[Congressional Record Volume 141, Number 17 (Friday, January 27, 1995)]
[Senate]
[Pages S1720-S1725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S1720]]
                          AMENDMENTS SUBMITTED

                                 ______


                KEMPTHORNE (AND GLENN) AMENDMENT NO. 228

  Mr. KEMPTHORNE (for himself and Mr. Glenn) proposed an amendment to 
amendment No. 210 the bill (S. 1). 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; as follows:

       Strike out all after ``1. SHORT TITLE.'' and insert the 
     following:
       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 
     [[Page S1721]] 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.
     [[Page S1722]]   ``(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 authorization 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 
     entities 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.
     [[Page S1723]]   ``(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, 199? or on the 
     date 90 days after appropriations are made available as 
     authorized under section 104, whichever is earlier, and 
     shall 
     [[Page S1724]] 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.--
     [[Page S1725]]   (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.
     

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