[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1 Referral Instructions Senate (RIS)]
104th CONGRESS
1st Session
S. 1
To curb the practice of imposing unfunded Federal mandates on States
and local governments; to strengthen the partnership between the
Federal Government and State, local and tribal governments; to end the
imposition, in the absence of full consideration by Congress, of
Federal mandates on State, local, and tribal governments without
adequate funding, in a manner that may displace other essential
governmental priorities; and to ensure that the Federal Government pays
the costs incurred by those governments in complying with certain
requirements under Federal statutes and regulations, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 4, 1995
Mr. Kempthorne (for himself, Mr. Dole, Mr. Glenn, Mr. Roth, Mr.
Domenici, Mr. Exon, Mr. Coverdell, Mr. Brown, Mr. Burns, Mr. Craig, Mr.
Faircloth, Mr. Gregg, Mr. Bennett, Mrs. Hutchison, Mr. Abraham, Mr.
Ashcroft, Mr. Bond, Mr. Breaux, Mr. Campbell, Mr. Coats, Mr. Cochran,
Mr. Cohen, Mr. D'Amato, Mr. DeWine, Mr. Frist, Mr. Gorton, Mr. Gramm,
Mr. Grams, Mr. Hatch, Mr. Hatfield, Mr. Heflin, Mr. Helms, Mr. Inhofe,
Mrs. Kassebaum, Mr. Kyl, Mr. Lott, Mr. Lugar, Mr. Mack, Mr. McConnell,
Ms. Moseley-Braun, Mr. Murkowski, Mr. Nickles, Mr. Packwood, Mr.
Pressler, Mr. Robb, Mr. Santorum, Mr. Shelby, Mr. Simpson, Mr. Smith,
Ms. Snowe, Mr. Specter, Mr. Stevens, Mr. Thomas, Mr. Thompson, Mr.
Thurmond, and Mr. Warner) introduced the following bill; which was read
twice and referred jointly pursuant to the order of August 4, 1977, to
the Committees on the Budget and Governmental Affairs, with
instructions that if one Committee reports, the other Committee have
thirty days to report or be discharged
_______________________________________________________________________
A BILL
To curb the practice of imposing unfunded Federal mandates on States
and local governments; to strengthen the partnership between the
Federal Government and State, local and tribal governments; to end the
imposition, in the absence of full consideration by Congress, of
Federal mandates on State, local, and tribal governments without
adequate funding, in a manner that may displace other essential
governmental priorities; and to ensure that the Federal Government pays
the costs incurred by those governments in complying with certain
requirements under Federal statutes and regulations, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Unfunded Mandate Reform Act of
1995''.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to strengthen the partnership between the Federal
Government and States, local governments, and tribal
governments;
(2) to end the imposition, in the absence of full
consideration by Congress, of Federal mandates on States, local
governments, and tribal governments without adequate Federal
funding, in a manner that may displace other essential State,
local, and tribal governmental priorities;
(3) to assist Congress in its consideration of proposed
legislation establishing or revising Federal programs
containing Federal mandates affecting States, local
governments, tribal governments, and the private sector by--
(A) providing for the development of information
about the nature and size of mandates in proposed
legislation; and
(B) establishing a mechanism to bring such
information to the attention of the Senate and the
House of Representatives before the Senate and the
House of Representatives vote on proposed legislation;
(4) to promote informed and deliberate decisions by
Congress on the appropriateness of Federal mandates in any
particular instance;
(5) to require that Congress consider whether to provide
funding to assist State, local, and tribal governments in
complying with Federal mandates, to require analyses of the
impact of private sector mandates, and through the
dissemination of that information provide informed and
deliberate decisions by Congress and Federal agencies and
retain competitive balance between the public and private
sectors;
(6) to establish a point-of-order vote on the consideration
in the Senate and House of Representatives of legislation
containing significant Federal mandates; and
(7) to assist Federal agencies in their consideration of
proposed regulations affecting States, local governments, and
tribal governments, by--
(A) requiring that Federal agencies develop a
process to enable the elected and other officials of
States, local governments, and tribal governments to
provide input when Federal agencies are developing
regulations; and
(B) requiring that Federal agencies prepare and
consider better estimates of the budgetary impact of
regulations containing Federal mandates upon States,
local governments, and tribal governments before
adopting such regulations, and ensuring that small
governments are given special consideration in that
process.
SEC. 3. DEFINITIONS.
(a) In General.--For purposes of this Act--
(1) the terms defined under paragraphs (11) through (21) of
section 3 of the Congressional Budget and Impoundment Control
Act of 1974 (as added by subsection (b) of this section) shall
have the meanings as so defined; and
(2) the term ``Director'' means the Director of the
Congressional Budget Office.
(b) Congressional Budget and Impoundment Control Act of 1974.--
Section 3 of the Congressional Budget and Impoundment Control Act of
1974 is amended by adding at the end thereof the following new
paragraphs:
``(11) The term `Federal intergovernmental mandate' means--
``(A) any provision in legislation, statute, or
regulation that--
``(i) would impose an enforceable duty upon
States, local governments, or tribal
governments, except--
``(I) a condition of Federal
assistance or
``(II) a duty arising from
participation in a voluntary Federal
program, except as provided in
subparagraph (B)); or
``(ii) would reduce or eliminate the amount
of authorization of appropriations for Federal
financial assistance that would be provided to
States, local governments, or tribal
governments for the purpose of complying with
any such previously imposed duty unless such
duty is reduced or eliminated by a
corresponding amount; or
``(B) any provision in legislation, statute, or
regulation that relates to a then-existing Federal
program under which $500,000,000 or more is provided
annually to States, local governments, and tribal
governments under entitlement authority, if the
provision--
``(i)(I) would increase the stringency of
conditions of assistance to States, local
governments, or tribal governments under the
program; or
``(II) would place caps upon, or otherwise
decrease, the Federal Government's
responsibility to provide funding to States,
local governments, or tribal governments under
the program; and
``(ii) the States, local governments, or
tribal governments that participate in the
Federal program lack authority under that
program to amend their financial or
programmatic responsibilities to continue
providing required services that are affected
by the legislation, statute or regulation.
``(12) The term `Federal private sector mandate' means any
provision in legislation, statute, or regulation that--
``(A) would impose an enforceable duty upon the
private sector except--
``(i) a condition of Federal assistance; or
``(ii) a duty arising from participation in
a voluntary Federal program; or
``(B) would reduce or eliminate the amount of
authorization of appropriations for Federal financial
assistance that will be provided to the private sector
for the purposes of ensuring compliance with such duty.
``(13) The term `Federal mandate' means a Federal
intergovernmental mandate or a Federal private sector mandate,
as defined in paragraphs (11) and (12).
``(14) The terms `Federal mandate direct costs' and `direct
costs'--
``(A)(i) in the case of a Federal intergovernmental
mandate, mean the aggregate estimated amounts that all
States, local governments, and tribal governments would
be required to spend in order to comply with the
Federal intergovernmental mandate; or
``(ii) in the case of a provision referred to in
paragraph (11)(A)(ii), mean the amount of Federal
financial assistance eliminated or reduced.
``(B) in the case of a Federal private sector
mandate, mean the aggregate estimated amounts that the
private sector will be required to spend in order to
comply with the Federal private sector mandate;
``(C) shall not include--
``(i) estimated amounts that the States,
local governments, and tribal governments ( in
the case of a Federal intergovernmental
mandate) or the private sector (in the case of
a Federal private sector mandate) would spend--
``(I) to comply with or carry out
all applicable Federal, State, local,
and tribal laws and regulations in
effect at the time of the adoption of
the Federal mandate for the same
activity as is affected by that Federal
mandate; or
``(II) to comply with or carry out
State, local governmental, and tribal
governmental programs, or private-
sector business or other activities in
effect at the time of the adoption of
the Federal mandate for the same
activity as is affected by that
mandate; or
``(ii) expenditures to the extent that such
expenditures will be offset by any direct
savings to the States, local governments, and
tribal governments, or by the private sector,
as a result of--
``(I) compliance with the Federal
mandate; or
``(II) other changes in Federal law
or regulation that are enacted or
adopted in the same bill or joint
resolution or proposed or final Federal
regulation and that govern the same
activity as is affected by the Federal
mandate; and
``(D) shall be determined on the assumption that
State, local, and tribal governments, and the private
sector will take all reasonable steps necessary to
mitigate the costs resulting from the Federal mandate,
and will comply with applicable standards of practice
and conduct established by recognized professional or
trade associations. Reasonable steps to mitigate the
costs shall not include increases in State, local, or
tribal taxes or fees.
``(15) The term `amount' means the amount of budget
authority for any Federal grant assistance program or any
Federal program providing loan guarantees or direct loans.
``(16) The term `private sector' means individuals,
partnerships, associations, corporations, business trusts, or
legal representatives, organized groups of individuals, and
educational and other nonprofit institutions.
``(17) The term `local government' has the same meaning as
in section 6501(6) of title 31, United States Code.
``(18) The term `tribal government' means any Indian tribe,
band, nation, or other organized group or community, including
any Alaska Native village or regional or village corporation as
defined in or established pursuant to the Alaska Native Claims
Settlement Act (83 Stat. 688; 43 U.S.C. 1601 et seq.) which is
recognized as eligible for the special programs and services
provided by the United States to Indians because of their
special status as Indians.
``(19) The term `small government' means any small
governmental jurisdictions defined in section 601(5) of title
5, United States Code, and any tribal government.
``(20) The term `State' has the same meaning as in section
6501(9) of title 31, United State Code.''
``(21) The term `agency' has the meaning as defined in
section 551(1) of title 5, United States Code, but does not
include independent regulatory agencies, as defined in section
3502(10) of title 44, United States Code.
``(22) The term `regulation' or `rule' has the meaning of
`rule' as defined in section 601(2) of title 5, United States
Code.''.
SEC. 4. EXCLUSIONS.
The provisions of this Act and the amendments made by this Act
shall not apply to any provision in a bill or joint resolution before
Congress and any provision in a proposed or final Federal regulation
that--
(1) enforces constitutional rights of individuals;
(2) establishes or enforces any statutory rights that
prohibit discrimination on the basis of race, religion, gender,
national origin, or handicapped or disability status;
(3) requires compliance with accounting and auditing
procedures with respect to grants or other money or property
provided by the United States Government;
(4) provides for emergency assistance or relief at the
request of any State, local, or tribal government or any
official of a State, local, or tribal government;
(5) is necessary for the national security or the
ratification or implementation of international treaty
obligations; or
(6) the President designates as emergency legislation and
that the Congress so designates in statute.
SEC. 5. AGENCY ASSISTANCE.
Each agency shall provide to the Director of the Congressional
Budget Office such information and assistance as the Director may
reasonably request to assist the Director in carrying out this Act.
TITLE I--LEGISLATIVE ACCOUNTABILITY AND REFORM
SEC. 101. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM .
(a) In General.--Title IV of the Congressional Budget and
Impoundment Control Act of 1974 is amended by adding at the end thereof
the following new section:
``SEC. 408. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM .
``(a) Duties of Congressional Committees.--
``(1) In general.--When a committee of authorization of the
Senate or the House of Representatives reports a bill or joint
resolution of public character that includes any Federal
mandate, the report of the committee accompanying the bill or
joint resolution shall contain the information required by
paragraphs (3) and (4).
``(2) Submission of bills to the director.--When a
committee of authorization of the Senate or the House of
Representatives orders reported a bill or joint resolution of a
public character, the committee shall promptly provide the bill
or joint resolution to the Director of the Congressional Budget
Office and shall identify to the Director any Federal mandates
contained in the bill or resolution.
``(3) Reports on federal mandates.--Each report described
under paragraph (1) shall contain--
``(A) an identification and description of any
Federal mandates in the bill or joint resolution,
including the expected direct costs to State, local,
and tribal governments, and to the private sector,
required to comply with the Federal mandates;
``(B) a qualitative, and if practicable, a
quantitative assessment of costs and benefits
anticipated from the Federal mandates (including the
effects on health and safety and the protection of the
natural environment); and
``(C) a statement of the degree to which a Federal
mandate affects both the public and private sectors and
the extent to which Federal payment of public sector
costs would affect the competitive balance between
State, local, or tribal governments and privately owned
businesses.
``(4) Intergovernmental mandates.--If any of the Federal
mandates in the bill or joint resolution are Federal
intergovernmental mandates, the report required under paragraph
(1) shall also contain--
``(A)(i) a statement of the amount, if any, of
increase or decrease in authorization of appropriations
under existing Federal financial assistance programs,
or of authorization of appropriations for new Federal
financial assistance, provided by the bill or joint
resolution and usable for activities of State, local,
or tribal governments subject to the Federal
intergovernmental mandates; and
``(ii) a statement of whether the committee intends
that the Federal intergovernmental mandates be partly
or entirely unfunded, and if so, the reasons for that intention; and
``(B) any existing sources of Federal assistance in
addition to those identified in subparagraph (A) that
may assist State, local, and tribal governments in
meeting the direct costs of the Federal
intergovernmental mandates.
``(5) Preemption clarification and information.--When a
committee of authorization of the Senate or the House of
Representatives reports a bill or joint resolution of public
character, the committee report accompanying the bill or joint
resolution shall contain, if relevant to the bill or joint
resolution, an explicit statement on the extent to which the
bill or joint resolution preempts any State, local, or tribal
law, and, if so, an explanation of the reasons for such
preemption.
``(6) Publication of statement from the director.--
``(A) Upon receiving a statement (including any
supplemental statement) from the Director under
subsection (b)(1), a committee of the Senate or the
House of Representatives shall publish the statement in
the committee report accompanying the bill or joint
resolution to which the statement relates if the
statement is available at the time the report is
printed.
``(B) If the statement is not published in the
report, or if the bill or joint resolution to which the
statement relates is expected to be considered by the
Senate or the House of Representatives before the
report is published, the committee shall cause the
statement, or a summary thereof, to be published in the
Congressional Record in advance of floor consideration
of the bill or joint resolution.
``(b) Duties of the Director.--
``(1) Statements on bills and joint resolutions other than
appropriations bills and joint resolutions.--
``(A) Federal intergovernmental mandates in
reported bills and resolutions.--For each bill or joint
resolution of a public character reported by any
committee of authorization of the Senate or the House
of Representatives, the Director of the Congressional
Budget Office shall prepare and submit to the committee
a statement as follows:
``(i) If the Director estimates that the
direct cost of all Federal intergovernmental
mandates in the bill or joint resolution will
equal or exceed $50,000,000 (adjusted annually
for inflation) in the fiscal year in which any
Federal intergovernmental mandate in the bill
or joint resolution (or in any necessary
implementing regulation) would first be
effective or in any of the 4 fiscal years
following such fiscal year, the Director shall
so state, specify the estimate, and briefly
explain the basis of the estimate.
``(ii) The estimate required under clause
(i) shall include estimates (and brief
explanations of the basis of the estimates)
of--
``(I) the total amount of direct
cost of complying with the Federal
intergovernmental mandates in the bill
or joint resolution; and
``(II) the amount, if any, of
increase in authorization of
appropriations under existing Federal
financial assistance programs, or of
authorization of appropriations for new
Federal financial assistance, provided
by the bill or joint resolution and
usable by State, local, or tribal
governments for activities subject to
the Federal intergovernmental mandates.
``(B) Federal private sector mandates in reported
bills and joint resolutions.--For each bill or joint
resolution of a public character reported by any
committees of authorization of the Senate or the House
of Representatives, the Director of the Congressional
Budget Office shall prepare and submit to the committee
a statement as follows:
``(i) If the Director estimates that the
direct cost of all Federal private sector
mandates in the bill or joint resolution will
equal or exceed $200,000,000 (adjusted annually
for inflation) in the fiscal year in which any
Federal private sector mandate in the bill or
joint resolution (or in any necessary
implementing regulation) would first be
effective or in any of the 4 fiscal years
following such fiscal year, the Director shall
so state, specify the estimate, and briefly
explain the basis of the estimate.
``(ii) Estimates required under this
subparagraph shall include estimates (and a
brief explanation of the basis of the
estimates) of--
``(I) the total amount of direct
costs of complying with the Federal
private sector mandates in the bill or
joint resolution; and
``(II) the amount, if any, of
increase in authorization of
appropriations under existing Federal
financial assistance programs, or of
authorization of appropriations for new
Federal financial assistance, provided
by the bill or joint resolution usable
by the private sector for the
activities subject to the Federal
private sector mandates.
``(iii) If the Director determines that it
is not feasible to make a reasonable estimate
that would be required under clauses (i) and
(ii), the Director shall not make the estimate,
but shall report in the statement that the
reasonable estimate cannot be made and shall
include the reasons for that determination in
the statement.
``(C) Legislation falling below the direct costs
thresholds.--If the Director estimates that the direct
costs of a Federal mandate will not equal or exceed the
thresholds specified in paragraphs (A) and (B), the
Director shall so state and shall briefly explain the
basis of the estimate.
``(c) Legislation Subject to Point of Order in the Senate.--
``(1) In general.--It shall not be in order in the Senate
to consider--
``(A) any bill or joint resolution that is reported
by a committee unless the committee has published a
statement of the Director on the direct costs of
Federal mandates in accordance with subsection (a)(6)
before such consideration; and
``(B) any bill, joint resolution, amendment,
motion, or conference report that would increase the
direct costs of Federal intergovernmental mandates by
an amount that causes the thresholds specified in
subsection (b)(1)(A)(i) to be exceeded, unless--
``(i) the bill, joint resolution,
amendment, motion, or conference report
provides direct spending authority for each
fiscal year for the Federal intergovernmental
mandates included in the bill, joint
resolution, amendment, motion, or conference
report in an amount that is equal to the
estimated direct costs of such mandate;
``(ii) the bill, joint resolution,
amendment, motion, or conference report
provides an increase in receipts and an
increase in direct spending authority for each
fiscal year for the Federal intergovernmental
mandates included in the bill, joint
resolution, amendment, motion, or conference
report in an amount equal to the estimated
direct costs of such mandate; or
``(iii) the bill, joint resolution,
amendment, motion, or conference report
includes an authorization for appropriations in
an amount equal to the estimated direct costs
of such mandate, and--
``(I) identifies a specific dollar
amount estimate of the full direct
costs of the mandate for each year or
other period during which the mandate
shall be in effect under the bill,
joint resolution, amendment, motion or
conference report, and such estimate is
consistent with the estimate determined
under paragraph (3) for each fiscal
year;
``(II) identifies any appropriation
bill that is expected to provide for
Federal funding of the direct cost
referred to under subclause (IV)(aa);
``(III) identifies the minimum
amount that must be appropriated in
each appropriations bill referred to in
subclause (II), in order to provide for
full Federal funding of the direct
costs referred to in subclause (I); and
``(IV)(aa) designates a responsible
Federal agency and establishes criteria
and procedures under which such agency
shall implement less costly
programmatic and financial
responsibilities of State, local, and
tribal governments in meeting the
objectives of the mandate, to the
extent that an appropriation Act does
not provide for the estimated direct
costs of such mandate as set forth
under subclause (III); or
``(bb) designates a responsible
Federal agency and establishes criteria
and procedures to direct that, if an
appropriation Act does not provide for
the estimated direct costs of such
mandate as set forth under subclause
(III), such agency shall declare such
mandate to be ineffective as of October
1 of the fiscal year for which the
appropriation is not at least equal to
the direct costs of the mandate.
``(2) Rule of construction.--The provisions of paragraph
(1)(B)(iii)(IV)(aa) shall not be construed to prohibit or
otherwise restrict a State, local, or tribal government from
voluntarily electing to remain subject to the original Federal
intergovernmental mandate, complying with the programmatic or
financial responsibilities of the original Federal
intergovernmental mandate and providing the funding necessary
consistent with the costs of Federal agency assistance,
monitoring, and enforcement.
``(3) Committee on appropriations.--Paragraph (1) shall not
apply to matters that are within the jurisdiction of the
Committee on Appropriations of the Senate or the House of
Representatives.
``(4) Determination of applicability to pending
legislation.--For purposes of this subsection, on questions
regarding the applicability of this Act to a pending bill,
joint resolution, amendment, motion, or conference report, the
Committee on Governmental Affairs of the Senate, or the
Committee on Government Reform and Oversight of the House of
Representatives, as applicable, shall have the authority to
make the final determination.
``(5) Determinations of federal mandate levels.--For the
purposes of this subsection, the levels of Federal mandates for
a fiscal year shall be determined based on the estimates made
by the Committee on the Budget of the Senate or the House of
Representatives, as the case may be.
``(d) Enforcement in the House of Representatives.--It shall not be
in order in the House of Representatives to consider a rule or order
that waives the application of subsection (c) to a bill or joint
resolution reported by a committee of authorization.''.
(b) Technical and Conforming Amendment.--The table of contents in
section 1(b) of the Congressional Budget and Impoundment Control Act of
1974 is amended by adding after the item relating to section 407 the
following new item:
``Sec. 408. Legislative mandate accountability and reform.''.
SEC. 102. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.
(a) Motions to Strike in the Committee of the Whole.--Clause 5 of
rule XXIII of the Rules of the House of Representatives is amended by
adding at the end the following:
``(c) In the consideration of any measure for amendment in the
Committee of the Whole containing any Federal mandate the direct costs
of which exceed the threshold in section 408(c) of the Unfunded Mandate
Reform Act of 1995, it shall always be in order, unless specifically
waived by terms of a rule governing consideration of that measure, to
move to strike such Federal mandate from the portion of the bill then
open to amendment.''.
(b) Committee on Rules Reports on Waived Points of Order.--The
Committee on Rules shall include in the report required by clause 1(d)
of rule XI (relating to its activities during the Congress) of the
Rules of the House of Representatives a separate item identifying all
waivers of points of order relating to Federal mandates, listed by bill
or joint resolution number and the subject matter of that measure.
SEC. 103. ASSISTANCE TO COMMITTEES AND STUDIES.
The Congressional Budget and Impoundment Control Act of 1974 is
amended--
(1) in section 202--
(A) in subsection (c)--
(i) by redesignating paragraph (2) as
paragraph (3); and
(ii) by inserting after paragraph (1) the
following new paragraph:
``(2) At the request of any committee of the Senate or the
House of Representatives, the Office shall, to the extent
practicable, consult with and assist such committee in
analyzing the budgetary or financial impact of any proposed
legislation that may have--
``(A) a significant budgetary impact on State,
local, or tribal governments; or
``(B) a significant financial impact on the private
sector.'';
(B) by amending subsection (h) to read as follows:
``(h) Studies.--
``(1) Continuing studies.--The Director of the
Congressional Budget Office shall conduct continuing studies to
enhance comparisons of budget outlays, credit authority, and
tax expenditures.
``(2) Federal mandate studies.--
``(A) At the request of any Chairman or ranking
member of the minority of a Committee of the Senate or
the House of Representatives, the Director shall, to
the extent practicable, conduct a study of a Federal
mandate legislative proposal.
``(B) In conducting a study on intergovernmental
mandates under subparagraph (A), the Director shall--
``(i) solicit and consider information or
comments from elected officials (including
their designated representatives) of State,
local, or tribal governments as may provide
helpful information or comments;
``(ii) consider establishing advisory
panels of elected officials or their designated
representatives, of State, local, or tribal
governments if the Director determines that
such advisory panels would be helpful in
performing responsibilities of the Director
under this section; and
``(iii) if, and to the extent that the
Director determines that accurate estimates are
reasonably feasible, include estimates of--
``(I) the future direct cost of the
Federal mandate to the extent that such
costs significantly differ from or
extend beyond the 5-year period after
the mandate is first effective; and
``(II) any disproportionate
budgetary effects of Federal mandates
upon particular industries or sectors
of the economy, States, regions, and
urban or rural or other types of
communities, as appropriate.
``(C) In conducting a study on private sector
mandates under subparagraph (A), the Director shall
provide estimates, if and to the extent that the
Director determines that such estimates are reasonably
feasible, of--
``(i) future costs of Federal private
sector mandates to the extent that such
mandates differ significantly from or extend
beyond the 5-year time period referred to in
subparagraph (B)(iii)(I);
``(ii) any disproportionate financial
effects of Federal private sector mandates and
of any Federal financial assistance in the bill
or joint resolution upon any particular
industries or sectors of the economy, States,
regions, and urban or rural or other types of
communities; and
``(iii) the effect of Federal private
sector mandates in the bill or joint resolution
on the national economy, including the effect
on productivity, economic growth, full
employment, creation of productive jobs, and
international competitiveness of United States
goods and services.''; and
(2) in section 301(d) by adding at the end thereof the
following new sentence: ``Any Committee of the House of
Representatives or the Senate that anticipates that the
committee will consider any proposed legislation establishing,
amending, or reauthorizing any Federal program likely to have a
significant budgetary impact on any State, local, or tribal
government, or likely to have a significant financial impact on
the private sector, including any legislative proposal
submitted by the executive branch likely to have such a
budgetary or financial impact, shall include its views and
estimates on that proposal to the Committee on the Budget of
the applicable House.''.
SEC. 104. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Congressional Budget
Office $4,500,000 for each of the fiscal years 1996, 1997, 1998, 1999,
2000, 2001, and 2002 to carry out the provisions of this Act.
SEC. 105. EXERCISE OF RULEMAKING POWERS.
The provisions of sections 101, 102, 103, 104, and 107 are enacted
by Congress--
(1) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively, and as such
they shall be considered as part of the rules of such House,
respectively, and such rules shall supersede other rules only
to the extent that they are inconsistent therewith; and
(2) with full recognition of the constitutional right of
either House to change such rules (so far as relating to such
House) at any time, in the same manner, and to the same extent
as in the case of any other rule of each House.
SEC. 106. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET OFFICE.
(a) In General.--Section 403 of the Congressional Budget Act of
1974 (2 U.S.C. 653) is repealed.
(b) Technical and Conforming Amendment.--The table of contents in
section 1(b) of the Congressional Budget and Impoundment Control Act of
1974 is amended by striking out the item relating to section 403.
SEC. 107. EFFECTIVE DATE.
This title shall take effect on January 1, 1996 and shall apply
only to legislation introduced on and after such date.
TITLE II--REGULATORY ACCOUNTABILITY AND REFORM
SEC. 201. REGULATORY PROCESS.
(a) In General.--Each agency shall, to the extent permitted in
law--
(1) assess the effects of Federal regulations on State,
local, and tribal governments (other than to the extent that
such regulations incorporate requirements specifically set
forth in legislation), and the private sector including
specifically the availability of resources to carry out any
Federal intergovernmental mandates in those regulations; and
(2) seek to minimize those burdens that uniquely or
significantly affect such governmental entities, consistent
with achieving statutory and regulatory objectives.
(b) State, Local, and Tribal Government Input.--Each agency shall,
to the extent permitted in law, develop an effective process to permit
elected officials (or their designated representatives) of State,
local, and tribal governments to provide meaningful and timely input in
the development of regulatory proposals containing significant Federal
intergovernmental mandates. Such a process shall be consistent with all
applicable laws.
(c) Agency Plan.--
(1) Effects on state, local and tribal governments.--Before
establishing any regulatory requirements that might
significantly or uniquely affect small governments, agencies
shall have developed a plan under which the agency shall--
(A) provide notice of the contemplated requirements
to potentially affected small governments, if any;
(B) enable officials of affected small governments
to provide input under subsection (b); and
(C) inform, educate, and advise small governments
on compliance with the requirements.
(2) Authorization of appropriations.--There are authorized
to be appropriated to each agency to carry out the provisions
of this section, and for no other purpose, such sums as are
necessary.
SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.
(a) In General.--Before promulgating any final rule that includes
any Federal intergovernmental mandate that may result in the
expenditure by State, local, or tribal governments, and the private
sector, in the aggregate, of $100,000,000 or more (adjusted annually
for inflation by the Consumer Price Index) in any 1 year, and before
promulgating any general notice of proposed rulemaking that is likely
to result in promulgation of any such rule, the agency shall prepare a
written statement containing--
(1) estimates by the agency, including the underlying
analysis, of the anticipated costs to State, local, and tribal
governments and the private sector of complying with the
Federal intergovernmental mandate, and of the extent to which
such costs may be paid with funds provided by the Federal
Government or otherwise paid through Federal financial
assistance;
(2) estimates by the agency, if and to the extent that the
agency determines that accurate estimates are reasonably
feasible, of--
(A) the future costs of the Federal
intergovernmental mandate; and
(B) any disproportionate budgetary effects of the
Federal intergovernmental mandate upon any particular
regions of the Nation or particular State, local, or
tribal governments, urban or rural or other types of
communities;
(3) a qualitative, and if possible, a quantitative
assessment of costs and benefits anticipated from the Federal
intergovernmental mandate (such as the enhancement of health
and safety and the protection of the natural environment);
(4) the effect of the Federal private sector mandate on the
national economy, including the effect on productivity,
economic growth, full employment, creation of productive jobs,
and international competitiveness of United States goods and
services; and
(5)(A) a description of the extent of the agency's prior
consultation with elected representatives (or their designated
representatives) of the affected State, local, and tribal
governments;
(B) a summary of the comments and concerns that were
presented by State, local, or tribal governments either orally
or in writing to the agency;
(C) a summary of the agency's evaluation of those comments
and concerns; and
(D) the agency's position supporting the need to issue the
regulation containing the Federal intergovernmental mandates
(considering, among other things, the extent to which costs may
or may not be paid with funds provided by the Federal
Government).
(b) Promulgation.--In promulgating a general notice of proposed
rulemaking or a final rule for which a statement under subsection (a)
is required, the agency shall include in the promulgation a summary of
the information contained in the statement.
(c) Preparation in Conjunction With Other Statement.--Any agency
may prepare any statement required under subsection (a) in conjunction
with or as a part of any other statement or analysis, provided that the
statement or analysis satisfies the provisions of subsection (a).
SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE.
The Director of the Office of Management and Budget shall--
(1) collect from agencies the statements prepared under
section 202; and
(2) periodically forward copies of such statements to the
Director of the Congressional Budget Office on a reasonably
timely basis after promulgation of the general notice of
proposed rulemaking or of the final rule for which the
statement was prepared.
SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY.
(a) In General.--The Director of the Office of Management and
Budget, in consultation with Federal agencies, shall establish pilot
programs in at least 2 agencies to test innovative, and more flexible
regulatory approaches that--
(1) reduce reporting and compliance burdens on small
governments; and
(2) meet overall statutory goals and objectives.
(b) Program Focus.--The pilot programs shall focus on rules in
effect or proposed rules, or a combination thereof.
TITLE III--REVIEW OF UNFUNDED FEDERAL MANDATES
SEC. 301. ESTABLISHMENT.
There is established a commission which shall be known as the
``Commission on Unfunded Federal Mandates'' (in this title referred to
as the ``Commission'').
SEC. 302. REPORT ON UNFUNDED FEDERAL MANDATES BY THE COMMISSION.
(a) In General.--The Commission shall in accordance with this
section--
(1) investigate and review the role of unfunded Federal
mandates in intergovernmental relations and their impact on
local, State, and Federal government objectives and
responsibilities; and
(2) make recommendations to the President and the Congress
regarding--
(A) allowing flexibility for States, local, and
tribal governments in complying with specific unfunded
Federal mandates for which terms of compliance are
unnecessarily rigid or complex;
(B) reconciling any 2 or more unfunded Federal
mandates which impose contradictory or inconsistent
requirements;
(C) terminating unfunded Federal mandates which are
duplicative, obsolete, or lacking in practical utility;
(D) suspending, on a temporary basis, unfunded
Federal mandates which are not vital to public health
and safety and which compound the fiscal difficulties
of States, local, and tribal governments, including
recommendations for triggering such suspension;
(E) consolidating or simplifying unfunded Federal
mandates, or the planning or reporting requirements of
such mandates, in order to reduce duplication and
facilitate compliance by States, local, and tribal
governments with those mandates; and
(F) establishing common Federal definitions or
standards to be used by States, local, and tribal
governments in complying with unfunded Federal mandates
that use different definitions or standards for the
same terms or principles.
(3) Identification of relevant unfunded federal mandates.--
Each recommendation under paragraph (2) shall, to the extent
practicable, identify the specific unfunded Federal mandates to
which the recommendation applies.
(b) Criteria.--
(1) In general.--The Commission shall establish criteria
for making recommendations under subsection (a).
(2) Issuance of proposed criteria.--The Commission shall
issue proposed criteria under this subsection not later than 60
days after the date of the enactment of this Act, and
thereafter provide a period of 30 days for submission by the
public of comments on the proposed criteria.
(3) Final criteria.--Not later than 45 days after the date
of issuance of proposed criteria, the Commission shall--
(A) consider comments on the proposed criteria
received under paragraph (2);
(B) adopt and incorporate in final criteria any
recommendations submitted in those comments that the
Commission determines will aid the Commission in
carrying out its duties under this section; and
(C) issue final criteria under this subsection.
(c) Preliminary Report.--
(1) In general.--Not later than 9 months after the date of
the enactment of this Act, the Commission shall--
(A) prepare and publish a preliminary report on its
activities under this subtitle, including preliminary
recommendations pursuant to subsection (a);
(B) publish in the Federal Register a notice of
availability of the preliminary report; and
(C) provide copies of the preliminary report to the
public upon request.
(2) Public hearings.--The Commission shall hold public
hearings on the preliminary recommendations contained in the
preliminary report of the Commission under this subsection.
(d) Final Report.--Not later than 3 months after the date of the
publication of the preliminary report under subsection (c), the
Commission shall submit to the Congress, including the Committee on
Government Reform and Oversight of the House of Representatives and the
Committee on Governmental Affairs of the Senate, and to the President a
final report on the findings, conclusions, and recommendations of the
Commission under this section.
SEC. 303. MEMBERSHIP.
(a) Number and Appointment.--
(1) In general.--The Commission shall be composed of 9
members appointed from individuals who possess extensive
leadership experience in and knowledge of States, local, and
tribal governments and intergovernmental relations, including
State and local elected officials, as follows:
(A) 3 members appointed by the Speaker of the House
of Representatives, in consultation with the minority
leader of the House of Representatives.
(B) 3 members appointed by the majority leader of
the Senate, in consultation with the minority leader of
the Senate.
(C) 3 members appointed by the President.
(2) Limitation.--An individual who is a Member or employee
of the Congress may not be appointed or serve as a member of
the Commission.
(b) Waiver of Limitation on Executive Schedule Positions.--
Appointments may be made under this section without regard to section
5311(b) of title 5, United States Code.
(c) Terms.--
(1) In general.--Each member of the Commission shall be
appointed for the life of the Commission.
(2) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made.
(d) Basic Pay.--
(1) Rates of pay.--Members of the Commission shall serve
without pay.
(2) Prohibition of compensation of federal employees.--
Members of the Commission who are full-time officers or
employees of the United States may not receive additional pay,
allowances, or benefits by reason of their service on the
Commission.
(e) Travel Expenses.--Each member of the Commission shall receive
travel expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5, United States Code.
(f) Chairperson.--The President shall designate a member of the
Commission as Chairperson at the time of the appointment of that
member.
(g) Meetings.--
(1) In general.--Subject to paragraph (2), the Commission
shall meet at the call of the Chairperson or a majority of its
members.
(2) First meeting.--The Commission shall convene its first
meeting by not later than 45 days after the date of the
completion of appointment of the members of the Commission.
(3) Quorum.--A majority of members of the Commission shall
constitute a quorum but a lesser number may hold hearings.
SEC. 304. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.
(a) Director.--The Commission shall, without regard to section
5311(b) of title 5, United States Code, have a Director who shall be
appointed by the Commission. The Director shall be paid at the rate of
basic pay payable for level IV of the Executive Schedule.
(b) Staff.--With the approval of the Commission, and without regard
to section 5311(b) of title 5, United States Code, the Director may
appoint and fix the pay of such staff as is sufficient to enable the
Commission to carry out its duties.
(c) Applicability of Certain Civil Service Laws.--The Director and
staff of the Commission may be appointed without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates, except that
an individual so appointed may not receive pay in excess of the annual
rate payable under section 5376 of title 5, United States Code.
(d) Experts and Consultants.--The Commission may procure temporary
and intermittent services of experts or consultants under section
3109(b) of title 5, United States Code.
(e) Staff of Federal Agencies.--Upon request of the Director, the
head of any Federal department or agency may detail, on a reimbursable
basis, any of the personnel of that department or agency to the
Commission to assist it in carrying out its duties under this title.
SEC. 305. POWERS OF COMMISSION.
(a) Hearings and Sessions.--The Commission may, for the purpose of
carrying out this title, hold hearings, sit and act at times and
places, take testimony, and receive evidence as the Commission
considers appropriate.
(b) Powers of Members and Agents.--Any member or agent of the
Commission may, if authorized by the Commission, take any action which
the Commission is authorized to take by this section.
(c) Obtaining Official Data.--The Commission may secure directly
from any department or agency of the United States information
necessary to enable it to carry out this title, except information--
(1) which is specifically exempted from disclosure by law;
or
(2) which that department or agency determines will
disclose--
(A) matters necessary to be kept secret in the
interests of national defense or the confidential
conduct of the foreign relations of the United States;
(B) information relating to trade secrets or
financial or commercial information pertaining
specifically to a given person if the information has
been obtained by the Government on a confidential
basis, other than through an application by such person
for a specific financial or other benefit, and is
required to be kept secret in order to prevent undue
injury to the competitive position of such person; or
(C) personnel or medical data or similar data the
disclosure of which would constitute a clearly
unwarranted invasion of personal privacy;
unless the portions containing such matters, information, or
data have been excised.
Upon request of the Chairperson of the Commission, the head of that
department or agency shall furnish that information to the Commission.
(d) Mails.--The Commission may use the United States mails in the
same manner and under the same conditions as other departments and
agencies of the United States.
(e) Administrative Support Services.--Upon the request of the
Commission, the Administrator of General Services shall provide to the
Commission, on a reimbursable basis, the administrative support
services necessary for the Commission to carry out its duties under
this title.
(f) Contract Authority.--The Commission may, subject to
appropriations, contract with and compensate government and private
agencies or persons for property and services used to carry out its
duties under this title.
SEC. 306. TERMINATION.
The Commission shall terminate 90 days after submitting its final
report pursuant to section 302(d).
SEC. 307. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission
$1,000,000 to carry out this title.
SEC. 308. DEFINITION.
As used in this title, the term ``unfunded Federal mandate''
means--
(1) any provision in statute or regulation that imposes an
enforceable duty upon States, local governments, or tribal
governments including a condition of Federal assistance or a
duty arising from participation in a voluntary Federal program;
(2) relates to a Federal program under which Federal
financial assistance is provided to States, local governments,
or tribal governments under entitlement authority; or
(3) that imposes any other unfunded obligation on States,
local governments, or tribal governments.
SEC. 309. EFFECTIVE DATE.
This title shall take effect 60 days after the date of the
enactment of this Act.
TITLE IV--JUDICIAL REVIEW
SEC. 401. JUDICIAL REVIEW.
(a) In General.--Any statement or report prepared under this Act,
and any compliance or noncompliance with the provisions of this Act,
and any determination concerning the applicability of the provisions of
this Act shall not be subject to judicial review.
(b) Rule of Construction.--No provision of this Act or amendment
made by this Act shall be construed to create any right or benefit,
substantive or procedural, enforceable by any person in any
administrative or judicial action. No ruling or determination made
under the provisions of this Act or amendments made by this Act shall
be considered by any court in determining the intent of Congress or for
any other purpose.
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