[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 62 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                 H. R. 62

     To provide relief to State and local governments from Federal 
                              regulation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

  Mr. Herger introduced the following bill; which was referred to the 
              Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
     To provide relief to State and local governments from Federal 
                              regulation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the ``Unfunded Federal Mandates Relief Act of 1997''.

                          findings and purpose

    Sec. 2. (a) The Congress finds and declares that--
            (1) Federal regulation of State and local governments has 
        become increasingly extensive and intrusive in recent years;
            (2) such regulation has adversely affected State and local 
        governments by placing excessive fiscal burdens on such 
        governments;
            (3) such excessive fiscal burdens have weakened the 
        foundation of the Federal system of government; and
            (4) there is a lack of adequate fiscal resources to carry 
        out necessary Federal regulation of State and local governments 
        in order to enable such governments to comply with 
        intergovernmental regulations currently in effect.
    (b) Therefore, it is the purpose of this Act to establish 
procedures to assure that the Federal Government pays the total amount 
of additional direct costs incurred by State and local governments in 
complying with any intergovernmental regulation.

                              definitions

    Sec. 3. For purposes of this Act, the term--
            (1) ``additional direct costs'' means the amount of costs 
        incurred by a State or local government solely in complying 
        with an intergovernmental regulation promulgated pursuant to a 
        Federal law concerning a particular activity which is in excess 
        of the amount that such State or local government would be 
        required to expend in carrying out such activity in the absence 
        of such law, except that such term does not include any amount 
        which a State or local government is required by law to 
        contribute as a non-Federal share under a Federal assistance 
        program;
            (2) ``Director'' means the Director of the Office of 
        Management and Budget;
            (3) ``Federal agency'' has the meaning given to the term 
        ``executive agency'' in section 6501(3) of title 31, United 
        States Code;
            (4) ``Federal assistance'' means any assistance provided by 
        a Federal agency to State and local governments or other 
        recipients, in the form of grants, loans, loan guarantees, 
        property, cooperative agreements, or technical assistance, 
        except that such term does not include direct cash assistance 
        to individuals, contracts for the procurement of goods or 
        services for the United States, or insurance;
            (5) ``intergovernmental regulation'' means a regulation 
        promulgated by a Federal agency that requires a State or local 
        government to take certain actions or requires a State or local 
        government to comply with certain specified conditions in order 
        to receive or continue to receive Federal assistance and which 
        requires the termination or reduction of such assistance if 
        such government fails to comply with such conditions;
            (6) ``local government'' has the same meaning as in section 
        6501(6) of title 31, United States Code;
            (7) ``significant law'' means any Federal law which is 
        likely to result in additional direct costs to State and local 
        governments; and
            (8) ``State'' means each of the several States, the 
        District of Columbia, Guam, the Commonwealth of Puerto Rico, 
        the Commonwealth of the Northern Mariana Islands, the Virgin 
        Islands, American Samoa, and the Trust Territory of the Pacific 
        Islands.

            TITLE I--REVIEW OF INTERGOVERNMENTAL REGULATIONS

                            report required

    Sec. 101. (a) Not later than thirty days after the date on which 
the President transmits a budget for a fiscal year to the Congress 
pursuant to section 1105 of title 31, United States Code, the President 
shall submit to the Congress a report specifying and evaluating the 
economic costs, noneconomic costs, and additional direct costs which 
have been incurred or which will be incurred by State governments and 
local governments in complying with intergovernmental regulations 
during the most recently completed fiscal year, the fiscal year in 
progress, and the first two fiscal years immediately succeeding the 
fiscal year in progress.
    (b) Each report required under subsection (a) shall include--
            (1) a list of each intergovernmental regulation in effect 
        during each fiscal year for which the report is made and a 
        citation of statutory and administrative authority for each 
        such intergovernmental regulation;
            (2) an estimate, for each such intergovernmental 
        regulation, of--
                    (A) the total amount of economic costs, noneconomic 
                costs, and additional direct costs that have been 
                incurred or will be incurred in each such fiscal year 
                by the government of each State and all local 
                governments in such State in complying with such 
                regulation in each such fiscal year; and
                    (B) the ratio (stated as a percentage) which the 
                total amount of additional direct costs that have been 
                incurred or will be incurred by all local governments 
                in a State in complying with such regulation in each 
                such fiscal year bears to the total amount of 
                additional direct costs that have been incurred or will 
                be incurred by the government of such State and all 
                local governments in such State in complying with such 
                regulation in such fiscal year;
            (3) an estimate, for each such regulation, of the economic 
        and noneconomic benefits that will be provided in each such 
        fiscal year to each State government and all local governments 
        in such State as a result of compliance with such regulation 
        during each such fiscal year;
            (4) recommendations for changes in laws and regulations 
        that will reduce the costs specified pursuant to paragraph (2), 
        or that will achieve a more favorable balance between the 
        benefits specified pursuant to paragraph (3) and the costs 
        specified pursuant to paragraph (2); and
            (5) proposals for legislation, and a statement of planned 
        administrative actions, to implement the recommendations 
        specified pursuant to paragraph (4).

                  procedures for preparation of report

    Sec. 102. (a) The President may delegate to the Director or to the 
head of any other Federal agency the responsibility for preparing the 
annual report required by section 101.
    (b)(1) In carrying out the provisions of this title, the President, 
the Director, or the head of a Federal agency to which a delegation is 
made under subsection (a), shall prescribe standards to be used by 
Federal agencies in estimating the costs of compliance with, and the 
benefits provided by, intergovernmental regulations administered by 
such agencies.
    (2) The President, the Director, or the head of a Federal agency to 
which a delegation is made under subsection (a) shall prescribe the 
standards required under paragraph (1)--
            (A) after consultation with State and local governments and 
        the Comptroller General of the United States; and
            (B) after providing public notice and an opportunity for 
        comment in accordance with section 553 of title 5, United 
        States Code.
    (3) Standards prescribed under paragraph (1) may be revised from 
time to time to reflect changes in relevant economic and social 
circumstances and advances in pertinent branches of knowledge.
    (c) The standards prescribed under subsection (b) shall provide, to 
the extent possible, for--
            (1) uniform categories of costs of compliance with, and 
        benefits provided by, intergovernmental regulations;
            (2) methods to be used by the President, and by Federal 
        agencies, in estimating the additional direct costs that will 
        be incurred by State and local governments in complying with 
        each intergovernmental regulation, including methods to 
        estimate the amount of such costs that will be incurred for 
        each fiscal year in which each such regulation is in effect;
            (3) methods to be used by Federal agencies in compiling the 
        information required to be submitted under subsection (d), 
        which shall be designed to--
                    (A) minimize the costs that will be incurred by the 
                State and local governments and the Federal assistance 
                recipients from which such information will be 
                collected; and
                    (B) ensure the collection of reasonably accurate 
                information in a form that will be useful to States in 
                complying with section 204(c);
            (4) methods for preventing disclosure of information about 
        individuals or businesses the confidentiality of which is 
        protected under Federal law;
            (5) procedures to be followed by Federal agencies in 
        reporting the information required to be submitted under 
        subsection (d); and
            (6) such other procedures and guidelines as may be 
        necessary for the implementation of this title.
    (d) Each year, at a time prescribed by the President, the Director, 
or the head of the Federal agency to which a delegation is made under 
subsection (a), the head of each Federal agency which administered any 
intergovernmental regulation during a fiscal year for which a report is 
required under section 101, shall prepare and submit to the President, 
the Director, or such agency head, a report setting forth, for each 
such regulation, the information required to be included for such 
regulation in the report required under section 101.

 TITLE II--COMPENSATION OF STATE AND LOCAL GOVERNMENTS FOR ADDITIONAL 
                              DIRECT COSTS

                         compensation required

    Sec. 201. (a) A Federal agency or a court of the United States 
shall not require State governments or local governments to comply, in 
any fiscal year, with any intergovernmental regulation unless 
provisions of law have been enacted which provide a sufficient amount 
of funds for such fiscal year to reimburse such governments for the 
total amount of additional direct costs that will be incurred by such 
governments in complying with such regulation during such fiscal year.
    (b) For purposes of this section, the total amount of additional 
direct costs that will be incurred by State governments and local 
governments in complying with an intergovernmental regulation in any 
fiscal year shall be the total amount of such costs for such regulation 
estimated by the Director of the Congressional Budget Office for such 
fiscal year in the report required under section 202 for such fiscal 
year.

       report by the director of the congressional budget office

    Sec. 202. (a) For each fiscal year in which an intergovernmental 
regulation promulgated pursuant to a significant law will be in effect, 
the Director of the Congressional Budget Office shall prepare and 
transmit to the President and the Congress a report specifying, for 
such fiscal year and the fiscal year succeeding such fiscal year, an 
estimate of the total amount of additional direct costs that will be 
incurred by State governments and local governments in complying with 
such regulation in each such fiscal year.
    (b) In preparing each report required by subsection (a), the 
Director of the Congressional Budget Office shall consider the estimate 
of additional direct costs for a fiscal year resulting from compliance 
with an intergovernmental regulation which are specified in the report 
submitted by the President under title I during the fiscal year 
preceding such fiscal year.
    (c) The Director of the Congressional Budget Office shall transmit 
each report required by subsection (a) for a fiscal year to the 
President and the Congress by September 1 of the fiscal year preceding 
such fiscal year.

                             implementation

    Sec. 203. For each fiscal year in which an intergovernmental 
regulation promulgated pursuant to a significant law will be in effect, 
the chairman of the committees of the Senate and of the House of 
Representatives having legislative jurisdiction over such significant 
law shall propose, to an appropriate bill or resolution providing funds 
for such fiscal year, an amendment containing provisions to appropriate 
funds to reimburse State governments and local governments for the 
additional direct costs incurred in complying with such regulation. The 
amount of funds proposed to be appropriated by such amendment shall be 
equal to or in excess of the amount described in section 201(a).

      procedures for reimbursements to state and local governments

    Sec. 204. (a)(1) The head of each Federal agency which administers 
an intergovernmental regulation promulgated pursuant to a significant 
law shall pay to each State government in each fiscal year the amount 
determined pursuant to this section to reimburse the State government 
and local governments in the State for the additional direct costs 
incurred by such governments in complying with such regulation in such 
fiscal year.
    (2) A State government which receives payments under this section 
for reimbursement for additional direct costs incurred in complying 
with an intergovernmental regulation in any fiscal year shall pay to 
each local government in the State the amount determined pursuant to 
this section to reimburse such local government for the additional 
direct costs incurred by such local government in complying with such 
regulation in such fiscal year.
    (b) The total amount to be paid to a State to reimburse the 
government of the State and local governments in the State for 
additional direct costs incurred by such governments in complying with 
an intergovernmental regulation in any fiscal year shall be an amount 
which bears the same ratio to the total amount for reimbursement of 
additional direct costs for all State governments and local governments 
described in section 201(a) with respect to such regulation for such 
fiscal year as the total amount of additional direct costs with respect 
to such regulation which is specified in the report submitted by the 
President under title I for such fiscal year for such State government 
and local governments in such State for such fiscal year bears to the 
sum of the total amounts of additional direct costs with respect to 
such regulation which are specified in such report for all State 
governments and all local governments for such fiscal year.
    (c)(1) The total amount to be paid by a State government to local 
governments in such State to reimburse such governments for additional 
direct costs incurred by such governments in complying with an 
intergovernmental regulation in any fiscal year shall be the amount 
which is equal to the product of the amount paid to the State under 
subsection (b) for such fiscal year multiplied by the ratio determined 
by the President for such State with respect to such regulation for 
such fiscal year pursuant to section 101(b)(2)(B).
    (2)(A) A State government which receives payments under this 
section to reimburse local governments in the State for the additional 
direct costs incurred by such governments in complying with an 
intergovernmental regulation in any fiscal year shall pay to each such 
local government an amount equal to the product of--
            (i) the total amount determined under paragraph (1) with 
        respect to such regulation for such fiscal year, multiplied by
            (ii) the ratio (stated as a percentage and estimated by the 
        State in accordance with subparagraph (B)) that the total 
        amount of additional direct costs incurred by such local 
        government in complying with such regulation in such fiscal 
        year bears to the total amount of additional direct costs 
        incurred by all local governments in such State in complying 
        with such regulation in such fiscal year.
    (B) Each State government which receives payments under this 
section for any fiscal year shall provide by law for the estimation of 
the amount of additional direct costs incurred by each local government 
in such State in complying with an intergovernmental regulation for 
which such payments are received. In providing for the estimation of 
such costs, the State shall establish procedures and methods for the 
estimation of such costs which are reasonably related to the actual 
additional direct costs incurred by such governments in complying with 
such regulation in such fiscal year.

                    effect of subsequent enactments

    Sec. 205. No law enacted after the date of enactment of this title 
shall supersede the provisions of this title unless such law does so in 
specific terms, referring to this title, and declares that such law 
supersedes the provisions of this title.
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