[Congressional Record Volume 141, Number 22 (Friday, February 3, 1995)]
[Senate]
[Pages S2140-S2145]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     THE UPDATE MANDATE REFORM ACT OF 1995--MESSAGE FROM THE HOUSE

  Mr. LOTT. Mr. President, I ask that the Chair lay before the Senate a 
message from the House of Representatives on (S. 1) a bill to curb the 
practice of imposing 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.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:

       Resolved, That the bill from the Senate (S. 1) entitled 
     ``An Act to curb the practice of imposing unfunded Federal 
     mandates on States and local governments; to strengthen the 
     partnership between the Federal Government and State, local 
     and tribal governments; to end the imposition, in the absence 
     of full consideration by Congress, of Federal mandates on 
     State, local, and tribal governments without adequate 
     funding, in a manner that may displace other essential 
     governmental priorities; and to ensure that the Federal 
     Government pays the costs incurred by those governments in 
     complying with certain requirements under Federal statutes 
     and regulations, and for other purposes'', do pass with the 
     following amendments:
       Strike out all after the enacting clause and insert:
     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 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 House of Representatives 
     before the Senate and House of Representatives votes on 
     proposed legislation;
       (4) to promote informed and deliberate decisions by 
     Congress on the appropriateness of Federal mandates in any 
     particular instance;
       (5) to establish a point-of-order vote on the consideration 
     in the Senate and House of Representatives of legislation 
     containing significant Federal mandates;
       (6) 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 
     [[Page S2141]] 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;
       (7) to establish the general rule that Congress shall not 
     impose Federal mandates on States, local governments, and 
     tribal governments without providing adequate funding to 
     comply with such mandates; and
       (8) to begin consideration of methods to relieve States, 
     local governments, and tribal governments of unfunded 
     mandates imposed by Federal court interpretations of Federal 
     statutes and regulations.

     SEC. 3. DEFINITIONS.

       For purposes of this Act--
       (1) the terms ``agency'', ``Federal financial assistance'', 
     ``Federal private sector mandate'', ``Federal mandate'' 
     (except as provided by section 108), ``local government'', 
     ``private sector'', ``regulation'' or ``rule'', and ``State'' 
     have the meaning given those terms by section 421 of the 
     Congressional Budget Act of 1974; and
       (2) the term ``small government'' means any small 
     governmental jurisdiction as defined in section 601(5) of 
     title 5, United States Code, and any tribal government.
     SEC. 4. LIMITATION ON APPLICATION.

       This Act shall not apply to any provision in a Federal 
     statute or 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 age, 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 Federal Government;
       (4) provides for emergency assistance or relief at the 
     request of any State, local government, or tribal government 
     or any official of such a government;
       (5) is necessary for the national security or the 
     ratification or implementation of international treaty 
     obligations;
       (6) the President designates as emergency legislation and 
     that the Congress so designates in statute; or
       (7) pertains to Social Security.

              TITLE I--REVIEW OF UNFUNDED FEDERAL MANDATES

     SEC. 101. REPORT ON UNFUNDED FEDERAL MANDATES BY ADVISORY 
                   COMMISSION ON INTERGOVERNMENTAL RELATIONS.

       (a) In General.--The Advisory Commission 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, and their impact on the competitive balance 
     between States, local and tribal governments, and the private 
     sector and consider views of and the impact on working men 
     and women on those same matters;
       (2) investigate and review the role of unfunded State 
     mandates imposed on local governments, the private sector, 
     and individuals;
       (3) investigate and review the role of unfunded local 
     mandates imposed on the private sector and individuals; and
       (4) 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;
       (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
       (G) establishing procedures to ensure that, in cases in 
     which a Federal private sector mandate applies to private 
     sector entities which are competing directly or indirectly 
     with States, local governments, or tribal governments for the 
     purpose of providing substantially similar goods or services 
     to the public, any relief from unfunded Federal mandates is 
     applied in the same manner and to the same extent to the 
     private sector entities as it is to the States, local 
     governments, and tribal governments with which they compete, 
     and to ensure that unfunded Federal mandate relief does not 
     increase private sector burdens.

     Each recommendation under paragraph (4) shall, to the extent 
     practicable, identify the specific unfunded Federal mandates 
     to which the recommendation applies.
       (b) Criteria.--
       (1) In general.--The Advisory Commission shall establish 
     criteria for making recommendations under subsection (a).
       (2) Issuance of proposed criteria.--The Advisory 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 Advisory Commission 
     shall--
       (A) consider comments on the proposed criteria received 
     under paragraph (4);
       (B) adopt and incorporate in final criteria any 
     recommendations submitted in those comments that the Advisory 
     Commission determines will aid the Advisory 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 Advisory 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 Advisory Commission shall hold 
     public hearings on the preliminary recommendations contained 
     in the preliminary report of the Advisory 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 Advisory 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 Advisory Commission under this 
     section.
       (e) Priority to Mandates That Are Subject of Judicial 
     Proceedings.--In carrying out this section, the Advisory 
     Commission shall give the highest priority to immediately 
     investigating, reviewing, and making recommendations 
     regarding unfunded Federal mandates that are the subject of 
     judicial proceedings between the United States and a State, 
     local, or tribal government.
       (f) State Mandate and Local Mandate Defined.--As used in 
     this title:
       (1) State mandate.--The term ``State mandate'' means any 
     provision in a State statute or regulation that imposes an 
     enforceable duty on local governments, the private sector, or 
     individuals, including a condition of State assistance or a 
     duty arising from participation in a voluntary State program.
       (2) Local mandate.--The term ``local mandate'' means any 
     provision in a local ordinance or regulation that imposes an 
     enforceable duty on the private sector or individuals, 
     including a condition of local assistance or a duty arising 
     from participation in a voluntary local program.

     SEC. 102. SPECIAL AUTHORITIES OF ADVISORY COMMISSION.

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

     SEC. 103. DEFINITIONS.

       In this title:
       (1) Advisory commission.--The term ``Advisory Commission'' 
     means the Advisory Commission on Intergovernmental Relations.
       (2) Federal mandate.--The term ``Federal mandate'' means 
     any provision in statute or regulation or any Federal court 
     ruling 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.
             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

     SEC. 201. REGULATORY PROCESS.

       (a) In General.--Each agency shall, to the extent permitted 
     by subchapter II of chapter 5 of title 5, United States 
     Code--
       (1) assess the effects of Federal regulations on States, 
     local governments, tribal governments, and the private sector 
     (other than to the extent that such regulations incorporate 
     requirements specifically set forth in legislation), 
     including specifically the availability of resources to carry 
     out any Federal mandates in those regulations; and
       (2) seek to minimize those burdens that uniquely or 
     significantly affect such governmental entities or the 
     private sector, consistent with achieving statutory and 
     regulatory objectives.
       (b) State, Local Government, and Tribal Government Input.--
     Each agency shall develop an effective process to permit 
     elected officials (or their designated representatives) of 
     States, local governments, and tribal governments to provide 
     meaningful and timely input in the development of regulatory 
     proposals containing significant Federal intergovernmental 
     mandates.
     [[Page S2142]]   (c) Agency Plan.--Before establishing any 
     regulatory requirements that might significantly or uniquely 
     affect small governments, an agency shall have developed a 
     plan under which the agency shall--
       (1) provide notice of the contemplated requirements to 
     potentially affected small governments, if any;
       (2) enable officials of affected small governments to 
     provide input pursuant to subsection (b); and
       (3) inform, educate, and advise small governments on 
     compliance with the requirements.
       (d) Least Burdensome Option or Explanation Required.--An 
     agency may not issue a rule that contains a Federal mandate 
     if the rulemaking record for the rule indicates that there 
     are 2 or more methods that could be used to accomplish the 
     objective of the rule, unless--
       (1) the Federal mandate is the least costly method, or has 
     the least burdensome effect, for--
       (A) States, local governments, and tribal governments, in 
     the case of a rule containing a Federal intergovernmental 
     mandate, and
       (B) the private sector, in the case of a rule containing a 
     Federal private sector mandate; or
       (2) the agency publishes with the final rule an explanation 
     of why the more costly or burdensome method of the Federal 
     mandate was adopted.

     SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY 
                   ACTIONS.

       (a) In General.--Before promulgating any final rule that 
     includes any Federal mandate that may result in the 
     expenditure by States, local governments, or tribal 
     governments, in the aggregate, or the private sector of at 
     least $100,000,000 (adjusted annually for inflation) 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 
     identifying the provision of Federal law under which the rule 
     is being promulgated and containing--
       (1) estimates by the agency, including the underlying 
     analysis, of the anticipated costs to States, local 
     governments, tribal governments, and the private sector of 
     complying with the Federal mandates, 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 mandate; and
       (B) any disproportionate budgetary effects of the Federal 
     mandates upon any particular regions of the country or 
     particular States, local governments, tribal governments, 
     urban or rural or other types of communities, or particular 
     segments of the private sector;
       (3) a qualitative, and if possible, a quantitative 
     assessment of costs and benefits anticipated from the Federal 
     mandates (such as the enhancement of health and safety and 
     the protection of the natural environment);
       (4) the effect of Federal private sector mandates on the 
     national economy, including the effect on productivity, 
     economic growth, full employment, creation of productive 
     jobs, worker benefits and pensions, and international 
     competitiveness of United States goods and services;
       (5) a description of the extent of the agency's prior 
     consultation with elected representatives (or their 
     designated representatives) of the affected States, local 
     governments, and tribal governments, and designated 
     representatives of the private sector;
       (6) a summary of the comments and concerns that were 
     presented by States, local governments, or tribal governments 
     and the private sector either orally or in writing to the 
     agency;
       (7) a summary of the agency's evaluation of those comments 
     and concerns; and
       (8) the agency's position supporting the need to issue the 
     regulation containing the Federal 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 by subsection (a) 
     in conjunction with or as part of any other statement or 
     analysis, if 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 them 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 on a combination thereof.

     SEC. 205. ANNUAL REPORT TO CONGRESS REGARDING FEDERAL COURT 
                   RULINGS.

       Not later than 4 months after the date of enactment of this 
     Act, and no later than March 15 of each year thereafter, the 
     Advisory Commission on Intergovernmental Relations shall 
     submit to the Congress, including each of the Committee on 
     Government Reform and Oversight of the House of 
     Representatives and the Committee on Governmental Affairs of 
     the Senate, and to the President a report describing Federal 
     court rulings in the preceding calendar year which imposed an 
     enforceable duty on 1 or more States, local governments, or 
     tribal governments.
     SEC. 206. JUDICIAL REVIEW.

       (a) Review of Agency Actions Subject to Review Under Other 
     Federal Law.--If an agency action that is subject to section 
     201 or 202 is subject to judicial review under any other 
     Federal law (other than chapter 7 of title 5, United States 
     Code)--
       (1) any court of the United States having jurisdiction to 
     review the action under the other law shall have jurisdiction 
     to review the action under sections 201 and 202; and
       (2) in any proceeding under paragraph (1), any issue 
     relating exhaustion of remedies, the time and manner for 
     seeking review, venue, or the availability of a stay or 
     preliminary injunctive relief pending review shall be 
     determined under the other law.
       (b) Limitation on Preliminary Injunctive Relief.--The 
     second sentence of section 705 of title 5, United States Code 
     (relating to preliminary relief pending review), shall not 
     apply with respect to review under subsection (a)(1) of an 
     agency action, unless process authorized by that sentence is 
     not authorized by the other law under which the action is 
     reviewed.

     SEC. 207. ANNUAL STATEMENTS TO CONGRESS ON AGENCY COMPLIANCE 
                   WITH REQUIREMENTS OF TITLE.

       Not later than one year after the effective date of title 
     III and annually thereafter, the Director of the Office of 
     Management and Budget shall submit to Congress, including the 
     Committee on Government Reform and Oversight of the House of 
     Representatives and the Committee on Governmental Affairs of 
     the Senate, written statements detailing the compliance with 
     the requirements of sections 201 and 202 by each agency 
     during the period reported on.
            TITLE III--LEGISLATIVE ACCOUNTABILITY AND REFORM

     SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.

       Title IV of the Congressional Budget Act of 1974 is amended 
     by--
       (1) inserting before section 401 the following:

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

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

                       ``Part B--Federal Mandates

     ``SEC. 421. DEFINITIONS.

       ``For purposes of this part:
       ``(1) Agency.--The term `agency' has the meaning stated in 
     section 551(1) of title 5, United States Code, but does not 
     include independent regulatory agencies, as defined by 
     section 3502(10) of title 44, United States Code.
       ``(2) Director.--The term `Director' means the Director of 
     the Congressional Budget Office.
       ``(3) Federal financial assistance.--The term `Federal 
     financial assistance' means the amount of budget authority 
     for any Federal grant assistance or any Federal program 
     providing loan guarantees or direct loans.
       ``(4) Federal intergovernmental mandate.--The term `Federal 
     intergovernmental mandate' means--
       ``(A) any provision in legislation, statute, or regulation 
     that--
       ``(i) would impose an enforceable duty upon 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--
       ``(i)(I) the provision 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.
       ``(5) Federal private sector mandate.--The term `Federal 
     private sector mandate' means any provision in legislation, 
     statute, or regulation that--
       ``(A) would impose an enforceable duty on 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 purpose of ensuring 
     compliance with such duty.
       ``(6) Federal mandate.--The term `Federal mandate' means a 
     Federal intergovernmental 
     [[Page S2143]] mandate or a Federal private sector mandate, 
     as defined in paragraphs (4) and (5).
       ``(7) Federal mandate direct costs.--
       ``(A) Federal intergovernmental direct costs.--In the case 
     of a Federal intergovernmental mandate, the term `direct 
     costs' means the aggregate estimated amounts that all States, 
     local governments, and tribal governments would be required 
     to spend or would be required to forgo in revenues in order 
     to comply with the Federal intergovernmental mandate, or, in 
     the case of a provision referred to in paragraph (4)(A)(ii), 
     the amount of Federal financial assistance eliminated or 
     reduced.
       ``(B) Private sector direct costs.--In the case of a 
     Federal private sector mandate, the term `direct costs' means 
     the aggregate estimated amounts that the private sector would 
     be required to spend in order to comply with a Federal 
     private sector mandate.
       ``(C) Exclusion from direct costs.--The term `direct costs' 
     does 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 a 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 a Federal mandate for the same activity as is 
     affected by that mandate; or

       ``(ii) expenditures to the extent that they will be offset 
     by any direct savings to be enjoyed by the States, local 
     governments, and tribal governments, or by the private 
     sector, as a result of--

       ``(I) their 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.

       ``(D) Determination of costs.--Direct costs shall be 
     determined based on the assumption that States, local 
     governments, 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.
       ``(8) Local government.--The term `local government' has 
     the same meaning as in section 6501(6) of title 31, United 
     States Code.
       ``(9) Private sector.--The term `private sector' means 
     individuals, partnerships, associations, corporations, 
     business trusts, or legal representatives, organized groups 
     of individuals, and educational and other nonprofit 
     institutions.
       ``(10) Regulation.--The term `regulation' or `rule' has the 
     meaning of `rule' as defined in section 601(2) of title 5, 
     United States Code.
       ``(11) State.--The term `State' has the same meaning as in 
     section 6501(9) of title 31, United States Code.
       ``(12) Significant employment impact.--The term 
     `significant employment impact' means an estimated net 
     aggregate loss of 10,000 or more jobs.

     ``SEC. 422. LIMITATION ON APPLICATION.

       ``This part shall not apply to any provision in a bill, 
     joint resolution, motion, amendment, 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 age, 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 Federal Government;
       ``(4) provides for emergency assistance or relief at the 
     request of any State, local government, or tribal government 
     or any official of such a government;
       ``(5) is necessary for the national security or the 
     ratification or implementation of international treaty 
     obligations;
       ``(6) the President designates as emergency legislation and 
     that the Congress so designates in statute; or
       ``(7) pertains to Social Security.

     ``SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

       ``(a) Submission of Bills to the Director.--When a 
     committee of authorization of the House of Representatives or 
     the Senate orders a bill or joint resolution of a public 
     character reported, the committee shall promptly provide the 
     text of the bill or joint resolution to the Director and 
     shall identify to the Director any Federal mandate contained 
     in the bill or resolution.
       ``(b) Committee Report.--
       ``(1) Information regarding federal mandates.--When a 
     committee of authorization of the House of Representatives or 
     the Senate reports a bill or joint resolution of a public 
     character that includes any Federal mandate, the report of 
     the committee accompanying the bill or joint resolution shall 
     contain the information required by paragraph (2) and, in the 
     case of a Federal intergovernmental mandate, paragraph (3).
       ``(2) Reports on federal mandates.--Each report referred to 
     in paragraph (1) shall contain--
       ``(A) an identification and description of each Federal 
     mandate in the bill or joint resolution, including the 
     statement, if available, from the Director pursuant to 
     section 424(a);
       ``(B) a qualitative assessment, and if practicable, a 
     quantitative assessment of costs and benefits anticipated 
     from the Federal mandate (including the effects on health and 
     safety and protection of the natural environment); and
       ``(C) a statement of--
       ``(i) the degree to which the Federal mandate affects each 
     of the public and private sectors, including a description of 
     the actions, if any, taken by the committee to avoid any 
     adverse impact on the private sector or on the competitive 
     balance between the public sector and the private sector; and
       ``(ii) in the case of a Federal mandate that is a Federal 
     intergovernmental mandate, the extent to which limiting or 
     eliminating the Federal intergovernmental mandate or Federal 
     payment of direct costs of the Federal intergovernmental 
     mandate (if applicable) would affect the competitive balance 
     between States, local governments, or tribal governments and 
     the private sector.
       ``(3) Intergovernmental mandates.--If any of the Federal 
     mandates in the bill or joint resolution are Federal 
     intergovernmental mandates, the report referred to in 
     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 for new Federal 
     financial assistance, provided by the bill or joint 
     resolution and usable for activities of States, local 
     governments, or tribal governments subject to 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) a statement of any existing sources of Federal 
     financial assistance in addition to those identified in 
     subparagraph (A) that may assist States, local governments, 
     and tribal governments in paying the direct costs of the 
     Federal intergovernmental mandates.
       ``(4) Information regarding preemption.--When a committee 
     of authorization of the House of Representatives or the 
     Senate reports a bill or joint resolution of a 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 whether the bill 
     or joint resolution, in whole or in part, is intended to 
     preempt any State, local, or tribal law, and if so, an 
     explanation of the reasons for such intention.
       ``(c) Publication of Statement From the Director.--
       ``(1) In general.--Upon receiving a statement (including 
     any supplemental statement) from the Director pursuant to 
     section 424(a), a committee of the House of Representatives 
     or the Senate shall publish the statement in the committee 
     report accompanying the bill or joint resolution to which the 
     statement relates if the statement is available to be 
     included in the printed report.
       ``(2) Other publication of statement of director.--If the 
     statement is not published in the report, or if the bill or 
     joint resolution to which the statement relates is expected 
     to be considered by the House of Representatives or the 
     Senate before the report is published, the committee shall 
     cause the statement, or a summary thereof, to be published in 
     the Congressional Record in advance of floor consideration of 
     the bill or joint resolution.

     ``SEC. 424. DUTIES OF THE DIRECTOR.

       ``(a) Statements on Bills and Joint Resolutions Other Than 
     Appropriations Bills and Joint Resolutions.--
       ``(1) Federal intergovernmental mandates in reported bills 
     and resolutions.--For each bill or joint resolution of a 
     public character reported by any committee of authorization 
     of the House of Representatives or the Senate, the Director 
     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 such a 
     Federal intergovernmental mandate (or in any necessary 
     implementing regulation) would first be effective or in any 
     of the 4 fiscal years following such year, the Director shall 
     so state, specify the estimate, and briefly explain the basis 
     of the estimate.
       ``(B) The estimate required by 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; and
       ``(ii) the amount, if any, of increase in authorization of 
     appropriations or budget authority or entitlement authority 
     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 States, local governments, or tribal governments 
     for activities subject to the Federal intergovernmental 
     mandates.
       ``(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 House of Representatives or the Senate, the Director 
     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 $50,000,000 (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 
     [[Page S2144]] state, specify the estimate, and briefly 
     explain the basis of the estimate.
       ``(B) The estimate required by subparagraph (A) shall 
     include estimates (and brief explanations 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.
       ``(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 threshold 
     specified in paragraph (1)(A) or (2)(A), the Director shall 
     so state and shall briefly explain the basis of the estimate.
       ``(4) Amended bills and joint resolutions; conference 
     reports.--If the Director has prepared the statement pursuant 
     to subsection (a) for a bill or joint resolution, and if that 
     bill or joint resolution is reported or 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 an amended form, the committee of 
     conference shall ensure, to the greatest extent practicable, 
     that the Director shall prepare a supplemental statement for 
     the bill or joint resolution in that amended form.
       ``(b) Assistance to Committees and Studies.--
       ``(1) In general.--At the request of any committee of the 
     House of Representatives or of the Senate, the Director 
     shall, to the extent practicable, consult with and assist 
     such committee in analyzing the budgetary or financial impact 
     of any proposed legislation that may have--
       ``(A) a significant budgetary impact on State, local, or 
     tribal governments;
       ``(B) a significant financial impact on the private sector; 
     or
       ``(C) significant employment impact on the private sector.
       ``(2) Continuing studies.--The Director shall conduct 
     continuing studies to enhance comparisons of budget outlays, 
     credit authority, and tax expenditures.
       ``(3) Federal mandate studies.--
       ``(A) At the request of any committee of the House of 
     Representatives or the Senate, the Director shall, to the 
     extent practicable, conduct a study of a legislative proposal 
     containing a Federal mandate.
       ``(B) In conducting a study under subparagraph (A), the 
     Director shall--
       ``(i) solicit and consider information or comments from 
     elected officials (including their designated 
     representatives) of States, local governments, tribal 
     governments, designated representatives of the private 
     sector, and such other persons as may provide helpful 
     information or comments;
       ``(ii) consider establishing advisory panels of elected 
     officials (including their designated representatives) of 
     States, local governments, tribal governments, designated 
     representatives of the private sector, and other persons if 
     the Director determines, in the Director's discretion, that 
     such advisory panels would be helpful in performing the 
     Director's responsibilities under this section; and
       ``(iii) include estimates, if and to the extent that the 
     Director determines that accurate estimates are reasonably 
     feasible, of--

       ``(I) the future direct cost of the Federal mandates 
     concerned to the extent that they significantly differ from 
     or extend beyond the 5-year period after the mandate is first 
     effective; and
       ``(II) any disproportionate budgetary effects of the 
     Federal mandates concerned 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 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.
       ``(c) Views of Committees.--Any committee of the House of 
     Representatives or the Senate which anticipates that the 
     committee will consider any proposed legislation 
     establishing, amending, or reauthorizing any Federal program 
     likely to have a significant budgetary impact on the States, 
     local governments, or tribal governments, 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 
     provide its views and estimates on such proposal to the 
     Committee on the Budget of its House.
       ``(d) Estimates.--If the Director determines that it is not 
     feasible to make a reasonable estimate that would be required 
     for a statement under subsection (a)(1) for a bill or joint 
     resolution, the Director shall not make such a statement and 
     shall inform the committees involved that such an estimate 
     cannot be made and the reasons for that determination. The 
     bill or joint resolution for which such statement was to be 
     made shall be subject to a point of order under section 
     425(a)(1).
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Congressional Budget Office to 
     carry out this part $4,500,000 for each of fiscal years 1996 
     through 2002.

     ``SEC. 425. POINT OF ORDER.

       ``(a) In General.--It shall not be in order in the House of 
     Representatives or the Senate to consider--
       ``(1) any bill or joint resolution that is reported by a 
     committee unless the committee has published the statement of 
     the Director pursuant to section 424(a) prior to such 
     consideration, except that this paragraph shall not apply to 
     any supplemental statement prepared by the Director under 
     section 424(a)(4); or
       ``(2) any bill, joint resolution, amendment, motion, or 
     conference report that contains a Federal intergovernmental 
     mandate having direct costs that exceed the threshold 
     specified in section 424(a)(1)(A), or that would cause the 
     direct costs of any other Federal intergovernmental mandate 
     to exceed the threshold specified in section 424(a)(1)(A), 
     unless--
       ``(A) the bill, joint resolution, amendment, motion, or 
     conference report provides new budget authority or new 
     entitlement authority in the House of Representatives or 
     direct spending authority in the Senate for each fiscal year 
     for the Federal intergovernmental mandates included in the 
     bill, joint resolution, amendment, motion, or conference 
     report in an amount that equals or exceeds the estimated 
     direct costs of such mandate; or
       ``(B) the bill, joint resolution, amendment, motion, or 
     conference report provides an increase in receipts or a 
     decrease in new budget authority or new entitlement authority 
     in the House of Representatives or direct spending authority 
     in the Senate and an increase in new budget authority or new 
     entitlement authority in the House of Representatives or 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 that equals or exceeds the estimated 
     direct costs of such mandate; or
       ``(C) the bill, joint resolution, amendment, motion, or 
     conference report--
       ``(i) provides that--

       ``(I) such mandate shall be effective for any fiscal year 
     only if all direct costs of such mandate in the fiscal year 
     are provided in appropriations Acts, and
       ``(II) in the case of such a mandate contained in the bill, 
     joint resolution, amendment, motion, or conference report, 
     the mandate is repealed effective on the first day of any 
     fiscal year for which all direct costs of such mandate are 
     not provided in appropriations Acts; or

       ``(ii) requires a Federal agency to reduce programmatic and 
     financial responsibilities of State, local, and tribal 
     governments for meeting the objectives of the mandate such 
     that the estimated direct costs of the mandate to such 
     governments do not exceed the amount of Federal funding 
     provided to those governments to carry out the mandate in the 
     form of appropriations or new budget authority or new 
     entitlement authority in the House of Representatives or 
     direct spending authority in the Senate, and establishes 
     criteria and procedures for that reduction.
       ``(b) Limitation on Application to Appropriations Bills.--
     Subsection (a) shall not apply to a bill that is reported by 
     the Committee on Appropriations or an amendment thereto.
       ``(c) Determination of Direct Costs Based on Estimates by 
     Budget Committees.--For the purposes of this section, the 
     amount of direct costs of a Federal mandate for a fiscal year 
     shall be determined based on estimates made by the Committee 
     on the Budget, in consultation with the Director, of the 
     House of Representatives or the Senate, as the case may be.
       ``(d) Limitation on Application of Subsection (a)(2).--
     Subsection (a)(2) shall not apply to any bill, joint 
     resolution, amendment, or conference report that reauthorizes 
     appropriations for carrying out, or that amends, any statute 
     if enactment of the bill, joint resolution, amendment, or 
     conference report--
       ``(1) would not result in a net increase in the aggregate 
     amount of direct costs of Federal intergovernmental mandates; 
     and
       ``(2)(A) would not result in a net reduction or elimination 
     of authorizations of appropriations for Federal financial 
     assistance that would be provided to State, local 
     governments, or tribal governments for use to comply with any 
     Federal intergovernmental mandate; or
       ``(B) in the case of any net reduction or elimination of 
     authorizations of appropriations for such Federal financial 
     assistance that would result from such enactment, would 
     reduce the duties imposed by the Federal intergovernmental 
     mandate by a corresponding amount.

     ``SEC. 426. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

       ``It shall not be in order in the House of Representatives 
     to consider a rule or order that waives the application of 
     section 425(a).

     ``SEC. 427. DISPOSITION OF POINTS OF ORDER.

       ``(a) Threshold Burden.--In order to be cognizable by the 
     Chair, a point of order under section 425(a) or 426 must 
     specify the precise language on which it is premised.
     [[Page S2145]]   ``(b) Question of Consideration.--As 
     disposition of points of order under section 425(a) or 426, 
     the Chair shall put the question of consideration with 
     respect to the proposition that is the subject of the points 
     of order.
       ``(c) Debate and Intervening Motions.--A question of 
     consideration under this section shall be debatable for 10 
     minutes by each Member initiating a point of order and for 10 
     minutes by an opponent on each point of order, but shall 
     otherwise be decided without intervening motion except one 
     that the House adjourn or that the Committee of the Whole 
     rise, as the case may be.
       ``(d) Effect on Amendment in Order as Original Text.--The 
     disposition of the question of consideration under this 
     section with respect to a bill or joint resolution shall be 
     considered also to determine the question of consideration 
     under this section with respect to an amendment made in order 
     as original text.''.
     SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

       (a) Motions To Strike in the Committee of the Whole.--
     Clause 5 of rule XXIII of the Rules of the House of 
     Representatives is amended by adding at the end the 
     following:
       ``(c) In the consideration of any measure for amendment in 
     the Committee of the Whole containing any Federal mandate the 
     direct costs of which exceed the threshold in section 
     424(a)(1)(A) 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. 303. EXERCISE OF RULEMAKING POWERS.

       The provisions of this title (except section 305) are 
     enacted by Congress--
       (1) as an exercise of the rulemaking powers of the House of 
     Representatives and the Senate, and as such they shall be 
     considered as part of the rules of the House of 
     Representatives and the Senate, 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 
     the House of Representatives and the Senate to change such 
     rules at anytime, in the same manner, and to the same extent 
     as in the case of any other rule of the House of 
     Representatives or the Senate, respectively.

     SEC. 304. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

       Section 1(b) of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended by inserting ``Part A--General 
     Provisions'' before the item relating to section 401 and by 
     inserting after the item relating to section 407 the 
     following:
                       ``Part B--Federal Mandates

``Sec. 421. Definitions.
``Sec. 422. Limitation on application.
``Sec. 423. Duties of congressional committees.
``Sec. 424. Duties of the Director.
``Sec. 425. Point of order.
``Sec. 426. Enforcement in the House of Representatives.''.
     SEC. 305. TECHNICAL AMENDMENTS.

       (a) Technical Amendment.--The State and Local Government 
     Cost Estimate Act of 1981 (Public Law 97-108) is repealed.
       (b) Technical Amendment.--Section 403 of the Congressional 
     Budget Act of 1974 is amended to read as follows:


               ``analysis by congressional budget office

       ``Sec. 403. The Director of the Congressional Budget Office 
     shall, to the extent practicable, prepare for each bill or 
     resolution of a public character reported by any committee of 
     the House of Representatives or the Senate (except the 
     Committee on Appropriations of each House), and submit to 
     such committee--
       ``(1) an estimate of the costs which would be incurred in 
     carrying out such bill or resolution in the fiscal year in 
     which it is to become effective and in each of the 4 fiscal 
     years following such fiscal year, together with the basis for 
     each such estimate; and
       ``(2) a comparison of the estimate of costs described in 
     paragraph (1) with any available estimate of costs made by 
     such committee or by any Federal agency.
     The estimate and comparison so submitted shall be included in 
     the report accompanying such bill or resolution if timely 
     submitted to such committee before such report is filed.''.

     SEC. 306. EFFECTIVE DATE.

       This title shall take effect on October 1, 1995.
  Mr. LOTT. Mr. President, I ask unanimous consent that the Senate 
disagree with the House amendments, agree to the conference requested 
by the House, and that the Chair be authorized to appoint conferees on 
the part of the Senate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The PRESIDING OFFICER (Mr. Craig) appointed Mr. Roth, Mr. Domenici, 
Mr. Kempthorne, Mr. Glenn, and Mr. Exon conferees on the part of the 
Senate.

                          ____________________