[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1 Engrossed in Senate (ES)]
104th CONGRESS
1st Session
S. 1
_______________________________________________________________________
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 Mandate 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 mandates; and
(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 better estimates of the budgetary impact of
regulations containing Federal mandates upon State,
local, and tribal governments before adopting such
regulations, and ensuring that small governments are
given special consideration in that process.
SEC. 3. DEFINITIONS.
For purposes of this Act--
(1) the terms defined under section 408(h) 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 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 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 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 or the modification or termination of the Federal
mandate as provided under subsection (c)(1)(B) would
affect the competitive balance between State, local, or
tribal governments and privately owned businesses
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.
``(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;
``(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
``(iii) 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
``(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), 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; Statements on Bills and Joint
Resolutions Other Than Appropriations Bills and Joint Resolutions.--
``(1) Federal intergovernmental mandates in reported bills
and resolutions.--For each bill or joint resolution of a public
character reported by any committee of authorization of the
Senate or the House of Representatives, the Director of the
Congressional Budget Office shall prepare and submit to the
committee a statement as follows:
``(A) If the Director estimates that the direct
cost of all Federal intergovernmental mandates in the
bill or joint resolution will equal or exceed
$50,000,000 (adjusted annually for inflation) in the
fiscal year in which 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.
``(B) The estimate required under subparagraph (A)
shall include estimates (and brief explanations of the
basis of the estimates) of--
``(i) the total amount of direct cost of
complying with the Federal intergovernmental
mandates in the bill or joint resolution, but
no more than 10 years beyond the effective date
of the mandate; 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.
``(C) If the Director determines that it is not
feasible to make a reasonable estimate that would be
required under subparagraphs (A) and (B), the Director
shall not make the estimate, but shall report in the
statement that the reasonable estimate cannot be made
and shall include the reasons for that determination in
the statement. If such determination is made by the
Director, a point of order shall lie only under
subsection (c)(1)(A) and as if the requirement of
subsection (c)(1)(A) had not been met.
``(2) Federal private sector mandates in reported bills and
joint resolutions.--For each bill or joint resolution of a
public character reported by any committee of authorization of
the Senate or the House of Representatives, the Director of the
Congressional Budget Office shall prepare and submit to the
committee a statement as follows:
``(A) If the Director estimates that the direct
cost of all Federal private sector mandates in the bill
or joint resolution will equal or exceed $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.
``(B) Estimates required under this paragraph 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, but
no more than 10 years beyond the effective date
of the mandate; and
``(ii) the amount, if any, of increase in
authorization of appropriations under existing
Federal financial assistance programs, or of
authorization of appropriations for new Federal
financial assistance, provided by the bill or
joint resolution usable by the private sector
for the activities subject to the Federal
private sector mandates.
``(C) If the Director determines that it is not
feasible to make a reasonable estimate that would be
required under subparagraphs (A) and (B), the Director
shall not make the estimate, but shall report in the
statement that the reasonable estimate cannot be made
and shall include the reasons for that determination in
the statement.
``(3) Legislation falling below the direct costs
thresholds.--If the Director estimates that the direct costs of
a Federal mandate will not equal or exceed the thresholds
specified in paragraphs (1) and (2), the Director shall so
state and shall briefly explain the basis of the estimate.
``(4) 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 paragraph or a
supplemental statement for the bill or joint resolution
in that amended form.
``(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) 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 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 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 direct costs of such
mandate, and--
``(I) identifies a specific dollar
amount of the direct costs of the
mandate for each year or other period
up to 10 years 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 (5) for each fiscal
year; and
``(II) identifies any appropriation
bill that is expected to provide for
Federal funding of the direct cost
referred to under subclause (III);
``(III)(aa) provides that if for
any fiscal year the responsible Federal
agency determines that there are
insufficient appropriations to provide
for the estimated direct costs of the
mandate, the Federal agency shall (not
later than 30 days after the beginning
of the fiscal year) notify the
appropriate authorizing committees of
Congress of the determination and
submit either--
``(1) a statement that the
agency has determined, based on
a re-estimate of the direct
costs of a mandate, after
consultation with State, local,
and tribal governments, that
the amount appropriated is
sufficient to pay for the
direct costs of the mandate; or
``(2) legislative
recommendations for either
implementing a less costly
mandate or making the mandate
ineffective for the fiscal
year;
``(bb) provides expedited
procedures for the consideration of the
statement or legislative
recommendations referred to in item
(aa) by Congress not later than 30 days
after the statement or recommendations
are submitted to Congress; and
``(cc) provides that the mandate
shall--
``(1) in the case of a
statement referred to in item
(aa)(1), 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;
``(2) cease to be effective
60 days after the date the
legislative recommendations of
the responsible Federal agency
are submitted to Congress under
item (aa)(2) unless Congress
provides otherwise by law; or
``(3) in the case of a
mandate that has not yet taken
effect, continue not to be
effective unless Congress
provides otherwise by law.
``(2) Rule of construction.--The provisions of paragraph
(1)(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.
``(3) Committee on appropriations.--(A) Paragraph (1)--
``(i) shall not apply to any bill or resolution
reported by the Committee on Appropriations of the
Senate or the House of Representatives; but
``(ii) shall apply to--
``(I) any legislative provision increasing
direct costs of a Federal intergovernmental
mandate contained in any bill or resolution
reported by such Committee;
``(II) any legislative provision increasing
direct costs of a Federal intergovernmental
mandate contained in any amendment offered to a
bill or resolution reported by such Committee;
``(III) any legislative provision
increasing direct costs of a Federal
intergovernmental mandate in a conference
report accompanying a bill or resolution
reported by such Committee; 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 such Committee.
``(B) Upon a point of order being made by any Senator
against any provision listed in subparagraph (A)(ii), 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.
``(4) Determinations of applicability to pending
legislation.--For purposes of this subsection, 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 section to a
pending bill, joint resolution, amendment, motion, or
conference report.
``(5) Determinations of federal mandate levels.--For
purposes of this subsection, 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.
``(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.
``(e) Requests 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 a
bill, joint resolution, amendment, or motion of such Senator.
``(f) Clarification of Application.--(1) This section 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--
``(A) 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
``(B) would result in a net increase in the aggregate
amount of direct costs of Federal intergovernmental mandates or
Federal private sector mandates otherwise than as described in
subparagraph (A).
``(2)(A) For purposes of this section, 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 subparagraph (B)(i)
over the amount described under subparagraph (B)(ii).
``(B) The amounts referred to under subparagraph (A) are--
``(i) 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
``(ii) 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.
``(C) For purposes of this paragraph, 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
auhorization level for the last year in which authorization of
appropriations is already provided.
``(g) Exclusions.--This section 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 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.
``(h) Definitions.--For purposes of this section:
``(1) 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.
``(2) 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.
``(3) The term `Federal mandate' means a Federal
intergovernmental mandate or a Federal private sector mandate,
as defined in paragraphs (1) and (2).
``(4) 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
State, local, 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 (1)(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 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; 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.
``(5) 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.
``(6) The term `private sector' means all persons or
entitles in the United States, including individuals,
partnerships, associations, corporations, and educational and
nonprofit institutions, but shall not include State, local, or
tribal governments.
``(7) The term `local government' has the same meaning as
in section 6501(6) of title 31, United States Code.
``(8) 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.
``(9) The term `small government' means any small
governmental jurisdictions defined in section 601(5) of title
5, United States Code, and any tribal government.
``(10) The term `State' has the same meaning as in section
6501(9) of title 31, United State Code.
``(11) 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, or the Office of the
Comptroller of the Currency or the Office of Thrift
Supervision.
``(12) The term `regulation' or `rule' has the meaning of
`rule' as defined in section 601(2) of title 5, United States
Code.
``(13) 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.''.
(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. 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. 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 written request of any Senator, the
Director shall, to the extent practicable, prepare--
(1) an estimate of the costs of regulations implementing an
Act containing a Federal mandate covered by section 408 of the
Congressional Budget and Impoundment Control Act of 1974, as
added by section 101(a) of this Act; and
(2) a comparison of the costs of such regulations with the
cost estimate provided for such Act by the Congressional Budget
Office.
(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 section 408 of the Congressional Budget and Impoundment
Control Act of 1974, as added by section 101(a) of this Act.
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 section 101 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.
Section 403 of the Congressional Budget Act of 1974 is amended--
(1) in subsection (a)--
(A) by striking paragraph (2);
(B) in paragraph (3) by striking ``paragraphs (1)
and (2)'' and inserting ``paragraph (1)''; and
(C) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively;
(2) by striking ``(a)''; and
(3) by striking subsections (b) and (c).
SEC. 107. 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 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. 108. 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. 109. 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 104, whichever is earlier and shall apply to legislation
considered 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) Agency Statement; Private Sector Mandates.--Notwithstanding any
other provision of this Act, an agency statement prepared pursuant to
subsection (a) shall also be prepared for a Federal private sector
mandate that may result in the expenditure by State, local, tribal
governments, or 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.
(c) 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.
(d) 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.
SEC. 205. EFFECTIVE DATE.
This title and the amendments made by this title shall take effect
60 days after the date of enactment.
TITLE III--REVIEW OF UNFUNDED FEDERAL MANDATES
SEC. 301. BASELINE STUDY OF COSTS AND BENEFITS.
(a) In General.--Not later than 180 days 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 begin 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 UNFUNDED 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 unfunded Federal
mandates in intergovernmental relations and their impact on
State, local, tribal, and Federal government objectives and
responsibilities;
(2) make recommendations to the President and the Congress
regarding--
(A) allowing flexibility for State, local, and
tribal governments in complying with specific unfunded
Federal mandates for which terms of compliance are
unnecessarily rigid or complex;
(B) reconciling any 2 or more unfunded Federal
mandates which impose contradictory or inconsistent
requirements;
(C) terminating unfunded Federal mandates which are
duplicative, obsolete, or lacking in practical utility;
(D) suspending, on a temporary basis, unfunded
Federal mandates which are not vital to public health
and safety and which compound the fiscal difficulties
of State, local, and tribal governments, including
recommendations for triggering such suspension;
(E) consolidating or simplifying unfunded Federal
mandates, or the planning or reporting requirements of
such mandates, in order to reduce duplication and
facilitate compliance by State, local, and tribal
governments with those mandates; and
(F) establishing common Federal definitions or
standards to be used by State, local, and tribal
governments in complying with unfunded Federal mandates
that use different definitions or standards for the
same terms or principles; and
(3) identify in each recommendation made under paragraph
(2), to the extent practicable, the specific unfunded Federal
mandates to which the recommendation applies.
(b) Treatment of Requirements for Metric Systems of Measurement.--
(1) Treatment.--For purposes of subsection (a) (1) and (2),
the Commission shall consider requirements for metric systems
of measurement to be Federal mandates.
(2) Definition.--In this subsection, the term
``requirements for metric systems of measurement'' means
requirements of the departments, agencies, and other entities
of the Federal Government that State, local, and tribal
governments utilize metric systems of measurement.
(c) 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.
(d) Preliminary Report.--
(1) In general.--Not later than 9 months after the date of
the enactment of this Act, the Commission shall--
(A) prepare and publish a preliminary report on its
activities under this title, including preliminary
recommendations pursuant to subsection (a);
(B) publish in the Federal Register a notice of
availability of the preliminary report; and
(C) provide copies of the preliminary report to the
public upon request.
(2) Public hearings.--The Commission shall hold public
hearings on the preliminary recommendations contained in the
preliminary report of the Commission under this subsection.
(e) 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. 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) 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. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Advisory Commission
to carry out section 301 and section 302, $1,250,000 for each of fiscal
years 1995 and 1996.
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.
Passed the Senate January 27 (legislative day, January 10),
1995.
Attest:
Secretary.
S 1 ES----2
S 1 ES----3
S 1 ES----4
S 1 ES----5
104th CONGRESS
1st Session
S. 1
_______________________________________________________________________
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.