[Congressional Record Volume 141, Number 40 (Friday, March 3, 1995)]
[House]
[Pages H2599-H2639]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PRIVATE PROPERTY PROTECTION ACT OF 1995
The SPEAKER pro tempore (Mr. Doolittle). Pursuant to House Resolution
101 and rule XXIII, the Chair declares the House in the Committee of
the Whole House on the State of the Union for the further consideration
of the bill, H.R. 925.
{time} 1226
in the committee of the whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the further consideration of
the bill (H.R. 925) to compensate owners of private property for the
effect of certain regulatory restrictions, with Mr. Shuster in the
chair.
The Clerk read the title of the bill.
The CHAIRMAN. When the Committee of the Whole rose earlier today, the
amendment offered by the gentleman from Ohio [Mr. Traficant] to the
amendment in the nature of a substitute offered by the gentleman from
Florida [Mr. Canady], as amended, had been disposed of.
Pursuant to the order of the House, further consideration of the bill
for amendment will end at 12:54.
amendment offered by mr. watt of north carolina to the amendment in the
nature of a substitute offered by mr. canady of florida as amended
Mr. WATT of North Carolina. Mr. Chairman, I offer an amendment to the
amendment in the nature of a substitute, as amended.
The Clerk read as follows:
Amendment offered by Mr. Watt of North Carolina to the
amendment in the nature of a substitute offered by the
gentleman from Florida, Mr. Canady, as amended: Strike
section 6(f).
The CHAIRMAN. The gentleman from North Carolina [Mr. Watt] is
recognized for 5 minutes.
Mr. WATT of North Carolina. Mr. Chairman, I yield myself such time as
I may consume.
Mr. Chairman, the effect of this amendment will become apparent very
quickly. If we read the provisions of the fifth amendment, my
colleagues here have spent a lot of time and rhetoric talking about the
fifth amendment. The provision we are talking about in this particular
bill says ``nor shall private property be taken for public use without
just compensation.'' They have told us throughout this debate that the
purpose of this bill is to assure that people who are deprived of their
property receive just compensation. They have told us that a reduction
in value of people's property is a taking, and therefore, they should
be compensated for it under the fifth amendment.
Mr. Chairman, I want to talk about this for a little bit, and find
out from my colleagues whether we believe this right is a right that is
a first-class right, or whether it is a right which is a second-class
right that we have under the Constitution.
Mr. Chairman, we started out with a bill that said ``If you have a
diminution in the value of your property, a reduction in the value of
your property as a result of any agency action, you would be
compensated.'' We then spent hours debating whether to limit that bill
to compensation for just two kinds of agency action, that agency action
being for the Endangered Species Act
[[Page H2600]] and for the Clean Water Act, disregarding all of the
other agency actions that might have the impact of reducing the value
of an individual's property.
{time} 1230
We then spent hours more debating the issue of whether the reduction
in value that would be required to trigger this amendment, or this
bill, would be 10 percent reduction or whether it would be 30 percent
reduction, or where we finally got to under the last amendment, the 20
percent reduction.
I am not interested in talking about a constitutional right that
triggers only if it is 70 percent. We do not have any constitutional
rights in our country that trigger at 70 percent, or 80 percent, or
even 90 percent. We cannot put a value on our constitutional rights.
Now we come to the amendment that I have offered, and I want to
direct my colleagues' attention to the bill because in the first
section of the bill, it says the Federal Government shall compensate on
owner of property whose value has been diminished.
Then we read on over to the fine print of the bill and we got to the
source of payment and it says, ``Any payment made under this section to
an owner and any judgment obtained by an owner in a civil action shall
come out of the agency's budget'' and the agency, if it gets a judgment
against it, must come back and seek appropriations.
My question to my colleagues is, is this a constitutional right, or
is it a second-class right?
The gentleman from Louisiana [Mr. Tauzin] has been very articulate
about the rights that we are talking about here. They are all
constitutional rights. Do they apply only when the Clean Air Act steps
on them or only when the Clean Water Act steps on them, or only when
the Endangered Species Act?
The CHAIRMAN. The time of the gentleman from North Carolina [Mr.
Watt] has expired.
(By unanimous consent, Mr. Watt of North Carolina was allowed to
proceed for 2 additional minutes.)
Mr. WATT of North Carolina. Or is this a real constitutional right
that we are wiling to pay for as we pay for all other constitutional
rights in this country?
So when our constituents come and say, ``We can get recovery if our
values are diminished,'' will we scratch our heads and say, ``Oh, well,
if we appropriate the money, you will get a recovery''?
If someone gets a judgment against the United States of America and
the agency does not have the money, will we say to them, ``Oh, no, the
agency is bankrupt now. You must wait until next year's
appropriation''? That is what the bill says. ``It shall be the duty of
the head of the agency to seek the appropriation of such funds for the
next fiscal year.''
I have never known anybody who got a judgment against the United
States who we can put off until the next fiscal year and tell we are
not going to pay that judgment until a year from now, or 2 years from
now, or we may not pay it at all if they do not appropriate the funds.
The question I ask my colleagues in this amendment is to abolish this
provision that says you can get your money only from an agency. There
is no agency. This is the U.S. Government.
I call on my colleagues to make this a first-class constitutional
right, not a second-class constitutional right.
Mrs. CHENOWETH. Mr. Chairman, I move to strike the last word.
Mr. Chairman, some things change in time and some things just do not
change in time. I want to bring that into focus in my comments. Some
things that do not change in time is the nature of government, the
nature of a government that when it grows too large, then it begins to
encroach on our constitutional rights and our ability to make a living
off the land.
I want to share with Members a little bit of history, and, that is,
that about 125 years ago, the U.S. Army sent General Custer into the
West to conquer the Sioux Nation. In doing so, what they did not
realize is that the Sioux were very keen people in regard to the
promises that the American Government had made them, promises that were
broken, promises that were broken when the American Army went in and
they wounded and sometimes killed women and children. It was a broken
promise between the American Government and the Sioux Nation. And so
the American Government sent General Custer out to the West to conquer
the Sioux Nation, not realizing that the Sioux were people who did not
take very kindly to broken promises.
Of course, we know the history of what happened at Wounded Knee, and,
that is, that when General Custer went in, a terrible battle ensured
and there was a great slaughter and a great setback of the American
Army at that time. But the Army retaliated and in conquering the West,
went ahead and sent other troops out and they chased the Sioux Nation
into Canada and finally captured and conquered them.
Sitting Bull, a great medicine man from the Sioux Nation, was asked
to stand in this gallery, in this place, nearly 125 years ago, and I am
standing in the same place that Sitting Bull stood when he addressed a
joint session of the House and the Senate.
Yes, ladies and gentlemen, some things change but some things never
do, because this is what Sitting Bull said when he stood exactly in
this place. He said, ``The government has made us many promises, more
than I can remember, and they never kept but one. They promised to take
our land and they took it.''
As a lady from Idaho, I can tell you I live with that every day,
because more and more of our land is being taken. I appreciate the
bill, H.R. 925. I think it is historic. It is part of living up to the
Contract With America and beginning to reclaim our land.
Mr. SCOTT. Mr. Chairman, I move to strike the requisite number of
words.
Mr. Chairman, I accept the idea that society ought to pay for
societal policies. When the public wants a highway, it wants to enjoy
the benefits of the highway, those who have to suffer by losing their
land are compensated so that everyone else can enjoy the benefits of
the public policy.
If this bill is going to work, we have to acknowledge that no agency
has in it the money for these reimbursements. When we again fund money
for highway, we not only have money for the road itself but also in the
appropriation enough money to fulfill expenses and condemnation as part
of that budget.
If this is going to be implemented, we have to have a budget from
which these payments can be made. The Watt amendment, Mr. Chairman,
provides that resource.
Mr. Chairman, I would hope that this amendment would pass. Otherwise,
the bill just cannot operate.
I would ask, Mr. Chairman, the gentleman from North Carolina to
respond, if he would, to the question of how the judgments would be
enforced if his amendment is not passed.
Mr. WATT of North Carolina. If the gentleman would yield, as I
understand it, in every other situation where a judgment is obtained
against Government agencies, it is the Federal Government that stands
behind that judgment and the full faith and credit of the United States
is at risk any time a judgment is entered.
If this amendment is to have any meaningful effect, if this bill is
to have any meaningful effect, and people who we have not guaranteed if
this bill passes that they will be compensated will be subjected to the
whims of the appropriation process or nonappropriation. It is like we
have got these naughty Federal Government agencies over there that are
somehow separate and part from the Federal Government, itself, and the
laws that the Congress passes who are out there acting as renegades and
we are looking for somebody to blame, and trying to tell our
constituents that somehow we are compensating them and protecting them
against these naughty Federal Government agencies and hiding our head
when really the agencies and the rules that they are applying and
promulgating that result in these reductions in value are pursuant to
the laws we passed here in this body and this is all a charade designed
to make it appear that it is not us that is causing the problem by
passing the Endangered Species Act or the Clean Water Act, but it is
some Federal Government agency over there that is separate from us over
here in Congress and they
[[Page H2601]] ought to go over there and get their judgment satisfied.
What I want to make sure the public understands is that there is no
Federal Government agency, and Congress, that this is one Federal
Government. If the Federal Government agency does something wrong, it
is being done pursuant to a law that we have passed and we cannot just
pass the buck over there and leave the public out there saying they
have a valuable constitutional right, yet they have no assured means of
collecting the judgment that is at play.
Mr. SCOTT. Mr. Chairman, I finally say that as we pass future laws,
we could include in those appropriations the money for reimbursement
under this law as well as for the promulgation of the policy just as we
do with highways. I would hope that his amendment would pass so that we
could implement the law as soon as possible and not have to get into
the situations as the gentleman from North Carolina has indicated.
I yield to the gentleman from North Carolina [Mr. Rose].
Mr. ROSE. I thank the gentleman for yielding.
I would like to say about my colleague from North Carolina's
amendment, that without this amendment, this is an unworkable piece of
legislation, assuming that you feel that it needs to be enacted. I
intend to vote for the bill, but it will be a much better bill with
your amendment in it. Without it, it is rather mean-spirited as you
pointed out. With it in it, it is extremely focusing of the public's
mind and the Government's mind that the whole Government, not just some
particular agency, has got to pay for it. I encourage my colleagues to
support the Watt amendment. It perfects this bill.
Mr. FIELDS of Texas. Mr. Chairman, I move to strike the requisite
number of words.
Mr. Chairman, I have a different interpretation than my friend from
North Carolina because what this amendment does is gut this
legislation. It guts the private property rights of property owners
which we are trying to protect because it takes out what is the real
stick in this legislation. The real stick is if the Government comes in
and takes your property because of an endangered species designation or
a wetland declaration and you lose the beneficial use of your property
as guaranteed by the Constitution, you are not going to be compensated
by the Government.
It is my hope that you do not see this used as an entitlement. This
is intended to be used when property is lost, when the Government comes
in and says there really is a need for this particular piece of
property as a wetland, or there really is a particular need for this
property because of an endangered species.
When we passed the Endangered Species Act and when we passed Clean
Water, it was never envisioned by this Congress that the basic water
rights in the State of Texas would be abrogated because of a fountain
darter.
{time} 1245
It was never intended by this body when those two acts were passed
that farmers and ranchers in the Texas hill country would lose the
ability to control cedar on their property because of two birds. It was
never intended when those acts were passed that a Golden Eagle's nest,
and by the way, there never has been proof that there really was an
eagle's nest in the example I cited, it was never intended that would
stop the construction of a badly needed road in my congressional
district.
Another particular story, Marge and Roger Krueger spent $53,000 of
their savings on a lot for their dream house in the Texas hill country.
They and other owners have been barred from building their dream houses
because the Golden Cheek Warbler was found in adjacent canyons. Surely
that was not the intent when the Endangered Species Act was passed and
I think our forefathers had great foresight in understanding that
through the actions of Government, property could be taken, and that is
why they made provision in the Constitution for payment when in fact
those takings have taken place.
So again I say to my friend from North Carolina I appreciate the
sincerity with which he comes to the floor, but I have to say in all
candor to my friend, this is a gutting amendment if you support the
basic and fundamental private property rights guaranteed under the
Constitution.
Mr. WATT of North Carolina. Mr. Chairman, will the gentleman yield?
Mr. FIELDS of Texas. I am glad to yield to the gentleman from North
Carolina.
Mr. WATT of North Carolina. I am concerned about Marge and Roger
Krueger. The question I would ask the gentleman is if whatever agency
that caused that adverse impact to Marge's land runs out of money, and
they have gotten a judgment against the United States or against that
agency, and the agency then comes back a year later and asks for an
appropriation, what kind of protection has the gentleman provided in
this bill for Marge Krueger?
Mr. FIELDS of Texas. First you have the civil court, but then second
let me say what this is designed to do.
Mr. WATT of North Carolina. They have the judgment already.
Mr. FIELDS of Texas. Reclaiming my time, what this stick of
compensation is designed to do is to force the Federal Government in
the first instance to make the right decision, to protect in this
particular instance the warbler and the vireo. Other things could be
done. You have State properties in this particular area where there was
a concerted effort to save those birds. The fountain darter, there are
things that could be done to propagate and actually increase the
population and actually introduce this to the ecosystem of Texas. In
regard to the eagle's nest I talked about just a minute ago, through
cooperative effort people would bend over backwards in my area to
protect if in fact that was an eagle's nest. But what has happened is
we have lost the cooperation and the consultation with and of that
local private landowner and that is what this legislation is designed
to protect. This amendment guts it.
Mr. TAUZIN. Mr. Chairman, will the gentleman yield?
Mr. FIELDS of Texas. I am glad to yield to my friend from Louisiana.
Mr. TAUZIN. Mr. Chairman, I thank the gentleman for yielding to make
the point that it is the very language the gentleman's amendment would
delete from the bill that provides the answer. It says that
notwithstanding any other provision of law, payment must come from that
agency. Therefore, the citizen can compel mandamus against that agency
for payment.
Mr. CANADY of Florida. Mr. Chairman, I move to strike the requisite
number of words.
Mr. Chairman, I just wanted to point out with respect to this
amendment that it would eliminate the essential feature of this bill
which provides an incentive for agencies to behave responsibly, for
agencies to consider the real cost of their action, to take into
account when they are imposing burdens on landowners, and I think for
that reason this amendment would be counterproductive.
I believe that in many of the instances where we are currently seeing
landowners burdened, we are seeing agencies that are overreaching, they
are going beyond the real intent of the law, and agencies who are doing
that can exercise their discretion not to do that. And I believe that
would be the consequence, the major consequence of passing this law.
I want to also take this opportunity to thank all of those who have
assisted and helped in the movement of this legislation. I want to
particularly thank the gentleman from Texas [Mr. Smith], the gentleman
from California [Mr. Pombo], and the gentleman from Alaska [Mr. Young],
for their hard work in putting together the compromise, the substitute
amendment which I have offered. Without their hard work on this issue
we would not have been able to move this bill to the floor and I am
very grateful to them for this.
I also want to thank particularly the gentleman from Idaho [Mr.
Crapo] for his hard work on this issue and his active participation in
the floor debate. His very able participation here has been very
important to the success of this bill.
Finally, it is very important also to thank the gentleman from
Louisiana [Mr. Tauzin] and the Members on the Democratic side who are
participating in this effort. It is true that the gentleman from
Louisiana [Mr. Tauzin]
[[Page H2602]] has worked on this issue for years. I am very pleased
that we are now seeing this issue brought to the floor, and I believe
we are going to see this issue move forward to the Senate, and I am
hopeful that we are going to see this issue passed into law later this
year. So I am very grateful to them.
Mr. POMBO. Mr. Chairman, will the gentleman yield?
Mr. CANADY of Florida. Mr. Chairman, I yield to the gentleman from
California.
Mr. POMBO. Mr. Chairman, I thank the gentleman for yielding.
Mr. Chairman, I think we all would like to thank the gentleman for
the wonderful job he has done in managing this bill on the floor, and I
appreciate all of the hard work you have put in in battling over the
last 12 long hours.
Mr. Chairman, I would like to rise in opposition to this amendment
and to bring it into perspective in that if you take the incentive
away, the hammer away from the agencies, you run into the situation
that is the result of this bill coming to the floor, where an agency
like the Fish and Wildlife Service can list the fairy shrimp and
declare most of California habitat and control most of California
without any cost to the agency, without any fear that anything is going
to happen to them. They have run amok. It is the bureaucracy out of
control, it is the bureaucracy and the regulators with a free hand
running all over the Western United States and the Southern United
States, without anyone having the ability to come down on them, unless
of course you happen to have 10 years and a half million dollars to
spend on attorneys' fees.
That is what we are trying to correct in this bill. And I know what
the gentleman's intentions are, but I feel that if this amendment were
passed, it would completely damage the bill, so that we would not be
able to accomplish what is truly needed, and that is to restore some
responsibility to the agencies, and to put that hammer in the hands and
I guess to restore the power to the people who are out there having to
live under this.
I think this is an extremely damaging amendment, and I would urge all
of my colleagues to vote ``no'' on it.
Mr. TAUZIN. Mr. Chairman, will the gentleman yield?
Mr. CANADY of Florida. I yield to the gentleman from Louisiana.
Mr. TAUZIN. Mr. Chairman, I will just take a minute and thank the
gentleman for yielding. Let me concur in the last remarks. I do not
want to use words like gutting and all of that, but this is extremely
damaging. It takes from the bill the method of payment.
Let me say to my friend who offered the amendment, this is a first
class right under the Constitution. Any citizen under this bill that
wants to exercise that right can do so at 1 percent, 2 percent, 10
percent, 20 percent. This bill simply creates a new remedy for citizens
at home under the criteria set by this bill to get justice at home. For
it to work the agency has to want to cooperate, and if you do not make
the agency responsible for damage it does, and do not make the agency
responsible for payment, you will never get cooperation. Just day
before yesterday Mr. Babbitt just announced the first of its kind safe
harbor provision for the red cockaded woodpecker offering to cooperate
with a landowner instead of taking their land.
This is what we need.
The CHAIRMAN. All time has expired.
Under the previous order of the House of today, the question is on
the amendment offered by the gentleman from North Carolina [Mr. Watt]
to the amendment in the nature of a substitute offered by the gentleman
from Florida [Mr. Canady], as amended.
The question was taken; and the Chairman announced that the noes
appeared to have it.
recorded vote
Mr. WATT of North Carolina. Mr. Chairman, I demand a recorded vote.
A recorded vote was ordered.
The CHAIRMAN. Pursuant to clause 2 of rule XXIII, the Chair may
reduce to not less than 5 minutes the time for any recorded vote that
may be on another of the pending amendments without intervening
business or debate.
The vote was taken by electronic device, and there were--ayes 127,
noes 299, not voting 8, as follows:
[Roll No. 196]
AYES--127
Abercrombie
Ackerman
Becerra
Beilenson
Bentsen
Berman
Bishop
Bonior
Borski
Boucher
Brown (FL)
Cardin
Clay
Clayton
Clement
Clyburn
Coleman
Collins (MI)
Conyers
Coyne
DeFazio
DeLauro
Dellums
Deutsch
Dingell
Dixon
Doggett
Engel
Evans
Farr
Fattah
Fazio
Fields (LA)
Filner
Flake
Foglietta
Ford
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Gibbons
Green
Gutierrez
Hastings (FL)
Hefner
Hilliard
Hinchey
Hoyer
Jackson-Lee
Jefferson
Johnson, E. B.
Johnston
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
LaFalce
Lantos
Lewis (GA)
Lofgren
Lowey
Maloney
Manton
Markey
Martinez
Matsui
McCarthy
McDermott
McKinney
Meehan
Meek
Menendez
Mfume
Miller (CA)
Mineta
Mink
Nadler
Neal
Oberstar
Obey
Olver
Owens
Pallone
Pastor
Payne (NJ)
Pelosi
Rahall
Reed
Reynolds
Richardson
Rivers
Rose
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schroeder
Schumer
Scott
Serrano
Skaggs
Slaughter
Stark
Stokes
Studds
Thompson
Torres
Torricelli
Towns
Tucker
Velazquez
Vento
Visclosky
Ward
Waters
Watt (NC)
Waxman
Williams
Wise
Woolsey
Wyden
Wynn
Yates
NOES--299
Allard
Andrews
Archer
Armey
Bachus
Baesler
Baker (CA)
Baker (LA)
Baldacci
Ballenger
Barcia
Barr
Barrett (NE)
Barrett (WI)
Bartlett
Barton
Bass
Bateman
Bereuter
Bevill
Bilbray
Bilirakis
Bliley
Blute
Boehlert
Boehner
Bonilla
Bono
Brewster
Browder
Brown (OH)
Brownback
Bryant (TN)
Bunn
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Castle
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Collins (GA)
Combest
Condit
Cooley
Costello
Cox
Cramer
Crane
Crapo
Cremeans
Cubin
Cunningham
Danner
Davis
de la Garza
Deal
DeLay
Diaz-Balart
Dickey
Dicks
Dooley
Doolittle
Doyle
Dreier
Duncan
Dunn
Durbin
Edwards
Ehlers
Ehrlich
Emerson
English
Ensign
Eshoo
Everett
Ewing
Fawell
Fields (TX)
Flanagan
Foley
Forbes
Fowler
Fox
Franks (CT)
Franks (NJ)
Frelinghuysen
Frisa
Funderburk
Gallegly
Ganske
Gekas
Geren
Gilchrest
Gillmor
Gilman
Goodlatte
Goodling
Gordon
Goss
Graham
Greenwood
Gunderson
Gutknecht
Hall (OH)
Hall (TX)
Hamilton
Hancock
Hansen
Harman
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Heineman
Herger
Hilleary
Hobson
Hoekstra
Hoke
Holden
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Jacobs
Johnson (CT)
Johnson (SD)
Johnson, Sam
Jones
Kanjorski
Kasich
Kelly
Kim
King
Kingston
Kleczka
Klink
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Laughlin
Lazio
Leach
Levin
Lewis (CA)
Lewis (KY)
Lightfoot
Lincoln
Linder
Lipinski
Livingston
LoBiondo
Longley
Lucas
Luther
Manzullo
Martini
Mascara
McCollum
McCrery
McDade
McHale
McHugh
McInnis
McIntosh
McKeon
McNulty
Metcalf
Meyers
Mica
Miller (FL)
Minge
Molinari
Mollohan
Montgomery
Moorhead
Moran
Morella
Murtha
Myers
Myrick
Nethercutt
Neumann
Ney
Norwood
Nussle
Ortiz
Orton
Oxley
Packard
Parker
Paxon
Payne (VA)
Peterson (FL)
Peterson (MN)
Petri
Pickett
Pombo
Pomeroy
Porter
Portman
Poshard
Pryce
Quillen
Quinn
Radanovich
Ramstad
Regula
Riggs
Roberts
Roemer
Rogers
Rohrabacher
Ros-Lehtinen
Roth
Roukema
Royce
Salmon
Sanford
Saxton
Scarborough
Schaefer
Schiff
Seastrand
Sensenbrenner
Shadegg
Shaw
Shays
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Spratt
Stearns
Stenholm
Stockman
Stump
Stupak
Talent
Tanner
Tate
Tauzin
Taylor (MS)
Taylor (NC)
Tejeda
Thomas
Thornberry
Thornton
Thurman
Tiahrt
Torkildsen
Traficant
Upton
Volkmer
Vucanovich
Waldholtz
Walker
Walsh
Wamp
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
Zeliff
Zimmer
[[Page H2603]] NOT VOTING--8
Brown (CA)
Bryant (TX)
Chapman
Collins (IL)
Dornan
Gonzalez
Moakley
Rangel
{time} 1312
The Clerk announced the following pair:
On this vote:
Mr. Rangel for, with Mr. Dornan against.
Mrs. THURMAN, Mr. LEVIN, and Mr. McHALE changed their vote from
``aye'' to ``no.''
Mr. FAZIO, Mr. OBEY, and Mrs. LOWEY changed their vote from ``no'' to
``aye.''
So the amendment to the amendment in the nature of a substitute, as
amended, was rejected.
The result of the vote was announced as above recorded.
The CHAIRMAN. The question is on the amendment in the nature of a
substitute, as amended, offered by the gentleman from Florida [Mr.
Canady].
The amendment in the nature of a substitute, as amended, was agreed
to.
The CHAIRMAN. The question is on the committee amendment in the
nature of a substitute, as amended.
The committee amendment in the nature of a substitute, as amended,
was agreed to.
Mr. STUMP. Mr. Chairman, I rise in support of H.R. 925, the Private
Property Protection Act of 1995 and I encourage my colleagues to
support the bill as well.
The bill is not an assault on the Constitution and it is not a scheme
to benefit a select few as some propaganda has suggested. The bill
simply affords Americans the protection that they have been guaranteed
under the Constitution's fifth amendment. The bill is easily the most
important measure to protect private property rights since the Bill of
Rights was ratified in 1791.
Tomorrow, March 4, 1995, marks the 206th year that the U.S. Congress
has met. When the First Congress met, there was great concern that the
Constitution did not include a basic Bill of Rights to limit the powers
of the Federal Government. In their wisdom, the First Congress proposed
a Bill of Rights and determined that the Bill of Rights should
guarantee compensation for the taking of private property for public
use.
When the Bill of Rights was ratified in 1789, guarantee of
compensation for the taking of private property became the fifth
amendment to the Constitution.
Since the Bill of Rights was ratified, the fifth amendment has been
relied upon to limit Federal intrusion into private lives without due
process of law. When we look back over the past 200 years, it is easy
to see a clear pattern of increased takings of private property. The
number of takings have rapidly escalated over the past two decades in
direct relation to the increase in Federal regulatory actions.
Unfortunately, private property owners who are victims of regulatory
takings are not receiving due process guaranteed to them under the
fifth amendment.
The Federal regulatory morass has unfairly punished private property
owners by restricting the use of their lands. While such Federal
regulations clearly ``take'' from private property owners, tragically,
the private property owner must sue to get compensation due to them by
the Federal Government.
We must not allow the Federal Government to continue to grow and
regulate without regard for the public, of which private property
owners are a part. We must not allow the Federal Government to take
private lands for public purposes and then require the property owners
to pay for costly, time consuming litigation in order to receive
compensation.
We must pass H.R. 925 and protect the constitutional guarantee of
compensation for the taking of private lands.
Mr. MINGE. Mr. Chairman, farmers and other landowners in the Second
Congressional District are frustrated by a complex, burdensome,
inefficient, and expensive set of procedures and restrictions dealing
with wetlands and drainage. This has led to demands for compensation
and reform of the process.
I am drafting and will introduce legislation to dramatically simplify
the procedures and reduce the harsh effects of these drainage and
wetlands restrictions. The problem must be solved, and it must be
solved now.
The alternative approach set up in H.R. 925 of establishing a right
to compensation for a loss of land value due to Federal restrictions is
inviting but ill-advised. It will be a full employment act for
attorneys and appraisers, potentially explosive liability, and an
increase in the Federal debt. It is unworkable, unfair, and poorly
thought out. For example, owners of areas with cattails that could be
drained would be entitled to farmland value. Another example of the
problem is how to handle parcels that are subject to, and then relieved
of, restrictions. Should the land owner be obligated to refund the
payment? Should the Federal Government have a lien on the land to
receive the refund? Query, what is to be done about the situation where
property both receives very substantial benefits from Federal activity
that increases land value and then a more modest loss of value due to
regulations?
The real goal is to eliminate the unreasonable burdens. The promise
of compensation, contained in H.R. 925 that was hastily considered by
the House of Representatives, is an inadequate, elusive, and
unacceptable solution. For these reasons, I voted against the bill.
Hopefully, the idea of reasonable compensation for unreasonable
restrictions in H.R. 935 will be improved in the U.S. Senate to deal
with the problems I have identified. If it is, I look forward to voting
for the measure.
For the present, I look forward to working to lift the harsh burdens
that are the real problem. Farmers in my area do not want a new and
endless controversy. They want to farm. They are responsible stewards
of the land.
Mr. LIGHTFOOT. Mr. Chairman, on March 2, 1995, I voted ``aye'' on the
Tauzin amendment to H.R. 925. However, the computer did not record my
vote. I would like to declare my support for this amendment which would
protect the rights of property owners from overzealous government
takings. I reaffirmed my support for this legislation by voting in
favor of final passage of H.R. 925.
Mr. MFUME. Mr. Chairman, I rise in opposition to the H.R. 925, the
Private Property Protection Act. The Private Property Protection Act
comes under the guise of protecting private property rights, while in
reality it pits the property rights of some against the rights of
others and the rights of the community as a whole. Private property
rights are sufficiently protected under the fifth amendment to the
Constitution; codifying a specific interpretation of these rights is
not only unnecessary, but dangerous as well. I urge a ``no'' vote on
this legislation.
The courts have outlined the factors to be considered on a case-by-
case basis in determining if a ``taking'' has occurred, including the
economic impact on the property owner, the public purpose for which the
regulation was adopted, and the character of the governmental action.
H.R. 925 calls for an extended, legislated, interpretation of the fifth
amendment of the Constitution. This bill would require the Federal
Government to pay a private property owner for any decrease in value to
his/her land due to Federal regulations. The effect of this legislation
would be to have the Government--i.e. the taxpayers--pay land owners
not to destroy the environment.
Along with property rights come property responsibilities. Nobody has
the right to use his or her property in a manner that may harm the
public health or damage the property of another landowner or the
community as a whole. American citizens are able to use environmental
laws in order to protect their property from damage at the lands of
irresponsible industries and landowners. Environmental laws, in turn,
have been established to preserve our natural resources for the benefit
of future generations and so that Mother Earth can survive.
The intent of H.R. 925 is to make it fiscally impossible to enforce
such important legislation as the Clean Water Act, the Endangered
Species Act, and other environmental initiatives. A broader
interpretation of this bill could limit the ability of the Federal
Government to enforce such laws as the Americans with Disabilities Act,
the Civil Rights Act, and other laws which protect American citizens
but may place a financial burden on business. The possibilities of
abuse under this legislation are enormous. We must not fall for the
``what's mine, is mine'' pitch used by ``takings'' legislation
advocates if it comes at the expense of the American taxpayer, or the
community at large. I urge my colleagues to vote against H.R. 925.
Mr. RADANOVICH. Mr. Chairman, bureaucracies have little respect for
private property.
In my district, for example, a constituent has been fighting an
uphill battle with USDA's Forest Service over an easement right.
Here is a letter from Jeffrey Green, county counsel of Mariposa
County--my home community and on whose board of supervisors I formerly
served. He explains the problem in a straightforward way that I believe
my colleagues will find illuminating, and I ask that it be included
with my remarks in the Record.
I also want to point out that the problem discussed by Mr. Green has
a further dimension that illustrates the indifference Federal
bureaucrats can display. More than a year ago--January 10, 1994--the
district ranger of Stanislaus National Forest wrote Mr. Green that the
requested road use permit for my constituents would be ready within the
next 30 days.
When that didn't happen, Mr. Green made further inquiry. On May 17,
1994, the district ranger wrote that he could ensure that the permit
would be received shortly. Knowing I planned to use this awful apathy
by the Forest Service in remarks on the House floor, my
[[Page H2604]] counsel called the district ranger to ask whether the
promised permit yet had issued. Sad to say, Mr. Chairman, the answer
was ``no.''
These are intolerable circumstances that, I am learning go on every
day across our country. Citizens are at the mercy of a corps of
overpaid, underworked dolts who make a mockery of the term, ``public
service.''
The County Counsel,
Mariposa County, CA, March 2, 1995.
Re National Forest Service Use Permit for Billy J. Lovelace.
Office of Congressman Radanovich,
Cannon Building, Washington, DC:
I have previously forwarded to your office my
correspondence relative to the above matter and the failure
of the Forest Service, after numerous promises, to issue a
Use Permit to Mr. Lovelace to access his property wherein he
resides. You have requested that I provide you additional
information as to why in my opinion this type of activity
illustrates the federal government's failure to respect
property rights of its citizens. Mr. Lovelace purchased his
property with the access road to his dwelling already
constructed. That access road did in fact cross a small
portion of the Forest Service property and an easement
existed for the use of that Forest Service strip of land.
When the easement expired, the Forest Service basically took
the position that Mr. Lovelace was going to have to find
other access to his property, although as a practical matter
no other access existed. Mr. Lovelace felt totally
ineffectual in dealing with the National Forest Service
personnel, as they made him feel that access to his property
would be granted upon their whim only and not as any property
right he may have acquired over a period of time. We all know
that you cannot acquire a prescriptive easement against a
governmental entity, however, there is a concept of fair play
and due process when the federal government has allowed
access over a period of years and then arbitrarily determined
that it may not continue that access to the property owner.
That is what happened in the Lovelace case and the possible
denial of the Use Permit has caused great emotional distress
to Mr. Lovelace. He feels totally helpless in dealing with
the federal government and therefore contacted his County
Supervisor, Doug Balmain, to intervene on his behalf.
Supervisor Balmain and myself did in fact intervene on Mr.
Lovelace's behalf and had a number of conversations with the
Forest Service personnel. Essentially the first meetings
indicated that the Forest Service was adopting a blanket
policy without any regard to the private
property rights of the individuals in that it was
inappropriate to access private property over a Forest
Service land if there was any other conceivable way to
access the property. Of course, to the Forest Service, any
conceivable way to access the property did not take into
consideration the extreme expenses involved in most cases,
and the topography of the land which may make it
impossible to access. However, after a number of
conversations and written correspondence, the Forest
Service did in fact agree that Mr. Lovelace was entitled
to a Use Permit to access his property. As you know, that
permit has still not been issued even though it was
promised well over a year ago. Certainly when Mr. Lovelace
purchased his property, he felt he had a property right to
access his dwelling over the road that had been
constructed prior to his purchase. It was only after his
purchase that he discovered that the Forest Service may
restrict access to his property. In my opinion, as well as
Supervisor Balmain's opinion, the federal government has a
moral right and obligation to deal honestly and fairly
with citizens who are affected by its rules and
regulations. Access to an individual's dwelling is
certainly viewed by that individual as a property right
and the threat of removing that access generates a great
deal of distress for the property owner.
Based upon other experiences with the Forest Service, this
is not an unusual way in which the Forest Service personnel
deals with citizens' property rights and values. In one of
the letters which my office received from the District Ranger
regarding this matter, the following language was contained
in the letter which, in effect, chastised Supervisor Balmain
and myself for becoming involved in this issue: ``Since the
issues revolve around the administration and management of
National Forest lands, all future correspondence will be
carried out through the concerned individuals.'' I read that
sentence to essentially tell Supervisor Balmain and myself to
butt out of Supervisor Balmain's constituent's business with
the federal government.
Should you desire any additional information regarding this
matter, please feel free to contact me.
Very truly yours,
Jeffrey G. Green,
County Counsel.
Mr. COSTELLO. Mr. Chairman, I rise today to express my concern over
legislation under consideration in the House today to place into
statute guidance for takings allowance under the fifth amendment of the
Constitution. While I support efforts to offer this guidance, I am
concerned the original bill proposed by the majority goes too far.
This bill would require Federal agencies to reimburse private
property owners if 10 percent of their land is affected by any Federal
regulation. While the intent of this bill is good, the potential cost
to the Federal Government for a 10-percent diminishment of property
value is enormous.
In addition, the bill's basic provisions are unworkable. For
instance, if the Federal Government raises the speed limit on a rural
highway, property owners adjacent to the highway could claim their
property has been devalued by at least 10 percent due to increased
noise from greater automobile traffic or higher speed limits. They
could then demand reimbursement from the Department of Transportation
for that diminished land value.
I have made efforts to work with my colleagues to try and raise this
threshold to a more reasonable level. I have voted for amendments to
raise this threshold beyond the 10-percent level, to one which builds
on current legal precedent but which is not too narrow. In addition, I
am working with my Democratic colleagues who also favor protecting
private property rights to narrow the bill to instances of likely
takings--for wetlands protections, for example--instead of every
Federal regulation. Making Federal regulations more reasonable is my
goal, which is also why I have cosponsored wetlands reform in the past.
An effort was made to try and narrow this bill, but it did not go far
enough. The amendment offered by Representative Tauzin would have gone
beyond just a wetlands provision to include rights of western water
use, mining and other use western lands. It also raised the threshold
to only 50 percent, one which I feel is still too unworkable. That is
why I opposed the Tauzin amendment.
One amendment I did support would have required a private property
impact assessment by an agency prior to any taking. This would have
written into law an Executive order signed by President Ronald Reagan,
that would allow property owners to seek compensation based on this
assessment. Unfortunately, this amendment was rejected by a majority of
my colleagues. However, this bill has improved as it has moved through
the House, and it is my hope that in supporting this bill on final
passage we may move it to the Senate and reach common ground to protect
private property rights, and our Nation's critical environment areas,
in a final package.
Mr. McDERMOTT. Mr. Chairman, I rise in strong opposition to H.R. 925.
This is yet another proposal offered by the new majority to undermine
our Nation's health, safety, and environmental standards in order to
benefit their favorite special interest: the pollution industry.
This bill is a cruel joke which endangers helpless private property
owners throughout the country and allows land abusers the opportunity
to raid the Federal treasury.
Make no mistake, this bill is incapable of protecting the public from
health or safety hazards.
In my State of Washington, clear cut logging on steep slopes caused
extreme run-off and excessive flooding along the Tolt River. Slides
sent trees and debris choking the river and deflecting flows.
Meanwhile, the flooding caused a family's mobile home to be washed
down river and significantly eroded several other properties. The
effect: property devaluation and serious expense to the downstream
landowners, serious harm to the environment, and huge profits for the
loggers.
This bill does nothing to either prevent such environmental damages
or protect the landowners who undoubtedly will be harmed by the ensuing
reckless developments.
In fact, even as amended, H.R. 925 makes the government liable for
the negligent actions of industry polluters, reckless developers, and
the property owners whose land is harmed by such development.
For example, when a developer seeks a permit to clear cut a steep
slope as occurred in my State, or to fill in a wetland which endangers
the property of downstream landowners, the government is damned if it
grants the permit and damned if it doesn't.
If the government issues the permit, it then becomes liable for the
damages incurred by the developers on the downstream property owner's
lands. Yet, if the government denies the permit, this bill forces it to
compensate the developer who requested it--no matter how negligent the
developer's proposal may be.
By voting in favor of H.R. 925, the majority will commit our
government to a financial conundrum which will drain the Federal
treasury.
There are not enough health, education, nutrition, or family programs
for the new majority to eliminate in order to pay for a bill which
mandates such financial recklessness.
Mr. Chairman, I hope that you take a look beyond your political focus
groups and examine the actual, real world implications of this
dangerous bill.
I hope my colleagues find the wisdom and courage to vote against this
horrifying piece of legislation which, as usual in this new majority,
benefits a select few and harms the rest of us.
[[Page H2605]] Mr. UNDERWOOD. Mr. Chairman, the fifth amendment to
the U.S. Constitution clearly speaks to the issue of Federal land
acquisition when it states: ``[N]or shall private property be taken for
public use, without just compensation.'' The Constitution is clear on
the issue of Federal land takings and compels us to deal justly with
the impact of Federal action on private land.
H.R. 925 is currently being touted as the cure for private land
owners whose land has been devalued by Federal regulations. However, it
does not answer Guam's outrage over Federal land policies.
The people of Guam have for many years been the victims of unjust
land grabs and the heavy hand of Federal land policy. Within the
borders of the war in the Pacific Park, land owners cannot develop
their private property due to Federal regulations. Land owners at
Ritidian Point, landlocked by the Andersen Air Force Base, are also
denied free use of their land because access is restricted.
Unfortunately, this legislation would not compensate these land owners
or any others whose land is currently controlled by the Federal
Government.
Guam needs more than just promises for the future; we need Congress
to recognize and commit itself to resolving Guam's unique Federal land
problems.
Mr. PETERSON of Minnesota. Mr. Chairman, today we are considering
property rights legislation, one of the most important pieces of
legislation we will vote on this year. The right to own property is one
of the basic doctrines of our Constitution. The fifth amendment
requires the Government to provide just compensation for property taken
for public purposes. Property rights has come to the forefront of
debate in rural America. This debate is vital to every landowner in
this country, specially to the American farmer.
Over the past three decades, there has been an enormous expansion in
Government regulation of private property. The intent of these
regulations is for the most part positive. However, the rigidity of the
regulations is completely unnecessary and over burdensome and often
defeats the purpose of the objective of the regulation. The Federal
Government makes it a practice to spell out step by step the method
each person should use to accomplish the goal of a regulation. This
rigidity is costly and actually creates more obstacles.
These regulation restrictions are out of control, specifically in
regard to wetlands. For example, a farmer in my district bought 160
acres of land with the intent to farm the 160 acres. After talking to
his local soil and conservation service [SCS], and looking at the
records from the sight, including soil samples and all inclusive maps,
the SCS office confirmed that no wetlands were contained on the land.
My constituent then proceeded to purchase the land and begin to make
the necessary changes to farm. His local SCS came out again to approve
the site, and on the way out noticed some cattails in the field. The
SCS then proceeded to discover, new wetlands which affected about 26
acres of land. This farmer would have reconsidered buying the property
if he knew he could not farm on a large portion of his land.
As a result of this type of common practice by Federal agencies,
private property owners repeatedly lose economic use of their property.
In situations where the Government regulates to the point that the
property owner may not use his property, or the property is
substantially devalued, it is only fair and just for the property owner
to be compensated.
No one argues that we need to regulate certain activities and
restrict certain practices on land for the common good and well being
of the country. We need clean water, we need clean air. And we need to
protect the environment. However, the burden of providing public good
should not be on an individual landowner. If the American public
benefits from restrictions on land uses, then the public should pay for
the costs.
Furthermore, as recourse to Federal taking, wealthy people and big
corporations have the resources to protect their property rights
through the legal process. The average person on the other hand doesn't
have the money and should not have to defend his or her property rights
in the current lengthy, complicated and expensive legal process. More
often than not, the small property owner has no way to combat the
expansive authority and resources of Federal agencies. We must set up a
process where people don't have to hire a lawyer, spend a lot of their
own money, and waste millions of taxpayer dollars to defend their basic
property rights.
For these reasons, I strongly support H.R. 925, private property
rights legislation. H.R. 925 ensures that private property owners are
compensated when the use or value of their property is limited. This
bill lays out clear and specific guidelines for government officials
and property owners in determining when Federal regulations go too far,
and result in violate individual property rights. Federal agencies will
have to weigh their actions cautiously before issuing regulations and
will be required to pay for the imposed regulations.
People in this country who purchase and pay taxes on property should
not have to endure their rights being stripped away. The Federal
Government must be responsible for its actions. Congress must act now
to minimize the taking of our constitutionally protected property
rights. I urge my colleagues to support H.R. 925.
Ms. PELOSI. Mr. Chairman, I rise today to oppose H.R. 925, the
Private Property Protection Act of 1995. This legislation will create
an entitlement program for polluters, a billion dollar sweepstakes for
land speculators, and will leave the American taxpayer holding the bag.
In the words of a Justice Department official who testified before
the House Judiciary Committee, ``hard-working American taxpayers * * *
will be forced to watch as their hard-earned wages are collected by the
Government as taxes and paid out to corporations and large landowners
as takings compensation.''
At a time when so-called entitlement programs are under attack by the
Republican Party, H.R. 925 would create an immense new entitlement
program and bureaucracy with so much legal uncertainty that the only
sure winners will be our Nation's lawyers.
Mr. Chairman, contrary to what the authors of this legislation would
have us believe, American law is based on a deep respect for private
property rights. The fifth amendment itself symbolizes this respect for
property rights by ensuring that private property shall not be taken
for public use without just compensation.
H.R. 925 represents a radical departure from long-settled Supreme
Court doctrine. It abandons the modern definition of the fifth
amendment's ``takings'' clause by requiring that private property
owners be compensated if regulations limit land use and diminish
property values by just 10 percent.
This means that almost any loss in market value would require
compensation. This replaces an entire body of constitutional law with a
clumsy measure that ignores the collective wisdom of two centuries of
Supreme Court decisions.
Mr. Chairman, for over 200 years, private claims to compensation
under the fifth amendment's ``takings'' clause have been successfully
balanced against the public interest on a case-by-case basis.
H.R. 925 does not add to this delicate judicial balance in a
constructive manner. Rather, it shatters legal precedent by imposing a
heavy-handed new doctrine that will only result in unjust windfalls to
wealthy corporations at a tremendous cost to the health, safety and
pocketbooks of all Americans.
Who will pay for the costs of environmental clean-up when polluters
degrade our environment? The American taxpayer. This bill protects the
interests of polluters at the expense of the American taxpayer.
Mr. Chairman, we should heed the voice of our constituents as we
consider this bill. In a recent CNN/Time poll, people were asked
whether a landowner that is barred from installing a toxic waste dump
should be compensated. Fully two-thirds of those interviewed, 66
percent, said no.
Let's not allow the American taxpayer to get ``taken'' by this
legislation. I urge my colleagues to vote against H.R. 925.
Mr. JOHNSON of South Dakota. Mr. Chairman, once again the House
Republican leadership has brought us a bill in H.R. 925, the Private
Property Protection Act, which addresses a legitimately important
issue, but which is overly broad, ill-considered and poorly drafted. I
believe the debate on this important issue should continue, and so I
will for now support this legislation in order for the Senate and the
conference committees to have an opportunity to revise and improve the
legislation. If no such significant improvement is forthcoming from
those bodies, however, I am very doubtful that I will be able to vote
for this bill on final passage.
Mrs. COLLINS of Illinois. Mr. Chairman, I rise today in opposition to
H.R. 925, the Private Property Protection Act. This bill establishes a
dangerous and disturbing precedent that would allow individuals to do
whatever they want with their property, regardless of whether it
destroys their neighbors' property or not. Moreover, H.R. 925 would
establish a new entitlement system to pay off these individuals to
prevent them from using their property in a damaging way.
Imagine if this radical and extreme interpretation of the U.S.
Constitution's fifth amendment had been adopted by an earlier Congress.
We would have no civil rights, no child labor laws, no environmental
standards, no car safety standards, no clean water requirements, no
Americans with Disabilities Act, etc. We would live in a dirty, unsafe,
and callous environment in which each individual and corporation would
be out for his or her own best interest, regardless of the consequences
on
[[Page H2606]] their neighbors and surroundings. The Government's
efforts to protect public health and safety would be completely
compromised because agencies would have to choose between promulgating
the laws we pass and going bankrupt or ignoring important federal laws.
Environmental justice efforts, and bills such as my Environmental
Equal Rights Act would be completely undermined by H.R. 925 because
environmentally disadvantaged communities would either have to allow a
new waste facility site to be established or pay the polluter to not
develop the site. This is dangerous, extreme and fundamentally unfair
to the vast majority of Americans who own private property that is
protected by our critical environmental, health, and public safety
laws.
In fact, I prepared an amendment to this legislation that would
ensure that private property owners could not seek compensation if an
agency prevented them from using their land in a way that would
decrease the property value of their neighbor's land. Currently, the
bill prevents someone from seeking compensation if the agency's action
seeks to prevent damage to other properties. Damage implies specific,
visible harm to neighboring property. For example, if water or waste
was backing up in someone's backyard. What about the loss of property
value when an enormous, ugly waste treatment site is constructed at the
end of your block? This has occurred throughout my district and it
seems unfair that property owners should have to choose between
watching their property value decrease or paying their neighbor not to
construct a waste facility. My concerns with this legislation are so
great, however, that I intend to oppose H.R. 925 completely.
What we have, Mr. Chairman, is a bad bill based on a bad idea.
Members seem to be frustrated that Federal agencies are doing what they
are required to do, which is to promulgate the laws that we pass. If
this is the case, we should deal directly with this issue. But to pass
a bill that makes taxpayers pay for our inaction is truly passing the
buck. It is not only passing the buck but also endangering the future
health and safety of the majority of our constituents. I urge my
colleagues to join me in opposing this dangerous legislation.
Mr. SMITH of Texas. Mr. Chairman, some opponents of the Private
Property Protection Act of 1995 are engaged in world class doublespeak.
Many of the same crowd that's run up a $4.5 trillion debt of our
children's money criticize the Private Property Protection Act of 1995
as a raid on the Treasury. Those who supported the largest tax hike in
history worry that the bill will harm the middle class.
Many of the same gang that supported a Governmental takeover of
private health care in America condemn this bill as a new bureaucracy.
Those who created cradle to grave entitlements attack this bill as a
new entitlement. And the people who will oppose tort reform next week
worried that this bill will be a boon for lawyers.
It's amazing the creative excuses that defenders of big Government
will resort to in order to protect their power to tell the American
people what to do. But, Mr. Chairman, the American people, many of whom
are watching this debate on C-SPAN today, know better.
They know who is responsible for the deficit-raising, tax-elevating,
mandate-creating, heavy-regulating, entitlement-formulating, lawsuit-
generating policies of the regulatory state. And the American people
understand who will, and won't, end those policies.
And if the opponents of the Private Property Protection Act of 1995
would read our bill, they'd know that this bill does not create a new
entitlement, does not create new bureaucracy, is not a boon for
lawyers, is not a threat to the middle class, and does not eliminate
our Nation's environmental laws.
Read our bill. It simply makes the general public share the costs of
regulations designed to benefit the general public. It prevents the
Government from hiding those costs by foisting them on a single,
innocent landowner.
Read our bill. It doesn't prevent Government from protecting
endangered species or preserving wetlands. We the people can protect as
many endangered species and as many wetlands as we the people are
willing to pay for.
Read our bill. It doesn't create a new entitlement. Right now certain
Americans who own the wrong land in the wrong place at the wrong time
are forced to bear the entire cost of Government regulation. This bill
simply relieves their burden brought on by the Government.
Read our bill. This has nothing to do with a raid on the Treasury.
This bill prevents the Government from stealing private property. It
provides relief to the victims of regulatory theft. This relief would
be made available from annual agency appropriations, not the U.S.
Treasury.
Read our bill. The Private Property Protection Act of 1995 would
benefit the middle class. It would provide the people who do the work,
pay the taxes, and pull the wagon with the same rights as the blind
cave spider, golden cheeked warbler, and fairy shrimp. And it would
make Government regulators public servants once again. No longer would
these officials be the masters of middle class Americans.
Mr. Chairman, objections to this bill have nothing to do with
entitlements, bureaucracy, middle-class rights, or lawyers. They don't
object to any of these things; they've spent their careers working hard
to expand each of them.
They have everything to do with their love of big Government control
of the lives of middle class Americans. They'll say anything to defend
it; they'll even talk in double-speak.
Mr. Chairman, this Congress was elected to end big Government and
prevent it from trampling the rights of the American middle class.
That's why we rise today, Republican and Democrat, from all over this
Nation, to support the Private Property Protection Act of 1995. I urge
my colleagues to read this bill and when they do they'll support it.
Mr. PACKARD. Mr. Chairman, Government imposed regulations chip away
at the very cornerstone of our society--private property. It is time to
stop Government's encroachment on our fifth amendment rights.
Overzealous Federal regulations intrude on property owner rights and
restrict individual freedom. Government exists to protect and serve the
needs of private property owners, not to trespass on them.
H.R. 925, the Private Property Protection Act works to restore the
sanctity of private property by ensuring fair compensation for unfair
Federal takings. Our Republican property rights proposal represents a
simple but constitutionally protected concept. Whether the Government
wants your property to build a road or to preserve an endangered rat's
habitat, the intent of our Founding Fathers is clear. If you take it,
pay for it. H.R. 925 provides landowners with their first line of
defense against overreaching Government regulations.
Our Nation's greatness arises in large part from the opportunities
afforded by the use and ownership of private property. The restrictions
imposed by overzealous regulatory agencies and legislatures limits the
ability of property owners to manage and use their land. Bureaucrats
abrogating our property rights and abusing the fifth amendment, assault
the very fabric of our society.
Mr. Chairman, Government should be encouraging, not discouraging
ownership of private property. Fair compensation for unfair Federal
land taking will restore Government accountability and legitimacy. The
people want Government to stop meddling in their private affairs. H.R.
925, the Private Property Protection Act, gets Government off of the
people's back.
The CHAIRMAN. Under the rule, the Committee rises.
Accordingly the Committee rose; and the Speaker pro tempore (Mr.
Hansen) having assumed the chair, Mr. Shuster, Chairman of the
Committee of the Whole House on the State of the Union, reported that
that Committee, having had under consideration the bill (H.R. 925) to
compensate owners of private property for the effect of certain
regulatory restrictions, pursuant to House Resolution 101, he reported
the bill back to the House with an amendment adopted by the Committee
of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment to the committee
amendment in the nature of a substitute adopted by the Committee of the
Whole?
If not, the question is on the amendment.
The amendment was agreed to.
{time} 1315
The SPEAKER pro tempore (Mr. Hansen). The question is on the
engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. CANADY of Florida. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 277,
nays 148, not voting 9, as follows:
[Roll No. 197]
YEAS--277
Allard
Archer
Armey
Bachus
Baesler
Baker (CA)
[[Page H2607]] Baker (LA)
Baldacci
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bentsen
Bereuter
Bevill
Bilbray
Bilirakis
Bishop
Bliley
Boehner
Bonilla
Bono
Brewster
Browder
Brown (OH)
Brownback
Bryant (TN)
Bunn
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Chabot
Chambliss
Chapman
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Collins (GA)
Combest
Condit
Cooley
Costello
Cox
Cramer
Crane
Crapo
Cremeans
Cubin
Cunningham
Danner
Davis
de la Garza
Deal
DeLay
Diaz-Balart
Dickey
Dooley
Doolittle
Doyle
Dreier
Duncan
Dunn
Durbin
Edwards
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Fazio
Fields (TX)
Flanagan
Foley
Forbes
Fowler
Fox
Franks (CT)
Frisa
Frost
Funderburk
Gallegly
Ganske
Gekas
Geren
Gillmor
Gilman
Goodlatte
Goodling
Gordon
Graham
Green
Gunderson
Gutknecht
Hall (OH)
Hall (TX)
Hamilton
Hancock
Hansen
Harman
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Hefner
Heineman
Herger
Hilleary
Hilliard
Hobson
Hoekstra
Hoke
Holden
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Jacobs
Johnson (SD)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King
Kingston
Knollenberg
Kolbe
LaHood
Lantos
Largent
Latham
LaTourette
Laughlin
Leach
Lewis (CA)
Lewis (KY)
Lightfoot
Lincoln
Linder
Livingston
LoBiondo
Longley
Lucas
Manzullo
Martinez
Mascara
McCollum
McCrery
McDade
McHale
McHugh
McInnis
McIntosh
McKeon
McNulty
Metcalf
Meyers
Mica
Molinari
Mollohan
Montgomery
Moorhead
Myers
Myrick
Nethercutt
Neumann
Ney
Norwood
Nussle
Obey
Ortiz
Orton
Oxley
Packard
Parker
Paxon
Payne (VA)
Peterson (FL)
Peterson (MN)
Petri
Pickett
Pombo
Pomeroy
Portman
Poshard
Pryce
Quillen
Radanovich
Regula
Reynolds
Riggs
Roberts
Roemer
Rogers
Rohrabacher
Ros-Lehtinen
Rose
Roth
Royce
Salmon
Sanford
Saxton
Scarborough
Schaefer
Scott
Seastrand
Sensenbrenner
Shadegg
Shaw
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Spratt
Stearns
Stenholm
Stockman
Stump
Stupak
Talent
Tanner
Tate
Tauzin
Taylor (MS)
Taylor (NC)
Tejeda
Thomas
Thornberry
Thornton
Thurman
Tiahrt
Traficant
Upton
Volkmer
Vucanovich
Waldholtz
Walker
Walsh
Wamp
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
Zeliff
NAYS--148
Abercrombie
Ackerman
Andrews
Barrett (WI)
Becerra
Beilenson
Berman
Blute
Boehlert
Bonior
Borski
Boucher
Brown (FL)
Cardin
Castle
Clay
Clayton
Clement
Clyburn
Coleman
Collins (MI)
Conyers
Coyne
DeFazio
DeLauro
Dellums
Deutsch
Dicks
Dingell
Dixon
Doggett
Ehlers
Engel
Eshoo
Evans
Farr
Fattah
Fields (LA)
Filner
Flake
Foglietta
Ford
Frank (MA)
Franks (NJ)
Frelinghuysen
Furse
Gejdenson
Gephardt
Gibbons
Gilchrest
Goss
Greenwood
Gutierrez
Hastings (FL)
Hinchey
Hoyer
Jackson-Lee
Jefferson
Johnson (CT)
Johnson, E.B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kleczka
Klink
Klug
LaFalce
Lazio
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Luther
Maloney
Manton
Markey
Martini
Matsui
McCarthy
McDermott
Meehan
Meek
Menendez
Mfume
Miller (CA)
Miller (FL)
Mineta
Minge
Mink
Moran
Morella
Murtha
Nadler
Neal
Oberstar
Olver
Owens
Pallone
Pastor
Payne (NJ)
Pelosi
Porter
Quinn
Rahall
Ramstad
Reed
Richardson
Rivers
Roukema
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schiff
Schroeder
Schumer
Serrano
Shays
Skaggs
Slaughter
Stark
Stokes
Studds
Thompson
Torkildsen
Torres
Torricelli
Towns
Tucker
Velazquez
Vento
Visclosky
Ward
Waters
Watt (NC)
Waxman
Williams
Wise
Woolsey
Wyden
Wynn
Yates
Zimmer
NOT VOTING--9
Brown (CA)
Bryant (TX)
Collins (IL)
Dornan
Gonzalez
Johnston
McKinney
Moakley
Rangel
{time} 1331
The Clerk announced the following pair:
On this vote:
Mr. Dornan for, with Mrs. Collins of Illinois against.
Mr. ACKERMAN changed his vote from ``yea'' to ``nay.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
authorizing the clerk to make technical and conforming changes in H.R.
925, private property protection act of 1995
Mr. CANADY of Florida. Mr. Speaker, I ask unanimous consent that in
the engrossment of the bill H.R. 925, as amended, the Clerk be
authorized to correct section numbers, cross-references, and
punctuation, and to make such stylistic, clerical, technical,
conforming, and other changes as may be necessary to reflect the action
of the House in amending the bill.
The SPEAKER pro tempore (Mr. Hansen). Is there objection to the
request of the gentleman from Florida?
There was no objection.
general leave
Mr. CANADY of Florida. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days within which to revise and extend
their remarks on H.R. 925, the bill just passed.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Florida?
There was no objection.
job creation and wage enhancement act of 1995
Mr. DeLAY. Pursuant to section 2 of House Resolution 101, I call up
the bill (H.R. 9) to create jobs, enhance wages, strengthen property
rights, maintain certain economic liberties, decentralize and reduce
the power of the Federal Government with respect to the States,
localities, and citizens of the United States, and to increase the
accountability of Federal officials, and ask for its immediate
consideration in the House.
The Clerk read the title of the bill.
The text of H.R. 9 is as follows:
H.R. 9
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Job Creation and Wage
Enhancement Act of 1995''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--CAPITAL GAINS REFORM
Sec. 1001. 50 percent capital gains deduction.
Sec. 1002. Indexing of certain assets for purposes of determining gain
or loss.
Sec. 1003. Capital loss deduction allowed with respect to sale or
exchange of principal residence.
TITLE II--NEUTRAL COST RECOVERY
Sec. 2001. Depreciation adjustment for certain property placed in
service after December 31, 1994.
TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW
REGULATIONS
Sec. 3001. Findings
Subtitle A--Risk Assessment and Communication
Sec. 3101. Short title.
Sec. 3102. Purposes.
Sec. 3103. Effective date; applicability; savings provisions.
Sec. 3104. Principles for risk assessment.
Sec. 3105. Principles for risk characterization and communication.
Sec. 3106. Guidelines, plan for assessing new information, and report.
Sec. 3107. Definitions.
Subtitle B--Analysis of Risk Reduction Benefits and Costs
Sec. 3201. Analysis of risk reduction benefits and costs.
Subtitle C--Peer Review
Sec. 3301. Peer review program.
TITLE IV--ESTABLISHMENT OF FEDERAL REGULATORY BUDGET COST CONTROL
Sec. 4001. Amendments to the Congressional Budget Act of 1974.
Sec. 4002. President's annual budget submissions.
Sec. 4003. Estimation and disclosure of costs of Federal regulation.
TITLE V--STRENGTHENING OF PAPERWORK REDUCTION ACT
Sec. 5001. Short title.
Subtitle A--Authorization of Appropriations
Sec. 5101. Authorization of appropriations.
[[Page H2608]] Subtitle B--Reducing the Burden of Federal Paperwork on
the Public
Sec. 5201. Coverage of all federally sponsored paperwork burdens.
Sec. 5202. Paperwork reduction goals.
Subtitle C--Enhancing Government Responsibility and Accountability for
Reducing the Burden of Federal Paperwork
Sec. 5301. Reemphasizing the responsibility of the Director to control
the burden of Federal paperwork.
Sec. 5302. Enhancing agency responsibility to obtain public review of
proposed paperwork burdens.
Sec. 5303. Expediting review at the Office of Management and Budget.
Sec. 5304. Improving public and agency scrutiny of paperwork burdens
proposed for renewal.
Sec. 5305. Protection for whistleblowers of unauthorized paperwork
burden.
Sec. 5306. Enhancing public participation.
Sec. 5307. Expediting review of an agency information collection
request with a reduced burden.
Subtitle D--Enhancing Agency Responsibility for Sharing and
Disseminating Public Information
Sec. 5401. Prescribing governmentwide standards for sharing and
disseminating public information.
Sec. 5402. Agency responsibilities for sharing and disseminating public
information.
Sec. 5403. Agency information inventory/locator system.
Subtitle E--Additional Government Information Management Responsibility
Sec. 5501. Strengthening the statistical policy and coordination
functions of the Director.
Sec. 5502. Use of electronic information collection and dissemination
techniques to reduce burden.
Sec. 5503. Agency implementation.
Sec. 5504. Automatic data processing equipment plan.
Sec. 5505. Technical and conforming amendments.
Subtitle F--Effective Dates
Sec. 5601. Effective dates.
TITLE VI--STRENGTHENING REGULATORY FLEXIBILITY
Sec. 6001. Judicial review.
Sec. 6002. Consideration of direct and indirect effects of rules.
Sec. 6003. Rules opposed by SBA Chief Counsel for Advocacy.
Sec. 6004. Sense of Congress regarding SBA Chief Counsel for Advocacy.
TITLE VII--REGULATORY IMPACT ANALYSES
Sec. 7001. Short title.
Sec. 7002. Rule making notices for major rules.
Sec. 7003. Hearing requirement for proposed rules; extension of comment
period.
Sec. 7004. Regulatory impact analysis.
Sec. 7005. Additional responsibilities of Director of the Office of
Management and Budget.
Sec. 7006. Standard of clarity.
Sec. 7007. Report by OIRA.
Sec. 7008. Definitions.
TITLE VIII--PROTECTION AGAINST FEDERAL REGULATORY ABUSE
Subtitle A--Citizens' Regulatory Bill of Rights
Sec. 8101. Citizens' regulatory bill of rights.
Subtitle B--Private Sector Whistleblowers' Protection
Sec. 8201. Short title.
Sec. 8202. Purpose.
Sec. 8203. Coverage.
Sec. 8204. Prohibited regulatory practices.
Sec. 8205. Prohibited regulatory practice as a defense to agency
action.
Sec. 8206. Enforcement.
Sec. 8207. Citizen suits.
Sec. 8208. Office of the Special Counsel.
Sec. 8209. Relation to criminal investigations.
TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION
Sec. 9001. Statement of purpose.
Sec. 9002. Compensation for Federal agency infringement or deprivation
of rights to private property.
Sec. 9003. Severability.
Sec. 9004. Definitions.
TITLE X--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL
Sec. 10001. Amendments to the Congressional Budget Act of 1974.
Sec. 10002. President's annual budget submissions.
Sec. 10003. Estimation and disclosure of costs of Federal mandates.
TITLE XI--TAXPAYER DEBT BUY-DOWN
Sec. 11001. Designation of amounts for reduction of public debt.
Sec. 11002. Public Debt Reduction Trust Fund.
Sec. 11003. Taxpayer-generated sequestration of Federal spending to
reduce the public debt.
TITLE XII--SMALL BUSINESS INCENTIVES
Sec. 12001. Increase in unified estate and gift tax credits.
Sec. 12002. Increase in expense treatment for small businesses.
Sec. 12003. Clarification of definition of principal place of business.
Sec. 12004. Treatment of storage of product samples.
TITLE I--CAPITAL GAINS REFORM
SEC. 1001. 50 PERCENT CAPITAL GAINS DEDUCTION.
(a) General Rule.--Part I of subchapter P of chapter 1 of
the Internal Revenue Code of 1986 (relating to treatment of
capital gains) is amended to read as follows:
``PART I--TREATMENT OF CAPITAL GAINS
``Sec. 1201. Capital gains deduction.
``SEC. 1201. CAPITAL GAINS DEDUCTION.
``(a) General Rule.--If for any taxable year a taxpayer has
a net capital gain, 50 percent of such gain shall be a
deduction from gross income.
``(b) Estates and Trusts.--In the case of an estate or
trust, the deduction shall be computed by excluding the
portion (if any) of the gains for the taxable year from sales
or exchanges of capital assets which, under sections 652 and
662 (relating to inclusions of amounts in gross income of
beneficiaries of trusts), is includible by the income
beneficiaries as gain derived from the sale or exchange of
capital assets.
``(c) Coordination With Treatment of Capital Gain Under
Limitation on Investment Interest.--For purposes of this
section, the net capital gain for any taxable year shall be
reduced (but not below zero) by the amount which the taxpayer
takes into account as investment income under section
163(d)(4)(B)(iii).
``(d) Transitional Rule.--
``(1) In general.--In the case of a taxable year which
includes January 1, 1995--
``(A) the amount taken into account as the net capital gain
under subsection (a) shall not exceed the net capital gain
determined by only taking into account gains and losses
properly taken into account for the portion of the taxable
year on or after January 1, 1995, and
``(B) if the net capital gain for such year exceeds the
amount taken into account under subsection (a), the rate of
tax imposed by section 1 on such excess shall not exceed 28
percent.
``(2) Special rules for pass-thru entities.--
``(A) In general.--In applying paragraph (1) with respect
to any pass-thru entity, the determination of when gains and
losses are properly taken into account shall be made at the
entity level.
``(B) Pass-thru entity defined.--For purposes of
subparagraph (A), the term `pass-thru entity' means--
``(i) a regulated investment company,
``(ii) a real estate investment trust,
``(iii) an S corporation,
``(iv) a partnership,
``(v) an estate or trust, and
``(vi) a common trust fund.''
(b) Deduction Allowable in Computing Adjusted Gross
Income.--Subsection (a) of section 62 of such Code is amended
by inserting after paragraph (15) the following new
paragraph:
``(16) Long-term capital gains.--The deduction allowed by
section 1201.''
(c) Technical and Conforming Changes.--
(1) Section 13113 of the Revenue Reconciliation Act of 1993
(relating to 50-percent exclusion for gain from certain small
business stock), and the amendments made by such section, are
hereby repealed; and the Internal Revenue Code of 1986 shall
be applied as if such section (and amendments) had never been
enacted.
(2) Section 1 of such Code is amended by striking
subsection (h).
(3) Paragraph (1) of section 170(e) of such Code is amended
by striking ``the amount of gain'' in the material following
subparagraph (B)(ii) and inserting ``50 percent of the amount
of gain''.
(4)(A) Paragraph (2) of section 172(d) of such Code is
amended to read as follows:
``(2) Capital gains and losses.--
``(A) Losses of taxpayers other than corporations.--In the
case of a taxpayer other than a corporation, the amount
deductible on account of losses from sales or exchanges of
capital assets shall not exceed the amount includible on
account of gains from sales or exchanges of capital assets.
``(B) Deduction under section 1201.--The deduction under
section 1201 shall not be allowed.''
(B) Subparagraph (B) of section 172(d)(4) of such Code is
amended by striking ``paragraphs (1) and (3)'' and inserting
``paragraphs (1), (2)(B), and (3)''.
(5) Paragraph (4) of section 642(c) of such Code is amended
to read as follows:
``(4) Adjustments.--To the extent that the amount otherwise
allowable as a deduction under this subsection consists of
gain from the sale or exchange of capital assets held for
more than 1 year, proper adjustment shall be made for any
deduction allowable to the estate or trust under section 1201
(relating to deduction for excess of capital gains over
capital losses). In the case of a trust, the deduction
allowed by this subsection shall be subject to section 681
(relating to unrelated business income).''
(6) Paragraph (3) of section 643(a) of such Code is amended
by adding at the end thereof the following new sentence:
``The deduction under section 1201 (relating to deduction of
excess of capital gains over capital losses) shall not be
taken into account.''
(7) Paragraph (4) of section 691(c) of such Code is amended
by striking ``sections 1(h), 1201, and 1211'' and inserting
``sections 1201 and 1211''.
[[Page H2609]] (8) The second sentence of section 871(a)(2)
of such Code is amended by inserting ``such gains and losses
shall be determined without regard to section 1201 (relating
to deduction for capital gains) and'' after ``except that''.
(9) Subsection (d) of section 1044 of such Code is amended
by striking the last sentence.
(10)(A) Paragraph (2) of section 1211(b) of such Code is
amended to read as follows:
``(2) the sum of--
``(A) the excess of the net short-term capital loss over
the net long-term capital gain, and
``(B) one-half of the excess of the net long-term capital
loss over the net short-term capital gain.''
(B) So much of paragraph (2) of section 1212(b) of such
Code as precedes subparagraph (B) thereof is amended to read
as follows:
``(2) Special rules.--
``(A) Adjustments.--
``(i) For purposes of determining the excess referred to in
paragraph (1)(A), there shall be treated as short-term
capital gain in the taxable year an amount equal to the
lesser of--
``(I) the amount allowed for the taxable year under
paragraph (1) or (2) of section 1211(b), or
``(II) the adjusted taxable income for such taxable year.
``(ii) For purposes of determining the excess referred to
in paragraph (1)(B), there shall be treated as short-term
capital gain in the taxable year an amount equal to the sum
of--
``(I) the amount allowed for the taxable year under
paragraph (1) or (2) of section 1211(b) or the adjusted
taxable income for such taxable year, whichever is the least,
plus
``(II) the excess of the amount described in subclause (I)
over the net short-term capital loss (determined without
regard to this subsection) for such year.''
(11) Paragraph (1) of section 1402(i) of such Code is
amended by inserting ``, and the deduction provided by
section 1201 shall not apply'' before the period at the end
thereof.
(12) Section 12 of such Code is amended by striking
paragraph (4) and redesignating the following paragraphs
accordingly.
(13) Paragraph (2) of section 527(b) of such Code is hereby
repealed.
(14) Subparagraph (D) of section 593(b)(2) of such Code is
amended by adding ``and'' at the end of clause (iii), by
striking ``, and'' at the end of clause (iv) and inserting a
period, and by striking clause (v).
(15) Paragraph (2) of section 801(a) of such Code is hereby
repealed.
(16) Subsection (c) of section 831 of such Code is amended
by striking paragraph (1) and redesignating the following
paragraphs accordingly.
(17)(A) Subparagraph (A) of section 852(b)(3) of such Code
is amended by striking ``, determined as provided in section
1201(a), on'' and inserting ``of 17.5 percent of''.
(B) Clause (iii) of section 852(b)(3)(D) of such Code is
amended--
(i) by striking ``65 percent'' and inserting ``82.5
percent'', and
(ii) by striking ``section 1201(a)'' and inserting
``subparagraph (A)''.
(18) Clause (ii) of section 857(b)(3)(A) of such Code is
amended by striking ``determined at the rate provided in
section 1201(a) on'' and inserting ``of 17.5 percent of''.
(19) Paragraph (1) of section 882(a) of such Code is
amended by striking ``section 11, 55, 59A, or 1201(a)'' and
inserting ``section 11, 55, or 59A''.
(20) Subsection (b) of section 904 of such Code is amended
by striking paragraphs (2)(B), (3)(B), (3)(D), and (3)(E).
(21) Subsection (b) of section 1374 of such Code is amended
by striking paragraph (4).
(22) Subsection (b) of section 1381 is amended by striking
``or 1201''.
(23) Subsection (e) of section 1445 of such Code is
amended--
(A) in paragraph (1) by striking ``35 percent (or, to the
extent provided in regulations, 28 percent)'' and inserting
``17.5 percent (or, to the extent provided in regulations,
19.8 percent)'', and
(B) in paragraph (2) by striking ``35 percent'' and
inserting ``17.5 percent''.
(24) Clause (i) of section 6425(c)(1)(A) of such Code is
amended by striking ``or 1201(a)''.
(25) Clause (i) of section 6655(g)(1)(A) of such Code is
amended by striking ``or 1201(a)''.
(26)(A) The second sentence of section 7518(g)(6)(A) of
such Code is amended--
(i) by striking ``during a taxable year to which section
1(h) or 1201(a) applies'', and
(ii) by striking ``28 percent (34 percent'' and inserting
``19.8 percent (17.5 percent''.
(B) The second sentence of section 607(h)(6)(A) of the
Merchant Marine Act, 1936 is amended--
(i) by striking ``during a taxable year to which section
1(h) or 1201(a) of such Code applies'', and
(ii) by striking ``28 percent (34 percent'' and inserting
``19.8 percent (17.5 percent''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years ending after December 31, 1994.
(2) Contributions.--The amendment made by subsection (c)(3)
shall apply only to contributions on or after January 1,
1995.
(3) Withholding.--The amendment made by subsection (c)(23)
shall apply only to amounts paid after the date of the
enactment of this Act.
SEC. 1002. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF
DETERMINING GAIN OR LOSS.
(a) In General.--Part II of subchapter O of chapter 1 of
the Internal Revenue Code of 1986 (relating to basis rules of
general application) is amended by inserting after section
1021 the following new section:
``SEC. 1022. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF
DETERMINING GAIN OR LOSS.
``(a) General Rule.--
``(1) Indexed basis substituted for adjusted basis.--Except
as otherwise provided in this subsection, if an indexed asset
which has been held for more than 1 year is sold or otherwise
disposed of, for purposes of this title the indexed basis of
the asset shall be substituted for its adjusted basis.
``(2) Exception for depreciation, etc.--The deduction for
depreciation, depletion, and amortization shall be determined
without regard to the application of paragraph (1) to the
taxpayer or any other person.
``(b) Indexed Asset.--
``(1) In general.--For purposes of this section, the term
`indexed asset' means--
``(A) stock in a corporation, and
``(B) tangible property (or any interest therein),
which is a capital asset or property used in the trade or
business (as defined in section 1231(b)).
``(2) Certain property excluded.--For purposes of this
section, the term `indexed asset' does not include--
``(A) Creditor's interest.--Any interest in property which
is in the nature of a creditor's interest.
``(B) Options.--Any option or other right to acquire an
interest in property.
``(C) Net lease property.--In the case of a lessor, net
lease property (within the meaning of subsection (i)(3)).
``(D) Certain preferred stock.--Stock which is fixed and
preferred as to dividends and does not participate in
corporate growth to any significant extent.
``(E) Stock in foreign corporations.--Stock in a foreign
corporation.
``(F) Stock in s corporations.--Stock in an S corporation.
``(3) Exception for stock in foreign corporation which is
regularly traded on national or regional exchange.--Paragraph
(2)(E) shall not apply to stock in a foreign corporation the
stock of which is listed on the New York Stock Exchange, the
American Stock Exchange, the national market system operated
by the National Association of Securities Dealers, or any
domestic regional exchange for which quotations are published
on a regular basis other than--
``(A) stock of a foreign investment company (within the
meaning of section 1246(b)),
``(B) stock in a passive foreign investment company (as
defined in section 1296), and
``(C) stock in a foreign corporation held by a United
States person who meets the requirements of section
1248(a)(2).
``(4) Treatment of american depository receipts.--For
purposes of this section, an American depository receipt for
stock in a foreign corporation shall be treated as stock in
such corporation.
``(c) Indexed Basis.--For purposes of this section--
``(1) General rule.--The indexed basis for any asset is--
``(A) the adjusted basis of the asset, multiplied by
``(B) the applicable inflation ratio.
``(2) Applicable inflation ratio.--The applicable inflation
ratio for any asset is the percentage arrived at by
dividing--
``(A) the gross domestic product deflator for the calendar
quarter in which the disposition takes place, by
``(B) the gross domestic product deflator for the calendar
quarter in which the asset was acquired by the taxpayer (or,
if later, the calendar quarter ending on December 31, 1994).
The applicable inflation ratio shall never be less than 1.
The applicable inflation ratio for any asset shall be rounded
to the nearest \1/1000\.
``(3) Gross domestic product deflator.--The gross domestic
product deflator for any calendar quarter is the implicit
price deflator for the gross domestic product for such
quarter (as shown in the first revision thereof).
``(d) Short Sales.--
``(1) In general.--In the case of a short sale of an
indexed asset with a short sale period in excess of 1 year,
for purposes of this title, the amount realized shall be an
amount equal to the amount realized (determined without
regard to this paragraph) multiplied by the applicable
inflation ratio. In applying subsection (c)(2) for purposes
of the preceding sentence, the date on which the property is
sold short shall be treated as the date of acquisition and
the closing date for the sale shall be treated as the date of
disposition.
``(2) Short sale of substantially identical property.--If
the taxpayer or the taxpayer's spouse sells short property
substantially identical to an asset held by the taxpayer, the
asset held by the taxpayer and the substantially identical
property shall not be treated as indexed assets for the short
sale period.
``(3) Short sale period.--For purposes of this subsection,
the short sale period begins on the day after property is
sold and ends on the closing date for the sale.
[[Page H2610]] ``(e) Treatment of Regulated Investment
Companies and Real Estate Investment Trusts.--
``(1) Adjustments at entity level.--
``(A) In general.--Except as otherwise provided in this
paragraph, the adjustment under subsection (a) shall be
allowed to any qualified investment entity (including for
purposes of determining the earnings and profits of such
entity).
``(B) Exception for qualification purposes.--This section
shall not apply for purposes of sections 851(b) and 856(c).
``(2) Adjustments to interests held in entity.--
``(A) In general.--Stock in a qualified investment entity
shall be an indexed asset for any calendar month in the same
ratio as the fair market value of the assets held by such
entity at the close of such month which are indexed assets
bears to the fair market value of all assets of such entity
at the close of such month.
``(B) Ratio of 90 percent or more.--If the ratio for any
calendar month determined under subparagraph (A) would (but
for this subparagraph) be 90 percent or more, such ratio for
such month shall be 100 percent.
``(C) Ratio of 10 percent or less.--If the ratio for any
calendar month determined under subparagraph (A) would (but
for this subparagraph) be 10 percent or less, such ratio for
such month shall be zero.
``(D) Valuation of assets in case of real estate investment
trusts.--Nothing in this paragraph shall require a real
estate investment trust to value its assets more frequently
than once each 36 months (except where such trust ceases to
exist). The ratio under subparagraph (A) for any calendar
month for which there is no valuation shall be the trustee's
good faith judgment as to such valuation.
``(3) Qualified investment entity.--For purposes of this
subsection, the term `qualified investment entity' means--
``(A) a regulated investment company (within the meaning of
section 851), and
``(B) a real estate investment trust (within the meaning of
section 856).
``(f) Other Pass-Thru Entities.--
``(1) Partnerships.--In the case of a partnership, the
adjustment made under subsection (a) at the partnership level
shall be passed through to the partners.
``(2) S corporations.--In the case of an S corporation, the
adjustment made under subsection (a) at the corporate level
shall be passed through to the shareholders.
``(3) Common trust funds.--In the case of a common trust
fund, the adjustment made under subsection (a) at the trust
level shall be passed through to the participants.
``(g) Dispositions Between Related Persons.--
``(1) In general.--This section shall not apply to any sale
or other disposition of property between related persons
except to the extent that the basis of such property in the
hands of the transferee is a substituted basis.
``(2) Related persons defined.--For purposes of this
section, the term `related persons' means--
``(A) persons bearing a relationship set forth in section
267(b), and
``(B) persons treated as single employer under subsection
(b) or (c) of section 414.
``(h) Transfers To Increase Indexing Adjustment.--If any
person transfers cash, debt, or any other property to another
person and the principal purpose of such transfer is to
secure or increase an adjustment under subsection (a), the
Secretary may disallow part or all of such adjustment or
increase.
``(i) Special Rules.--For purposes of this section:
``(1) Treatment as separate asset.--In the case of any
asset, the following shall be treated as a separate asset:
``(A) A substantial improvement to property.
``(B) In the case of stock of a corporation, a substantial
contribution to capital.
``(C) Any other portion of an asset to the extent that
separate treatment of such portion is appropriate to carry
out the purposes of this section.
``(2) Assets which are not indexed assets throughout
holding period.--The applicable inflation ratio shall be
appropriately reduced for periods during which the asset was
not an indexed asset.
``(3) Net lease property defined.--The term `net lease
property' means leased property where--
``(A) the term of the lease (taking into account options to
renew) was 50 percent or more of the useful life of the
property, and
``(B) for the period of the lease, the sum of the
deductions with respect to such property which are allowable
to the lessor solely by reason of section 162 (other than
rents and reimbursed amounts with respect to such property)
is 15 percent or less of the rental income produced by such
property.
``(4) Treatment of certain distributions.--A distribution
with respect to stock in a corporation which is not a
dividend shall be treated as a disposition.
``(5) Section cannot increase ordinary loss.--To the extent
that (but for this paragraph) this section would create or
increase a net ordinary loss to which section 1231(a)(2)
applies or an ordinary loss to which any other provision of
this title applies, such provision shall not apply. The
taxpayer shall be treated as having a long-term capital loss
in an amount equal to the amount of the ordinary loss to
which the preceding sentence applies.
``(6) Acquisition date where there has been prior
application of subsection (a)(1) with respect to the
taxpayer.--If there has been a prior application of
subsection (a)(1) to an asset while such asset was held by
the taxpayer, the date of acquisition of such asset by the
taxpayer shall be treated as not earlier than the date of the
most recent such prior application.
``(7) Collapsible corporations.--The application of section
341(a) (relating to collapsible corporations) shall be
determined without regard to this section.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''
(b) Clerical Amendment.--The table of sections for part II
of subchapter O of chapter 1 of such Code is amended by
inserting after the item relating to section 1021 the
following new item:
``Sec. 1022. Indexing of certain assets for purposes of determining
gain or loss.''
(c) Adjustment To Apply for Purposes of Determining
Earnings and Profits.--Subsection (f) of section 312 of such
Code (relating to effect on earnings and profits of gain or
loss and of receipt of tax-free distributions) is amended by
adding at the end thereof the following new paragraph:
``(3) Effect on earnings and profits of indexed basis.--
For substitution of indexed basis for adjusted basis in the case of
the disposition of certain assets, see section 1022(a)(1).''
(d) Effective Date.--The amendments made by this section
shall apply to dispositions after December 31, 1994, in
taxable years ending after such date.
SEC. 1003. CAPITAL LOSS DEDUCTION ALLOWED WITH RESPECT TO
SALE OR EXCHANGE OF PRINCIPAL RESIDENCE.
(a) In General.--Subsection (c) of section 165 of the
Internal Revenue Code of 1986 (relating to limitation on
losses of individuals) is amended by striking ``and'' at the
end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``; and'', and by adding at the
end the following new paragraph:
``(4) losses arising from the sale or exchange of the
principal residence (within the meaning of section 1034) of
the taxpayer.''
(b) Effective Date.--The amendment made by subsection (a)
shall apply to sales and exchanges after December 31, 1994,
in taxable years ending after such date.
TITLE II--NEUTRAL COST RECOVERY
SEC. 2001. DEPRECIATION ADJUSTMENT FOR CERTAIN PROPERTY
PLACED IN SERVICE AFTER DECEMBER 31, 1994.
(a) In General.--Section 168 of the Internal Revenue Code
of 1986 (relating to accelerated cost recovery system) is
amended by adding at the end thereof the following new
subsection:
``(k) Deduction Adjustment To Allow Equivalent of Expensing
For Certain Property Placed in Service After December 31,
1994.--
``(1) In general.--In the case of tangible property placed
in service after December 31, 1994, the deduction under this
section with respect to such property--
``(A) shall be determined by substituting `150 percent' for
`200 percent' in subsection (b)(1) in the case of property to
which the 200 percent declining balance method would
otherwise apply, and
``(B) for any taxable year after the taxable year during
which the property is placed in service shall be--
``(i) the amount determined under this section for such
taxable year without regard to this subparagraph, multiplied
by
``(ii) the applicable neutral cost recovery ratio for such
taxable year.
``(2) Applicable neutral cost recovery ratio.--For purposes
of paragraph (1)--
``(A) In general.--The applicable neutral cost recovery
ratio for the property for any taxable year is the number
determined by--
``(i) dividing--
``(I) the gross domestic product deflator for the calendar
quarter ending in such taxable year which corresponds to the
calendar quarter during which the property was placed in
service by the taxpayer, by
``(II) the gross domestic product deflator for the calendar
quarter during which the property was placed in service by
the taxpayer, and
``(ii) then multiplying the number determined under clause
(i) by the number equal to 1.035 to the nth power where `n'
is the number of full years in the period beginning on the
1st day of the calendar quarter during which the property was
placed in service by the taxpayer and ending on the day
before the beginning of the corresponding calendar quarter
ending during such taxable year.
The applicable neutral cost recovery ratio shall never be
less than 1. The applicable neutral cost recovery ratio shall
be rounded to the nearest \1/1000\.
``(B) Special rule for certain property.--In the case of
property described in paragraph (2) or (3) of subsection (b)
or in subsection (g), the applicable neutral cost recovery
ratio shall be determined without regard to subparagraph
(A)(ii).
``(3) Gross domestic product deflator.--For purposes of
paragraph (2), the gross domestic product deflator for any
calendar quarter is the implicit price deflator for the gross
domestic product for such quarter (as shown in the first
revision thereof).
[[Page H2611]] ``(4) Coordination with indexing of basis
for purposes of determining gain or loss.--Section 1022 shall
not apply to any property to which this subsection applies.
``(5) Election not to have subsection apply.--This
subsection shall not apply to any property if the taxpayer
elects not to have this subsection apply to such property.
Such an election, once made, shall be irrevocable.
``(6) Churning transactions.--This subsection shall not
apply to any property if this section would not apply to such
property were subsection (f)(5)(A)(ii) applied by
substituting `1995' for `1981' and `1994' for `1980'.
``(7) Additional deduction not to affect basis or
recapture.--The additional amount determined under this
section by reason of this subsection shall not be taken into
account in determining the adjusted basis of any property or
of any interest in a pass-thru entity (as defined in section
1201(d)(2)) which holds such property and shall not be
treated as a deduction for depreciation for purposes of
sections 1245 and 1250.''
(b) Minimum Tax Treatment.--
(1) Paragraph (1) of section 56(a) of such Code is amended
by adding at the end thereof the following new subparagraph:
``(E) Use of neutral cost recovery ratio.--In the case of
property to which section 168(k) applies and which is placed
in service after December 31, 1994, the deduction allowable
under this paragraph with respect to such property for any
taxable year (after the taxable year during which the
property is placed in service) shall be--
``(i) the amount so allowable for such taxable year without
regard to this subparagraph, multiplied by
``(ii) the applicable neutral cost recovery ratio for such
taxable year (as determined under section 168(k)).
This subparagraph shall not apply to any property with
respect to which there is an election in effect not to have
section 168(k)) apply.''
(2) Subparagraph (C) of section 56(g)(4) of such Code is
amended by adding at the end the following new clause:
``(v) Neutral cost recovery deduction.--Clause (i) shall
not apply to the additional deduction allowable by reason of
section 168(k).''
(c) Coordination With Depreciation Limitation on Certain
Automobiles.--Clause (i) of section 280F(a)(1)(B) of such
Code is amended by adding at the end the following new
sentence: ``For purposes of this clause, the unrecovered
basis of any passenger automobile shall be treated as
including the additional amount determined under section 168
by reason of subsection (k) thereof to the extent not allowed
as a deduction by reason of
this paragraph for any taxable year in the recovery
period.''
(d) Effective Date.--The amendments made by this section
shall apply to taxable years ending after December 31, 1994.
TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW
REGULATIONS
SEC. 3001. FINDINGS.
The Congress finds that:
(1) Environmental, health, and safety regulations have led
to dramatic improvements in the environment and have
significantly reduced human health risk; however, the Federal
regulations that have led to these improvements have been
more costly and less effective than they could have been; too
often, regulatory priorities have not been based upon a
realistic consideration of risk, risk reduction
opportunities, and costs.
(2) The public and private resources available to address
health, safety, and environmental concerns are not unlimited;
those resources need to be allocated to address the greatest
needs in the most cost-effective manner and so that the
incremental costs of regulatory options are reasonably
related to the incremental benefits.
(3) To provide more cost-effective and costreasonable
protection to human health and the environment, regulatory
priorities should be based upon realistic consideration of
risk; the priority setting process must include
scientifically sound, objective, and unbiased risk
assessments, comparative risk analysis, and risk management
choices that are grounded in cost-benefit principles.
(4) Risk assessment has proven to be a useful decision
making tool; however, improvements are needed in both the
quality of assessments and the characterization and
communication of findings; scientific and other data must be
better collected, organized, and evaluated; most importantly,
the critical information resulting from a risk assessment
must be effectively communicated in an objective and unbiased
manner to decision makers, and from decision makers to the
public.
(5) The public stake holders must be fully involved in the
risk-decision making process. They have the right-to-know
about the risks addressed by regulation, the amount of risk
to be reduced, the quality of the science used to support
decisions, and the cost of implementing and complying with
regulations. This knowledge will allow for public scrutiny
and promote quality, integrity, and responsiveness of agency
decisions.
Subtitle A--Risk Assessment and Communication
SEC. 3101. SHORT TITLE.
This subtitle may be cited as the ``Risk Assessment and
Communication Act of 1995''.
SEC. 3102. PURPOSES.
The purposes of this subtitle are--
(1) to present the public and executive branch with the
most scientifically objective and unbiased information
concerning the nature and magnitude of health, safety, and
environmental risks in order to provide for sound regulatory
decisions and public education;
(2) to provide for full consideration and discussion of
relevant data and potential methodologies;
(3) to require explanation of significant choices in the
risk assessment process which will allow for better peer
review and public understanding; and
(4) to improve consistency within the executive branch in
preparing risk assessments and risk characterizations.
SEC. 3103. EFFECTIVE DATE; APPLICABILITY; SAVINGS PROVISIONS.
(a) Effective Date.--Except as otherwise specifically
provided in this subtitle, the provisions of this subtitle
shall take effect 18 months after the date of enactment of
this subtitle.
(b) Applicability.--
(1) In general.--Except as provided in paragraph (2), this
title applies to all risk assessments and risk
characterizations prepared by, or on behalf of, any Federal
agency in connection with Federal regulatory programs
designed to protect human health, safety, or the environment.
(2) Exceptions.--(A) This title does not apply to risk
assessments or risk characterizations performed with respect
to either of the following:
(i) A situation that the head of the agency considers to be
an emergency.
(ii) A screening analysis, including a screening analysis
for purposes of product regulation, product reregistration,
or premanufacturing notices.
(B) No analysis shall be treated as a screening analysis
for purposes of subparagraph (A) if the results of such
analyses are used either--
(i) as the basis for imposing restrictions on substances or
activities, or
(ii) to characterize a positive finding of risks from
substances or activities in any final agency document made
available to the general public.
(3) Labels.--This title shall not apply to any food, drug,
or other product label or to any risk characterization
appearing on any such label.
(c) Savings Provisions.--Nothing in this subtitle shall be
construed to modify any statutory standard or requirement
designed to protect health, safety, or the environment.
Nothing in this subtitle shall be interpreted to preclude the
consideration of any data or the calculation of any estimate
to more fully describe risk or provide examples of scientific
uncertainty or variability. Nothing in this title shall be
construed to require the disclosure of any trade secret or
other confidential information.
SEC. 3104. PRINCIPLES FOR RISK ASSESSMENT.
(a) In General.--The head of each Federal agency shall
apply the principles set forth in subsection (b) when
preparing risk assessments in order to assure that such risk
assessments and all of their components distinguish
scientific findings from other considerations and are, to the
maximum extent feasible, scientifically objective, unbiased,
and inclusive of all relevant data. Discussions or
explanations required under this section need not be repeated
in each risk assessment document as long as there is a
reference to the relevant discussion or explanation in
another agency document.
(b) Principles.--The principles to be applied when
preparing risk assessments are as follows:
(1) When assessing human health risks, a risk assessment
shall consider and discuss both laboratory and
epidemiological data of sufficient quality which finds, or
fails to find, a correlation between health risks and a
potential toxin or activity. Where conflicts among such data
appear to exist, or where animal data is used as a basis to
assess human health, the assessment shall include discussion
of possible reconciliation of conflicting information, and as
appropriate, differences in study designs, comparative
physiology, routes of exposure, bioavailability,
pharmacokinetics, and any other relevant factor.
(2) Where a risk assessment involves selection of any
significant assumption, inference, or model, the Federal
agency preparing the assessment shall--
(A) present a representative list and explanation of
plausible and alternative assumptions, inferences, or models;
(B) explain the basis for any choices;
(C) identify any policy or value judgments;
(D) fully describe any model used in the risk assessment
and make explicit the assumptions incorporated in the model;
and
(E) indicate the extent to which any significant model has
been validated by, or conflicts with, empirical data.
SEC. 3105. PRINCIPLES FOR RISK CHARACTERIZATION AND
COMMUNICATION.
In characterizing risk in any risk assessment document,
regulatory proposal or decision, report to Congress, or other
document which is made available to the public, each Federal
agency characterizing the risk shall comply with each of the
following:
(1) Estimates of risk.--The head of such agency shall
describe the populations or natural resources which are the
subject of the
[[Page H2612]] risk characterization. If a numerical estimate
of risk is provided, the agency shall, to the extent feasible
and scientifically appropriate, provide--
(A) the best estimate or estimates for the specific
populations or natural resources which are the subject of the
characterization (based on the information available to the
department, agency, or instrumentality); and
(B) a statement of the reasonable range of scientific
uncertainties.
In addition to such best estimate or estimates, the Federal
agency may present plausible upper-bound or conservative
estimates in conjunction with plausible lower bounds
estimates. Where appropriate, the Federal agency may present,
in lieu of a single best estimate, multiple estimates based
on assumptions, inferences, or models which are equally
plausible, given current scientific understanding. To the
extent practical and appropriate, the Federal agency shall
provide descriptions of the distribution and probability of
risk estimates to reflect differences in exposure variability
in populations and uncertainties.
(2) Exposure scenarios.--The Federal agency shall explain
the exposure scenarios used in any risk assessment, and, to
the extent feasible, provide a statement of the size of the
corresponding population at risk and the likelihood of such
exposure scenarios.
(3) Comparisons.--To the extent feasible, the Federal
agency shall provide a statement that places the nature and
magnitude of risks to human health in context. Such statement
shall include appropriate comparisons with estimates of risks
that are familiar to and routinely encountered by the general
public as well as other risks. The statement shall identify
relevant distinctions among categories of risk and
limitations to comparisons.
(4) Substitution risks.--When a Federal agency provides a
risk assessment or risk characterization for a proposed or
final regulatory action, such assessment or characterization
shall include a statement of any significant substitution
risks to human health, where information on such risks has
been provided to the agency.
(5) Summaries of other risk estimates.--If--
(A) a Federal agency provides a public comment period with
respect to a risk assessment or regulation,
(B) a commenter provides a risk assessment, and a summary
of results of such risk assessment, and
(C) such risk assessment is consistent with the principles
and the guidance provided under this subtitle,
the agency shall present such summary in connection with the
presentation of the agency's risk assessment or the
regulation.
SEC. 3106. GUIDELINES, PLAN FOR ASSESSING NEW INFORMATION,
AND REPORT.
(a) Guidelines.--Within 15 months after the date of
enactment of this subtitle, the President shall issue
guidelines for Federal agencies consistent with the risk
assessment and characterization principles set forth in
sections 3104 and 3105 and shall provide a format for
summarizing risk assessment results. In addition, such
guidelines shall include guidance on at least the following
subjects: criteria for scaling animal studies to assess risks
to human health; use of different types of dose-response
models; thresholds; definitions, use, and interpretations of
the maximum tolerated dose; weighting of evidence with
respect to extrapolating human health risks from sensitive
species; evaluation of benign tumors, and evaluation of
different human health endpoints.
(b) Plan.--Within 18 months after the date of enactment of
this subtitle, each Federal agency shall publish a plan to
review and revise any risk assessment published prior to the
expiration of such 18-month period if the agency determines
that significant new information or methodologies are
available that could significantly alter the results of the
prior risk assessment. The plan shall provide procedures for
receiving and considering new information and risk
assessments from the public. The plan may set priorities for
review and revision of risk assessments based on factors such
Federal agency considers appropriate.
(c) Report.--Within 3 years after the enactment of this
subtitle, each Federal agency shall provide a report to the
Congress evaluating the categories of policy and value
judgments identified under subparagraph (C) of section
3104(b)(2).
(d) Public Comment and Consultation.--The guidelines, plan
and report under this section, shall be developed after
notice and opportunity for public comment, and after
consultation with representatives of appropriate State
agencies and local governments, and such other departments
and agencies, offices, organizations, or persons as may be
advisable.
(e) Review.--The President shall review the guidelines
published under this section at least every 4 years.
SEC. 3107. DEFINITIONS.
For purposes of this subtitle:
(1) Risk assessment.--The term ``risk assessment'' means
the process of identifying hazards and quantifying or
describing the degree of toxicity, exposure, or other risk
they pose for exposed individuals, populations, or resources.
Such term also refers to the document containing the
explanation of how the assessment process has been applied to
an individual substance, activity, or condition.
(2) Risk characterization.--The term ``risk
characterization'' means that element of a risk assessment
that involves presentation of the degree of risk in any
regulatory proposal or decision, report to Congress, or other
document which is made available to the public. The term
includes discussions of uncertainties, conflicting data,
estimates, extrapolations, inferences, and opinions.
(3) Best estimate.--The term ``best estimate'' means an
estimate which, to the extent feasible and scientifically
appropriate, is based on one of the following:
(A) Central estimates of risk using the most plausible
assumptions.
(B) An approach which combines multiple estimates based on
different scenarios and weighs the probability of each
scenario.
(C) Any other methodology designed to provide the most
unbiased representation of the most plausible level of risk,
given the current scientific information available to the
Federal agency concerned.
(4) Substitution risk.--The term ``substitution risk''
means a potential increased risk to human health, safety, or
the environment from a regulatory option designed to decrease
other risks.
(5) Federal agency.--The term ``Federal agency'' means an
executive department, military department, or independent
establishment as defined in part I of title 5 of the United
States Code, except that such term also includes the Office
of Technology Assessment.
Subtitle B--Analysis of Risk Reduction Benefits and Costs
SEC. 3201. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.
(a) In General.--Except as provided in subsection (b), the
President shall require each executive branch agency to
prepare the following for each major rule designed to protect
human health, safety, or the environment that is proposed or
promulgated by the agency after the date of enactment of this
Act:
(1) For each such proposed or promulgated rule, an
assessment of incremental costs and incremental risk
reduction or other benefits associated with each significant
regulatory alternative considered by the agency in connection
with the rule or proposed rule.
(2) For each such proposed or promulgated rule, to the
extent feasible, a comparison of any human health, safety, or
environmental risks addressed by the regulatory alternatives
to other risks chosen by the head of the agency, including at
least 3 other risks regulated by the agency and to at least 3
other risks with which the public is familiar.
(3) For each such proposed or promulgated rule, a statement
of other human health risks potentially posed by implementing
or complying with the regulatory alternatives, including
substitution risks.
(4) For each final rule, an assessment of the costs and
risk reduction or other benefits associated with
implementation of, and compliance with, the rule.
(5) For each final rule, a certification by the head of the
agency of each of the following:
(A) A certification that the assessment under paragraph (4)
is based on an objective
and unbiased scientific and economic evaluation of all
significant and relevant information provided to the
agency by interested parties relating to the costs, risks,
and risk reduction or other benefits addressed by the
rule. Such information shall have been subjected to peer
review to the extent required by section 3301.
(B) A certification that the rule will substantially
advance the purpose of protecting human health or the
environment, as applicable, against the risk addressed by the
rule.
(C) A certification that the rule will produce benefits to
human health or the environment that will justify the costs
incurred by local and State governments, the Federal
Government, and other public and private entities as a result
of implementation of and compliance with the rule, as
determined under paragraph (1).
(D) A certification that there is no regulatory alternative
that is allowed by the statute under which the regulation is
promulgated that would achieve an equivalent reduction in
risk in a more cost-effective manner, along with a brief
explanation of why other regulatory alternatives that were
considered by the head of the agency were found to be less
cost-effective.
(b) Publication.--For each major rule referred to in
subsection (a) the head of each agency shall publish in a
clear and concise manner in the Federal Register along with
the proposed or final regulation, or otherwise make publicly
available, the information required to be prepared under
subsection (a) of this section.
(c) Definitions.--For purposes of this section:
(1) Costs.--The term ``costs'' includes the direct and
indirect costs to the United States government, costs to
State and local governments, and costs to the private sector,
of implementing and complying with a regulatory action.
(2) Major rule.-- The term ``major rule'' means any
regulation that is likely to result in one or more of the
following:
(A) An annual effect on the economy of $25,000,000 or more.
(B) A major increase in costs or prices for consumers,
individual industries, Federal, State, or local government
agencies, or geographic regions.
(C) Significant adverse effects on competition, employment,
investment, productivity,
[[Page H2613]]
innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in
domestic or export markets.
Subtitle C--Peer Review
SEC. 3301. PEER REVIEW PROGRAM.
(a) Establishment.--For regulatory programs addressing
human health, safety, or the environment, the head of each
Federal agency shall develop a systematic program for peer
review of risk assessments and economic assessments used by
the agency. Such program shall be applicable across the
agency and--
(1) shall provide for the creation of peer review panels
consisting of independent and external experts who are
broadly representative and balanced to the extent feasible;
(2) may provide for differing levels of peer review
depending on the significance or the complexity of the
problems or the need for expeditiousness;
(3) shall not exclude peer reviewers merely because they
represent entities that may have a potential interest in the
outcome, provided that interest is fully disclosed to the
agency; and
(4) shall provide open opportunity to become part of a peer
review panel at a minimum by soliciting nominations through a
Federal Register announcement.
(b) Requirement for Peer Review.--Each Federal agency shall
provide for peer review of scientific and economic
information used for purposes of any evaluation under section
3201(a)(5)(A) or for purposes of any significant risk or cost
assessment prepared in connection with a major rule. In
addition, the Director of the Office of Management and Budget
shall order that peer review be provided for any major risk
assessment or cost assessment that may have a significant
impact on public policy decisions.
(c) Contents.--
(1) In general.--Each peer review under this section shall
include a report to the Federal agency concerned with respect
to each of the following:
(A) An evaluation of the technical, scientific, and
economic merit of the data and methods used for the
assessment and analysis.
(B) A list of any considerations that were not taken into
account in the assessment and analysis, but were considered
appropriated by a majority of the members of the peer review
panel.
(C) A discussion of the methodology used for the assessment
and analysis.
(2) Comments and appendix.--Each peer review report under
this subsection shall include--
(A) all comments supported by a majority of the members of
the peer review panel submitting the report; and
(B) an appendix which sets forth the dissenting opinions
that any peer review panel member wants to express.
(3) Separation of assessments.--Peer review of human
health, safety, environmental, and economic assessments may
be separated for purpose of this subtitle.
(d) Response to Peer Review.--The head of the Federal
agency shall provide a written response to all significant
peer review comments.
(e) Availability to Public.--All peer review comments or
conclusions and the agency's responses shall be made
available to the public and shall be made part of the
administrative record for purposes of judicial review of any
final agency action.
(f) Previously Reviewed Data and Analysis.--No peer review
shall be required under this section for any data or analysis
which has been previously subjected to peer review or for any
component of any evaluation or assessment previously
subjected to peer review.
(g) National Panels.--The President shall appoint National
Peer Review Panels to annually review the risk assessment and
cost assessment practices of each Federal agency for programs
designed to protect human health, safety, or the environment.
The Panel shall submit a report to the Congress no less
frequently than annually containing the results of such
review.
(h) Major Rule Defined.--For purposes of this section, the
term ``major rule'' has the same meaning as provided by
section 3201(c) except that ``$100,000,000'' shall be
substituted for ``$25,000,000''.
TITLE IV--ESTABLISHMENT OF FEDERAL REGULATORY BUDGET COST CONTROL
SEC. 4001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF
1974.
(a) Federal Regulatory Budget Cost Control System.--Title
III of the Congressional Budget Act of 1974 is amended by
inserting before section 300 the following new center heading
``PART A--GENERAL PROVISIONS'' and by adding at the end the
following new part:
``PART B--FEDERAL REGULATORY BUDGET COST CONTROL
``SEC. 321. OMB-CBO REPORTS.
``(a) OMB-CBO Initial Report.--Within 1 year after the date
of enactment of this section, OMB and CBO shall jointly issue
a report to the President and each House of Congress that
contains the following:
``(1) For the first budget year beginning after the
issuance of this report, a projection of the aggregate direct
cost to the private sector of complying with all Federal
regulations and rules in effect immediately before issuance
of the report containing the projection for that budget year
of the effect of current-year Federal regulations and rules
into the budget year and the outyears based on those
regulations and rules.
``(2) A calculation of the estimated aggregate direct cost
to the private sector of compliance with all Federal
regulations and rules as a percentage of the gross domestic
product (GDP).
``(3) The estimated marginal cost (measured as a reduction
in estimated gross domestic product) to the private sector of
compliance with all Federal regulations and rules in excess
of 5 percent of the gross domestic product.
``(4) The effect on the domestic economy of different types
of Federal regulations and rules.
``(5) The appropriate level of personnel, administrative
overhead, and programmatic savings that should be achieved on
a fiscal year by fiscal year basis by Federal agencies that
issue regulations or rules with direct costs to the private
sector through the reduction of such aggregate costs to the
private sector by equal percentage increments in the 6 years
following the budget year until the aggregate level of such
costs does not exceed 5 percent of the estimated gross
domestic product for the same fiscal year as the estimated
costs that will be incurred.
``(6) Recommendations for budgeting, technical, and
estimating changes to improve the Federal regulatory
budgeting process.
``(b) Update Reports.--OMB and CBO shall issue update
reports on September 15th of the fifth year beginning after
issuance of the initial report and at 5-year intervals
thereafter containing all the information required in the
initial report, but based upon all Federal regulations and
rules in effect immediately before issuance of the most
recent update report.
``(c) Initial Baseline Report.--Within 30 days after the
date of enactment of this section, OMB and CBO shall jointly
issue a report to the President and each House of Congress
that contains an initial aggregate regulatory baseline for
the first budget year that begins at least 120 days after
that date of enactment. That baseline will be a projection of
the aggregate direct cost to the private sector of complying
with all Federal regulations and rules in effect immediately
before issuance of the report containing the projection for
that budget year of the effect of current-year Federal
regulations and rules into the budget year and the outyears
based on those regulations and rules.
``SEC. 322. AGGREGATE REGULATORY BASELINE.
``(a) In General.--For the first budget year beginning
after the date of enactment of this section and for every
other fiscal year thereafter, the aggregate regulatory
baseline refers to a projection of the aggregate direct cost
to the private sector of complying with all Federal
regulations and rules in effect immediately before issuance
of the report containing the projection for that budget year
of the effect of current-year Federal regulations and rules
into the budget year and the outyears based on those
regulations and rules. However, in the case of each of the
succeeding fiscal years, the baseline shall be adjusted for
the estimated growth during that year in the gross domestic
product (GDP).
``(b) OMB-CBO Aggregate Regulatory Baseline Reports.--(1)
The first budget year for which there shall be an aggregate
regulatory baseline shall be the budget year to which the
initial OMB-CBO baseline report issued under section 321(c)
pertains.
``(2) In the case of each budget year after the budget year
referred to in paragraph (1), not later than September 15 of
the current year, OMB and CBO shall jointly issue a report
containing the baseline referred to in subsection (a) for
that budget year.
``SEC. 323. RECONCILIATION AND ALLOCATIONS.
``(a) Reconciliation Directives.--In addition to the
requirements of section 310, a concurrent resolution on the
budget for any fiscal year shall specify--
``(1) changes in laws and regulations and rules necessary
to reduce the aggregate direct cost to the private sector of
complying with all Federal regulations by 6.5 percent for the
budget year (as measured against the aggregate regulatory
baseline for the first budget year to which this part
applies) and by equal percentage increments for each of the
outyears (until the aggregate level of such costs does not
exceed 5 percent of the estimated gross domestic product for
the same fiscal year as the estimated costs that will be
incurred) for Federal agencies that issue regulations or
rules producing direct costs to the private sector; and
``(2) changes in laws necessary to achieve reductions in
the level of personnel and administrative overhead and to
achieve programmatic savings for the budget year and the
outyears for those agencies of the following:
``(A) In the first outyear, one-fourth of the percent of
reduction in regulatory authority from the aggregate
regulatory base.
``(B) In the second outyear, one-third of the percent of
reduction in regulatory authority from the aggregate
regulatory base.
``(C) In the third, fourth, fifth, and sixth years
following the budget year, one-half of the percent of
reduction in regulatory authority from the aggregate
regulatory base.
Section 310(c) shall not apply with respect to directions
made under this section.
``(b) Allocation of Totals.--(1) The Committees on the
Budget of the House of Representatives and the Senate shall
each allocate aggregate 2-year regulatory authority among
each committee of its House and by
[[Page H2614]] major functional category for the first budget
year beginning after the date of enactment of this section
and for the second, fourth, and sixth years following the
budget year and then every other year thereafter.
``(2) As soon as practicable after receiving an allocation
under paragraph (1), each committee shall subdivide its
allocation among its subcommittees or among programs over
which it has jurisdiction.
``(c) Point of Order.--(1) It shall not be in order in the
House of Representatives or the Senate to consider any bill
or resolution, or amendment thereto, which would cause the
appropriate allocation made under subsection (b) for a fiscal
year of regulatory authority to be exceeded.
``(2) Waiver.--The point of order set forth in paragraph
(1) may only be waived by the affirmative vote of at least
three-fifths of the Members voting, a quorum being present.
``(d) Determinations by Budget Committees.--For purposes of
this section, the level of regulatory authority for a fiscal
year shall be determined by the Committee on the Budget of
the House of Representatives or the Senate, as the case may
be.
``(e) Exceeding Allocation Totals.--Whenever any Committee
of the House of Representatives exceeds its allocation of
aggregate 2-year regulatory authority under subsection
(b)(1), any Member of the House of Representatives may offer
a bill in the House (which shall be highly privileged,
unamendable, and debateable for 30 minutes) which shall only
prohibit the issuance of regulations and rules by any agency
under the jurisdiction of that committee for the fiscal years
covered by that allocation until that committee eliminates
its breach.
``SEC. 324. ANALYSIS OF REGULATORY COSTS BY CONGRESSIONAL
BUDGET OFFICE.
``CBO shall 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 by
the private sector in carrying out or complying with 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 of each such
estimate; and
``(2) a comparison of the estimate of costs described in
paragraph (1) with any available estimates of costs made by
such committee or by any Federal agency.
``SEC. 325. DEFINITIONS.
``As used in this part:
``(1) The term `CBO' refers to the Director of the
Congressional Budget Office.
``(2) The term `OMB' refers to the Director of the Office
of Management and Budget.
``(3) The term `regulatory authority' or `regulatory cost'
means the direct cost to the private sector of complying with
Federal regulations and rules.
``(4) The term `direct costs' means (recognizing that
direct costs are not the only costs associated with Federal
regulation) all expenditures occurring as a direct result of
complying with Federal regulation, rule, statement, or
legislation, except those applying to the military or agency
organization, management, and personnel.
``(5) The term `regulation' or the term `rule' means any
agency statement of general applicability and future effect
designed to implement, interpret, or prescribe law or policy
or describing the procedure or practice requirements of any
agency, but does not include--
``(A) administrative actions governed by the provisions of
sections 556 and 557 of title 5, United States Code; or
``(B) rules or regulations issued with respect to a
military or foreign affairs function of the United States.
``(6) The term `agency' means any authority of the United
States that is an agency under title section 3502(1) of title
44, United States Code, including independent agencies.''.
SEC. 4002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.
Section 1105(a) of title 31, United States Code, is amended
by adding at the end the following new paragraph:
``(32) a regulatory authority budget analysis of the
aggregate direct cost to the private sector of complying with
all current and proposed Federal regulations and rules and
proposals for complying with section 323 of the Congressional
Budget Act of 1974 for the budget year and the outyears.''
SEC. 4003. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL
REGULATION.
Chapter 6 of title 5, United States Code, popularly known
as the ``Regulatory Flexibility Act'', is amended--
(1) in section 603(a) in the second sentence by inserting
before the period the following: ``and the monetary costs to
small entities, other businesses, and individuals of
complying with the proposed rule'';
(2) by adding at the end of section 603 the following:
``(d) Each initial regulatory flexibility analysis shall
also contain a description of the nature and amount of
monetary costs that will be incurred by small entities, other
businesses, and individuals in complying with the proposed
rule.'';
(3) in section 604(a)--
(A) in paragraph (2) by striking ``and'' after the
semicolon;
(B) in paragraph (3) by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(4) a statement of the nature and amount of monetary
costs that will be incurred by small entities, other
businesses, and individuals in complying with the rule.'';
and
(4) in section 607 by inserting before the period the
following: ``, except that estimates of monetary costs under
sections 603(d) and 604(a)(4) shall only be in the form of a
numerical description''.
TITLE V--STRENGTHENING OF PAPERWORK REDUCTION ACT
SEC. 5001. SHORT TITLE.
This title may be cited as the ``Paperwork Reduction Act of
1995''.
Subtitle A--Authorization of Appropriations
SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.
Section 3520(a) of title 44, United States Code, is amended
by striking out ``$5,500,000 for each of the fiscal years
1987, 1988, and 1989.'' and inserting in lieu thereof
``$7,000,000 for fiscal year 1994, $7,500,000 for fiscal year
1995, $8,000,000 for fiscal year 1996, $8,500,000 for fiscal
year 1997, and $9,000,000 for fiscal year 1998.''.
Subtitle B--Reducing the Burden of Federal Paperwork on the Public
SEC. 5201. COVERAGE OF ALL FEDERALLY SPONSORED PAPERWORK
BURDENS.
Section 3502 of title 44, United States Code, is amended--
(1) by amending paragraph (3) to read as follows:
``(3) the term `burden' means the time, effort, financial
resources, and opportunity costs imposed on persons to
generate, capture, assemble, process, maintain, and report
information to or for a Federal agency, including--
``(A) the resources expended for obtaining, reviewing and
understanding applicable instructions and requirements;
``(B) developing a way to comply with the applicable
instructions and requirements;
``(C) adjusting the existing ways to comply with any
previously applicable instructions and requirements;
``(D) searching existing data sources;
``(E) obtaining, compiling and maintaining the necessary
data;
``(F) implementing recordkeeping requirements;
``(G) completing and reviewing the collection of
information;
``(H) retaining, sharing, notifying, reporting,
transmitting, labeling, or otherwise disclosing to third
parties or the public the information involved; and
``(I) carrying out any other information transaction which
occurs as a result of the collection of information;'';
(2) in paragraph (4) by striking out ``of facts or opinions
by'' and inserting in lieu thereof ``(through maintenance,
retention, notifying, reporting, labeling or disclosure to
third parties or the public) of facts or opinions by or
for''; and
(3) in paragraph (17) by inserting ``, including the
retention, reporting, notifying, or disclosure to third
parties or the public of such records'' before the period.
SEC. 5202. PAPERWORK REDUCTION GOALS.
Section 3505 of title 44, United States Code, is amended to
read as follows:
``Sec. 3505. Assignment of tasks and deadlines
``In carrying out the functions under this chapter, the
Director shall--
``(1) set a governmentwide goal, consistent with improving
agency management of the process for the review of each
collection of information established under section 3506(e),
to reduce by September 30, 1995, the burden of Federal
collections of information existing on September 30, 1994, by
at least 5 percent;
``(2) for the fiscal year beginning on October 1, 1995, and
the following 3 fiscal years, set a governmentwide goal,
consistent with improving agency management of the process
for the review of each collection of information established
under section 3506(e), to reduce the burden of Federal
collections of information existing at the end of the
immediately preceding fiscal year by at least 5 percent;
``(3) in establishing the governmentwide goal pursuant to
paragraph (2), establish a goal for each agency that--
``(A) represents the maximum practicable opportunity to
reduce the paperwork burden imposed upon the public by such
agency's collections of information, after considering the
recommendations of the senior agency official designated
under section 3506(b)(1); and
``(B) permits the attainment of the governmentwide goal
when such agency's goal is aggregated with the individual
goals of all other agencies included in the governmentwide
goal; and
``(4) in each report issued under section 3514, beginning
with the report relating to fiscal year 1995, identify any
agency initiatives to reduce the burden of the Federal
collections of information associated with--
``(A) businesses, especially small businesses and those
engaged in international competition;
``(B) State and local governments; and
``(C) educational institutions.''.
Subtitle C--Enhancing Government Responsibility and Accountability for
Reducing the Burden of Federal Paperwork
SEC. 5301. REEMPHASIZING THE RESPONSIBILITY OF THE DIRECTOR
TO CONTROL THE BURDEN OF FEDERAL PAPERWORK.
Section 3504(c) of title 44, United States Code, is
amended--
(1) in paragraph (3) by redesignating subparagraphs (B) and
(C) as subparagraphs (C) and (D), respectively, and inserting
after
[[Page H2615]] subparagraph (A) the following new
subparagraph:
``(B) display, to the extent practicable, an estimate of
the burden for each response;'';
(2) by amending paragraphs (5) and (6) to read as follows:
``(5) establishing procedures under which an agency is to
estimate the burden under this chapter
to comply with the proposed collection of information;
``(6) coordinating with the Office of Federal Procurement
Policy to eliminate paperwork burdens associated with
procurement and acquisition;'';
(3) by striking out the period at the end of paragraph (7)
and inserting in lieu thereof a semicolon; and
(4) by adding at the end thereof the following new
paragraphs:
``(8) minimizing the Federal paperwork burden imposed
through Federal collection of information, with particular
emphasis on those individuals or entities most adversely
affected, including--
``(A) businesses, especially small businesses and those
engaged in international competition;
``(B) State and local governments; and
``(C) educational institutions; and
``(9) initiating and conducting, with selected agencies and
non-Federal entities on a voluntary basis, pilot projects to
test or demonstrate the feasibility and benefit of changes or
innovations in Federal policies, rules, regulations, and
agency procedures to improve information management practices
and related management activities (including authority for
the Director to waive the application of designated agency
regulations or administrative directives after giving timely
notice to the public and Congress regarding the need for such
waiver).''.
SEC. 5302. ENHANCING AGENCY RESPONSIBILITY TO OBTAIN PUBLIC
REVIEW OF PROPOSED PAPERWORK BURDENS.
Section 3507(a) of title 44, United States Code, is
amended--
(1) in paragraph (2)(B) by inserting ``a summary of the
request,'' after ``title for the information collection
request,'';
(2) by striking out ``and'' at the end of paragraph (2);
and
(3) by redesignating paragraph (3) as paragraph (4) and
inserting after paragraph (2) the following:
``(3) the agency provides at least 30 days for public
comment to the agency and the Office of Management and Budget
after publication of the notice in the Federal Register,
except as provided under section 3507 (g) and (k), and the
agency head and the Director consider comments received
regarding the proposed collection of information; and''.
SEC. 5303. EXPEDITING REVIEW AT THE OFFICE OF MANAGEMENT AND
BUDGET.
Section 3507(b) of title 44, United States Code, is
amended--
(1) by striking out the first sentence and inserting in
lieu thereof ``The Director shall within 30 days after
publication of the notice under subsection (a)(3) that is
applicable to a proposed information collection request not
contained in a proposed rule, notify the agency involved of
the decision to approve or disapprove the proposed
information collection request and shall make such decisions
publicly available. Any decision to disapprove an information
collection request shall include an explanation of the
reasons for such decision.'';
(2) by striking out ``sixty'' each place it appears and
inserting ``30'' in each such place;
(3) by striking out ``thirty'' and inserting in lieu
thereof ``30''; and
(4) by striking out ``one'' and inserting in lieu thereof
``1''.
SEC. 5304. IMPROVING PUBLIC AND AGENCY SCRUTINY OF PAPERWORK
BURDENS PROPOSED FOR RENEWAL.
(a) Approval of Information Collection Request.--Section
3507(d) of title 44, United States Code, is amended--
(1) by inserting ``(1)'' after ``(d)''; and
(2) by adding at the end thereof the following:
``(2)(A) If the head of the agency, or the senior official
designated under section 3506(b)(1), decides to seek
extension of the Director's approval granted for a currently
approved information collection request, the agency shall,
through the notice prescribed in subsection (a)(2)(B) and
such other practicable steps as may be reasonable, seek
comment from the agencies, and the public on the continued
need for, and burden imposed by, the collection of
information.
``(B) The agency, after having made a reasonable effort to
seek comment under subparagraph (A), but no later than 60
days before the expiration date of the control number
assigned by the Director for the currently approved
information collection request, shall--
``(i) evaluate the public comments received;
``(ii) conduct the review established under section
3506(e); and
``(iii) provide to the Director the certification required
by section 3506(f), including the text of the certification
and any additional relevant information regarding how the
information collection request comports with the principles
and requirements of this chapter.
``(C) Upon receipt of such certification, and prior to the
expiration of the control number for that information
collection request, the Director shall--
``(i) ensure that the agency has taken the actions
specified under section 3506(f)(2);
``(ii) evaluate the public comments received by the agency
or by the Director;
``(iii) determine whether the agency certification complies
with the standards under section 3506(f)(1); and
``(iv) approve or disapprove the information collection
request under this chapter.
``(3) If a certification is not provided to the Director
prior to the beginning of the 60-day period before the
expiration of the control number as provided under paragraph
(2)(B), the agency shall submit the information collection
request for review and approval or disapproval under this
chapter.
``(4) An agency may not make a substantive or material
modification to an information collection request after it
has been approved by the Director, unless the modification
has been submitted to the Director for review and approval or
disapproval under this chapter.''.
(b) Approval of Information Collection Requirements.--
Section 3507 of title 44, United States Code, is further
amended by adding at the end thereof the following new
subsections:
``(i)(1) As soon as practicable, but no later than
publication of a notice of proposed rulemaking in the Federal
Register, each agency shall forward to the Director a copy of
any proposed rule which contains a collection of information
requirement and upon request, information necessary to make
the determination required under this chapter.
``(2) Within 60 days after the notice of proposed
rulemaking is published in the Federal Register, the Director
may file public comments under the standards set forth in
section 3508 on the collection of information requirement
contained in the proposed rule.
``(3) When a final rule is published in the Federal
Register, the agency shall explain how any collection of
information requirement contained in the final rule responds
to the comments, if any, filed by the Director or the public,
or explain the reasons such comments were rejected.
``(4) The Director has no authority to disapprove any
collection of information requirement specifically contained
in an agency rule, if the Director has received notice and
failed to comment on the rule within 60 days after the notice
of proposed rulemaking.
``(5) No provision in this section shall be construed to
prevent the Director, at the discretion of such officer,
from--
``(A) disapproving any information collection request which
was not specifically required by an agency rule;
``(B) disapproving any collection of information
requirement contained in an agency rule, if the agency failed
to comply with the requirements of paragraph (1) of this
subsection;
``(C) disapproving any collection of information
requirement contained in a final agency rule, if the Director
finds within 60 days after the publication of the final rule
that such a collection of information requirement cannot be
approved under the standards set forth in section 3508, after
reviewing the agency's response to the comments of the
Director filed under paragraph (2) of this subsection; or
``(D) disapproving any collection of information
requirement, if the Director determines that the agency has
substantially modified, in the final rule, the collection of
information requirement contained in the proposed rule and
the agency has not given the Director the information
required under paragraph (1) with respect to the modified
collection of information requirement, at least 60 days
before the issuance of the final rule.
``(6) The Director shall make publicly available any
decision to disapprove a collection of information
requirement contained in an agency rule, together with the
reasons for such decision.
``(7) The authority of the Director under this subsection
is subject to subsection (c).
``(8) This subsection shall apply only when an agency
publishes a notice of proposed rulemaking and requests public
comments.
``(9) The decision of the Director to approve or not to act
upon a collection of information requirement contained in an
agency rule shall not be subject to judicial review.
``(j)(1) If the head of the agency, or the senior official
designated under section 3506(b)(1), decides to seek
extension of the Director's approval granted for a currently
approved collection of information requirement, the agency
shall, through the notice prescribed in subsection (a)(2)(B)
and such other practicable steps as may be reasonable, seek
comment from the agencies, and the public on the continued
need for, and burden imposed by, the collection of
information requirement.
``(2) The agency, after having made a reasonable effort to
seek comment under paragraph (1), but no later than 60 days
before the expiration date of the control number assigned by
the Director for the currently approved collection of
information requirement, shall--
``(A) evaluate the public comments received;
``(B) conduct the review established under section 3506(e);
and
``(C) provide to the Director the certification required by
section 3506(f), including the text of the certification and
any additional relevant information regarding how the
collection of information requirement comports with the
principles and requirements of this chapter.
``(3) Upon receipt of such certification, and prior to the
expiration date of the control
[[Page H2616]] number for that collection of information
requirement, the Director shall--
``(A) ensure that the agency has taken the actions
specified in section 3506(f)(2);
``(B) evaluate the public comments received by the agency
or by the Director;
``(C) determine whether the agency certification complies
with the standards under section 3506(f)(1); and
``(D) approve or disapprove the collection of information
requirement under this chapter.
``(4) If under the provisions of paragraph (3), the
Director disapproves a collection of information requirement,
or recommends or instructs the agency to make a substantive
or material change to a collection of information
requirement, the Director shall--
``(A) publish an explanation thereof in the Federal
Register; and
``(B) instruct the agency to undertake a rulemaking within
a reasonable time limited to consideration of changes to the
collection of information requirement and thereafter to
submit the collection of information requirement for approval
or disapproval under this chapter.
``(5) Nothing in this subsection affects the review process
for a collection of information requirement contained in a
proposed rule, including a proposed change to an existing
collection of information requirement, under subsection (i)
with respect to such collection of information requirement.
``(6) The Director may not approve a collection of
information requirement for a period in excess of 3 years.''.
SEC. 5305. PROTECTION FOR WHISTLEBLOWERS OF UNAUTHORIZED
PAPERWORK BURDEN.
Section 3507(h) of title 44, United States Code, is amended
in the second sentence by inserting before the period ``, and
any communication relating to a collection of information,
the disclosure of which could lead to retaliation or
discrimination against the communicator''.
SEC. 5306. ENHANCING PUBLIC PARTICIPATION.
Section 3517 of title 44, United States Code, is amended--
(1) by inserting ``(a)'' before ``In development''; and
(2) by adding at the end thereof:
``(b)(1) Under procedures established by the Director, a
person may request the Director to review any collection of
information conducted by or for an agency to determine, if--
``(A) the collection of information is subject to the
requirements of this chapter;
``(B) the collection of information has been approved in
conformity with this chapter; and
``(C) the person that is to respond to the collection of
information is entitled to the public protections afforded by
this chapter.
``(2) Any review requested under paragraph (1), unless the
request is determined frivolous or does not on its face state
a valid basis for such review, shall--
``(A) be completed by the Director within 60 days after
receiving the request, unless such period is extended by the
Director to a specified date and the person making the
request is given notice of such extension;
``(B)(i) be coordinated with the agency responsible for the
collection of information to which the request relates; and
``(ii) be coordinated with the Administrator for Federal
Procurement Policy, if the request relates to a collection of
information applicable to an actual or prospective Federal
contractor or subcontractor at any tier; and
``(C) result in a written determination by the Director,
that shall be--
``(i) furnished to the person making the request; and
``(ii) made available to the public upon request (and
listed and summarized in the annual report required under
section 3514), unless confidentiality is requested by the
person making the request.''.
SEC. 5307. EXPEDITING REVIEW OF AN AGENCY INFORMATION
COLLECTION REQUEST WITH A REDUCED BURDEN.
Section 3507 of title 44, United States Code (as amended by
section 5304(b) of this title) is further amended by adding
at the end thereof the following new subsection:
``(k) Upon request by the head of an agency, the Director
shall approve a proposed change to an existing information
collection request (unless such proposed change is subject to
subsection (i)) within 30 days after the Director receives
the proposed change. The information collection request shall
thereafter remain in effect at least for the remainder of the
period for which it was previously approved by the Director,
if--
``(1) the information collection request has a current
control number; and
``(2) the Director determines that the revision--
``(A) reduces the burden resulting from the information
collection request; and
``(B) does not substantially change the information
collection request.''.
Subtitle D--Enhancing Agency Responsibility for Sharing and
Disseminating Public Information
SEC. 5401. PRESCRIBING GOVERNMENTWIDE STANDARDS FOR SHARING
AND DISSEMINATING PUBLIC INFORMATION.
Section 3504(h) of title 44, United States Code, is amended
to read as follows:
``(h) The functions of the Director related to agency
dissemination and sharing of public information shall
include--
``(1) developing policies and practices for agency
dissemination and sharing of public information consistent
with the agency responsibilities under section 3506(g); and
``(2) developing policy guidelines that instruct Federal
agencies on ways to fulfill agency responsibilities to
disseminate and share information that, to the extent
appropriate and practicable--
``(A) make information dissemination products available on
timely, equitable and cost effective terms;
``(B) encourage a diversity of public and private
information dissemination products;
``(C) avoid establishing, or permitting others to
establish, exclusive, restricted, or other distribution
arrangements that interfere with the availability of
information dissemination products on a timely and equitable
basis; and
``(D) avoid establishing restrictions or regulations,
including the charging of fees or royalties, on the reuse,
resale, or redissemination of Federal information
dissemination products by the public; and
``(E) set user charges for information dissemination
products at a level sufficient to recover the cost of
dissemination, except--
``(i) where otherwise required by statute;
``(ii) where the information is collected, processed, and
disseminated for the benefit of a specific identifiable group
beyond the benefit to the general public; or
``(iii) where user charges are established at less than
cost of dissemination because of a determination that higher
charges would interfere with the proper performance of the
agency's functions.''.
SEC. 5402. AGENCY RESPONSIBILITIES FOR SHARING AND
DISSEMINATING PUBLIC INFORMATION.
Section 3506 of title 44, United States Code, is amended by
adding at the end thereof the following new subsection:
``(g) The head of each agency shall, to the extent
appropriate and practicable, and in conformance with the
policy guidelines established under section 3504(h),
establish and maintain a management system for the
dissemination and sharing of information that--
``(1) ensures that the public has timely, equitable and
cost-effective access to the agency's information
dissemination products;
``(2) disseminates and shares information in a manner that
achieves the best balance between maximizing the usefulness
of the information and minimizing the cost to the Government
and the public;
``(3) takes advantage of all appropriate channels, Federal
and non-Federal, including State and local governments,
libraries and private sector entities, in discharging agency
responsibilities for the dissemination and sharing of
information;
``(4) considers whether an information dissemination
product available from other Federal or non-Federal sources
is equivalent to an agency information dissemination product
and reasonably achieves the objectives of the agency;
``(5) establishes and maintains inventories of all agency
information dissemination products in conformance with the
requirements of section 3511;
``(6) establishes and maintains communications with members
of the public and with State and local governments so that
the agency shares information and otherwise creates
information dissemination products that meet their respective
needs; and
``(7) provides adequate notice when initiating,
substantially modifying, or terminating significant
information dissemination products.''.
SEC. 5403. AGENCY INFORMATION INVENTORY/LOCATOR SYSTEM.
(a) In General.--Section 3511 of title 44, United States
Code, is amended to read as follows:
``Sec. 3511. Inventory systems of information dissemination
products
``(a) Each agency having significant information
dissemination products shall establish and maintain a
comprehensive inventory of such products, which shall
include, at a minimum, the title of each such product, an
abstract of the contents of each product, the media in which
each product is available, and the cost, if any, of each
product, subject to any requirements promulgated pursuant to
subsection (c).
``(b) The inventory created pursuant to subsection (a)
shall be made available for public access by electronic
means, and in such other media as are appropriate and
practicable, at no charge to the public.
``(c) The Director, in consultation with the Secretary of
Commerce, the Archivist of the United States, the Public
Printer, and the Librarian of Congress, may establish a
mechanism for developing technical standards and other
minimum requirements for the agency inventory systems created
under subsection (a).''.
(b) Technical and Conforming Amendment.--The table of
sections for chapter 35 of title 44, United States Code, is
amended by amending the item relating to section 3511 to read
as follows:
``3511. Inventory systems of information dissemination products.''.
Subtitle E--Additional Government Information Management Responsibility
SEC. 5501. STRENGTHENING THE STATISTICAL POLICY AND
COORDINATION FUNCTIONS OF THE DIRECTOR.
Section 3504(d) of title 44, United States Code, is amended
to read as follows:
``(d)(1) The statistical policy and coordination functions
of the Director shall include--
[[Page H2617]] ``(A) coordinating and providing leadership
for development of the Federal statistical system;
``(B) developing and periodically reviewing and, as
necessary, revising long-range plans for the improved
coordination and performance of the statistical activities
and programs of the Federal Government;
``(C) ensuring the integrity, objectivity, impartiality and
confidentiality of the Federal statistical system;
``(D) reviewing budget proposals of agencies to ensure that
the proposals are consistent with such long-range plans and
developing a summary and analysis of the budget submitted by
the President to the Congress for each fiscal year of the
allocation for all statistical activities;
``(E) coordinating, through the review of budget proposals
and as otherwise provided under this chapter, the functions
of the Federal Government with respect to gathering,
interpreting and sharing statistics and statistical
information;
``(F) developing and implementing governmentwide policies,
principles, standards and guidelines concerning statistical
collection procedures and methods, statistical data
classification, statistical information presentation and
sharing, and such statistical data sources as may be required
for the administration of Federal programs;
``(G) evaluating statistical program performance and agency
compliance with governmentwide policies, principles,
standards and guidelines;
``(H) promoting the timely release by agencies of
statistical data to the public;
``(I) coordinating the participation of the United States
in international statistical activities;
``(J) preparing an annual report to submit to the Congress
on the statistical policy and coordination function;
``(K) integrating the functions described under this
paragraph with the other information resources management
functions specified under this chapter; and
``(L) appointing a chief statistician who is a trained and
experienced professional to carry out the functions described
under this paragraph.
``(2) The Director shall establish an interagency working
group on statistical policy, consisting of the heads of the
agencies with major statistical programs, headed by the chief
statistician to coordinate agency activities in carrying out
the functions under paragraph (1).
``(3) The Director shall provide opportunities for long-
term training in the statistical policy functions of the
chief statistician to employees of the Federal Government.
Each trainee shall be selected at the discretion of the
Director based on agency requests and shall serve for at
least 6 months and no more than 1 year. All costs of the
training are to be paid by the agency requesting training.''.
SEC. 5502. USE OF ELECTRONIC INFORMATION COLLECTION AND
DISSEMINATION TECHNIQUES TO REDUCE BURDEN.
Section 3504(g)(1) of title 44, United States Code, is
amended--
(1) by inserting ``development and'' after ``overseeing
the''; and
(2) by inserting ``(including standards that improve the
ability of agencies to use technology to reduce burden)''
after ``establishment of standards''.
SEC. 5503. AGENCY IMPLEMENTATION.
Section 3514(a) of title 44, United States Code, is
amended--
(1) in paragraph (9)(C) by striking out ``and'' at the end
thereof;
(2) in paragraph (10)(C) by striking out the period and
inserting in lieu thereof a semicolon; and
(3) by adding at the end thereof the following new
paragraphs:
``(11) a listing of any increase in the burden imposed on
the public during the year covered by the report resulting
from a collection of information conducted or sponsored by or
for an agency, which was imposed by such agency--
``(A) as specifically mandated by the provision of a
statute; or
``(B) as necessary to implement a statutory requirement,
which requirement shall be identified with particularity;
``(12) a description of each such agency's efforts in
implementing, and plans to implement, the applicable
policies, standards and guidelines with respect to the
functions under this chapter; and
``(13) a strategic information resources management plan
for the Federal Government, developed in consultation with
the Administrator of General Services, the Secretary of
Commerce, and the Archivist of the United States, that
includes an analysis of cross-cutting issues of
governmentwide importance.''.
SEC. 5504. AUTOMATIC DATA PROCESSING EQUIPMENT PLAN.
Section 3504(g) of title 44, United States Code, is
amended--
(1) by redesignating paragraphs (3), (4), and (5) as
paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) developing and annually revising, in consultation
with the Administrator of General Services, a 5-year plan for
meeting the automatic data processing equipment (including
telecommunications) and other information technology needs of
the Federal Government in accordance with the requirements of
sections 110 and 111 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 757 and 759)
and the purposes of this chapter;''.
SEC. 5505. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Definitions.--Section 3502(10) of title 44, United
States Code, is amended by striking out ``the Federal Housing
Finance Board'' and inserting in lieu thereof ``Federal
Housing Finance Board''.
(b) Review Periods.--Section 3507(g)(1) of title 44, United
States Code, is amended to read as follows: ``(1) is needed
prior to the expiration of the time periods for public notice
and review by the Director pursuant to the requirements of
this chapter,''.
(c) Director Review.--Section 3513(a) of title 44, United
States Code, is amended in the first sentence by inserting
``resources'' after ``information''.
(d) Responsiveness.--Section 3514(a) of title 44, United
States Code, is amended--
(1) in paragraph (9)(A) by inserting ``and'' at the end
thereof;
(2) in paragraph (9)(B) by striking out the semicolon and
inserting a period; and
(3) by striking out paragraph (9)(C).
Subtitle F--Effective Dates
SEC. 5601. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), the
provisions of this title shall become effective 120 days
after the date of the enactment of this Act.
(b) In Particular.--section 5101 and this section shall
become effective upon the date of the enactment of this Act.
TITLE VI--STRENGTHENING REGULATORY FLEXIBILITY
SEC. 6001. JUDICIAL REVIEW.
(a) In General.--Section 611 of title 5, United States
Code, is repealed.
(b) Conforming Amendment.--The table of sections at the
beginning of chapter 6 of title 5, United States Code, is
amended by striking the item relating to section 611.
SEC. 6002. CONSIDERATION OF DIRECT AND INDIRECT EFFECTS OF
RULES.
(a) In General.--Title 5, United States Code, is amended by
inserting after section 610 the following new section:
``Sec. 611. Consideration of direct and indirect effects of
rules
``In determining under this chapter whether or not a rule
is likely to have a significant impact on a substantial
number of small entities, an agency shall consider both the
direct and indirect effects of the rule.''.
(b) Conforming Amendment.--The table of sections at the
beginning of chapter 6 of title 5, United States Code, is
amended by inserting after the item relating to section 610
the following:
``611. Consideration of direct and indirect effects of rules.''.
SEC. 6003. RULES OPPOSED BY SBA CHIEF COUNSEL FOR ADVOCACY.
(a) In General.--Section 612 of title 5, United States
Code, is amended by adding at the end the following new
subsection:
``(d) Statement of Opposition.--
``(1) Transmittal of proposed rules and initial regulatory
flexibility analysis to sba chief counsel for advocacy.--On
or before the 30th day preceding the date of publication by
an agency of general notice of proposed rulemaking for a
rule, the agency shall transmit to the Chief Counsel for
Advocacy of the Small Business Administration--
``(A) a copy of the proposed rule; and
``(B)(i) a copy of the initial regulatory flexibility
analysis for the rule if required under section 603; or
``(ii) a determination by the agency that an initial
regulatory flexibility analysis is not required for the
proposed rule under section 603 and an explanation for the
determination.
``(2) Statement of opposition.--On or before the 15th day
following receipt of a proposed rule and initial regulatory
flexibility analysis from an agency under paragraph (1), the
Chief Counsel for Advocacy may transmit to the agency a
written statement of opposition of the proposed rule.
``(3) Response.--If the Chief Counsel for Advocacy
transmits to an agency a statement of opposition to a
proposed rule in accordance with paragraph (2), the agency
shall publish the statement, together with the response of
the agency to the statement, in the Federal Register at the
time of publication of general notice of proposed rulemaking
for the rule.''.
(b) Conforming Amendment.--Section 603(a) of title 5,
United States Code, is amended by inserting ``in accordance
with section 612(d)'' before the period at the end of the
last sentence.
SEC. 6004. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR
ADVOCACY.
It is the sense of Congress that the Chief Counsel for
Advocacy of the Small Business Administration should be
permitted to appear as amicus curiae in any action or case
brought in a court of the United States for the purpose of
reviewing a rule.
TITLE VII--REGULATORY IMPACT ANALYSES
SEC. 7001. SHORT TITLE.
This title may be cited as the ``Administrative Procedure
Reform Act of 1995''.
SEC. 7002. RULE MAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amended by
adding at the end the following:
``(f)(1)(A) The head of an agency shall publish in the
Federal Register, at least 90 days before the date of
publication of general notice under subsection (b) for a
proposed
[[Page H2618]] major rule, a notice of intent to engage in
rule making.
``(B) A notice under subparagraph (A) for a proposed major
rule shall include, to the extent possible, the information
required to be included in a Regulatory Impact Analysis for
the rule under section 7004(c) (1), (2), and (8) of the
Administrative Procedure Reform Act of 1995.
``(2) The head of an agency shall include in a general
notice under subsection (b) for a major rule proposed by the
agency--
``(A) a final Regulatory Impact Analysis for the rule
prepared in accordance with section 7004 of the
Administrative Procedure Reform Act of 1995; and
``(B) clear delineation of all changes in the information
included in the final Regulatory Impact Analysis under
section 7004(c)(1) and (2) of the Administrative Procedure
Reform Act of 1995 from any such information that was
included in the notice for the rule under paragraph (1)(B) of
this subsection.
``(3) In this subsection, the term `major rule' has the
meaning given that term in section 7004(b) of the
Administrative Procedure Reform Act of 1995.''.
SEC. 7003. HEARING REQUIREMENT FOR PROPOSED RULES; EXTENSION
OF COMMENT PERIOD.
(a) Hearing Requirement.--Section 553 of title 5, United
States Code, is further amended--
(1) in subsection (b), in the matter following paragraph
(3), by inserting ``(except subsection (g))'' after ``this
subsection''; and
(2) by adding after subsection (f) (as added by section
7002 of this title) the following:
``(g) If more than 100 interested persons acting
individually submit comments to an agency regarding any rule
proposed by the agency, the agency shall hold a public
hearing on the proposed rule.''.
(b) Extension of Comment Period.--Section 553 of title 5,
United States Code, is further amended by adding after
subsection (g) (as added by subsection (a)(2) of this
section) the following:
``(h) If during the 30-day period beginning on the date of
publication of notice under subsection (f)(1)(A) for a
proposed major rule, or if during the 30-day period beginning
on the date of publication or service of notice required by
subsection (b) for a proposed rule, more than 100 persons
individually contact the agency to request an extension of
the period for making submissions under subsection (c)
pursuant to the notice, the agency--
``(1) shall provide an additional 30-day period for making
those submissions; and
``(2) may not adopt the rule until after that additional
period.''.
(c) Response to Comments.--Section 553(c) of title 5,
United States Code, is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following:
``(2) The head of an agency shall publish in the Federal
Register with each rule published under section 552(a)(1)(D)
of this title, responses to the substance of the comments
received by the agency regarding the rule.''.
SEC. 7004. REGULATORY IMPACT ANALYSIS.
(a) Application of Executive Order as Statutory
Requirement.--Except as otherwise provided in this section,
Executive Order 12291 (relating to Federal regulation
requirements and regulatory impact analysis), as in effect on
September 29, 1993, shall apply to each agency in accordance
with the provisions of the Order.
(b) Definition of Major Rule in Order.--Notwithstanding
section 1(b) of the Order, for purposes of subsection (a) of
this section, the term ``major rule'' means any proposed
rulemaking--
(1) which affects more than 100 persons; or
(2) compliance with which will require the expenditure of
more than $1,000,000 by any single person which is not a
Federal agency.
(c) Contents of Regulatory Impact Analyses.--In lieu of the
information specified in section 3(d) of the Order, each
preliminary and final Regulatory Impact Analysis required
under section 3 of the Order for a rule shall contain the
following:
(1) An explanation of the necessity, appropriateness and
reasonableness of the rule.
(2) A description of the current condition that the rule
will address and how that condition will be affected by the
rule.
(3) A statement that the rule does not conflict with nor
duplicate any other rule, or an explanation of why the
conflict or duplication exists.
(4) A statement of whether the rule is in accord with or in
conflict with any legal precedent.
(5) A statement of the factual, scientific, or technical
basis for the agency's determination that the rule will
accomplish its intended purpose.
(6) A statement that describes and, to the extent
practicable, quantifies the risks to human health or the
environment to be addressed by the rule.
(7) A demonstration that the rule provides the least costly
or least intrusive approach for meeting its intended purpose.
(8) A description of any alternative approaches considered
by the agency or suggested by interested persons and the
reasons for their rejection.
(9) An estimate of the nature and number of persons to be
regulated or affected by the rule.
(10) An estimate of the economic costs of the rule,
including those incurred by persons in complying with the
rule.
(11) An evaluation of the costs versus the benefits derived
from the rule, including evaluation of how those benefits
outweigh the cost.
(12) Whether the rule will require onsite inspections.
(13) An estimate of the paperwork burden on persons
regulated or affected by the rule, such as the number of
forms, impact statements, surveys, and other documents
required to be completed by the person under the rule.
(14) Whether persons will be required by the rule to
maintain any records which will be subject to inspection.
(15) Whether persons will be required by the rule to obtain
licenses, permits, or other certifications, and the fees and
fines associated therewith.
(16) Whether persons will be required by the rule to appear
before the agency.
(17) Whether persons will be required by the rule to
disclose information on materials or processes, including
trade secrets.
(18) Whether persons will be required by the rule to report
any particular type of incidents.
(19) Whether persons will be required by the rule to adhere
to design or performance standards.
(20) Whether persons may need to retain or utilize any
lawyer, accountant, engineer, or other professional
consultant in order to comply with the regulations.
(21) An estimate of the costs to the agency for
implementation and enforcement of the regulations.
(22) Whether the agency can be reasonably expected to
implement the rule with the current level of appropriations.
(23) A statement that any person may submit comments on the
Regulatory Impact Analysis to the Administrator of the Office
of Information and Regulatory Affairs.
The requirements of this section shall be consistent with,
and not duplicative of, the requirements of section 3201.
(d) Definitions.--In this section--
(1) the term ``Order'' means Executive Order 12291, as in
effect on September 29, 1993; and
(2) each of the terms ``agency'', ``regulation'', and
``rule'' has the meaning given that term in section 1 of the
Order, except that the term ``agency'' includes an
independent agency.
SEC. 7005. ADDITIONAL RESPONSIBILITIES OF DIRECTOR OF THE
OFFICE OF MANAGEMENT AND BUDGET.
An agency may not adopt a major rule unless the final
Regulatory Impact Analysis for the rule is approved in
writing by the Director of the Office of Management and
Budget or by an individual designated by the Director for
that purpose.
SEC. 7006. STANDARD OF CLARITY.
To the extent practicable, the head of an agency may not
publish in the Federal Register any proposed major rule,
summary of a proposed major rule, or Regulatory Impact
Analysis unless the Director of the Office of Management and
Budget certifies that the proposed major rule, summary, or
Analysis--
(1) is written in a reasonably simple and understandable
manner and is easily readable;
(2) is written to provide adequate notice of the content of
the rule, summary, or Analysis to affected persons and
interested persons that have some subject matter expertise;
(3) conforms to commonly accepted principles of grammar;
(4) contains only sentences that are as short as practical
and organized in a sensible manner; and
(5) to the extent practicable, does not contain any double
negatives, confusing cross references, convoluted phrasing,
unreasonably complex language, or term of art or word with
multiple meanings that may be misinterpreted and is not
defined in the rule, summary, or analysis, respectively.
SEC. 7007. REPORT BY OIRA.
The Director of the Office of Management and Budget shall
submit a report to the Congress no later than 24 months after
the date of the enactment of this Act containing an analysis
of rule making procedures of Federal agencies and an analysis
of the impact of those rule making procedures on the
regulated public and regulatory process.
SEC. 7008. DEFINITIONS.
For purposes of this title--
(1) except as provided in section 7004(d)(2), each of the
terms ``agency'', ``rule'', and ``rule making'' has the
meaning given that term in section 551 of title 5, United
States Code; and
(2) the term ``major rule'' has the meaning given that term
in section 7004(b).
TITLE VIII--PROTECTION AGAINST FEDERAL REGULATORY ABUSE
Subtitle A--Citizens' Regulatory Bill of Rights
SEC. 8101. CITIZENS' REGULATORY BILL OF RIGHTS.
(a) In General.--Except as provided in subsection (c), each
person that is the target of a Federal investigative or
enforcement action shall, upon the initiation of an
inspection, investigation, or other official proceeding
directed against that person, have the right--
(1) to remain silent;
(2) to be advised as to whether the person has a right to a
warrant;
(3) to be warned that statements can be used against them;
(4) to have an attorney or accountant present;
[[Page H2619]] (5) to be informed as the the scope and
purpose of the agency action;
(6) to be present at the inspection, investigation, or
proceeding;
(7) to be reimbursed for unreasonable damages;
(8) to be free of unreasonable seizures of property or
assets; and
(9) to receive attorneys fees and other expenses from the
Government when the Government commences a frivolous civil
action against such person, except that nothing in this
paragraph shall be construed to affect the Equal Access to
Justice Act.
(b) Agency Rules.--Each agency or other authority of the
Federal Government with respect to which this section applies
shall make appropriate rules within 90 days after the date of
the enactment of this Act to implement this section in the
context of that agency's functions.
(c) Limitation on Application of Requirements.--A
requirement of this section shall not apply if compliance
with the requirement would--
(1) substantially delay responding to an imminent danger to
person or property; or
(2) substantially or unreasonably impede a criminal
investigation.
Subtitle B--Private Sector Whistleblowers' Protection
SEC. 8201. SHORT TITLE.
This subtitle may be cited as the ``Private Sector
Whistleblowers' Protection Act of 1995''.
SEC. 8202. PURPOSE.
The Federal regulatory system should be implemented
consistent with the principle that any person subject to
Government regulation should be protected against reprisal
for disclosing information that the person believes is
indicative of--
(1) violation or inconsistent application of any law, rule,
regulation, policy, or internal standard;
(2) arbitrary action or other abuse of authority;
(3) mismanagement;
(4) waste or misallocation of resources;
(5) inconsistent, discriminatory or disproportionate
enforcement proceedings;
(6) endangerment of public health or safety;
(7) personal favoritism; and
(8) coercion for partisan political purposes;
by any agency or its employees.
SEC. 8203. COVERAGE.
This subtitle shall apply to:
(1) Any agency of the Federal Government as defined in
section 551 of title 5, United States Code.
(2) Any agency of a State government that exercises
authority under Federal law, or that exercises authority
under State law establishing a program approved by a Federal
agency as a substitute for or supplement to a program
established by Federal law.
SEC. 8204. PROHIBITED REGULATORY PRACTICES.
(a) Defined.--For purposes of this subtitle, ``prohibited
regulatory practice'' means any action described in
subsection (b)(i), (ii), or (iii) of this section.
(b) Prohibition.--(1) No employee of an Agency who has
authority--
(A) to take or direct other employees to take,
(B) to recommend, or
(C) to approve,
any regulatory action shall--
(i) take or fail to take, or threaten to take or fail to
take,
(ii) recommend or direct that others take or fail to take,
or threaten to so recommend or direct, or
(iii) approve the taking or failing to take, or threaten to
so approve,
such regulatory action because of any disclosure by a person
subject to the action, or by any other person, of information
that the person believed indicative of--
(I) violation or inconsistent application of any law, rule,
regulation, policy, or internal standard;
(II) arbitrary action or other abuse of authority;
(III) mismanagement;
(IV) waste or misallocation of resources;
(V) inconsistent, discriminatory or disproportionate
enforcement;
(VI) endangerment of public health or safety;
(VII personal favoritism; or
(VIII) coercion for partisan political purposes;
by any agency or its employees.
(2) An action shall be deemed to have been taken, not
taken, approved, or recommended because of the disclosure of
information within the meaning of paragraph (1) if the
disclosure of information was a contributing factor to the
decision to take, not to take, to approve, or to recommend.
SEC. 8205. PROHIBITED REGULATORY PRACTICE AS A DEFENSE TO
AGENCY ACTION.
(a) In General.--In any administrative or judicial action
or proceeding, formal or informal, by an agency to create,
apply or enforce any obligation, duty or liability under any
law, rule or regulation against any person, the person may
assert as a defense that the agency or one or more employees
of the agency have engaged in a prohibited regulatory
practice with respect to the person or to a related entity in
connection with the action or proceeding.
(b) Compliance.--If the existence of a prohibited
regulatory practice is established, the person may be
required to comply with the obligation, duty or liability to
the extent compliance is required of and enforced against
other persons similarly situated, but no penalty, fine,
damages, costs or other obligation except compliance shall be
imposed on the person.
SEC. 8206. ENFORCEMENT.
(a) Civil Penalty.--Any agency, and any employee of an
agency, engaging in a prohibited regulatory practice may be
assessed a civil penalty of not more than $25,000 for each
such practice. In the case of a continuing prohibited
regulatory practice, each day that the practice continues
shall be deemed a separate practice.
(b) Procedures.--The President shall, by regulation,
establish procedures providing for the administrative
enforcement of the requirements of subsection (a) of this
section.
SEC. 8207. CITIZEN SUITS.
(a) Commencement.--Any person injured or threatened by a
prohibited regulatory practice may commence a civil action on
his own behalf against any person or agency alleged to have
engaged in or threatened to engage in such practice.
(b) Jurisdiction and Venue.--Any action under subsection
(a) of this section shall be brought in the district court
for any district in which the alleged prohibited regulatory
practice occurred or in which the alleged injury occurred.
The district court shall have jurisdiction, without regard to
the amount in controversy or the citizenship of the parties,
to--
(1) restrain any agency or person who has engaged or is
engaging in any prohibited regulatory practice;
(2) order the cancellation or remission of any penalty,
fine, damages, or other monetary assessment that resulted
from a prohibited regulatory practice;
(3) order the rescission of any settlement that resulted
from a prohibited regulatory practice;
(4) order the issuance of any permit or license that has
been denied or delayed as a result of a prohibited regulatory
practice;
(5) order the agency and/or the employee engaging in a
prohibited regulatory practice to pay to the injured person
such damages as may be necessary to compensate the person for
any harm resulting from the practice, including damages for--
(A) injury to, deterioration of, or destruction of real or
personal property;
(B) loss of profits from idle or underutilized resources,
and from business forgone;
(C) costs incurred, including costs of compliance where
appropriate;
(D) loss in value of a business;
(E) reasonable legal, consulting and expert witness fees;
or
(F) payments to third parties;
(6) order the payment of punitive damages, in an amount not
to exceed $25,000 for each such prohibited regulatory
practice, provided that, in the case of a continuing
prohibited regulatory practice, each day that the practice
continues shall be deemed a separate practice.
SEC. 8208. OFFICE OF THE SPECIAL COUNSEL.
(a) Request for Investigation.--Any person who has reason
to believe that any employee of any agency has engaged in a
prohibited regulatory practice may request the Special
Counsel established by section 1211 of title 5, United States
Code, to investigate.
(b) Powers.--The Special Counsel shall have the same power
to investigate prohibited regulatory practices that it has to
investigate prohibited personnel practices pursuant to
section 1212 of title 5, United States Code.
SEC. 8209. RELATION TO CRIMINAL INVESTIGATIONS.
Nothing in this subtitle shall be construed so as
substantially or unreasonably to impede a criminal
investigation.
TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION
SEC. 9001. STATEMENT OF PURPOSE.
It is the purpose of this title to compensate private
property owners with respect to certain actions that are
taken by the Federal Government for public purposes and that
limit the use of private property by property owners.
SEC. 9002. COMPENSATION FOR FEDERAL AGENCY INFRINGEMENT OR
DEPRIVATION OF RIGHTS TO PRIVATE PROPERTY.
(a) Eligibility.--
(1) In general.--A private property owner is entitled to
receive compensation from the United States in accordance
with this section for any agency infringement or deprivation
of rights to property that is owned by the private property
owner.
(2) Agency infringement or deprivation of rights to
property defined.--For purposes of paragraph (1), the term
``agency infringement or deprivation of rights to property''
means a limitation or condition that--
(A) is imposed by a final agency action on a use of
property that would be lawful but for the agency action, and
(B) results in a reduction in the value of the property
equal to ten percent or more.
(3) Circumstances in which compensation not required.--A
private property owner shall not be entitled to receive
compensation under this subsection for any of the following:
(A) A limitation on any action that would constitute a
violation of applicable State or local law (including an
action that would violate a local zoning ordinance or would
constitute a nuisance under any applicable State or local
law).
[[Page H2620]] (B) A limitation on any use of private
property, imposed pursuant to a determination by the
President that the use poses or would pose a serious and
imminent threat to public health and safety or to the health
and safety of workers, or other individuals, lawfully on the
property.
(C) A limitation imposed pursuant to the Federal
navigational servitude.
(4) Limitation on cumulative amount of compensation.--No
payment may be made pursuant to this subsection with respect
to property if the sum of such payment and all other payments
made pursuant to this subsection with respect to the property
would exceed the fair market value of the property (as
determined at the time of the payment).
(5) State or local limitations imposed pursuant to federal
mandates.--A limitation or condition shall be considered to
be a Federal agency infringement or deprivation of rights to
property for purposes of paragraph (1) if it is a consequence
of a limitation or condition on the use of the property by
the private property owner that is imposed by a State or
local government pursuant to an agency action that is
intended to, or does, bind the State or local government.
(b) Request for Compensation.--Within 90 days after receipt
of notice of an agency action with respect to which
compensation is required under subsection (a), a private
property owner may submit to the head of the agency a request
in writing for compensation under this section.
(c) Agency Determination and Offer.--
(1) In general.--Upon receipt of a request for
compensation, submitted in accordance with subsection (b),
with respect to an agency action affecting private property
as described in subsection (a), the head of the agency that
took the action shall determine whether the private property
owner submitting the request has demonstrated entitlement to
compensation under subsection (a). If the head of the agency
finds that the private property owner has so demonstrated,
the head of the agency shall offer to compensate the private
property owner for the reduction in the value of the
property, as demonstrated by the private property owner.
(2) Timing of determination and offer.--The head of an
agency shall make the determination and offer, if any,
required by paragraph (1) with respect to a request for
compensation not later than 180 days after receiving the
request.
(d) Private Property Owners' Response.--A private property
owner shall have 60 days after the date of receipt of an
offer under subsection (c) to accept or to reject the offer.
(e) Arbitration.--If the head of an agency determines,
under subsection (c), that a private property owner is not
entitled to compensation under subsection (a), or
a private property owner rejects an offer made under
subsection (c), the private property owner may submit the
matter for arbitration to an arbitrator appointed by the
head of the agency from a list of arbitrators submitted by
the American Arbitration Association. The arbitrator shall
determine whether the request meets the requirements of
subsection (a) (if such determination is called for by the
submission of the property owner) and shall determine the
amount of compensation to which the property owner is
entitled under this section, in accordance with subsection
(c). The arbitration shall be conducted in accordance with
the real estate valuation arbitration rules of that
association. For purposes of this section, an arbitration
is binding on the head of an agency and the private
property owner as to whether the property owner is
entitled to compensation under subsection (a) and as to
the amount, if any, of compensation owed to the private
property owner under this section.
(f) Payment.--The head of an agency shall pay a private
property owner any compensation required under the terms of
an offer of the agency head that is accepted by the private
property owner in accordance with subsection (d), or under a
decision of an arbiter under subsection (e), by not later
than 60 days after the date of the acceptance or the date of
the issuance of the decision, respectively.
(g) Nature of Remedy.--
(1) Prohibition of limitation on other claims.--No
provision of this title shall be construed to limit the
rights of any person to pursue any claim or cause of action
under the Constitution or any other law (including a claim or
cause of action concerning personal property).
(2) Prohibition of use as condition precedent.--Submission
of a request for compensation, or receipt of compensation,
under this title shall not be a condition precedent for any
claim or cause of action under any law.
(h) Limitation on Double Recovery.--
(1) Court awards of damages.--Notwithstanding subsection
(g), a court may credit a payment made pursuant to subsection
(a) for any reduction in the value of property against the
amount of damages awarded pursuant to any claim or cause of
action, under the Constitution or any other law, that arises
from the same reduction in the value of the same property.
(2) Payments under this title.--The amount awarded pursuant
to any claim or cause of action, under the Constitution or
any other law, for any reduction in the value of a property
shall be credited against the amount of any payment made
pursuant to subsection (a) with respect to the same reduction
in the value of the same property.
(i) Source of Payment Funds.--
(1) Use of agency funds.--Except as provided in paragraphs
(2) and (3), and notwithstanding any other provision of law,
any payment made pursuant to subsection (a) shall be paid
from the annual appropriation of the agency or agencies
taking the action for which the payment is required. For the
purpose of making such a payment, the head of the agency may
transfer or reprogram any funds available to the agency.
(2) Alternative source of funds.--If the agency taking the
action referred to in paragraph (2) or (5) of subsection (a)
does not have sufficient funds available to complete the
payment required by this section with respect to the action,
the Comptroller General of the United States shall identify
the most appropriate Federal source of funds to complete the
payment and the President shall complete the payment using
funds from such source, notwithstanding any other provision
of law.
(3) Land exchange.--In lieu of payment under paragraph (1)
or (2), the President may enter into an agreement with the
private property owner who is entitled to the compensation
for which the payment is required to provide all or part of
the compensation by exchanging all or part of the affected
private property for property owned by the United States and
identified by the President as suitable for such an exchange.
The properties transferred as part of such an exchange shall
be of equal value, as determined under section 206(d) of the
Federal Land Policy and Management Act of 1976 (43 U.S.C.
1716(d)).
SEC. 9003. SEVERABILITY.
If any provision of this title, or the application thereof
to any person or circumstance, is held invalid, the remainder
of this title and the application of such provision to other
persons and circumstances shall not be affected.
SEC. 9004. DEFINITIONS.
For purposes of this title:
(1) Agency.--The term ``agency'' has the meaning given that
term in section 551(1) of title 5, United States Code.
(2) Agency action.--The term ``agency action'' has the
meaning given that term in section 551(13) of title 5, United
States Code.
(3) Fair market value.--Unless stated otherwise, the term
``fair market value of the property'' means the fair market
value of property determined as of the date on which the
private property owner makes a claim under this title with
respect to the property.
(4) Final agency action.--The term ``final agency action''
means an agency action that is intended to or does bind a
private property owner with respect to the use of the
property. Such term includes but is not limited to the
following:
(A) Denial of a permit.
(B) Issuance of a cease and desist order.
(C) Issuance of a statement under section 7(b)(3) of the
Endangered Species Act of 1973 (16 U.S.C. 1536(b)(3)).
(D) Issuance of a permit with conditions.
(E) Commencement of a civil or criminal proceeding arising
out of failure to secure a permit.
(5) Private property owner.--The term ``private property
owner'' means a person (other than the United States, a
department, agency, or instrumentality thereof, or an
officer, employee, or agent thereof when acting on behalf of
his or her employing authority) that--
(A) owns property referred to in paragraph (6)(A); or
(B) holds property referred to in paragraph (6)(B).
(6) Property.--The term ``property'' means--
(A) land; and
(B) the right to use or receive water.
(7) Reduction in the value of property.--The term
``reduction in the value of property'' means the difference,
if greater than zero, between--
(A) the fair market value of property, as determined based
on the value of the property if an agency action referred to
in paragraph (2) or (5) of section 9002(a), as the case may
be, were not implemented; minus
(B) the fair market value of property, as determined based
on the value of the property if an agency action referred to
in paragraph (2) or (5) of section 9002(a), as the case may
be, were implemented.
(8) Use--The term ``use'' means a prior, existing, or
potential utilization of property, by the private property
owner, which is--
(A) predictable; and
(B) consistent with the utilization of property of the same
general type or with property usage in the geographic area in
which the property is located.
TITLE X--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL
SEC. 10001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF
1974.
(a) Federal Regulatory Budget Cost Control System.--Title
III of the Congressional Budget Act of 1974, as amended by
section 4001(a) of this Act, is further amended by adding
after part B the following new part:
``PART C--FEDERAL MANDATE BUDGET COST CONTROL
``SEC. 331. OMB-CBO REPORTS.
``(a) OMB-CBO Initial Report.--Within 1 year after the date
of enactment of this section, OMB and CBO shall jointly issue
a report to the President and each House of Congress that
contains the following:
``(1) For the first budget year beginning after the
issuance of this report, a projection of the aggregate direct
cost to States and
[[Page H2621]] local governments of complying with all
Federal mandates in effect immediately before issuance of the
report containing the projection for that budget year of the
effect of current-year Federal mandates into the budget year
and the outyears based on those mandates.
``(2) A calculation of the estimated aggregate direct cost
to States and local governments of compliance with all
Federal mandates as a percentage of the gross domestic
product (GDP).
``(3) The estimated marginal cost (measured as a reduction
in estimated gross domestic product) to States and local
governments of compliance with all Federal mandates in excess
of the cap (to be determined under paragraph (5)) allowable
for the sixth year following the budget year and subsequent
fiscal years.
``(4) The effect on the domestic economy of different types
of Federal mandates.
``(5) The appropriate level of personnel, administrative
overhead, and programmatic savings that should be achieved on
a fiscal year by fiscal year basis by Federal agencies that
issue mandates with direct costs to States and local
governments through the reduction of such aggregate costs to
States and local governments by 6.5 percent for the budget
year (as measured against the aggregate mandate baseline for
the first budget year to which this part applies) and by 6.5
percent increments for each of the outyears (until the
aggregate level of such costs does not exceed 3 percent of
the estimated gross domestic product for the same fiscal year
as the estimated costs that will be incurred).
``(6) Recommendations for budgeting, technical, and
estimating changes to improve the Federal mandate budgeting
process.
``(b) Update Reports.--OMB and CBO shall issue update
reports on September 15th of the fifth year beginning after
issuance of the initial report and at 5-year intervals
thereafter containing all the information required in the
initial report, but based upon all Federal mandates in effect
immediately before issuance of the most recent update report.
``(c) Initial Baseline Report.--Within 30 days after the
date of enactment of this section, OMB and CBO shall jointly
issue a report to the President and each House of Congress
that contains an initial aggregate mandate baseline for the
first budget year that begins at least 120 days after that
date of enactment. That baseline will be a projection of the
aggregate direct cost to States and local governments of
complying with all Federal mandates in effect immediately
before issuance of the report containing the projection for
that budget year of the effect of current-year Federal
mandates into the budget year and the outyears based on those
mandates.
``SEC. 332. AGGREGATE MANDATE BASELINE.
``(a) In General.--For the first budget year beginning
after the date of enactment of this section and for every
other fiscal year thereafter, the aggregate mandate baseline
refers to a projection of the aggregate direct cost to States
and local governments of complying with all Federal mandates
in effect immediately before issuance of the report
containing the projection for that budget year of the effect
of current-year Federal mandates into the budget year and the
outyears based on those mandates. However, in the case of
each of the succeeding fiscal years, the baseline shall be
adjusted for the estimated growth during that year in the
gross domestic product (GDP).
``(b) OMB-CBO Aggregate Mandate Baseline Reports.--(1) The
first budget year for which there shall be an aggregate
mandate baseline shall be the budget year to which the
initial OMB-CBO baseline report issued under section 331(c)
pertains.
``(2) In the case of each budget year after the budget year
referred to in paragraph (1), not later than September 15 of
the current year, OMB and CBO shall jointly issue a report
containing the baseline referred to in subsection (a) for
that budget year.
``SEC. 333. RECONCILIATION AND ALLOCATIONS.
``(a) Reconciliation Directives.--In addition to the
requirements of section 310, a concurrent resolution on the
budget for any fiscal year shall specify--
``(1) changes in laws, regulations, and rules necessary to
reduce the aggregate direct cost to States and local
governments of complying with all Federal mandates by 6.5
percent for the budget year (as measured against the
aggregate mandate baseline for the first budget year to which
this part applies) and by 6.5 percent increments for each of
the outyears (until the aggregate level of such costs does
not exceed 3 percent of the estimated gross domestic product
for the same fiscal year as the estimated costs that will be
incurred) for Federal agencies that issue mandates producing
direct costs to States and local governments; and
``(2) changes in laws necessary to achieve reductions in
the level of personnel and administrative overhead and to
achieve programmatic savings for
the budget year and the outyears for those agencies of the
following:
``(A) In the first outyear, one-fourth of the percent of
reduction in mandate authority from the aggregate mandate
base.
``(B) In the second outyear, one-third of the percent of
reduction in mandate authority from the aggregate mandate
base.
``(C) In the third, fourth, fifth, and sixth years
following the budget year, one-half of the percent of
reduction in mandate authority from the aggregate mandate
base.
Section 310(c) shall not apply with respect to directions
made under this section.
``(b) Allocation of Totals.--(1) The Committees on the
Budget of the House of Representatives and the Senate shall
each allocate aggregate 2-year mandate authority among each
committee of its House and by major functional category for
the first budget year beginning after the date of enactment
of this section and for the second, fourth, and sixth years
following the budget year and then every other year
thereafter.
``(2) As soon as practicable after receiving an allocation
under paragraph (1), each committee shall subdivide its
allocation among its subcommittees or among programs over
which it has jurisdiction.
``(c) Point of Order.--(1) It shall not be in order in the
House of Representatives or the Senate to consider any bill
or resolution, or amendment thereto, which would cause the
appropriate allocation made under subsection (b) for a fiscal
year of mandate authority to be exceeded.
``(2) Waiver.--The point of order set forth in paragraph
(1) may only be waived by the affirmative vote of at least
three-fifths of the Members voting, a quorum being present.
``(d) Determinations by Budget Committees.--For purposes of
this section, the level of mandate authority for a fiscal
year shall be determined by the Committee on the Budget of
the House of Representatives or the Senate, as the case may
be.
``(e) Exceeding Allocation Totals.--Whenever any Committee
of the House of Representatives exceeds its allocation of
aggregate 2-year mandate authority under subsection (b)(1),
any Member of the House of Representatives may offer a bill
in the House (which shall be highly privileged, unamendable,
and debateable for 30 minutes) which shall only prohibit the
issuance of mandates by any agency under the jurisdiction of
that committee for the fiscal years covered by that
allocation until that committee eliminates its breach.
``SEC. 334. ANALYSIS OF MANDATES COSTS BY CONGRESSIONAL
BUDGET OFFICE.
``CBO shall 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 by
States and local governments in carrying out or complying
with 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 of each
such estimate; and
``(2) a comparison of the estimate of costs described in
paragraph (1) with any available estimates of costs made by
such committee or by any Federal agency.
``SEC. 335. DEFINITIONS.
``As used in this part:
``(1) The term `CBO' refers to the Director of the
Congressional Budget Office.
``(2) The term `OMB' refers to the Director of the Office
of Management and Budget.
``(3) The term `costs' when referring to `mandates' means
the direct cost to States and local governments of complying
with Federal mandates.
``(4) The term `direct costs' means (recognizing that
direct costs are not the only costs associated with Federal
mandates) all expenditures occurring as a direct result of
complying with Federal mandates, except those applying to the
military or agency organization, management, and
personnel.''.
SEC. 10002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.
Section 1105(a) of title 31, United States Code, as amended
by section 4002 of this Act, is further amended by adding
after paragraph (32) the following new paragraph:
``(33) a mandate authority budget analysis of the aggregate
direct cost to States and local governments of complying with
all current and proposed Federal mandates and proposals for
complying with section 333 of the Congressional Budget Act of
1974 for the budget year and the outyears.''
SEC. 10003. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL
MANDATES.
(a) Costs to State and Local Governments.--Chapter 6 of
title 5, United States Code, popularly known as the
``Regulatory Flexibility Act'', is amended--
(1) in section 603, as amended by section 4003(2) of this
Act, by adding after subsection (d) the following:
``(e) Each initial regulatory flexibility analysis for a
proposed rule that establishes or implements a new Federal
mandate shall also contain a description of the nature and
amount of monetary costs that will be incurred by State and
local governments in complying with the Federal mandate.'';
and
(2) in section 604(a), as amended by section 4003(3) of
this Act--
(A) in paragraph (3) by striking ``and'' after the
semicolon;
(B) in paragraph (4) by striking the period and inserting
``; and''; and
(C) by adding after paragraph (4) the following:
``(5) in the case of an analysis for a rule that
establishes or implements a new Federal mandate, a statement
of the nature and amount of monetary costs that will be
incurred by State and local governments in complying with the
Federal mandate.''.
(b) Agency Reports.--Each agency that under chapter 6 of
title 5, United States Code, prepares an initial regulatory
flexibility analysis for a proposed rule that establishes or
implements a new Federal mandate shall at the same time
submit to each House
[[Page H2622]] of Congress and to CBO and OMB a cost estimate
and cost/benefit analysis of any new Federal mandate that
would have an aggregate direct cost to State and local
governments of at least $10,000,000 for any fiscal year.
TITLE XI--TAXPAYER DEBT BUY-DOWN
SEC. 11001. DESIGNATION OF AMOUNTS FOR REDUCTION OF PUBLIC
DEBT.
(a) In General.--Subchapter A of chapter 61 of the Internal
Revenue Code of 1986 (relating to returns and records) is
amended by adding at the end the following new part:
``PART IX--DESIGNATION FOR REDUCTION OF PUBLIC DEBT
``Sec. 6097. Designation.
``SEC. 6097. DESIGNATION.
``(a) In General.--Every individual with adjusted income
tax liability for any taxable year may designate that a
portion of such liability (not to exceed 10 percent thereof)
shall be used to reduce the public debt.
``(b) Manner and Time of Designation.--A designation under
subsection (a) may be made with respect to any taxable year
only at the time of filing the return of tax imposed by
chapter 1 for the taxable year. The designation shall be made
on the first page of the return or on the page bearing the
taxpayer's signature.
``(c) Adjusted Income Tax Liability.--For purposes of this
section, the term `adjusted income tax liability' means
income tax liability (as defined in section 6096(b)) reduced
by any amount designated under section 6096 (relating to
designation of income tax payments to Presidential Election
Campaign Fund).''
(b) Clerical Amendment.--The table of parts for such
subchapter A is amended by adding at the end the following
new item:
``Part IX. Designation for reduction of public debt.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 11002. PUBLIC DEBT REDUCTION TRUST FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 (relating to trust fund code) is amended
by adding at the end the following section:
``SEC. 9512. PUBLIC DEBT REDUCTION TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Public Debt Reduction Trust Fund', consisting of any amount
appropriated or credited to the Trust Fund as provided in
this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby
appropriated to the Public Debt Reduction Trust Fund amounts
equivalent to the amounts designated under section 6097
(relating to designation for public debt reduction).
``(c) Expenditures.--Amounts in the Public Debt Reduction
Trust Fund shall be used by the Secretary of the Treasury for
purposes of paying at maturity, or to redeem or buy before
maturity, any obligation of the Federal Government included
in the public debt (other than an obligation held by the
Federal Old-Age and Survivors Insurance Trust Fund, the Civil
Service Retirement and Disability Fund, or the Department of
Defense Military Retirement Fund). Any obligation which is
paid, redeemed, or bought with amounts from the Public Debt
Reduction Trust Fund shall be canceled and retired and may
not be reissued.''
(b) Clerical Amendment.--The table of sections for such
subchapter is amended by adding at the end the following new
item:
``Sec. 9512. Public Debt Reduction Trust Fund.''
(c) Effective Date.--The amendments made by this section
shall apply to amounts received after the date of the
enactment of this Act.
SEC. 11003. TAXPAYER-GENERATED SEQUESTRATION OF FEDERAL
SPENDING TO REDUCE THE PUBLIC DEBT.
(a) Sequestration To Reduce the Public Debt.--Part C of the
Balanced Budget and Emergency Deficit Control Act of 1985 is
amended by adding after section 253 the following new
section:
``SEC. 253A. SEQUESTRATION TO REDUCE THE PUBLIC DEBT.
``(a) Sequestration.--Notwithstanding sections 255 and 256,
within 15 days after Congress adjourns to end a session, and
on the same day as sequestration (if any) under sections 251,
252, and 253, but after any sequestration required by those
sections, there shall be a sequestration equivalent to the
estimated aggregate amount designated under section 6097 of
the Internal Revenue Code of 1986 for the last taxable year
ending one year before the beginning of that session of
Congress, as estimated by the Department of the Treasury on
October 1 and as modified by the total of (1) any amounts by
which net discretionary spending is reduced by legislation
below the discretionary spending limits enacted after the
enactment of this section related to the fiscal year subject
to the sequestration (or, in the absence of such limits, any
net deficit change from the baseline amount calculated under
section 257 (except that such baseline for fiscal year 1996
and thereafter shall be based upon fiscal year 1995 enacted
appropriations less any 1995 sequesters)) and (2) the net
deficit change that has resulted from all direct spending
legislation enacted after the enactment of this section
related to the fiscal year subject to the sequestration, as
estimated by OMB. If the reduction in spending under
paragraphs (1) and (2) for a fiscal year is greater than the
estimated aggregate amount designated under section 6097 of
the Internal Revenue Code of 1986 respecting that fiscal
year, then there shall be no sequestration under this
section.
``(b) Applicability.--
``(1) In general.--Except as provided by paragraph (2),
each account of the United States shall be reduced by a
dollar amount calculated by multiplying the level of
budgetary resources in that account at that time by the
uniform percentage necessary to carry out subsection (a). All
obligational authority reduced under this section shall be
done in a manner that makes such reductions permanent.
``(2) Exempt accounts.--No order issued under this part
may--
``(A) reduce benefits payable the old-age and survivors
insurance program established under title II of the Social
Security Act;
``(B) reduce payments for net interest (all of major
functional category 900); or
``(C) make any reduction in the following accounts:
``Federal Deposit Insurance Corporation, Bank Insurance
Fund;
``Federal Deposit Insurance Corporation, FSLIC Resolution
Fund;
``Federal Deposit Insurance Corporation, Savings
Association Insurance Fund;
``National Credit Union Administration, credit union share
insurance fund; or
``Resolution Trust Corporation.''
(b) Reports.--Section 254 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended--
(1) in subsection (a), by inserting after the item relating
to the GAO compliance report the following:
``October 1 . . . Department of Treasury report to Congress
estimating amount of income tax designated pursuant to
section 6097 of the Internal Revenue Code of 1986.'';
(2) in subsection (d)(1), by inserting ``, and
sequestration to reduce the public debt,'';
(3) in subsection (d), by redesignating paragraph (5) as
paragraph (6) and by inserting after paragraph (4) the
following new paragraph:
``(5) Sequestration to reduce the public debt reports.--The
preview reports shall set forth for the budget year estimates
for each of the following:
``(A) The aggregate amount designated under section 6097 of
the Internal Revenue Code of 1986 for the last taxable year
ending before the budget year.
``(B) The amount of reductions required under section 253A
and the deficit remaining after those reductions have been
made.
``(C) The sequestration percentage necessary to achieve the
required reduction in accounts under section 253A(b).''; and
(4) in subsection (g), by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively, and by inserting
after paragraph (3) the following new paragraph:
``(4) Sequestration to reduce the public debt reports.--The
final reports shall contain all of the information contained
in the public debt taxation designation report required on
October 1.''.
(c) Effective Date.--Notwithstanding section 275(b) of the
Balanced Budget and Emergency Deficit Control Act of 1985,
the expiration date set forth in that section shall not apply
to the amendments made by this section. The amendments made
by this section shall cease to have any effect after the
first fiscal year during which there is no public debt.
TITLE XII--SMALL BUSINESS INCENTIVES
SEC. 12001. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDITS.
(a) Estate Tax Credit.--
(1) Subsection (a) of section 2010 of the Internal Revenue
Code of 1986 (relating to unified credit against estate tax)
is amended by striking ``$192,800'' and inserting ``the
applicable credit amount''.
(2) Section 2010 of such Code is amended by redesignating
subsection (c) as subsection (d) and by inserting after
subsection (b) the following new subsection:
``(c) Applicable Credit Amount.--For purposes of this
section--
``(1) In general.--The applicable credit amount is the
amount of the tentative tax which would be determined under
the rate schedule set forth in section 2001(c) if the amount
with respect to which such tentative tax is to be computed
were the applicable exclusion amount determined in accordance
with the following table:
``In the case of estates of decedentThe applicable exclusion amount is:
1996.....................................................$700,000
1997.....................................................$725,000
1998 or thereafter......................................$750,000.
``(2) Cost-of-living adjustments.--In the case of any
decedent dying, and gift made, in a calendar year after 1998,
the $750,000 amount set forth in paragraph (1) shall be
increased by an amount equal to--
``(A) $750,000, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 1997' for `calendar year 1992' in subparagraph
(B) thereof.
[[Page H2623]] Any increase determined under the preceding
sentence shall be rounded to the nearest multiple of
$1,000.''
(3) Paragraph (1) of section 6018(a) of such Code is
amended by striking ``$600,000'' and inserting ``the
applicable exclusion amount in effect under section 2010(c)
(as adjusted under paragraph (2) thereof) for the calendar
year which includes the date of death''.
(4) Paragraph (2) of section 2001(c) of such Code is
amended by striking ``$21,040,000'' and inserting ``the
amount at which the effective tax rate under this section is
55 percent''.
(5) Subparagraph (A) of section 2102(c)(3) of such Code is
amended by striking ``$192,800'' and inserting ``the
applicable credit amount in effect under section 2010(c) for
the calendar year which includes the date of death''.
(b) Unified Gift Tax Credit.--Paragraph (1) of section
2505(a) of such Code is amended by striking ``$192,800'' and
inserting ``the applicable credit amount in effect under
section 2010(c) for such calendar year''.
(c) Effective Date.--The amendments made by this section
shall apply to the estates of decedents dying, and gifts
made, after December 31, 1995.
SEC. 12002. INCREASE IN EXPENSE TREATMENT FOR SMALL
BUSINESSES.
(a) General Rule.--Paragraph (1) of section 179(b) of the
Internal Revenue Code of 1986 (relating to dollar limitation)
is amended by striking ``$17,500'' and inserting ``$25,000''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
1995.
SEC. 12003. CLARIFICATION OF DEFINITION OF PRINCIPAL PLACE OF
BUSINESS.
(a) In General.--Subsection (f) of section 280A of the
Internal Revenue Code of 1986 is amended by redesignating
paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5),
respectively, and by inserting after paragraph (1) the
following new paragraph:
``(2) Principal place of business.--For purposes of
subsection (c), a home office shall in any case qualify as
the principal place of business if--
``(A) the office is the location where the taxpayer's
essential administrative or management activities are
conducted on a regular and systematic (and not incidental)
basis by the taxpayer, and
``(B) the office is necessary because the taxpayer has no
other location for the performance of the administrative or
management activities of the business.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
1995.
SEC. 12004. TREATMENT OF STORAGE OF PRODUCT SAMPLES.
(a) In General.--Paragraph (2) of section 280A(c) of the
Internal Revenue Code of 1986 is amended by striking
``inventory'' and inserting ``inventory or product samples''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
1995.
motion offered by mr. delay
Mr. DeLAY. Mr. Speaker, I offer a motion.
The Clerk read as follows:
Motion offered by Mr. DeLay: Mr. DeLay of Texas moves to
strike all after section 1 of the bill and insert a text
composed of four divisions as follows: (1) division A,
consisting of the text of H.R. 830, as passed by the House;
(2) division B, consisting of the text of H.R. 925, as passed
by the House; (3) division C, consisting of the text of H.R.
926, as passed by the House, and (4) division D, consisting
of the text of H.R. 1022, as passed by the House.
The text of the bills referred to in the foregoing motion; H.R. 830,
H.R. 925, H.R. 926, and H.R. 1022, is as follows:
H.R. 830
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Paperwork Reduction Act of
1995''.
SEC. 2. COORDINATION OF FEDERAL INFORMATION POLICY.
Chapter 35 of title 44, United States Code, is amended to
read as follows:
``CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY
``Sec.
``3501. Purposes.
``3502. Definitions.
``3503. Office of Information and Regulatory Affairs.
``3504. Authority and functions of Director.
``3505. Assignment of tasks and deadlines.
``3506. Federal agency responsibilities.
``3507. Public information collection activities; submission to
Director; approval and delegation.
``3508. Determination of necessity for information; hearing.
``3509. Designation of central collection agency.
``3510. Cooperation of agencies in making information available.
``3511. Establishment and operation of Government Information Locator
Service.
``3512. Public protection.
``3513. Director review of agency activities; reporting; agency
response.
``3514. Responsiveness to Congress.
``3515. Administrative powers.
``3516. Rules and regulations.
``3517. Consultation with other agencies and the public.
``3518. Effect on existing laws and regulations.
``3519. Access to information.
``3520. Authorization of appropriations.
``Sec. 3501. Purposes
``The purposes of this chapter are to--
``(1) minimize the paperwork burden for individuals, small
businesses, educational and nonprofit institutions, Federal
contractors, State, local and tribal governments, and other
persons resulting from the collection of information by or
for the Federal Government;
``(2) ensure the greatest possible public benefit from and
maximize the utility of information created, collected,
maintained, used, shared and disseminated by or for the
Federal Government;
``(3) coordinate, integrate, and to the extent practicable
and appropriate, make uniform Federal information resources
management policies and practices as a means to improve the
productivity, efficiency, and effectiveness of Government
programs, including the reduction of information collection
burdens on the public and the improvement of service delivery
to the public;
``(4) improve the quality and use of Federal information to
strengthen decisionmaking, accountability, and openness in
Government and society;
``(5) minimize the cost to the Federal Government of the
creation, collection, maintenance, use, dissemination, and
disposition of information;
``(6) strengthen the partnership between the Federal
Government and State, local, and tribal governments by
minimizing the burden and maximizing the utility of
information created, collected, maintained, used,
disseminated, and retained by or for the Federal Government;
``(7) provide for the dissemination of public information
on a timely basis, on equitable terms, and in a manner that
promotes the utility of the information to the public and
makes effective use of information technology;
``(8) ensure that the creation, collection, maintenance,
use, dissemination, and disposition of information by or for
the Federal Government is consistent with applicable laws,
including laws relating to--
``(A) privacy and confidentiality, including section 552a
of title 5;
``(B) security of information, including the Computer
Security Act of 1987 (Public Law 100-235); and
``(C) access to information, including section 552 of title
5;
``(9) ensure the integrity, quality, and utility of the
Federal statistical system;
``(10) ensure that information technology is acquired,
used, and managed to improve performance of agency missions,
including the reduction of information collection burdens on
the public; and
``(11) improve the responsibility and accountability of the
Office of Management and Budget and all other Federal
agencies to Congress and to the public for implementing the
information collection review process, information resources
management, and related policies and guidelines established
under this chapter.
``Sec. 3502. Definitions
``As used in this chapter--
``(1) the term `agency' means any executive department,
military department, Government corporation, Government
controlled corporation, or other establishment in the
executive branch of the Government (including the Executive
Office of the President), or any independent regulatory
agency, but does not include--
``(A) the General Accounting Office;
``(B) Federal Election Commission;
``(C) the governments of the District of Columbia and of
the territories and possessions of the United States, and
their various subdivisions; or
``(D) Government-owned contractor-operated facilities,
including laboratories engaged in national defense research
and production activities;
``(2) the term `burden' means time, effort, or financial
resources expended by persons to generate, maintain, or
provide information to or for a Federal agency, including the
resources expended for--
``(A) reviewing instructions;
``(B) acquiring, installing, and utilizing technology and
systems;
``(C) adjusting the existing ways to comply with any
previously applicable instructions and requirements;
``(D) searching data sources;
``(E) completing and reviewing the collection of
information; and
``(F) transmitting, or otherwise disclosing the
information;
``(3) the term `collection of information' means the
obtaining, causing to be obtained, soliciting, or requiring
the disclosure to third parties or the public, of facts or
opinions by or for an agency, regardless of form or format,
calling for either--
``(A) answers to identical questions posed to, or identical
reporting or recordkeeping requirements imposed on, ten or
more persons, other than agencies, instrumentalities, or
employees of the United States; or
``(B) answers to questions posed to agencies,
instrumentalities, or employees of the United States which
are to be used for general statistical purposes;
``(4) the term `Director' means the Director of the Office
of Management and Budget;
[[Page H2624]] ``(5) the term `independent regulatory
agency' means the Board of Governors of the Federal Reserve
System, the Commodity Futures Trading Commission, the
Consumer Product Safety Commission, the Federal
Communications Commission, the Federal Deposit Insurance
Corporation, the Federal Energy Regulatory Commission, the
Federal Housing Finance Board, the Federal Maritime
Commission, the Federal Trade Commission, the Interstate
Commerce Commission, the Mine Enforcement Safety and Health
Review Commission, the National Labor Relations Board, the
Nuclear Regulatory Commission, the Occupational Safety and
Health Review Commission, the Postal Rate Commission, the
Securities and Exchange Commission, and any other similar
agency designated by statute as a Federal independent
regulatory agency or commission;
``(6) the term `information resources' means information
and related resources, such as personnel, equipment, funds,
and information technology;
``(7) the term `information resources management' means the
process of managing information resources to accomplish
agency missions and to improve agency performance, including
through the reduction of information collection burdens on
the public;
``(8) the term `information system' means a discrete set of
information resources and processes, automated or manual,
organized for the collection, processing, maintenance, use,
sharing, dissemination, or disposition of information;
``(9) the term `information technology' has the same
meaning as the term `automatic data processing equipment' as
defined by section 111(a)(2) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759(a)(2));
``(10) the term `person' means an individual, partnership,
association, corporation, business trust, or legal
representative, an organized group of individuals, a State,
territorial, or local government or branch thereof, or a
political subdivision of a State, territory, or local
government or a branch of a political subdivision;
``(11) the term `practical utility' means the ability of an
agency to use information, particularly the capability to
process such information in a timely and useful fashion;
``(12) the term `public information' means any information,
regardless of form or format, that an agency discloses,
disseminates, or makes available to the public; and
``(13) the term `recordkeeping requirement' means a
requirement imposed by or for an agency on persons to
maintain specified records, including a requirement to--
``(A) retain such records;
``(B) notify third parties or the public of the existence
of such records;
``(C) disclose such records to third parties or the public;
or
``(D) report to third parties or the public regarding such
records.
``Sec. 3503. Office of Information and Regulatory Affairs
``(a) There is established in the Office of Management and
Budget an office to be known as the Office of Information and
Regulatory Affairs.
``(b) There shall be at the head of the Office an
Administrator who shall be appointed by the President, by and
with the advice and consent of the Senate. The Director shall
delegate to the Administrator the authority to administer all
functions under this chapter, except that any such delegation
shall not relieve the Director of responsibility for the
administration of such functions. The Administrator shall
serve as principal adviser to the Director on Federal
information resources management policy.
``Sec. 3504. Authority and functions of Director
``(a)(1) The Director shall--
``(A) develop, coordinate and oversee the implementation of
Federal information resources management policies,
principles, standards, and guidelines; and
``(B) provide direction and oversee--
``(i) the review and approval of the collection of
information and the reduction of the information collection
burden;
``(ii) agency dissemination of and public access to
information;
``(iii) statistical activities;
``(iv) records management activities;
``(v) privacy, confidentiality, security, disclosure, and
sharing of information; and
``(vi) the acquisition and use of information technology.
``(2) The authority of the Director under this chapter
shall be exercised consistent with applicable law.
``(b) With respect to general information resources
management policy, the Director shall--
``(1) develop and oversee the implementation of uniform
information resources management policies, principles,
standards, and guidelines;
``(2) foster greater sharing, dissemination, and access to
public information, including through--
``(A) the use of the Government Information Locator
Service; and
``(B) the development and utilization of common standards
for information collection, storage, processing and
communication, including standards for security,
interconnectivity and interoperability;
``(3) initiate and review proposals for changes in
legislation, regulations, and agency procedures to improve
information resources management practices;
``(4) oversee the development and implementation of best
practices in information resources management, including
training; and
``(5) oversee agency integration of program and management
functions with information resources management functions.
``(c) With respect to the collection of information and the
control of paperwork, the Director shall--
``(1) review and approve proposed agency collections of
information;
``(2) coordinate the review of the collection of
information associated with Federal procurement and
acquisition by the Office of Information and Regulatory
Affairs with the Office of Federal Procurement Policy, with
particular emphasis on applying information technology to
improve the efficiency and effectiveness of Federal
procurement, acquisition, and payment and to reduce
information collection burdens on the public;
``(3) minimize the Federal information collection burden,
with particular emphasis on those individuals and entities
most adversely affected;
``(4) maximize the practical utility of and public benefit
from information collected by or for the Federal Government;
``(5) establish and oversee standards and guidelines by
which agencies are to estimate the burden to comply with a
proposed collection of information; and
``(6) place an emphasis on minimizing the burden on small
businesses with 50 or fewer employees.
``(d) With respect to information dissemination, the
Director shall develop and oversee the implementation of
policies, principles, standards, and guidelines to--
``(1) apply to Federal agency dissemination of public
information, regardless of the form or format in which such
information is disseminated; and
``(2) promote public access to public information and
fulfill the purposes of this chapter, including through the
effective use of information technology.
``(e) With respect to statistical policy and coordination,
the Director shall--
``(1) coordinate the activities of the Federal statistical
system to ensure--
``(A) the efficiency and effectiveness of the system; and
``(B) the integrity, objectivity, impartiality, utility,
and confidentiality of information collected for statistical
purposes;
``(2) ensure that budget proposals of agencies are
consistent with system-wide priorities for maintaining and
improving the quality of Federal statistics and prepare an
annual report on statistical program funding;
``(3) develop and oversee the implementation of
Governmentwide policies, principles, standards, and
guidelines concerning--
``(A) statistical collection procedures and methods;
``(B) statistical data classification;
``(C) statistical information presentation and
dissemination;
``(D) timely release of statistical data; and
``(E) such statistical data sources as may be required for
the administration of Federal programs;
``(4) evaluate statistical program performance and agency
compliance with Governmentwide policies, principles,
standards and guidelines;
``(5) promote the sharing of information collected for
statistical purposes consistent with privacy rights and
confidentiality pledges;
``(6) coordinate the participation of the United States in
international statistical activities, including the
development of comparable statistics;
``(7) appoint a chief statistician who is a trained and
experienced professional statistician to carry out the
functions described under this subsection;
``(8) establish an Interagency Council on Statistical
Policy to advise and assist the Director in carrying out the
functions under this subsection that shall--
``(A) be headed by the chief statistician; and
``(B) consist of--
``(i) the heads of the major statistical programs; and
``(ii) representatives of other statistical agencies under
rotating membership; and
``(9) provide opportunities for training in statistical
policy functions to employees of the Federal Government under
which--
``(A) each trainee shall be selected at the discretion of
the Director based on agency requests and shall serve under
the chief statistician for at least 6 months and not more
than 1 year; and
``(B) all costs of the training shall be paid by the agency
requesting training.
``(f) With respect to records management, the Director
shall--
``(1) provide advice and assistance to the Archivist of the
United States and the Administrator of General Services to
promote coordination in the administration of chapters 29,
31, and 33 of this title with the information resources
management policies, principles, standards, and guidelines
established under this chapter;
``(2) review compliance by agencies with--
``(A) the requirements of chapters 29, 31, and 33 of this
title; and
``(B) regulations promulgated by the Archivist of the
United States and the Administrator of General Services; and
``(3) oversee the application of records management
policies, principles, standards,
[[Page H2625]] and guidelines, including requirements for
archiving information maintained in electronic format, in the
planning and design of information systems.
``(g) With respect to privacy and security, the Director
shall--
``(1) develop and oversee the implementation of policies,
principles, standards, and guidelines on privacy,
confidentiality, security, disclosure and sharing of
information collected or maintained by or for agencies;
``(2) oversee and coordinate compliance with sections 552
and 552a of title 5, the Computer Security Act of 1987 (40
U.S.C. 759 note), and related information management laws;
and
``(3) require Federal agencies, consistent with the
Computer Security Act of 1987 (40 U.S.C. 759 note), to
identify and afford security protections commensurate with
the risk and magnitude of the harm resulting from the loss,
misuse, or unauthorized access to or modification of
information collected or maintained by or on behalf of an
agency.
``(h) With respect to Federal information technology, the
Director shall--
``(1) in consultation with the Director of the National
Institute of Standards and Technology and the Administrator
of General Services--
``(A) develop and oversee the implementation of policies,
principles, standards, and guidelines for information
technology functions and activities of the Federal
Government, including periodic evaluations of major
information systems; and
``(B) oversee the development and implementation of
standards under section 111(d) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759(d));
``(2) monitor the effectiveness of, and compliance with,
directives issued under sections 110 and 111 of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
757 and 759);
``(3) coordinate the development and review by the Office
of Information and Regulatory Affairs of policy associated
with Federal procurement and acquisition of information
technology with the Office of Federal Procurement Policy;
``(4) ensure, through the review of agency budget
proposals, information resources management plans and other
means--
``(A) agency integration of information resources
management plans, program plans and budgets for acquisition
and use of information technology; and
``(B) the efficiency and effectiveness of inter-agency
information technology initiatives to improve agency
performance and the accomplishment of agency missions; and
``(5) promote the use of information technology by the
Federal Government to improve the productivity, efficiency,
and effectiveness of Federal programs, including through
dissemination of public information and the reduction of
information collection burdens on the public.
``Sec. 3505. Assignment of tasks and deadlines
``(a) In carrying out the functions under this chapter, the
Director shall--
``(1) in consultation with agency heads, set an annual
Governmentwide goal for the reduction of information
collection burdens by at least 10 percent, and set annual
agency goals to--
``(A) reduce information collection burdens imposed on the
public that--
``(i) represent the maximum practicable opportunity in each
agency; and
``(ii) are consistent with improving agency management of
the process for the review of collections of information
established under section 3506(c); and
``(B) improve information resources management in ways that
increase the productivity, efficiency and effectiveness of
Federal programs, including service delivery to the public;
``(2) with selected agencies and non-Federal entities on a
voluntary basis, initiate and conduct pilot projects to test
alternative policies, practices, regulations, and procedures
to fulfill the purposes of this chapter, particularly with
regard to minimizing the Federal information collection
burden; and
``(3) in consultation with the Administrator of General
Services, the Director of the National Institute of Standards
and Technology, the Archivist of the United States, and the
Director of the Office of Personnel Management, develop and
maintain a Governmentwide strategic plan for information
resources management, that shall include--
``(A) a description of the objectives and the means by
which the Federal Government shall apply information
resources to improve agency and program performance;
``(B) plans for--
``(i) reducing information burdens on the public, including
reducing such burdens through the elimination of duplication
and meeting shared data needs with shared resources;
``(ii) enhancing public access to and dissemination of,
information, using electronic and other formats; and
``(iii) meeting the information technology needs of the
Federal Government in accordance with the purposes of this
chapter; and
``(C) a description of progress in applying information
resources management to improve agency performance and the
accomplishment of missions.
``(b) For purposes of any pilot project conducted under
subsection (a)(2), the Director may waive the application of
any regulation or administrative directive issued by an
agency with which the project is conducted, including any
regulation or directive requiring a collection of
information, after giving timely notice to the public and the
Congress regarding the need for such waiver.
``Sec. 3506. Federal agency responsibilities
``(a)(1) The head of each agency shall be responsible for--
``(A) carrying out the agency's information resources
management activities to improve agency productivity,
efficiency, and effectiveness; and
``(B) complying with the requirements of this chapter and
related policies established by the Director.
``(2)(A) Except as provided under subparagraph (B), the
head of each agency shall designate a senior official
who shall report directly to such agency head to carry out
the responsibilities of the agency under this chapter.
``(B) The Secretary of the Department of Defense and the
Secretary of each military department may each designate a
senior official who shall report directly to such Secretary
to carry out the responsibilities of the department under
this chapter. If more than one official is designated for the
military departments, the respective duties of the officials
shall be clearly delineated.
``(3) The senior official designated under paragraph (2)
shall head an office responsible for ensuring agency
compliance with and prompt, efficient, and effective
implementation of the information policies and information
resources management responsibilities established under this
chapter, including the reduction of information collection
burdens on the public. The senior official and employees of
such office shall be selected with special attention to the
professional qualifications required to administer the
functions described under this chapter.
``(4) Each agency program official shall be responsible and
accountable for information resources assigned to and
supporting the programs under such official. In consultation
with the senior official designated under paragraph (2) and
the agency Chief Financial Officer (or comparable official),
each agency program official shall define program information
needs and develop strategies, systems, and capabilities to
meet those needs.
``(b) With respect to general information resources
management, each agency shall--
``(1) manage information resources to--
``(A) reduce information collection burdens on the public;
``(B) increase program efficiency and effectiveness; and
``(C) improve the integrity, quality, and utility of
information to all users within and outside the agency,
including capabilities for ensuring dissemination of public
information, public access to government information, and
protections for privacy and security;
``(2) in accordance with guidance by the Director, develop
and maintain a strategic information resources management
plan that shall describe how information resources management
activities help accomplish agency missions;
``(3) develop and maintain an ongoing process to--
``(A) ensure that information resources management
operations and decisions are integrated with organizational
planning, budget, financial management, human resources
management, and program decisions;
``(B) in cooperation with the agency Chief Financial
Officer (or comparable official), develop a full and accurate
accounting of information technology expenditures, related
expenses, and results; and
``(C) establish goals for improving information resources
management's contribution to program productivity,
efficiency, and effectiveness, methods for measuring progress
towards those goals, and clear roles and responsibilities for
achieving those goals;
``(4) in consultation with the Director, the Administrator
of General Services, and the Archivist of the United States,
maintain a current and complete inventory of the agency's
information resources, including directories necessary to
fulfill the requirements of section 3511 of this chapter; and
``(5) in consultation with the Director and the Director of
the Office of Personnel Management, conduct formal training
programs to educate agency program and management officials
about information resources management.
``(c) With respect to the collection of information and the
control of paperwork, each agency shall--
``(1) establish a process within the office headed by the
official designated under subsection (a), that is
sufficiently independent of program responsibility to
evaluate fairly whether proposed collections of information
should be approved under this chapter, to--
``(A) review each collection of information before
submission to the Director for review under this chapter,
including--
``(i) an evaluation of the need for the collection of
information;
``(ii) a functional description of the information to be
collected;
``(iii) a plan for the collection of the information;
``(iv) a specific, objectively supported estimate of
burden;
``(v) a test of the collection of information through a
pilot program, if appropriate; and
``(vi) a plan for the efficient and effective management
and use of the information to be collected, including
necessary resources;
``(B) ensure that each information collection--
[[Page H2626]] ``(i) is inventoried, displays a control
number and, if appropriate, an expiration date;
``(ii) indicates the collection is in accordance with the
clearance requirements of section 3507; and
``(iii) contains a statement to inform the person receiving
the collection of information--
``(I) the reasons the information is being collected;
``(II) the way such information is to be used;
``(III) an estimate, to the extent practicable, of the
burden of the collection; and
``(IV) whether responses to the collection of information
are voluntary, required to obtain a benefit, or mandatory;
and
``(C) assess the information collection burden of proposed
legislation affecting the agency;
``(2)(A) except for good cause or as provided under
subparagraph (B), provide 60-day notice in the Federal
Register, and otherwise consult with members of the public
and affected agencies concerning each proposed collection of
information, to solicit comment to--
``(i) evaluate whether the proposed collection of
information is necessary for the proper performance of the
functions of the agency, including whether the information
shall have practical utility;
``(ii) evaluate the accuracy of the agency's estimate of
the burden of the proposed collection of information;
``(iii) enhance the quality, utility, and clarity of the
information to be collected; and
``(iv) minimize the burden of the collection of information
on those who are to respond, including through the use of
automated collection techniques or other forms of information
technology; and
``(B) for any proposed collection of information contained
in a proposed rule (to be reviewed by the Director under
section 3507(d)), provide notice and comment through the
notice of proposed rulemaking for the proposed rule and such
notice shall have the same purposes specified under
subparagraph (A) (i) through (iv);
``(3) certify (and provide a record supporting such
certification, including public comments received by the
agency) that each collection of information submitted to the
Director for review under section 3507--
``(A) is necessary for the proper performance of the
functions of the agency, including that the information has
practical utility;
``(B) is not unnecessarily duplicative of information
otherwise reasonably accessible to the agency;
``(C) reduces to the extent practicable and appropriate the
burden on persons who shall provide information to or for the
agency, including with respect to small entities, as defined
under section 601(6) of title 5, the use of such techniques
as--
``(i) establishing differing compliance or reporting
requirements or timetables that take into account the
resources available to those who are to respond;
``(ii) the clarification, consolidation, or simplification
of compliance and reporting requirements; or
``(iii) an exemption from coverage of the collection of
information, or any part thereof;
``(D) is written using plain, coherent, and unambiguous
terminology and is understandable to those who are to
respond;
``(E) is to be implemented in ways consistent and
compatible, to the maximum extent practicable, with the
existing reporting and recordkeeping practices of those who
are to respond;
``(F) indicates for each recordkeeping requirement the
length of time persons are required to maintain the records
specified;
``(G) contains the statement required under paragraph
(1)(B)(iii);
``(H) has been developed by an office that has planned and
allocated resources for the efficient and effective
management and use of the information to be collected,
including the processing of the information in a manner which
shall enhance, where appropriate, the utility of the
information to agencies and the public;
``(I) uses effective and efficient statistical survey
methodology appropriate to the purpose for which the
information is to be collected; and
``(J) to the maximum extent practicable, uses information
technology to reduce burden and improve data quality, agency
efficiency and responsiveness to the public; and
``(4) place an emphasis on minimizing the bureen on small
businesses with 50 or fewer employees.
``(d) With respect to information dissemination, each
agency shall--
``(1) ensure that the public has timely, equal, and
equitable access to the agency's public information,
including ensuring such access through--
``(A) encouraging a diversity of public and private sources
for information based on government public information,
``(B) in cases in which the agency provides public
information maintained in electronic format, providing
timely, equal, and equitable access to the underlying data
(in whole or in part); and
``(C) agency dissemination of public information in an
efficient, effective, and economical manner;
``(2) regularly solicit and consider public input on the
agency's information dissemination activities;
``(3) provide adequate notice when initiating,
substantially modifying, or terminating significant
information dissemination products; and
``(4) not, except where specifically authorized by
statute--
``(A) establish an exclusive, restricted, or other
distribution arrangement that interferes with timely and
equitable availability of public information to the public;
``(B) restrict or regulate the use, resale, or
redissemination of public information by the public;
``(C) charge fees or royalties for resale or
redissemination of public information; or
``(D) establish user fees for public information that
exceed the cost of dissemination, except that the Director
may waive the application of this subparagraph to an agency,
if--
``(i) the head of the agency submits a written request to
the Director, publishes a notice of the request in the
Federal Register, and provides a copy of the request to the
public upon request;
``(ii) the Director sets forth in writing a statement of
the scope, conditions, and duration of the waiver and the
reasons for granting it, and makes such statement available
to the public upon request; and
``(iii) the granting of the waiver would not materially
impair the timely and equitable availability of public
information to the public.
``(e) With respect to statistical policy and coordination,
each agency shall--
``(1) ensure the relevance, accuracy, timeliness,
integrity, and objectivity of information collected or
created for statistical purposes;
``(2) inform respondents fully and accurately about the
sponsors, purposes, and uses of statistical surveys and
studies;
``(3) protect respondents' privacy and ensure that
disclosure policies fully honor pledges of confidentiality;
``(4) observe Federal standards and practices for data
collection, analysis, documentation, sharing, and
dissemination of information;
``(5) ensure the timely publication of the results of
statistical surveys and studies, including information about
the quality and limitations of the surveys and studies; and
``(6) make data available to statistical agencies and
readily accessible to the public.
``(f) With respect to records management, each agency shall
implement and enforce applicable policies and procedures,
including requirements for archiving information maintained
in electronic format, particularly in the planning, design
and operation of information systems.
``(g) With respect to privacy and security, each agency
shall--
``(1) implement and enforce applicable policies,
procedures, standards, and guidelines on privacy,
confidentiality, security, disclosure and sharing of
information collected or maintained by or for the agency;
``(2) assume responsibility and accountability for
compliance with and coordinated management of sections 552
and 552a of title 5, the Computer Security Act of 1987 (40
U.S.C. 759 note), and related information management laws;
and
``(3) consistent with the Computer Security Act of 1987 (40
U.S.C. 759 note), identify and afford security protections
commensurate with the risk and magnitude of the harm
resulting from the loss, misuse, or unauthorized access to or
modification of information collected or maintained by or on
behalf of an agency.
``(h) With respect to Federal information technology, each
agency shall--
``(1) implement and enforce applicable Governmentwide and
agency information technology management policies,
principles, standards, and guidelines;
``(2) assume responsibility and accountability for
information technology investments;
``(3) promote the use of information technology by the
agency to improve the productivity, efficiency, and
effectiveness of agency programs, including the reduction of
information collection burdens on the public and improved
dissemination of public information;
``(4) propose changes in legislation, regulations, and
agency procedures to improve information technology
practices, including changes that improve the ability of the
agency to use technology to reduce burden; and
``(5) assume responsibility for maximizing the value and
assessing and managing the risks of major information systems
initiatives through a process that is--
``(A) integrated with budget, financial, and program
management decisions; and
``(B) used to select, control, and evaluate the results of
major information systems initiatives.
``Sec. 3507. Public information collection activities;
submission to Director; approval and delegation
``(a) An agency shall not conduct or sponsor the collection
of information unless in advance of the adoption or revision
of the collection of information--
``(1) the agency has--
``(A) conducted the review established under section
3506(c)(1);
``(B) evaluated the public comments received under section
3506(c)(2);
``(C) submitted to the Director the certification required
under section 3506(c)(3), the proposed collection of
information, copies of pertinent statutory authority,
regulations,
[[Page H2627]] and other related materials as the Director
may specify; and
``(D) published a notice in the Federal Register--
``(i) stating that the agency has made such submission; and
``(ii) setting forth--
``(I) a title for the collection of information;
``(II) a summary of the collection of information;
``(III) a brief description of the need for the information
and the proposed use of the information;
``(IV) a description of the likely respondents and proposed
frequency of response to the collection of information;
``(V) an estimate of the burden that shall result from the
collection of information; and
``(VI) notice that comments may be submitted to the agency
and Director;
``(2) the Director has approved the proposed collection of
information or approval has been inferred, under the
provisions of this section; and
``(3) the agency has obtained from the Director a control
number to be displayed upon the collection of information.
``(b) The Director shall provide at least 30 days for
public comment prior to making a decision under subsection
(c), (d), or (h), except for good cause or as provided under
subsection (j).
``(c)(1) For any proposed collection of information not
contained in a proposed rule, the Director shall notify the
agency involved of the decision to approve or disapprove the
proposed collection of information.
``(2) The Director shall provide the notification under
paragraph (1), within 60 days after receipt or publication of
the notice under subsection (a)(1)(D), whichever is later.
``(3) If the Director does not notify the agency of a
denial or approval within the 60-day period described under
paragraph (2)--
``(A) the approval may be inferred;
``(B) a control number shall be assigned without further
delay; and
``(C) the agency may collect the information for not more
than 1 year.
``(d)(1) For any proposed collection of information
contained in a proposed rule--
``(A) as soon as practicable, but no later than the date of
publication of a notice of proposed rulemaking in the Federal
Register, each agency shall forward to the Director a copy of
any proposed rule which contains a collection of information
and any information requested by the Director necessary to
make the determination required under this subsection; and
``(B) within 60 days after the notice of proposed
rulemaking is published in the Federal Register, the Director
may file public comments pursuant to the standards set forth
in section 3508 on the
collection of information contained in the proposed rule;
``(2) When a final rule is published in the Federal
Register, the agency shall explain--
``(A) how any collection of information contained in the
final rule responds to the comments, if any, filed by the
Director or the public; or
``(B) the reasons such comments were rejected.
``(3) If the Director has received notice and failed to
comment on an agency rule within 60 days after the notice of
proposed rulemaking, the Director may not disapprove any
collection of information specifically contained in an agency
rule.
``(4) No provision in this section shall be construed to
prevent the Director, in the Director's discretion--
``(A) from disapproving any collection of information which
was not specifically required by an agency rule;
``(B) from disapproving any collection of information
contained in an agency rule, if the agency failed to comply
with the requirements of paragraph (1) of this subsection;
``(C) from disapproving any collection of information
contained in a final agency rule, if the Director finds
within 60 days after the publication of the final rule, and
after considering the agency's response to the Director's
comments filed under paragraph (2), that the collection of
information cannot be approved under the standards set forth
in section 3508; or
``(D) from disapproving any collection of information
contained in a final rule, if--
``(i) the Director determines that the agency has
substantially modified in the final rule the collection of
information contained in the proposed rule; and
``(ii) the agency has not given the Director the
information required under paragraph (1) with respect to the
modified collection of information, at least 60 days before
the issuance of the final rule.
``(5) This subsection shall apply only when an agency
publishes a notice of proposed rulemaking and requests public
comments.
``(6) The decision by the Director to approve or not act
upon a collection of information contained in an agency rule
shall not be subject to judicial review.
``(e)(1) Any decision by the Director under subsection (c),
(d), (h), or (j) to disapprove a collection of information,
or to instruct the agency to make substantive or material
change to a collection of information, shall be publicly
available and include an explanation of the reasons for such
decision.
``(2) Any written communication between the Administrator
of the Office of Information and Regulatory Affairs, or any
employee of the Office of Information and Regulatory Affairs,
and an agency or person not employed by the Federal
Government concerning a proposed collection of information
shall be made available to the public.
``(3) This subsection shall not require the disclosure of--
``(A) any information which is protected at all times by
procedures established for information
which has been specifically authorized under criteria
established by an Executive order or an Act of Congress to
be kept secret in the interest of national defense or
foreign policy; or
``(B) any communication relating to a collection of
information, the disclosure of which could lead to
retaliation or discrimination against the communicator.
``(f)(1) An independent regulatory agency which is
administered by 2 or more members of a commission, board, or
similar body, may by majority vote void--
``(A) any disapproval by the Director, in whole or in part,
of a proposed collection of information that agency; or
``(B) an exercise of authority under subsection (d) of
section 3507 concerning that agency.
``(2) The agency shall certify each vote to void such
disapproval or exercise to the Director, and explain the
reasons for such vote. The Director shall without further
delay assign a control number to such collection of
information, and such vote to void the disapproval or
exercise shall be valid for a period of 3 years.
``(g) The Director may not approve a collection of
information for a period in excess of 3 years.
``(h)(1) If an agency decides to seek extension of the
Director's approval granted for a currently approved
collection of information, the agency shall--
``(A) conduct the review established under section 3506(c),
including the seeking of comment from the public on the
continued need for, and burden imposed by the collection of
information; and
``(B) after having made a reasonable effort to seek public
comment, but no later than 60 days before the expiration date
of the control number assigned by the Director for the
currently approved collection of information, submit the
collection of information for review and approval under this
section, which shall include an explanation of how the agency
has used the information that it has collected.
``(2) If under the provisions of this section, the Director
disapproves a collection of information contained in an
existing rule, or recommends or instructs the agency to make
a substantive or material change to a collection of
information contained in an existing rule, the Director
shall--
``(A) publish an explanation thereof in the Federal
Register; and
``(B) instruct the agency to undertake a rulemaking within
a reasonable time limited to consideration of changes to the
collection of information contained in the rule and
thereafter to submit the collection of information for
approval or disapproval under this chapter.
``(3) An agency may not make a substantive or material
modification to a collection of information after such
collection has been approved by the Director, unless the
modification has been submitted to the Director for review
and approval under this chapter.
``(i)(1) If the Director finds that a senior official of an
agency designated under section 3506(a) is sufficiently
independent of program responsibility to evaluate fairly
whether proposed collections of information should be
approved and has sufficient resources to carry out this
responsibility effectively, the Director may, by rule in
accordance with the notice and comment provisions of chapter
5 of title 5, United States Code, delegate to such official
the authority to approve proposed collections of information
in specific program areas, for specific purposes, or for all
agency purposes.
``(2) A delegation by the Director under this section shall
not preclude the Director from reviewing individual
collections of information if the Director determines that
circumstances warrant such a review. The Director shall
retain authority to revoke such delegations, both in general
and with regard to any specific matter. In acting for the
Director, any official to whom approval authority has been
delegated under this section shall comply fully with the
rules and regulations promulgated by the Director.
``(j)(1) The agency head may request the Director to
authorize collection of information prior to expiration of
time periods established under this chapter, if an agency
head determines that--
``(A) a collection of information--
``(i) is needed prior to the expiration of such time
periods; and
``(ii) is essential to the mission of the agency; and
``(B) the agency cannot reasonably comply with the
provisions of this chapter within such time periods because--
``(i) public harm is reasonably likely to result if normal
clearance procedures are followed; or
``(ii) an unanticipated event has occurred and the use of
normal clearance procedures is reasonably likely to prevent
or disrupt the collection of information related to the event
or is reasonably likely to cause a statutory or court-ordered
deadline to be missed.
``(2) The Director shall approve or disapprove any such
authorization request
[[Page H2628]] within the time requested by the agency head
and, if approved, shall assign the collection of information
a control number. Any collection of information conducted
under this subsection may be conducted without compliance
with the provisions of this chapter for a maximum of 90 days
after the date on which the Director received the request to
authorize such collection.
``Sec. 3508. Determination of necessity for information;
hearing
``Before approving a proposed collection of information,
the Director shall determine whether the collection of
information by the agency is necessary for the proper
performance of the functions of the agency, including whether
the information shall have practical utility. Before making a
determination the Director may give the agency and other
interested persons an opportunity to be heard or to submit
statements in writing. To the extent, if any, that the
Director determines that the collection of information by an
agency is unnecessary for any reason, the agency may not
engage in the collection of information.
``Sec. 3509. Designation of central collection agency
``The Director may designate a central collection agency to
obtain information for two or more agencies if the Director
determines that the needs of such agencies for information
will be adequately served by a single collection agency, and
such sharing of data is not inconsistent with applicable law.
In such cases the Director shall prescribe (with reference to
the collection of information) the duties and functions of
the collection agency so designated and of the agencies for
which it is to act as agent (including reimbursement for
costs). While the designation is in effect, an agency covered
by the designation may not obtain for itself information for
the agency which is the duty of the collection agency to
obtain. The Director may modify the designation from time to
time as circumstances require. The authority to designate
under this section is subject to the provisions of section
3507(f) of this chapter.
``Sec. 3510. Cooperation of agencies in making information
available
``(a) The Director may direct an agency to make available
to another agency, or an agency may make available to another
agency, information obtained by a collection of information
if the disclosure is not inconsistent with applicable law.
``(b)(1) If information obtained by an agency is released
by that agency to another agency, all the provisions of law
(including penalties which relate to the unlawful disclosure
of information) apply to the officers and employees of the
agency to which information is released to the same extent
and in the same manner as the provisions apply to the
officers and employees of the agency which originally
obtained the information.
``(2) The officers and employees of the agency to which the
information is released, in addition, shall be subject to the
same provisions of law, including penalties, relating to the
unlawful disclosure of information as if the information had
been collected directly by that agency.
``Sec. 3511. Establishment and operation of Government
Information Locator Service
``In order to assist agencies and the public in locating
information and to promote information sharing and equitable
access by the public, the Director shall--
``(1) cause to be established and maintained a distributed
agency-based electronic Government Information Locator
Service (hereafter in this section referred to as the
`Service'), which shall identify the major information
systems, holdings, and dissemination products of each agency;
``(2) require each agency to establish and maintain an
agency information locator service as a component of, and to
support the establishment and operation of the Service;
``(3) in cooperation with the Archivist of the United
States, the Administrator of General Services, the Public
Printer, and the Librarian of Congress, establish an
interagency committee to advise the Secretary of Commerce on
the development of technical standards for the Service to
ensure compatibility, promote information sharing, and
uniform access by the public;
``(4) consider public access and other user needs in the
establishment and operation of the Service;
``(5) ensure the security and integrity of the Service,
including measures to ensure that only information which is
intended to be disclosed to the public is disclosed through
the Service; and
``(6) periodically review the development and effectiveness
of the Service and make recommendations for improvement,
including other mechanisms for improving public access to
Federal agency public information.
``Sec. 3512. Public protection
``(a) Notwithstanding any other provision of law, no person
shall be subject to any penalty for failing to maintain or
provide information to any agency if the collection of
information involved was made after December 31, 1981, and at
the time of the failure did not display a current control
number assigned by the Director, or fails to state that such
request is not subject to this chapter.
``(b) Actions taken by agencies which are not in compliance
with subsection (a) of this section shall give rise to a
complete defense or bar to such action by an agency, which
may be raised at any time during the agency decision making
process or judicial review of the agency decision under any
available process for judicial review.
``Sec. 3513. Director review of agency activities; reporting;
agency response
``(a) In consultation with the Administrator of General
Services, the Archivist of the United States, the Director of
the National Institute of Standards and Technology, and the
Director of the Office of Personnel Management, the Director
shall periodically review selected agency information
resources management activities to ascertain the efficiency
and effectiveness of such activities to improve agency
performance and the accomplishment of agency missions.
``(b) Each agency having an activity reviewed under
subsection (a) shall, within 60 days after receipt of a
report on the review, provide a written plan to the Director
describing steps (including milestones) to--
``(1) be taken to address information resources management
problems identified in the report; and
``(2) improve agency performance and the accomplishment of
agency missions.
``Sec. 3514. Responsiveness to Congress
``(a)(1) The Director shall--
``(A) keep the Congress and congressional committees fully
and currently informed of the major activities under this
chapter; and
``(B) submit a report on such activities to the President
of the Senate and the Speaker of the House of Representatives
annually and at such other times as the Director determines
necessary.
``(2) The Director shall include in any such report a
description of the extent to which agencies have--
``(A) reduced information collection burdens on the public,
including--
``(i) a summary of accomplishments and planned initiatives
to reduce collection of information burdens;
``(ii) a list of all violations of this chapter and of any
rules, guidelines, policies, and procedures issued pursuant
to this chapter;
``(iii) a list of any increase in the collection of
information burden, including the authority for each such
collection; and
``(iv) a list of agencies that in the preceding year did
not reduce information collection burdens by at least 10
percent pursuant to section 3505, a list of the programs and
statutory responsibilities of those agencies that precluded
that reduction, and recommendations to assist those agencies
to reduce information collection burdens in accordance with
that section;
``(B) improved the quality and utility of statistical
information;
``(C) improved public access to Government information; and
``(D) improved program performance and the accomplishment
of agency missions through information resources management.
``(b) The preparation of any report required by this
section shall be based on performance results reported by the
agencies and shall not increase the collection of information
burden on persons outside the Federal Government.
``Sec. 3515. Administrative powers
``Upon the request of the Director, each agency (other than
an independent regulatory agency) shall, to the extent
practicable, make its services, personnel, and facilities
available to the Director for the performance of functions
under this chapter.
``Sec. 3516. Rules and regulations
``The Director shall promulgate rules, regulations, or
procedures necessary to exercise the authority provided by
this chapter.
``Sec. 3517. Consultation with other agencies and the public
``(a) In developing information resources management
policies, plans, rules, regulations, procedures, and
guidelines and in reviewing collections of information, the
Director shall provide interested agencies and persons early
and meaningful opportunity to comment.
``(b) Any person may request the Director to review any
collection of information conducted by or for an agency to
determine, if, under this chapter, the person shall maintain,
provide, or disclose the information to or for the agency.
Unless the request is frivolous, the Director shall, in
coordination with the agency responsible for the collection
of information--
``(1) respond to the request within 60 days after receiving
the request, unless such period is extended by the Director
to a specified date and the person making the request is
given notice of such extension; and
``(2) take appropriate remedial action, if necessary.
``Sec. 3518. Effect on existing laws and regulations
``(a) Except as otherwise provided in this chapter, the
authority of an agency under any other law to prescribe
policies, rules, regulations, and procedures for Federal
information resources management activities is subject to the
authority of the Director under this chapter.
``(b) Nothing in this chapter shall be deemed to affect or
reduce the authority of the Secretary of Commerce or the
Director of the Office of Management and Budget pursuant to
Reorganization Plan No. 1 of 1977 (as amended) and Executive
order, relating to telecommunications and
information policy, procurement and management of
telecommunications and information systems, spectrum use,
and related matters.
``(c)(1) Except as provided in paragraph (2), this chapter
shall not apply to obtaining,
[[Page H2629]] causing to be obtained, soliciting, or
requiring the disclosure to third parties or the public, of
facts or opinions--
``(A) during the conduct of a Federal criminal
investigation or prosecution, or during the disposition of a
particular criminal matter;
``(B) during the conduct of--
``(i) a civil action to which the United States or any
official or agency thereof is a party; or
``(ii) an administrative action or investigation involving
an agency against specific individuals or entities;
``(C) by compulsory process pursuant to the Antitrust Civil
Process Act and section 13 of the Federal Trade Commission
Improvements Act of 1980; or
``(D) during the conduct of intelligence activities as
defined in section 4-206 of Executive Order No. 12036, issued
January 24, 1978, or successor orders, or during the conduct
of cryptologic activities that are communications security
activities.
``(2) This chapter applies to obtaining, causing to be
obtained, soliciting, or requiring the disclosure to third
parties or the public, of facts or opinions during the
conduct of general investigations (other than information
collected in an antitrust investigation to the extent
provided in subparagraph (C) of paragraph (1)) undertaken
with reference to a category of individuals or entities such
as a class of licensees or an entire industry.
``(d) Nothing in this chapter shall be interpreted as
increasing or decreasing the authority conferred by Public
Law 89-306 on the Administrator of the General Services
Administration, the Secretary of Commerce, or the Director of
the Office of Management and Budget.
``(e) Nothing in this chapter shall be interpreted as
increasing or decreasing the authority of the President, the
Office of Management and Budget or the Director thereof,
under the laws of the United States, with respect to the
substantive policies and programs of departments, agencies
and offices, including the substantive authority of any
Federal agency to enforce the civil rights laws.
``Sec. 3519. Access to information
``Under the conditions and procedures prescribed in section
716 of title 31, the Director and personnel in the Office of
Information and Regulatory Affairs shall furnish such
information as the Comptroller General may require for the
discharge of the responsibilities of the Comptroller General.
For the purpose of obtaining such information, the
Comptroller General or representatives thereof shall have
access to all books, documents, papers and records,
regardless of form or format, of the Office.
``Sec. 3520. Authorization of appropriations
``There are authorized to be appropriated to the Office of
Information and Regulatory Affairs to carry out the
provisions of this chapter such sums as may be necessary.''.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall take effect October
1, 1995.
H.R. 925
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Private Property Protection
Act of 1995''.
SEC. 2. FEDERAL POLICY AND DIRECTION.
(a) General Policy.--It is the policy of the Federal
Government that no law or agency action should limit the use
of privately owned property so as to diminish its value.
(b) Application to Federal Agency Action.--Each Federal
agency, officer, and employee should exercise Federal
authority to ensure that agency action will not limit the use
of privately owned property so as to diminish its value.
SEC. 3. RIGHT TO COMPENSATION.
(a) In General.--The Federal Government shall compensate an
owner of property whose use of any portion of that property
has been limited by an agency action, under a specified
regulatory law, that diminishes the fair market value of that
portion by 20 percent or more. The amount of the compensation
shall equal the diminution in value that resulted from the
agency action. If the diminution in value of a portion of
that property is greater than 50 percent, at the option of
the owner, the Federal Government shall buy that portion of
the property for its fair market value.
(b) Duration of Limitation on Use.--Property with respect
to which compensation has been paid under this Act shall not
thereafter be used contrary to the limitation imposed by the
agency action, even if that action is later rescinded or
otherwise vitiated. However, if that action is later
rescinded or otherwise vitiated, and the owner elects to
refund the amount of the compensation, adjusted for
inflation, to the Treasury of the United States, the property
may be so used.
SEC. 4. EFFECT OF STATE LAW.
If a use is a nuisance as defined by the law of a State or
is already prohibited under a local zoning ordinance, no
compensation shall be made under this Act with respect to a
limitation on that use.
SEC. 5. EXCEPTIONS.
(a) Prevention of Hazard to Health or Safety or Damage to
Specific Property.--No compensation shall be made under this
Act with respect to an agency action the primary purpose of
which is to prevent an identifiable--
(1) hazard to public health or safety; or
(2) damage to specific property other than the property
whose use is limited.
(b) Navigation Servitude.--No compensation shall be made
under this Act with respect to an agency action pursuant to
the Federal navigation servitude, as defined by the courts of
the United States, except to the extent such servitude is
interpreted to apply to wetlands.
SEC. 6. PROCEDURE.
(a) Request of Owner.--An owner seeking compensation under
this Act shall make a written request for compensation to the
agency whose agency action resulted in the limitation. No
such request may be made later than 180 days after the owner
receives actual notice of that agency action.
(b) Negotiations.--The agency may bargain with that owner
to establish the amount of the compensation. If the agency
and the owner agree to such an amount, the agency shall
promptly pay the owner the amount agreed upon.
(c) Choice of Remedies.--If, not later than 180 days after
the written request is made, the parties do not come to an
agreement as to the right to and amount of compensation, the
owner may choose to take the matter to binding arbitration or
seek compensation in a civil action.
(d) Arbitration.--The procedures that govern the
arbitration shall, as nearly as practicable, be those
established under title 9, United States Code, for
arbitration proceedings to which that title applies. An award
made in such arbitration shall include a reasonable
attorney's fee and other arbitration costs (including
appraisal fees). The agency shall promptly pay any award made
to the owner.
(e) Civil Action.--An owner who does not choose
arbitration, or who does not receive prompt payment when
required by this section, may obtain appropriate relief in a
civil action against the agency. An owner who prevails in a
civil action under this section shall be entitled to, and the
agency shall be liable for, a reasonable attorney's fee and
other litigation costs (including appraisal fees). The court
shall award interest on the amount of any compensation from
the time of the limitation.
(f) Source of Payments.--Any payment made under this
section to an owner, and any judgment obtained by an owner in
a civil action under this section shall, notwithstanding any
other provision of law, be made from the annual appropriation
of the agency whose action occasioned the payment or
judgment. If the agency action resulted from a requirement
imposed by another agency, then the agency making the payment
or satisfying the judgment may seek partial or complete
reimbursement from the appropriated funds of the other
agency. For this purpose the head of the agency concerned may
transfer or reprogram any appropriated funds available to the
agency. If insufficient funds exist for the payment or to
satisfy the judgment, it shall be the duty of the head of the
agency to seek the appropriation of such funds for the next
fiscal year.
SEC. 7. LIMITATION.
Notwithstanding any other provision of law, any obligation
of the United States to make any payment under this Act shall
be subject to the availability of appropriations.
SEC. 8. DUTY OF NOTICE TO OWNERS.
Whenever an agency takes an agency action limiting the use
of private property, the agency shall give appropriate notice
to the owners of that property explaining their rights under
this Act and the procedures directly affected for obtaining
any compensation that may be due to them under this Act.
SEC. 9. RULES OF CONSTRUCTION.
(a) Effect on Constitutional Right to Compensation.--
Nothing in this Act shall be construed to limit any right to
compensation that exists under the Constitution or under
other laws of the United States.
(b) Effect of Payment.--Payment of compensation under this
Act (other than when the property is bought by the Federal
Government at the option of the owner) shall not confer any
rights on the Federal Government other than the limitation on
use resulting from the agency action.
SEC. 9. DEFINITIONS.
For the purposes of this Act--
(1) the term ``property'' means land and includes the right
to use or receive water;
(2) a use of property is limited by an agency action if a
particular legal right to use that property no longer exists
because of the action;
(3) the term ``agency action'' has the meaning given that
term in section 551 of title 5, United States Code, but also
includes the making of a grant to a public authority
conditioned upon an action by the recipient that would
constitute a limitation if done directly by the agency;
(4) the term ``agency'' has the meaning given that term in
section 551 of title 5, United States Code;
(5) the term ``specified regulatory law'' means--
(A) section 404 of the Federal Water Pollution Control Act
(33 U.S.C. 1344);
(B) the Endangered Species Act of 1979 (16 U.S.C. 1531 et
seq.);
(C) title XII of the Food Security Act of 1985 (16 U.S.C.
3821 et seq.); or
(D) with respect to an owner's right to use or receive
water only--
(i) the Act of June 17, 1902, and all Acts amendatory
thereof or supplementary thereto, popularly called the
``Reclamation Acts'' (43 U.S.C. 371 et seq.);
[[Page H2630]] (ii) the Federal Land Policy Management Act
(43 U.S.C. 1701 et seq.); or
(iii) section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974 (16 U.S.C. 1604);
(6) the term ``fair market value'' means the most probable
price at which property would change hands, in a competitive
and open market under all conditions requisite to a fair
sale, between a willing buyer and a willing seller, neither
being under any compulsion to buy or sell and both having
reasonable knowledge of relevant facts, at the time the
agency action occurs;
(7) the term ``State'' includes the District of Columbia,
Puerto Rico, and any other territory or possession of the
United States; and
(8) the term ``law of the State'' includes the law of a
political subdivision of a State.
H.R. 926
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Regulatory Reform and Relief
Act''.
TITLE I--STRENGTHENING REGULATORY FLEXIBILITY
SEC. 101. JUDICIAL REVIEW.
(a) Amendment.--Section 611 of title 5, United States Code,
is amended to read as follows:
``Sec. 611. Judicial review
``(a)(1) Except as provided in paragraph (2), not later
than one year notwithstanding any other provision of law
after the effective date of a final rule with respect to
which an agency--
``(A) certified, pursuant to section 605(b), that such rule
would not have a significant economic impact on a substantial
number of small entities; or
``(B) prepared a final regulatory flexibility analysis
pursuant to section 604,
an affected small entity may petition for the judicial review
of such certification or analysis in accordance with the
terms of this subsection. A court having jurisdiction to
review such rule for compliance with the provisions of
section 553 or under any other provision of law shall have
jurisdiction to review such certification or analysis. In the
case where an agency delays the issuance of a final
regulatory flexibility analysis pursuant to section 608(b), a
petition for judicial review under this subsection shall be
filed not later than one year notwithstanding any other
provision of law after the date the analysis is made
available to the public.
``(2) For purposes of this subsection, the term `affected
small entity' means a small entity that is or will be
adversely affected by the final rule.
``(3) Nothing in this subsection shall be construed to
affect the authority of any court to stay the effective date
of any rule or provision thereof under any other provision of
law.
``(4)(A) In the case where the agency certified that such
rule would not have a significant economic impact on a
substantial number of small entities, the court may order the
agency to prepare a final regulatory flexibility analysis
pursuant to section 604 if the court determines, on the basis
of the rulemaking record, that the certification was
arbitrary, capricious, an abuse of discretion, or otherwise
not in accordance with law.
``(B) In the case where the agency prepared a final
regulatory flexibility analysis, the court may order the
agency to take corrective action consistent with the
requirements of section 604 if the court determines, on the
basis of the rulemaking record, that the final regulatory
flexibility analysis was prepared by the agency without
observance of procedure required by section 604.
``(5) If, by the end of the 90-day period beginning on the
date of the order of the court pursuant to paragraph (4) (or
such longer period as the court may provide), the agency
fails, as appropriate--
``(A) to prepare the analysis required by section 604; or
``(B) to take corrective action consistent with the
requirements of section 604,
the court may stay the rule or grant such other relief as it
deems appropriate.
``(6) In making any determination or granting any relief
authorized by this subsection, the court shall take due
account of the rule of prejudicial error.
``(b) In an action for the judicial review of a rule, any
regulatory flexibility analysis for such rule (including an
analysis prepared or corrected pursuant to subsection (a)(4))
shall constitute part of the whole record of agency action in
connection with such review.
``(c) Nothing in this section bars judicial review of any
other impact statement or similar analysis required by any
other law if judicial review of such statement or analysis is
otherwise provided by law.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply only to final agency rules issued after the date
of enactment of this Act.
SEC. 102. RULES COMMENTED ON BY SBA CHIEF COUNSEL FOR
ADVOCACY.
(a) In General.--Section 612 of title 5, United States
Code, is amended by adding at the end the following new
subsection:
``(d) Action by the SBA Chief Counsel for Advocacy.--
``(1) Transmittal of proposed rules and initial regulatory
flexibility analysis to sba chief counsel for advocacy.--On
or before the 30th day preceding the date of publication by
an agency of general notice of proposed rulemaking for a
rule, the agency shall transmit to the Chief Counsel for
Advocacy of the Small Business Administration--
``(A) a copy of the proposed rule; and
``(B)(i) a copy of the initial regulatory flexibility
analysis for the rule if required under section 603; or
``(ii) a determination by the agency that an initial
regulatory flexibility analysis is not required for the
proposed rule under section 603 and an explanation for the
determination.
``(2) Statement of effect.--On or before the 15th day
following receipt of a proposed rule and initial regulatory
flexibility analysis from an agency under paragraph (1), the
Chief Counsel for Advocacy may transmit to the agency a
written statement of the effect of the proposed rule on small
entities.
``(3) Response.--If the Chief Counsel for Advocacy
transmits to an agency a statement of effect on a proposed
rule in accordance with paragraph (2), the agency shall
publish the statement, together with the response of the
agency to the statement, in the Federal Register at the time
of publication of general notice of proposed rulemaking for
the rule.
``(4) Special rule.--Any proposed rules issued by an
appropriate Federal banking agency (as that term is defined
in section 3(q) of the Federal Deposit Insurance Act (12
U.S.C. 1813(q)), the National Credit Union Administration, or
the Office of Federal Housing Enterprise Oversight, in
connection with the implementation of monetary policy or to
ensure the safety and soundness of federally insured
depository institutions, any affiliate of such an
institution, credit unions, or government sponsored housing
enterprises or to protect the Federal deposit insurance funds
shall not be subject to the requirements of this
subsection.''.
(b) Conforming Amendment.--Section 603(a) of title 5,
United States Code, is amended by inserting ``in accordance
with section 612(d)'' before the period at the end of the
last sentence.
SEC. 103. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR
ADVOCACY.
It is the sense of Congress that the Chief Counsel for
Advocacy of the Small Business Administration should be
permitted to appear as amicus curiae in any action or case
brought in a court of the United States for the purpose of
reviewing a rule.
TITLE II--REGULATORY IMPACT ANALYSES
SEC. 201. DEFINITIONS.
Section 551 of title 5, United States Code, is amended by
striking ``and'' at the end of paragraph (13), by striking
the period at the end of paragraph (14) and inserting a
semicolon, and by adding at the end the following:
``(15) `major rule' means any rule subject to section
553(c) that is likely to result in--
``(A) an annual effect on the economy of $50,000,000 or
more;
``(B) a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government
agencies, or geographic regions, or
``(C) significant adverse effects on competition,
employment, investment, productivity, innovation, or on the
ability of United States-based enterprises to compete with
foreign-based enterprises in domestic and export markets; and
``(16) `Director' means the Director of the Office of
Management and Budget.''.
SEC. 202. RULEMAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amended by
adding at the end the following:
``(f)(1) Each agency shall for a proposed major rule
publish in the Federal Register, at least 90 days before the
date of publication of the general notice required under
subsection (b), a notice of intent to engage in rulemaking.
``(2) A notice under paragraph (1) for a proposed major
rule shall include, to the extent possible, the information
required to be included in a regulatory impact analysis for
the rule under subsection (i)(4)(B) and (D).
``(3) For a major rule proposed by an agency, the head of
the agency shall include in a general notice under subsection
(b), a preliminary regulatory impact analysis for the rule
prepared in accordance with subsection (i).
``(4) For a final major rule, the agency shall include with
the statement of basis and purpose--
``(A) a summary of a final regulatory impact analysis of
the rule in accordance with subsection (i); and
``(B) a clear delineation of all changes in the information
included in the final regulatory impact analysis under
subsection (i) from any such information that was included in
the notice for the rule under subsection (b).
The agency shall provide the complete text of a final
regulatory impact analysis upon request.
``(5) The issuance of a notice of intent to engage in
rulemaking under paragraph (1) and the issuance of a
preliminary regulatory impact analysis under paragraph (3)
shall not be considered final agency action for purposes of
section 704.
``(6) In a rulemaking involving a major rule, the agency
conducting the rulemaking shall make a written record
describing the subject of all contacts the agency made with
persons outside the agency relating to such rulemaking. If
the contact was made with a
[[Page H2631]] non-governmental person, the written record of
such contact shall be made available, upon request to the
public.''.
SEC. 203. HEARING REQUIREMENT FOR PROPOSED RULES; AND
EXTENSION OF COMMENT PERIOD.
(a) Hearing Requirement.--Section 553 of title 5, United
States Code, as amended by section 202, is further amended by
adding after subsection (f) the following:
``(g) If more than 100 interested persons acting
individually submit requests for a hearing to an agency
regarding any major rule proposed by the agency, the agency
shall hold such a hearing on the proposed rule.''.
(b) Extension of Comment Period.--Section 553 of title 5,
United States Code, as amended by subsection (a), is further
amended by adding after subsection (g) the following:
``(h) If during the 90-day period beginning on the date of
publication of a notice under subsection (f) for a proposed
major rule, or if during the period beginning on the date of
publication or service of notice required by subsection (b)
for a proposed major rule, more than 100 persons individually
contact the agency to request an extension of the period for
making submissions under subsection (c) pursuant to the
notice, the agency--
``(1) shall provide an additional 30-day period for making
those submissions; and
``(2) may not adopt the rule until after the additional
period.''.
(c) Response to Comments.--Section 553(c) of title 5,
United States Code, is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following:
``(2) Each agency shall publish in the Federal Register,
with each rule published under section 552(a)(1)(D),
responses to the substance of the comments received by the
agency regarding the rule.''.
SEC. 204. REGULATORY IMPACT ANALYSIS.
Section 553 of title 5, United States Code, as amended by
section 203, is amended by adding after subsection (h) the
following:
``(i)(1) Each agency shall, in connection with every major
rule, prepare, and, to the extent permitted by law, consider,
a regulatory impact analysis. Such analysis may be combined
with any regulatory flexibility analysis performed under
sections 603 and 604.
``(2) Each agency shall initially determine whether a rule
it intends to propose or issue is a major rule. The Director
shall have authority to order a rule to be treated as a major
rule and to require any set of related rules to be considered
together as a major rule.
``(3) Except as provided in subsection (j), agencies shall
prepare--
``(A) a preliminary regulatory impact analysis, which shall
be transmitted, along with a notice of proposed rulemaking,
to the Director at least 60 days prior to the publication of
notice of proposed rulemaking, and
``(B) a final regulatory impact analysis, which shall be
transmitted along with the final rule at least 30 days prior
to the publication of a major rule.
``(4) Each preliminary and final regulatory impact analysis
shall contain the following information:
``(A) A description of the potential benefits of the rule,
including any beneficial effects that cannot be quantified in
monetary terms and the identification of those likely to
receive the benefits.
``(B) An explanation of the necessity, legal authority, and
reasonableness of the rule and a description of the condition
that the rule is to address.
``(C) A description of the potential costs of the rule,
including any adverse effects that cannot be quantified in
monetary terms, and the identification of those likely to
bear the costs.
``(D) An analysis of alternative approaches, including
market based mechanisms, that could substantially achieve the
same regulatory goal at a lower cost and an explanation of
the reasons why such alternative approaches were not adopted,
together with a demonstration that the rule provides for the
least costly approach.
``(E) A statement that the rule does not conflict with, or
duplicate, any other rule or a statement of the reasons why
such a conflict or duplication exists.
``(F) A statement of whether the rule will require on-site
inspections or whether persons will be required by the rule
to maintain any records which will be subject to inspection,
and a statement of whether the rule will require persons to
obtain licenses, permits, or other certifications including
specification of any associated fees or fines.
``(G) An estimate of the costs to the agency for
implementation and enforcement of the rule and of whether the
agency can be reasonably expected to implement the rule with
the current level of appropriations.
``(5)(A) the Director is authorized to review and prepare
comments on any preliminary or final regulatory impact
analysis, notice of proposed rulemaking, or final rule based
on the requirements of this subsection.
``(B) Upon the request of the Director, an agency shall
consult with the Director concerning the review of a
preliminary impact analysis or notice of proposed rulemaking
and shall refrain from publishing its preliminary regulatory
impact analysis or notice of proposed rulemaking until such
review is concluded. The Director's review may not take
longer than 90 days after the date of the request of the
Director.
``(6)(A) An agency may not adopt a major rule unless the
final regulatory impact analysis for the rule is approved or
commented upon in writing by the Director or by an individual
designated by the Director for that purpose.
``(B) Upon receiving notice that the Director intends to
comment in writing with respect to any final regulatory
impact analysis or final rule, the agency shall refrain from
publishing its final regulatory impact analysis or final rule
until the agency has responded to the Director's comments and
incorporated those comments in the agency's response in the
rulemaking file. If the Director fails to make such comments
in writing with respect to any final regulatory impact
analysis or final rule within 90 days of the date the
Director gives such notice, the agency may adopt such final
regulatory impact analysis or final rule.
``(7) Notwithstanding section 551(16), for purposes of this
subsection with regard to any rule proposed or issued by an
appropriate Federal banking agency (as that term is defined
in section 3(q) of the Federal Deposit Insurance Act (12
U.S.C. 1813(q)), the National Credit Union Administration, or
the Office of Federal Housing Enterprise Oversight, the term
`Director' means the head of such agency, Administration, or
Office.''.
SEC. 205. STANDARD OF CLARITY.
Section 553 of title 5, United States Code, as amended in
section 204, is amended by adding after subsection (i) the
following:
``(j) To the extent practicable, the head of an agency
shall seek to ensure that any proposed major rule or
regulatory impact analysis of such a rule is written in a
reasonably simple and understandable manner and provides
adequate notice of the content of the rule to affected
persons.''.
SEC. 206. EXEMPTIONS.
Section 553 of title 5, United States Code, as amended by
section 205, is further amended by adding after subsection
(j) the following:
``(k)(1) The provisions of this section regarding major
rules shall not apply to--
``(A) any regulation that responds to an emergency
situation if such regulation is reported to the Director as
soon as is practicable;
``(B) any regulation for which consideration under the
procedures of this section would conflict with deadlines
imposed by statute or by judicial order;
``(C) any regulation proposed or issued in connection with
the implementation of monetary policy or to ensure the safety
and soundness of federally insured depository institutions,
any affiliate of such institution, credit unions, or
government sponsored housing enterprises regulated by the
Office of Federal Housing Enterprise Oversight;
``(D) any agency action that the head of the agency
certifies is limited to interpreting, implementing, or
administering the internal revenue laws of the United States,
including any regulation proposed or issued in connection
with ensuring the collection of taxes from a subsidiary of a
foreign company doing business in the United States; and
``(E) any regulation proposed or issued pursuant to section
553 of title 5, United States Code, in connection with
imposing trade sanctions against any country that engages in
illegal trade activities against the United States that are
injurious to American technology, jobs, pensions, or general
economic well-being.
A regulation described in subparagraph (B) shall be reported
to the Director with a brief explanation of the conflict and
the agency, in consultation with the Director, shall, to the
extent permitted by statutory or judicial deadlines, adhere
to the process of this section.
``(2) The Director may in accordance with the purposes of
this section exempt any class or category of regulations from
any or all requirements of this section.
``(3) For purposes of paragraph (1), the term `emergency
situation' means a situation that is--
``(A) immediately impending and extraordinary in nature, or
``(B) demanding attention due to a condition, circumstance,
or practice reasonably expected to cause death, serious
illness, or severe injury to humans or substantial
endangerment to private property or the environment if no
action is taken.''.
SEC. 207. REPORT.
The Director of the Office of Management and Budget shall
submit a report to the Congress no later than 24 months after
the date of the enactment of this Act containing an analysis
of rulemaking procedures of Federal agencies and an analysis
of the impact of those rulemaking procedures on the regulated
public and regulatory process.
SEC. 208. EFFECTIVE DATE.
The amendment made by this title shall apply only to final
agency rules issued after rulemaking begun after the date of
enactment of this Act.
TITLE III--PROTECTIONS
SEC. 301. PRESIDENTIAL ACTION.
Pursuant to the authority of section 7301 of title 5,
United States Code, the President shall, within 180 days of
the date of the enactment of this title, prescribe
regulations for employees of the executive branch to ensure
that Federal laws and regulations shall be administered
consistent with the principle that any person shall, in
connection with the enforcement of such laws and
regulations--
[[Page H2632]] (1) be protected from abuse, reprisal, or
retaliation, and
(2) be treated fairly, equitably, and with due regard for
such person's rights under the Constitution.
H.R. 1022
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Risk Assessment and Cost-
Benefit Act of 1995''.
SEC. 2. FINDINGS.
The Congress finds that:
(1) Environmental, health, and safety regulations have led
to dramatic improvements in the environment and have
significantly reduced human health risk; however, the Federal
regulations that have led to these improvements have been
more costly and less effective than they could have been; too
often, regulatory priorities have not been based upon a
realistic consideration of risk, risk reduction
opportunities, and costs.
(2) The public and private resources available to address
health, safety, and environmental concerns are not unlimited;
those resources need to be allocated to address the greatest
needs in the most cost-effective manner and so that the
incremental costs of regulatory alternatives are reasonably
related to the incremental benefits.
(3) To provide more cost-effective and cost-reasonable
protection to human health and the environment, regulatory
priorities should be based upon realistic consideration of
risk; the priority setting process must include
scientifically sound, objective, and unbiased risk
assessments, comparative risk analysis, and risk management
choices that are grounded in cost-benefit principles.
(4) Risk assessment has proven to be a useful decision
making tool; however, improvements are needed in both the
quality of assessments and the characterization and
communication of findings; scientific and other data must be
better collected, organized, and evaluated; most importantly,
the critical information resulting from a risk assessment
must be effectively communicated in an objective and unbiased
manner to decision makers, and from decision makers to the
public.
(5) The public stake holders must be fully involved in the
risk-decision making process. They have the right-to-know
about the risks addressed by regulation, the amount of risk
to be reduced, the quality of the science used to support
decisions, and the cost of implementing and complying with
regulations. This knowledge will allow for public scrutiny
and promote quality, integrity, and responsiveness of agency
decisions.
(6) Although risk assessment is one important method to
improve regulatory decision-making, other approaches to
secure prompt relief from the burden of unnecessary and
overly complex regulations will also be necessary.
SEC. 3. COVERAGE OF ACT.
This Act does not apply to any of the following:
(1) A situation that the head of an affected Federal agency
determines to be an emergency. In such circumstance, the head
of the agency shall comply with the provisions of this Act
within as reasonable a time as is practical.
(2) Activities necessary to maintain military readiness.
(3) Any individual food, drug, or other product label, or
to any risk characterization appearing on any such label, if
the individual product label is required by law to be
approved by a Federal department or agency prior to use.
(4) Approval of State programs or plans by Federal
agencies.
SEC. 4. UNFUNDED MANDATES.
Nothing in this Act itself shall, without Federal funding
and further Federal agency action, create any new obligation
or burden on any State or local government or otherwise
impose any financial burden on any State or local government
in the absence of Federal funding, except with respect to
routine information requests.
SEC. 5. DEFINITIONS.
For purposes of this Act:
(1) Costs.--The term ``costs'' includes the direct and
indirect costs to the United States Government, to State,
local, and tribal governments, and to the private sector,
wage earners, consumers, and the economy, of implementing and
complying with a rule or alternative strategy.
(2) Benefit.--The term ``benefit'' means the reasonably
identifiable significant health, safety, environmental,
social and economic benefits that are expected to result
directly or indirectly from implementation of a rule or
alternative strategy.
(3) Major rule.--The term ``major rule'' means any
regulation that is likely to result in an annual increase in
costs of $25,000,000 or more. Such term does not include any
regulation or other action taken by an agency to authorize or
approve any individual substance or product.
(4) Program designed to protect human health.--The term
``program designed to protect human health'' does not include
regulatory programs concerning health insurance, health
provider services, or health care diagnostic services.
(5) Emergency.--As used in this Act, the term ``emergency''
means a situation that is immediately impending and
extraordinary in nature, demanding attention due to a
condition, circumstance, or practice reasonably expected to
cause death, serious illness, or severe injury to humans, or
substantial endangerment to private property or the
environment if no action is taken.
SEC. 6. AVAILABILITY OF INFORMATION AMONG FEDERAL AGENCIES.
Covered Federal agencies shall make existing databases and
information developed under this Act available to other
Federal agencies, subject to applicable confidentiality
requirements, for the purpose of meeting the requirements of
this Act. Within 15 months after the date of enactment of
this Act, the President shall issue guidelines for Federal
agencies to comply with this section.
TITLE I--RISK ASSESSMENT AND COMMUNICATION
SEC. 101. SHORT TITLE.
This title may be cited as the ``Risk Assessment and
Communication Act of 1995''.
SEC. 102. PURPOSES.
The purposes of this title are--
(1) to present the public and executive branch with the
most scientifically objective and unbiased information
concerning the nature and magnitude of health, safety, and
environmental risks in order to provide for sound regulatory
decisions and public education;
(2) to provide for full consideration and discussion of
relevant data and potential methodologies;
(3) to require explanation of significant choices in the
risk assessment process which will allow for better peer
review and public understanding; and
(4) to improve consistency within the executive branch in
preparing risk assessments and risk characterizations.
SEC. 103. EFFECTIVE DATE; APPLICABILITY; SAVINGS PROVISIONS.
(a) Effective Date.--Except as otherwise specifically
provided in this title, the provisions of this title shall
take effect 18 months after the date of enactment of this
title.
(b) Applicability.--
(1) In general.--Except as provided in paragraph (3), this
title applies to all significant risk assessment documents
and significant risk characterization documents, as defined
in paragraph (2).
(2) Significant risk assessment document or significant
risk characterization document.--(A) As used in this title,
the terms ``significant risk assessment document'' and
``significant risk characterization document'' include, at a
minimum, risk assessment documents or risk
characterization documents prepared by or on behalf of a
covered Federal agency in the implementation of a
regulatory program designed to protect human health,
safety, or the environment, used as a basis for one of the
items referred to in subparagraph (B), and--
(i) included by the agency in that item; or
(ii) inserted by the agency in the administrative record
for that item.
(B) The items referred to in subparagraph (A) are the
following:
(i) Any proposed or final major rule, including any
analysis or certification under title II, promulgated as part
of any Federal regulatory program designed to protect human
health, safety, or the environment.
(ii) Any proposed or final environmental clean-up plan for
a facility or Federal guidelines for the issuance of any such
plan. As used in this clause, the term ``environmental clean-
up'' means a corrective action under the Solid Waste Disposal
Act, a removal or remedial action under the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980, and any other environmental restoration and waste
management carried out by or on behalf of a covered Federal
agency with respect to any substance other than municipal
waste.
(iii) Any proposed or final permit condition placing a
restriction on facility siting or operation under Federal
laws administered by the Environmental Protection Agency or
the Department of the Interior. Nothing in this section (iii)
shall apply to the requirements of section 404 of the Clean
Water Act.
(iv) Any report to Congress.
(v) Any regulatory action to place a substance on any
official list of carcinogens or toxic or hazardous substances
or to place a new health effects value on such list,
including the Integrated Risk Information System Database
maintained by the Environmental Protection Agency.
(vi) Any guidance, including protocols of general
applicability, establishing policy regarding risk assessment
or risk characterization.
(C) The terms ``significant risk assessment document'' and
``significant risk characterization document'' shall also
include the following:
(i) Any such risk assessment and risk characterization
documents provided by a covered Federal agency to the public
and which are likely to result in an annual increase in costs
of $25,000,000 or more.
(ii) Environmental restoration and waste management carried
out by or on behalf of the Department of Defense with respect
to any substance other than municipal waste.
(D) Within 15 months after the date of the enactment of
this Act, each covered Federal agency administering a
regulatory program designed to protect human health, safety,
or the environment shall promulgate a rule establishing those
additional categories, if any, of risk assessment and risk
characterization documents prepared by or on behalf
[[Page H2633]] of the covered Federal agency that the agency
will consider significant risk assessment documents or
significant risk characterization documents for purposes of
this title. In establishing such categories, the head of the
agency shall consider each of the following:
(i) The benefits of consistent compliance by documents of
the covered Federal agency in the categories.
(ii) The administrative burdens of including documents in
the categories.
(iii) The need to make expeditious administrative decisions
regarding documents in the categories.
(iv) The possible use of a risk assessment or risk
characterization in any compilation of risk hazards or health
or environmental effects prepared by an agency and commonly
made available to, or used by, any Federal, State, or local
government agency.
(v) Such other factors as may be appropriate.
(E)(i) Not later than 18 months after the date of the
enactment of this Act, the President, acting through the
Director of the Office of Management and Budget, shall
determine whether any other Federal agencies should be
considered covered Federal agencies for purposes of this
title. Such determination, with respect to a particular
Federal agency, shall be based on the impact of risk
assessment documents and risk characterization documents on--
(I) regulatory programs administered by that agency; and
(II) the communication of risk information by that agency
to the public.
The effective date of such a determination shall be no later
than 6 months after the date of the determination.
(ii) Not later than 15 months after the President, acting
through the Director of the Office of Management and Budget,
determines pursuant to clause (i) that a Federal agency
should be considered a covered Federal agency for purposes of
this title, the head of that agency shall promulgate a rule
pursuant to subparagraph (D) to establish additional
categories of risk assessment and risk characterization
documents described in that subparagraph.
(3) Exceptions.--(A) This title does not apply to risk
assessment or risk characterization documents containing risk
assessments or risk characterizations performed with respect
to the following:
(i) A screening analysis, where appropriately labeled as
such, including a screening analysis for purposes of product
regulation or premanufacturing notices.
(ii) Any health, safety, or environmental inspections.
(iii) The sale or lease of Federal resources or regulatory
activities that directly result in the collection of Federal
receipts.
(B) No analysis shall be treated as a screening analysis
for purposes of subparagraph (A) if the results of such
analysis are used as the basis for imposing restrictions on
substances or activities.
(C) The risk assessment principle set forth in section
104(b)(1) need not apply to any risk assessment or risk
characterization document described in clause (iii) of
paragraph (2)(B). The risk characterization and communication
principle set forth in section 105(4) need not apply to any
risk assessment or risk characterization document described
in clause (v) or (vi) of paragraph (2)(B).
(c) Savings Provisions.--The provisions of this title shall
be supplemental to any other provisions of law relating to
risk assessments and risk characterizations, except that
nothing in this title shall be construed to modify any
statutory standard or statutory requirement designed to
protect health, safety, or the environment. Nothing in this
title shall be interpreted to preclude the consideration of
any data or the calculation of any estimate to more fully
describe risk or provide examples of scientific uncertainty
or variability. Nothing in this title shall be construed to
require the disclosure of any trade secret or other
confidential information.
SEC. 104. PRINCIPLES FOR RISK ASSESSMENT.
(a) In General.--The head of each covered Federal agency
shall apply the principles set forth in subsection (b) in
order to assure that significant risk assessment documents
and all of their components distinguish scientific findings
from other considerations and are, to the extent feasible,
scientifically objective, unbiased, and inclusive of all
relevant data and rely, to the extent available and
practicable, on scientific findings. Discussions or
explanations required under this section need not be repeated
in each risk assessment document as long as there is a
reference to the relevant discussion or explanation in
another agency document which is available to the public.
(b) Principles.--The principles to be applied are as
follows:
(1) When discussing human health risks, a significant risk
assessment document shall contain a discussion of both
relevant laboratory and relevant epidemiological data of
sufficient quality which finds, or fails to find, a
correlation between health risks and a potential toxin or
activity. Where conflicts among such data appear to exist, or
where animal data is used as a basis to assess human health,
the significant risk assessment document shall, to the extent
feasible and appropriate, include discussion of possible
reconciliation of conflicting information, and as relevant,
differences in study designs, comparative physiology, routes
of exposure, bioavailability, pharmacokinetics, and any other
relevant factor, including the sufficiency of basic data for
review. The discussion of possible reconciliation should
indicate whether there is a biological basis to assume a
resulting harm in humans. Animal data shall be reviewed with
regard to its relevancy to humans.
(2) Where a significant risk assessment document involves
selection of any significant assumption, inference, or model,
the document shall, to the extent feasible--
(A) present a representative list and explanation of
plausible and alternative assumptions, inferences, or models;
(B) explain the basis for any choices;
(C) identify any policy or value judgments;
(D) fully describe any model used in the risk assessment
and make explicit the assumptions incorporated in the model;
and
(E) indicate the extent to which any significant model has
been validated by, or conflicts with, empirical data.
SEC. 105. PRINCIPLES FOR RISK CHARACTERIZATION AND
COMMUNICATION.
Each significant risk characterization document shall meet
each of the following requirements:
(1) Estimates of risk.--The risk characterization shall
describe the populations or natural resources which are the
subject of the risk characterization. If a numerical estimate
of risk is provided, the agency shall, to the extent
feasible, provide--
(A) the best estimate or estimates for the specific
populations or natural resources which are the subject of the
characterization (based on the information available to the
Federal agency); and
(B) a statement of the reasonable range of scientific
uncertainties.
In addition to such best estimate or estimates, the risk
characterization document may present plausible upper-bound
or conservative estimates in conjunction with plausible lower
bounds estimates. Where appropriate, the risk
characterization document may present, in lieu of a single
best estimate, multiple best estimates based on assumptions,
inferences, or models which are equally plausible, given
current scientific understanding. To the extent practical and
appropriate, the document shall provide descriptions of the
distribution and probability of risk estimates to reflect
differences in exposure variability or sensitivity in
populations and attendant uncertainties. Sensitive
subpopulations or highly exposed subpopulations include,
where relevant and appropriate, children, the elderly,
pregnant women, and disabled persons.
(2) Exposure scenarios.--The risk characterization document
shall explain the exposure scenarios used in any risk
assessment, and, to the extent feasible, provide a statement
of the size of the corresponding population at risk and the
likelihood of such exposure scenarios.
(3) Comparisons.--The document shall contain a statement
that places the nature and magnitude of risks to human
health, safety, or the environment in context. Such statement
shall, to the extent feasible, provide comparisons with
estimates of greater, lesser, and substantially equivalent
risks that are familiar to and routinely encountered by the
general public as well as other risks, and, where appropriate
and meaningful, comparisons of those risks with other similar
risks regulated by the Federal agency resulting from
comparable activities and exposure pathways. Such comparisons
should consider relevant distinctions among risks, such as
the voluntary or involuntary nature of risks and the
preventability or nonpreventability of risks.
(4) Substitution risks.--Each significant risk assessment
or risk characterization document shall include a statement
of any significant substitution risks to human health, where
information on such risks has been provided to the agency.
(5) Summaries of other risk estimates.--If--
(A) a commenter provides a covered Federal agency with a
relevant risk assessment document or a risk characterization
document, and a summary thereof, during a public comment
provided by the agency for a significant risk assessment
document or a significant risk characterization document, or,
where no comment period is provided but a commenter provides
the covered Federal agency with the relevant risk assessment
document or risk characterization document, and a summary
thereof, in a timely fashion, and
(B) the risk assessment document or risk characterization
document is consistent with the principles and the guidance
provided under this title,
the agency shall, to the extent feasible, present such
summary in connection with the presentation of the agency's
significant risk assessment document or significant risk
characterization document. Nothing in this paragraph shall be
construed to limit the inclusion of any comments or material
supplied by any person to the administrative record of any
proceeding.
A document may satisfy the requirements of paragraph (3), (4)
or (5) by reference to information or material otherwise
available to the public if the document provides a brief
summary of such information or material.
SEC. 106. RECOMMENDATIONS OR CLASSIFICATIONS BY A NON-UNITED
STATES-BASED ENTITY.
No covered Federal agency shall automatically incorporate
or adopt any recommendation or classification made by a non-
United
[[Page H2634]] States-based entity concerning the health
effects value of a substance without an opportunity for
notice and comment, and any risk assessment document or risk
characterization document adopted by a covered Federal agency
on the basis of such a recommendation or classification shall
comply with the provisions of this title. For the purposes of
this section, the term ``non-United States-based entity''
means--
(1) any foreign government and its agencies;
(2) the United Nations or any of its subsidiary
organizations;
(3) any other international governmental body or
international standards-making organization; or
(4) any other organization or private entity without a
place of business located in the United States or its
territories.
SEC. 107. GUIDELINES AND REPORT.
(a) Guidelines.--Within 15 months after the date of
enactment of this title, the President shall issue guidelines
for Federal agencies consistent with the risk assessment and
characterization principles set forth in sections 104 and 105
and shall provide a format for summarizing risk assessment
results. In addition, such guidelines shall include guidance
on at least the following subjects: criteria for scaling
animal studies to assess risks to human health; use of
different types of dose-response models; thresholds;
definitions, use, and interpretations of the maximum
tolerated dose; weighting of evidence with respect to
extrapolating human health risks from sensitive species;
evaluation of benign tumors, and evaluation of different
human health endpoints.
(b) Report.--Within 3 years after the enactment of this
title, each covered Federal agency shall provide a report to
the Congress evaluating the categories of policy and value
judgments identified under subparagraph (C) of section
104(b)(2).
(c) Public Comment and Consultation.--The guidelines and
report under this section, shall be developed after notice
and opportunity for public comment, and after consultation
with representatives of appropriate State, local, and tribal
governments, and such other departments and agencies,
offices, organizations, or persons as may be advisable.
(d) Review.--The President shall review and, where
appropriate, revise the guidelines published under this
section at least every 4 years.
SEC. 108. RESEARCH AND TRAINING IN RISK ASSESSMENT.
(a) Evaluation.--The head of each covered agency shall
regularly and systematically evaluate risk assessment
research and training needs of the agency, including, where
relevant and appropriate, the following:
(1) Research to reduce generic data gaps, to address
modelling needs (including improved model sensitivity), and
to validate default options, particularly those common to
multiple risk assessments.
(2) Research leading to improvement of methods to quantify
and communicate uncertainty and variability among
individuals, species, populations, and, in the case of
ecological risk assessment, ecological communities.
(3) Emerging and future areas of research, including
research on comparative risk analysis, exposure to multiple
chemicals and other stressors, noncancer endpoints,
biological markers of exposure and effect, mechanisms of
action in both mammalian and nonmammalian species, dynamics
and probabilities of physiological and ecosystem exposures,
and prediction of ecosystem-level responses.
(4) Long-term needs to adequately train individuals in risk
assessment and risk assessment application. Evaluations under
this paragraph shall include an estimate of the resources
needed to provide necessary training.
(b) Strategy and Actions To Meet Identified Needs.--The
head of each covered agency shall develop a strategy and
schedule for carrying out research and training to meet the
needs identified in subsection (a).
(c) Report.--Not later than 6 months after the date of the
enactment of this Act, the head of each covered agency shall
submit to the Congress a report on the evaluations conducted
under subsection (a) and the strategy and schedule developed
under subsection (b). The head of each covered agency shall
report to the Congress periodically on the evaluations,
strategy, and schedule.
SEC. 109. STUDY OF COMPARATIVE RISK ANALYSIS.
(a) In General.--(1) The Director of the Office of
Management and Budget, in consultation with the Office of
Science and Technology Policy, shall conduct, or provide for
the conduct of, a study using comparative risk analysis to
rank health, safety, and environmental risks and to provide a
common basis for evaluating strategies for reducing or
preventing those risks. The goal of the study shall be to
improve methods of comparative risk analysis.
(2) Not later than 90 days after the date of the enactment
of this Act, the Director, in collaboration with the heads of
appropriate Federal agencies, shall enter into a contract
with the National Research Council to provide technical
guidance on approaches to using comparative risk analysis and
other considerations in setting health, safety, and
environmental risk reduction priorities.
(b) Scope of Study.--The study shall have sufficient scope
and breadth to evaluate comparative risk analysis and to test
approaches for improving comparative risk analysis and its
use in setting priorities for health, safety, and
environmental risk reduction. The study shall compare and
evaluate a range of diverse health, safety, and environmental
risks.
(c) Study Participants.--In conducting the study, the
Director shall provide for the participation of a range of
individuals with varying backgrounds and expertise, both
technical and nontechnical, comprising broad representation
of the public and private sectors.
(d) Duration.--The study shall begin within 180 days after
the date of the enactment of this Act and terminate within 2
years after the date on which it began.
(e) Recommendations for Improving Comparative Risk Analysis
and Its Use.--Not later than 90 days after the termination of
the study, the Director shall submit to the Congress the
report of the National Research Council with recommendations
regarding the use of comparative risk analysis and ways to
improve the use of comparative risk analysis for decision-
making in appropriate Federal agencies.
SEC. 110. DEFINITIONS.
For purposes of this title:
(1) Risk assessment document.--The term ``risk assessment
document'' means a document containing the explanation of how
hazards associated with a substance, activity, or condition
have been identified, quantified, and assessed. The term also
includes a written statement accepting the findings of any
such document.
(2) Risk characterization document.--The term ``risk
characterization document'' means a document quantifying or
describing the degree of toxicity, exposure, or other risk
posed by hazards associated with a substance, activity, or
condition to which individuals, populations, or resources are
exposed. The term also includes a written statement accepting
the findings of any such document.
(3) Best estimate.--The term ``best estimate'' means a
scientifically appropriate estimate which is based, to the
extent feasible, on one of the following:
(A) Central estimates of risk using the most plausible
assumptions.
(B) An approach which combines multiple estimates based on
different scenarios and weighs the probability of each
scenario.
(C) Any other methodology designed to provide the most
unbiased representation of the most plausible level of risk,
given the current scientific information available to the
Federal agency concerned.
(4) Substitution risk.--The term ``substitution risk''
means a potential risk to human health, safety, or the
environment from a regulatory alternative designed to
decrease other risks.
(5) Covered federal agency.--The term ``covered Federal
agency'' means each of the following:
(A) The Environmental Protection Agency.
(B) The Occupational Safety and Health Administration.
(C) The Department of Transportation (including the
National Highway Transportation Safety Administration).
(D) The Food and Drug Administration.
(E) The Department of Energy.
(F) The Department of the Interior.
(G) The Department of Agriculture.
(H) The Consumer Product Safety Commission.
(I) The National Oceanic and Atmospheric Administration
(J) The United States Army Corps of Engineers.
(K) The Mine Safety and Health Administration.
(L) The Nuclear Regulatory Commission.
(M) Any other Federal agency considered a covered Federal
agency pursuant to section 103(b)(2)(E).
(6) Federal agency.--The term ``Federal agency'' means an
executive department, military department, or independent
establishment as defined in part I of title 5 of the United
States Code, except that such term also includes the Office
of Technology Assessment.
(7) Document.--The term ``document'' includes material
stored in electronic or digital form.
TITLE II--ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS
SEC. 201. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.
(a) In General.--The President shall require each Federal
agency to prepare the following for each major rule within a
program designed to protect human health, safety, or the
environment that is proposed or promulgated by the agency
after the date of enactment of this Act:
(1) An identification of reasonable alternative strategies,
including strategies that--
(A) require no government action;
(B) will accommodate differences among geographic regions
and among persons with different levels of resources with
which to comply; and
(C) employ performance or other market-based mechanisms
that permit the greatest flexibility in achieving the
identified benefits of the rule.
The agency shall consider reasonable alternative strategies
proposed during the comment period.
(2) An analysis of the incremental costs and incremental
risk reduction or other benefits associated with each
alternative strategy identified or considered by the agency.
Costs and benefits shall be quantified to the
[[Page H2635]] extent feasible and appropriate and may
otherwise be qualitatively described.
(3) A statement that places in context the nature and
magnitude of the risks to be addressed and the residual risks
likely to remain for each alternative strategy identified or
considered by the agency. Such statement shall, to the extent
feasible, provide comparisons with estimates of greater,
lesser, and substantially equivalent risks that are familiar
to and routinely encountered by the general public as well as
other risks, and, where appropriate and meaningful,
comparisons of those risks with other similar risks regulated
by the Federal agency resulting from comparable activities
and exposure pathways. Such comparisons should consider
relevant distinctions among risks, such as the voluntary or
involuntary nature of risks and the preventability or
nonpreventability of risks.
(4) For each final rule, an analysis of whether the
identified benefits of the rule are likely to exceed the
identified costs of the rule.
(5) An analysis of the effect of the rule--
(A) on small businesses with fewer than 100 employees;
(B) on net employment; and
(C) to the extent practicable, on the cumulative financial
burden of compliance with the rule and other existing
regulations on persons producing products.
(b) Publication.--For each major rule referred to in
subsection (a) each Federal agency shall publish in a clear
and concise manner in the Federal Register along with the
proposed and final regulation, or otherwise make publicly
available, the information required to be prepared under
subsection (a).
SEC. 202. DECISION CRITERIA.
(a) In General.--No final rule subject to the provisions of
this title shall be promulgated unless the agency certifies
the following:
(1) That the analyses under section 201 are based on
objective and unbiased scientific and economic evaluations of
all significant and relevant information and risk assessments
provided to the agency by interested parties relating to the
costs, risks, and risk reduction and other benefits addressed
by the rule.
(2) That the incremental risk reduction or other benefits
of any strategy chosen will be likely to justify, and be
reasonably related to, the incremental costs incurred by
State, local, and tribal governments, the Federal Government,
and other public and private entities.
(3) That other alternative strategies identified or
considered by the agency were found either (A) to be less
cost-effective at achieving a substantially equivalent
reduction in risk, or (B) to provide less flexibility to
State, local, or tribal governments or regulated entities in
achieving the otherwise applicable objectives of the
regulation, along with a brief explanation of why alternative
strategies that were identified or considered by the agency
were found to be less cost-effective or less flexible.
(b) Effect of Decision Criteria.--
(1) In general.--Notwithstanding any other provision of
Federal law, the decision criteria of subsection (a) shall
supplement and, to the extent there is a conflict, supersede
the decision criteria for rulemaking otherwise applicable
under the statute pursuant to which the rule is promulgated.
(2) Substantial evidence.--Notwithstanding any other
provision of Federal law, no major rule shall be promulgated
by any Federal agency pertaining to the protection of health,
safety, or the environment unless the requirements of section
201 and subsection (a) are met and the certifications
required therein are supported by substantial evidence of the
rulemaking record.
(c) Publication.--The agency shall publish in the Federal
Register, along with the final regulation, the certifications
required by subsection (a).
(d) Notice.--Where the agency finds a conflict between the
decision criteria of this section and the decision criteria
of an otherwise applicable statute, the agency shall so
notify the Congress in writing.
SEC. 203. OFFICE OF MANAGEMENT AND THE BUDGET GUIDANCE.
The Office of Management and Budget shall issue guidance
consistent with this title--
(1) to assist the agencies, the public, and the regulated
community in the implementation of this title, including any
new requirements or procedures needed to supplement prior
agency practice; and
(2) governing the development and preparation of analyses
of risk reduction benefits and costs.
SEC. 204. ENVIRONMENTAL CLEAN-UP.
For purposes of this title, any determination by a Federal
agency to approve or reject any proposed or final
environmental clean-up plan for a facility the costs of which
are likely to exceed $5,000,000 shall be treated as major
rule subject to the provisions of this title (other than the
provisions of section 201(a)(5)). As used in this section,
the term ``environmental clean-up'' means a corrective action
under the Solid Waste Disposal Act, a remedial action under
the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, and any other environmental
restoration and waste management carried out by or on behalf
of a Federal agency with respect to any substance other than
municipal waste.
TITLE III--PEER REVIEW
SEC. 301. PEER REVIEW PROGRAM.
(a) Establishment.--For regulatory programs designed to
protect human health, safety, or the environment, the head of
each Federal agency shall develop a systematic program for
independent and external peer review required by subsection
(b). Such program shall be applicable across the agency and--
(1) shall provide for the creation of peer review panels
consisting of experts and shall be broadly representative and
balanced and to the extent relevant and appropriate, may
include representatives of State, local, and tribal
governments, small businesses, other representatives of
industry, universities, agriculture, labor, consumers,
conservation organizations, or other public interest groups
and organizations;
(2) may provide for differing levels of peer review and
differing numbers of experts on peer review panels, depending
on the significance or the complexity of the problems or the
need for expeditiousness;
(3) shall not exclude peer reviewers with substantial and
relevant expertise merely because they represent entities
that may have a potential interest in the outcome, provided
that interest is fully disclosed to the agency and in the
case of a regulatory decision affecting a single entity, no
peer reviewer representing such entity may be included on the
panel;
(4) may provide specific and reasonable deadlines for peer
review panels to submit reports under subsection (c); and
(5) shall provide adequate protections for confidential
business information and trade secrets, including requiring
peer reviewers to enter into confidentiality agreements.
(b) Requirement for Peer Review.--In connection with any
rule that is likely to result in an annual increase in costs
of $100,000,000 or more (other than any rule or other action
taken by an agency to authorize or approve any individual
substance or product), each Federal agency shall provide for
peer review in accordance with this section of any risk
assessment or cost analysis which forms the basis for such
rule or of any analysis under section 201(a). In addition,
the Director of the Office of Management and Budget may order
that peer review be provided for any major risk assessment or
cost assessment that is likely to have a significant impact
on public policy decisions.
(c) Contents.--Each peer review under this section shall
include a report to the Federal agency concerned with respect
to the scientific and economic merit of data and methods used
for the assessments and analyses.
(d) Response to Peer Review.--The head of the Federal
agency shall provide a written response to all significant
peer review comments.
(e) Availability to Public.--All peer review comments or
conclusions and the agency's responses shall be made
available to the public and shall be made part of the
administrative record.
(f) Previously Reviewed Data and Analysis.--No peer review
shall be required under this section for any data or method
which has been previously subjected to peer review or for any
component of any analysis or assessment previously subjected
to peer review.
(g) National Panels.--The President shall appoint National
Peer Review Panels to annually review the risk assessment and
cost assessment practices of each Federal agency for programs
designed to protect human health, safety, or the environment.
The Panel shall submit a report to the Congress no less
frequently than annually containing the results of such
review.
TITLE IV--JUDICIAL REVIEW
SEC. 401. JUDICIAL REVIEW.
Compliance or noncompliance by a Federal agency with the
requirements of this Act shall be reviewable pursuant to the
statute granting the agency authority to act or, as
applicable, that statute and the Administrative Procedure
Act. The court with jurisdiction to review final agency
action under the statute granting the agency authority to act
shall have jurisdiction to review, at the same time, the
agency's compliance with the requirements of this Act. When a
significant risk assessment document or risk characterization
document subject to title I is part of the administrative
record in a final agency action, in addition to any other
matters that the court may consider in deciding whether the
agency's action was lawful, the court shall consider the
agency action unlawful if such significant risk assessment
document or significant risk characterization document does
not substantially comply with the requirements of sections
104 and 105.
TITLE V--PLAN
SEC. 501. PLAN FOR ASSESSING NEW INFORMATION.
(a) Plan.--Within 18 months after the date of enactment of
this Act, each covered Federal agency (as defined in title I)
shall publish a plan to review and, where appropriate revise
any significant risk assessment document or significant risk
characterization document published prior to the expiration
of such 18-month period if, based on information available at
the time of such review, the agency head determines that the
application of the principles set forth in sections 104 and
105 would be likely to significantly alter the results of the
prior risk assessment or risk characterization. The plan
shall provide procedures for receiving and considering new
information and risk assessments from the
[[Page H2636]] public. The plan may set priorities and
procedures for review and, where appropriate, revision of
such risk assessment documents and risk characterization
documents and of health or environmental effects values. The
plan may also set priorities and procedures for review, and,
where appropriate, revision or repeal of major rules
promulgated prior to the expiration of such period. Such
priorities and procedures shall be based on the potential to
more efficiently focus national economic resources within
Federal regulatory programs designed to protect human health,
safety, or the environment on the most important priorities
and on such other factors as such Federal agency considers
appropriate.
(b) Public Comment and Consultation.--The plan under this
section, shall be developed after notice and opportunity for
public comment, and after consultation with representatives
of appropriate State, local, and tribal governments, and such
other departments and agencies, offices, organizations, or
persons as may be advisable.
TITLE VI--PRIORITIES
SEC. 601. PRIORITIES.
(a) Identification of Opportunities.--In order to assist in
the public policy and regulation of risks to public health,
the President shall identify opportunities to reflect
priorities within existing Federal regulatory programs
designed to protect human health in a cost-effective and
cost-reasonable manner. The President shall identify each of
the following:
(1) The likelihood and severity of public health risks
addressed by current Federal programs.
(2) The number of individuals affected.
(3) The incremental costs and risk reduction benefits
associated with regulatory or other strategies.
(4) The cost-effectiveness of regulatory or other
strategies to reduce risks to public health.
(5) Intergovernmental relationships among Federal, State,
and local governments among programs designed to protect
public health.
(6) Statutory, regulatory, or administrative obstacles to
allocating national economic resources based on the most
cost-effective, cost-reasonable priorities considering
Federal, State, and local programs.
(b) State, Local, and Tribal Priorities.--In identifying
national priorities, the President shall consider priorities
developed and submitted by State, local, and tribal
governments.
(c) Biennial Reports.--The President shall issue biennial
reports to Congress, after notice and opportunity for public
comment, to recommend priorities for modifications to,
elimination of, or strategies for existing Federal regulatory
programs designed to protect public health. Within 6 months
after the issuance of the report, the President shall notify
the Congress in writing of the recommendations which can be
implemented without further legislative changes and the
agency shall consider the priorities set forth in the report
and priorities developed and submitted by State, local, and
tribal governments when preparing a budget or strategic plan
for any such regulatory program.
The SPEAKER pro tempore. Pursuant to section 2 of House Resolution
101, the previous question is ordered on the motion to amend and on the
bill.
The previous question was ordered.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas [Mr. DeLay].
The amendment was agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
motion to recommit offered by mr. spratt
Mr. SPRATT. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. SPRATT. In its present form I am, Mr. Speaker.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. Spratt moves to recommit the bill H.R. 9 to the
Committee on Science with instructions to report the same
back to the House forthwith with the following amendment:
In Division D of H.R. 9, consisting of the text of H.R.
1022, as passed by the House, strike the following text:
``Section 204. Environmental Clean-up.
``For the purposes of this title, any determination by a
Federal agency to approve or reject any proposed or final
environmental clean-up plan for a facility the costs of which
are likely to exceed $5,000,000 shall be treated as a major
rule subject to the provisions of this title (other than the
provisions of section 205(a)(5)). As used in this section,
``environmental clean-up'' means a corrective action under
the Solid Waste Disposal Act, a remedial action under the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, and any other environmental
restoration and waste management carried out by or on behalf
of a Federal agency with respect to any substance other than
municipal waste.''
Mr. DeLAY (during the reading). Mr. Speaker, I ask unanimous consent
that the motion to recommit be considered as read and printed in the
Record.
The CHAIRMAN. Is there objection to the request of the gentleman from
Texas?
There was no objection.
The SPEAKER pro tempore. The gentleman from South Carolina [Mr.
Spratt] is recognized for 5 minutes.
Mr. SPRATT. Mr. Speaker, in the waning minutes of debate on H.R.
1022, the Risk Assessment and Cost-Benefit Analysis Act, Mr. Walker
offered a final amendment which was barely considered at all because we
had run out of time. The Walker amendment then passed on a voice vote.
This amendment expands the scope of H.R. 1022 far beyond what I think
most Members appreciated, because there was no time to explain it when
it came before us.
Basically, this Walker amendment provides that when any Federal
agency approves or rejects any environmental cleanup plan, and the
costs of the clean up plan will exceed $5 million, then the Risk
Assessment Cost-Benefit Act is triggered. What in turn that means is
that a full-blown risk assessment and cost-benefit analysis is required
before the agency can move forward with the plan. If the benefits do
not exceed the costs under the act, then the plan cannot be carried
forward.
What is the environmental cleanup plan, a $5 million cleanup plan?
First of all, the amendment says an environmental cleanup plan is any
corrective action taken under CERCLA, the Superfund Act, or under the
Solid Waste Disposal Act. That is the first application of it.
Mr. Speaker, I think we all agree that CERCLA or Superfund has taken
too much time and involved too many lawyers. If we allow this amendment
to stand in this bill, then we have just found another way to take more
time and involve more lawyers, and I do not think that is the direction
we want to move in. That is enough of a problem with the amendment.
But it goes beyond that, because it also says an environmental clean
up decision is ``any other environmental restoration and waste
management carried out on behalf of a Federal agency with respect to
any substance other than municipal waste.'' So this amendment applies
to any environmental restoration decision taken with respect to a
Federal facility and any waste management decision. That is Clean Water
Act disposal, even Clean Air Act disposal problems. What does this
mean?
All DOE facilities, Department of Energy facilities scattered across
17 States, from Savannah River to Oak Ridge, TN to Rocky Flats, to
Hanford, WA, there is an enormous array of cleanup problems that could
cost billions upon billions of approximate dollars, approximate, that
have been accumulated over 50 years, toxic waste, hazardous waste, and
very, very dangerous radioactive waste.
This amendment means that the Department of Energy does not have to
deal with these nuclear and toxic waste problems if the cost-benefit
analysis does not show the benefits will exceed costs.
This means that these problems, which have been overlooked and
delayed for 50 years, will have to go through further delay because
before DOE can do anything with respect to them, they have to put them
through risk assessment and cost-benefit analysis. And this means that
the risk assessment/cost-benefit analysis track becomes preempted.
Each one of these 17 sites now in the DOE complex now has a
complicated, difficult negotiation ongoing with the State regulatory
authorities, and most of them have compliance agreements. The States
are no longer involved. what rules is risk assessment and cost-benefit
analysis. At Hanford, at Rocky Flats, at Savannah River, all across the
country.
The Department of Defense also has major cleanup decisions to make
with respect to all the bases it closes. In fact, when we adopted the
Base Closing Act, we said you cannot close a base and leave it and turn
it over to local communities or new developers until you have resolved
all the environmental cleanup problems.
[[Page H2637]] Now the Department of Defense must add on to the time
delays it is already experiencing the additional burden of doing cost-
benefit analysis. If the cost-benefit analysis does not show the
benefits will exceed the costs, then DOD will simply leave those
problems unattended. They have been immunized by this bill if the
benefits do not exceed the costs, leave them unattended, turn them over
to a local community, and then guess what? The next landowner inherits
the property with the sites there, but without immunity.
If that is not enough, this also applies to waste management. The
word ``waste management'' is used. Waste management does not mean
environmental problems that have accumulated through neglect or
ignorance of the law over the past years. It means management of
ongoing waste streams, waste water emissions into streams. This means
DOD, DOE, and others that discharge in a waste management scheme, do
not have to comply with waste management decisions unless the benefits
can be proven to exceed the costs.
Now, we do not know all the ramifications of this provision, but
think a few things are clear. This is not good law; it was made too
hastily, it is ill-considered, ill-conceived, and should be stricken
from the bill. Let us start over.
Mr. BROWN of California. Mr. Speaker, on February 28, in the waning
minutes of the debate on the Risk Assessment and Cost-Benefit Act, H.R.
1022, the House added 17 short lines that potentially do a lot of
damage. In adopting the Walker amendment, we have classified virtually
every proposed or final environmental cleanup plan for a facility as a
major rule subject to all the exacting provisions of the act.
This is yet another instance where, in our rush to pass legislation
that improves the regulatory process, we have unnecessarily created a
bigger mess than we started with.
Earlier in the debate we dramatically shrunk agency emergency
exemption powers to get out from under this burden. Under the Walker
amendment, we have dramatically reduced the dollar limit. The
combination of these two provisions will end environmental enforcement
as we know it to the detriment of anyone who lives near a site which
could benefit from a federally aided cleanup. It also will be the last
straw for many who would consider rehabbing industrial and Government
sites to provide badly needed jobs.
Not all of the ramifications of this provision are known, but this we
do know: First, it is going to cost a great deal more time and money to
clean up a brownfield site and make it economically useful.
Second, any unemployed regulatory lawyers or environmental lawyers
should be shouting hallelujah because they can prolong in court most
facility cleanups under the Clean Air Act, the Clean Water Act, the
Superfund law, the Department of Defense cleanup programs, and the
Department of Energy cleanups.
Third, anyone in the business of doing environmental studies is set
for life.
Fourth, since cleanups are now to be based strictly on cost-benefit
analyses, States rights to participate in the process and the needs and
preferences of local communities no longer matter.
Since this provision applies to every agency of the Federal
Government, we do not know what else has been swept up. What is the
effect on the Coast Guard, on FEMA, on the Nuclear Regulatory
Commission, on our international commitments? No one knows.
Once again we have rushed through an amendment without thinking,
without hearings, and without understanding the consequences of our
actions. Let's recommit this bill with instructions so that we can
avoid the economic and environmental harm that we will otherwise
inadvertently spread throughout the country.
I urge my colleagues to vote for the motion to recommit.
Mr. MINETA. Mr. Speaker, I rise in strong support of the motion to
recommit.
Mr. Speaker, the motion would direct the deletion of the Walker
amendment on environmental cleanup. Rarely has such an ill-considered
provision been added to legislation with so little discussion of its
broad consequences.
Let me talk about the broad consequences of the amendment. This
amendment will greatly delay environmental cleanups, undercut community
participation in determining the level of cleanup, preempt States, and
slow down the base closure and transfer process. I don't believe we
should support any of those results.
What is the major complaint we have heard about Superfund? It takes
too long to achieve cleanup and it is a field day for lawyers.
Let me be clear, adding the entire cost-benefit and risk analysis
provisions of this bill on top of the current requirements of Superfund
will surely delay cleanups. The law today precludes parties from
delaying cleanup through court action. Don't forget that this bill also
allows for judicial review of agency decisions. Lawyers will have the
time of their lives and delay cleanups for years.
Delaying cleanups will have nothing but disastrous effects on the
cost of cleanups. Although the proponents of the bill think they are
reducing costs, this bill could result in greatly increased costs with
less protection to show for it. The human cost through additional time
of exposure is immeasurable, but we can measure the additional cost of
cleanup which will occur if contaminants are allowed to migrate while
the cleanup decision is tied up in court. I cannot support additional
work for lawyers while human health is endangered and costs are
increasing.
In addition, because this bill also applies to Department of Defense
cleanups, the entire base closure process will be brought to its knees.
What is the most important issue to local governments in the base
closure process? Getting the property out of Federal ownership and into
productive use. The Walker amendment will delay that process for years.
The Walker amendment preempts State and local governments from any
effective role in determining cleanups. Currently, Federal cleanups are
required to consider State laws and local preferences. The amendment
overlays a Federal cost-benefit test over any local preference.
This could lead to less protective standards in direct contravention
to local desires. Local input on long-term protectiveness,
redevelopment considerations, and preservation of local amenities will
fall silent in the face of cost considerations, even if the State or
local government is willing to pay for them.
If you favor further delays in environmental cleanup; if you favor
creating another new issue for lawyers to fight about in court; if you
favor delaying the transfer of closed military installations to the
local government; if you favor increasing the cost of cleanup; if you
favor preempting the States in protecting their citizens; if you favor
ignoring the desires of local government in addressing cleanups, then
you can vote ``no.''
But if you want to look out for the interests of your constituents
and the interests of State and local governments, you should support
the motion to recommit.
The SPEAKER pro tempore. The gentleman from Texas [Mr. DeLay] is
recognized for 5 minutes in opposition to the motion to recommit.
Mr. DeLAY. Mr. Speaker, I rise in opposition to this motion to
recommit, and in support of H.R. 9.
Over the last week, in a bipartisan fashion, the House has taken a
dramatic step in favor of the American people. We have finally started
the process of freeing small business, of protecting private property
owners, of inserting some sanity into our rulemaking process.
Today, with H.R. 9, we put the Federal Government on notice: Don't
tread unfairly on the American taxpayer.
As we all know, over the last several decades, the Federal Government
has run roughshod over the American people. We have taxed them. We have
taken their land. We have taken their businesses.
In this last election, the people said enough. They voted out
incumbents in huge numbers, and threw out the leadership in both Houses
of Congress for the first time in 40 years.
This 104th Congress has been called a second American revolution.
H.R. 9 is an important battle in the second American revolution.
If you are for real change and real reform, you will support H.R. 9.
If you want to defend the status quo, if you believe that the American
people are wrong in their disregard for the heavy hand of the Federal
Government, you will vote for the motion to recommit.
I urge my colleagues to vote down the motion to recommit, and vote
for H.R. 9.
{time} 1345
The SPEAKER pro tempore (Mr. Hansen). Without objection, the previous
question is ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
recorded vote
Mr. SPRATT. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 180,
noes 239, not voting 15, as follows:
[[Page H2638]] [Roll No. 198]
AYES--180
Abercrombie
Ackerman
Andrews
Baldacci
Barrett (WI)
Becerra
Beilenson
Bentsen
Berman
Bevill
Bishop
Boehlert
Bonior
Borski
Boucher
Browder
Brown (FL)
Brown (OH)
Cardin
Chapman
Clay
Clayton
Clement
Clyburn
Coleman
Collins (MI)
Conyers
Costello
Coyne
Cramer
Deal
DeFazio
DeLauro
Dellums
Deutsch
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Durbin
Edwards
Engel
Eshoo
Evans
Farr
Fattah
Fazio
Fields (LA)
Filner
Flake
Foglietta
Ford
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Geren
Gibbons
Gordon
Gutierrez
Hall (OH)
Hamilton
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Holden
Hoyer
Jackson-Lee
Jacobs
Jefferson
Johnson (SD)
Johnson, E.B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kleczka
Klink
LaFalce
Lantos
Levin
Lewis (GA)
Lincoln
Lipinski
Lofgren
Lowey
Luther
Maloney
Manton
Markey
Martinez
Mascara
Matsui
McCarthy
McDermott
McHale
McKinney
McNulty
Meehan
Meek
Menendez
Mfume
Mineta
Minge
Mink
Mollohan
Moran
Morella
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Orton
Owens
Pallone
Pastor
Payne (NJ)
Payne (VA)
Peterson (FL)
Peterson (MN)
Pomeroy
Poshard
Rahall
Reed
Richardson
Rivers
Roemer
Rose
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schroeder
Schumer
Scott
Serrano
Skaggs
Skelton
Slaughter
Spratt
Stark
Stenholm
Stokes
Studds
Stupak
Tanner
Tejeda
Thompson
Thornton
Thurman
Torres
Torricelli
Towns
Traficant
Tucker
Velazquez
Vento
Visclosky
Volkmer
Ward
Waters
Watt (NC)
Waxman
Williams
Wise
Woolsey
Wyden
Wynn
Yates
NOES--239
Allard
Archer
Armey
Bachus
Baesler
Baker (CA)
Baker (LA)
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Blute
Boehner
Bonilla
Bono
Brewster
Brownback
Bryant (TN)
Bunn
Bunning
Burton
Buyer
Callahan
Calvert
Camp
Canady
Castle
Chabot
Chambliss
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Collins (GA)
Combest
Condit
Cooley
Cox
Crane
Crapo
Cremeans
Cubin
Cunningham
Danner
Davis
de la Garza
DeLay
Diaz-Balart
Dickey
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Fields (TX)
Flanagan
Foley
Forbes
Fowler
Fox
Franks (CT)
Franks (NJ)
Frelinghuysen
Frisa
Funderburk
Gallegly
Ganske
Gekas
Gilchrest
Gillmor
Gilman
Goodlatte
Goodling
Goss
Graham
Greenwood
Gunderson
Gutknecht
Hall (TX)
Hancock
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Heineman
Herger
Hilleary
Hobson
Hoekstra
Hoke
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Lightfoot
Linder
Livingston
LoBiondo
Longley
Lucas
Manzullo
Martini
McCollum
McCrery
McDade
McHugh
McInnis
McIntosh
McKeon
Metcalf
Meyers
Mica
Miller (FL)
Molinari
Moorhead
Myers
Myrick
Nethercutt
Neumann
Ney
Norwood
Nussle
Oxley
Packard
Parker
Paxon
Petri
Pickett
Pombo
Porter
Portman
Pryce
Quillen
Quinn
Radanovich
Ramstad
Regula
Reynolds
Riggs
Roberts
Rogers
Rohrabacher
Ros-Lehtinen
Roth
Roukema
Royce
Salmon
Sanford
Saxton
Scarborough
Schaefer
Schiff
Seastrand
Sensenbrenner
Shadegg
Shaw
Shays
Shuster
Sisisky
Skeen
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Stearns
Stockman
Stump
Talent
Tate
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Tiahrt
Torkildsen
Upton
Vucanovich
Waldholtz
Walker
Walsh
Wamp
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
Zeliff
Zimmer
NOT VOTING--15
Brown (CA)
Bryant (TX)
Burr
Collins (IL)
Dornan
Gonzalez
Green
Hayes
Johnston
Laughlin
Miller (CA)
Moakley
Montgomery
Pelosi
Rangel
{time} 1401
The Clerk announced the following pairs:
On this vote:
Mr. Rangel for, with Mr. Dornan against.
Mrs. Collins of Illinois for, with Mr. Burr against.
Mr. SKELTON changed his vote from ``no'' to ``aye.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore. The question is on the passage of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. POMBO. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 277,
nays 141, not voting 17, as follows:
[Roll No. 199]
YEAS--277
Allard
Archer
Armey
Bachus
Baesler
Baker (CA)
Baker (LA)
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bentsen
Bereuter
Bevill
Bilbray
Bilirakis
Bishop
Bliley
Blute
Boehner
Bonilla
Bono
Brewster
Browder
Brownback
Bryant (TN)
Bunn
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Castle
Chabot
Chambliss
Chapman
Chenoweth
Christensen
Chrysler
Clinger
Coble
Coburn
Collins (GA)
Combest
Condit
Cooley
Cox
Cramer
Crane
Crapo
Cremeans
Cubin
Cunningham
Danner
Davis
de la Garza
Deal
DeLay
Diaz-Balart
Dickey
Dooley
Doolittle
Doyle
Dreier
Duncan
Dunn
Edwards
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Fazio
Fields (TX)
Flanagan
Foley
Forbes
Fowler
Fox
Franks (CT)
Franks (NJ)
Frelinghuysen
Frisa
Frost
Funderburk
Gallegly
Ganske
Gekas
Geren
Gillmor
Gilman
Gingrich
Goodlatte
Goodling
Gordon
Goss
Graham
Gunderson
Gutknecht
Hall (TX)
Hamilton
Hancock
Hansen
Harman
Hastert
Hastings (WA)
Hayworth
Hefley
Hefner
Heineman
Herger
Hilleary
Hilliard
Hobson
Hoekstra
Hoke
Holden
Horn
Hostettler
Houghton
Hunter
Hutchinson
Hyde
Inglis
Istook
Jacobs
Johnson (SD)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Lightfoot
Lincoln
Linder
Livingston
LoBiondo
Longley
Lucas
Manzullo
Martini
McCollum
McCrery
McDade
McHugh
McInnis
McIntosh
McKeon
McNulty
Metcalf
Meyers
Mica
Miller (FL)
Minge
Molinari
Mollohan
Moorhead
Moran
Myrick
Nethercutt
Neumann
Ney
Norwood
Nussle
Ortiz
Orton
Oxley
Packard
Parker
Paxon
Payne (VA)
Peterson (FL)
Peterson (MN)
Petri
Pickett
Pombo
Pomeroy
Portman
Poshard
Pryce
Quillen
Quinn
Radanovich
Ramstad
Regula
Riggs
Roberts
Roemer
Rogers
Rohrabacher
Ros-Lehtinen
Rose
Roth
Royce
Salmon
Sanford
Saxton
Scarborough
Schaefer
Schiff
Seastrand
Sensenbrenner
Shadegg
Shaw
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Solomon
Souder
Spence
Spratt
Stearns
Stenholm
Stockman
Stump
Stupak
Talent
Tanner
Tate
Tauzin
Taylor (MS)
Taylor (NC)
Tejeda
Thomas
Thornberry
Thornton
Thurman
Tiahrt
Torkildsen
Traficant
Upton
Volkmer
Vucanovich
Waldholtz
Walker
Walsh
Wamp
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
Zeliff
NAYS--141
Abercrombie
Ackerman
Andrews
Baldacci
Barrett (WI)
Becerra
Beilenson
Berman
Boehlert
Bonior
Borski
Boucher
Brown (FL)
Brown (OH)
Cardin
Clay
Clayton
Clement
Clyburn
Coleman
Conyers
Costello
Coyne
DeFazio
DeLauro
Dellums
Deutsch
Dicks
Dingell
Dixon
Doggett
Durbin
Engel
Eshoo
Evans
Farr
Fattah
Fields (LA)
Filner
Flake
Foglietta
Ford
Frank (MA)
Furse
Gejdenson
[[Page H2639]] Gephardt
Gibbons
Gilchrest
Greenwood
Gutierrez
Hall (OH)
Hastings (FL)
Hinchey
Hoyer
Jackson-Lee
Jefferson
Johnson, E.B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kleczka
Klink
LaFalce
Lantos
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Luther
Maloney
Manton
Markey
Martinez
Mascara
Matsui
McCarthy
McDermott
McHale
McKinney
Meehan
Meek
Menendez
Mfume
Mineta
Mink
Morella
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Owens
Pallone
Pastor
Payne (NJ)
Porter
Rahall
Reed
Reynolds
Richardson
Rivers
Roukema
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Schroeder
Schumer
Scott
Serrano
Shays
Skaggs
Slaughter
Stark
Stokes
Studds
Thompson
Torres
Torricelli
Towns
Tucker
Velazquez
Vento
Visclosky
Ward
Waters
Watt (NC)
Waxman
Williams
Wise
Woolsey
Wyden
Wynn
Yates
Zimmer
NOT VOTING--17
Brown (CA)
Bryant (TX)
Collins (IL)
Collins (MI)
Dornan
Gonzalez
Green
Hayes
Johnson (CT)
Johnston
Laughlin
Miller (CA)
Moakley
Montgomery
Myers
Pelosi
Rangel
{time} 1421
The Clerk announced the following pair:
On this vote:
Mr. Dornan for, with Mr. Moakley against.
Mr. VOLKMER changed his vote from ``nay'' to ``yea.''
So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________