commission under this section.
    (e) Priority to Mandates That Are Subject of Judicial 
Proceedings.--In carrying out this section, the Advisory Commission 
shall give the highest priority to immediately investigating, 
reviewing, and making recommendations regarding Federal mandates that 
are the subject of judicial proceedings between the United States and a 
State, local, or tribal government.
    (f) Definition.--For purposes of this section the term ``State 
mandate'' means any provision in a State statute or regulation that 
imposes an enforceable duty on local governments, the private sector, 
or individuals, including a condition of State assistance or a duty 
arising from participation in a voluntary State program.

SEC. 303. SPECIAL AUTHORITIES OF ADVISORY COMMISSION.

    (a) Experts and Consultants.--For purposes of carrying out this 
title, the Advisory Commission may procure temporary and intermittent 
services of experts or consultants under section 3109(b) of title 5, 
United States Code.
    (b) Detail of Staff of Federal Agencies.--Upon request of the 
Executive Director of the Advisory Commission, 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 Advisory Commission to 
assist it in carrying out this title.
    (c) Administrative Support Services.--Upon the request of the 
Advisory Commission, the Administrator of General Services shall 
provide to the Advisory Commission, on a reimbursable basis, the 
administrative support services necessary for the Advisory Commission 
to carry out its duties under this title.
    (d) Contract Authority.--The Advisory Commission may, subject to 
appropriations, contract with and compensate government and private 
persons (including agencies) for property and services used to carry 
out its duties under this title.

SEC. 304. ANNUAL REPORT TO CONGRESS REGARDING FEDERAL COURT RULINGS.

    No later than 4 months after the date of enactment of this Act, and 
no later than March 15 of each year thereafter, the Advisory Commission 
on Intergovernmental Relations 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 report describing any Federal court case 
to which a State, local, or tribal government was a party in the 
preceding calendar year that required such State, local, or tribal 
government to undertake responsibilities or activities, beyond those 
such government would otherwise have undertaken, to comply with Federal 
statutes and regulations.

SEC. 305. DEFINITION.

    Notwithstanding section 3 of this Act, for purposes of this title 
the term ``Federal mandate'' means any provision in statute or 
regulation or any Federal court ruling that imposes an enforceable duty 
upon State, local, or tribal governments including a condition of 
Federal assistance or a duty arising from participation in a voluntary 
Federal program.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Advisory Commission 
to carry out section 301 and section 302, $500,000 for each of fiscal 
years 1995 and 1996.

                       TITLE IV--JUDICIAL REVIEW

SEC. 401. JUDICIAL REVIEW.

    (a) Agency Statements on Significant Regulatory Actions.--
        (1) In general.--Compliance or noncompliance by any agency with 
    the provisions of sections 202 and 203(a) (1) and (2) shall be 
    subject to judicial review only in accordance with this section.
        (2) Limited review of agency compliance or noncompliance.--(A) 
    Agency compliance or noncompliance with the provisions of sections 
    202 and 203(a) (1) and (2) shall be subject to judicial review only 
    under section 706(1) of title 5, United States Code, and only as 
    provided under subparagraph (B).
        (B) If an agency fails to prepare the written statement 
    (including the preparation of the estimates, analyses, statements, 
    or descriptions) under section 202 or the written plan under 
    section 203(a) (1) and (2), a court may compel the agency to 
    prepare such written statement.
        (3) Review of agency rules.--In any judicial review under any 
    other Federal law of an agency rule for which a written statement 
    or plan is required under sections 202 and 203(a) (1) and (2), the 
    inadequacy or failure to prepare such statement (including the 
    inadequacy or failure to prepare any estimate, analysis, statement 
    or description) or written plan shall not be used as a basis for 
    staying, enjoining, invalidating or otherwise affecting such agency 
    rule.
        (4) Certain information as part of record.--Any information 
    generated under sections 202 and 203(a) (1) and (2) that is part of 
    the rulemaking record for judicial review under the provisions of 
    any other Federal law may be considered as part of the record for 
    judicial review conducted under such other provisions of Federal 
    law.
        (5) Application of other federal law.--For any petition under 
    paragraph (2) the provisions of such other Federal law shall 
    control all other matters, such as exhaustion of administrative 
    remedies, the time for and manner of seeking review and venue, 
    except that if such other Federal law does not provide a limitation 
    on the time for filing a petition for judicial review that is less 
    than 180 days, such limitation shall be 180 days after a final rule 
    is promulgated by the appropriate agency.
        (6) Effective date.--This subsection shall take effect on 
    October 1, 1995, and shall apply only to any agency rule for which 
    a general notice of proposed rulemaking is promulgated on or after 
    such date.
    (b) Judicial Review and Rule of Construction.--Except as provided 
in subsection (a)--
        (1) any estimate, analysis, statement, description 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; and
        (2) no provision of this Act shall be construed to create any 
    right or benefit, substantive or procedural, enforceable by any 
    person in any administrative or judicial action.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.