[House Report 104-2]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                      104-2
_______________________________________________________________________


 
 PROVIDING FOR THE CONSIDERATION OF H.R. 5, THE UNFUNDED MANDATE REFORM 
                              ACT OF 1995

                                _______


  January 18, 1995.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 38]

    The Committee on Rules, having had under consideration 
House Resolution 38, by a record vote of 8 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

               Brief Summary of Provisions of Resolution

    The resolution provides for the consideration of H.R. 5, 
the ``Unfunded Mandate Reform Act of 1995,'' under an open 
rule. The rule provides two hours of general debate divided 
equally between the chairmen and ranking minority members of 
the Committees on Government Reform and Oversight and Rules.
    The rule makes in order an amendment in the nature of a 
substitute, incorporating the amendments of the two committees, 
printed in this report to accompany the rule, as original text 
for amendment purposes. The substitute shall be read by title 
instead of section for amendment, and sections 1-4 and each 
title shall be considered as read.
    The Chairman of the Committee of the Whole may give 
priority in recognition to Members who have pre-printed their 
amendments in the Congressional Record prior to their 
consideration, and such amendments shall be considered as read. 
Finally, the rule provides for one motion to recommit, with or 
without instructions.

                            Committee Votes

    Clause 2(l)(2)(B) of House Rule XI requires each committee 
report to accompany any bill or resolution of a public 
character, ordered to include the total number of votes cast 
for and against on each rollcall vote on a motion to report and 
any amendment offered to the measure or matter, together with 
the names of those voting for and against. Below are the 
results of the rollcall votes taken in the Rules Committee on 
this resolution:

                    Rules Committee Roll Call No. 7

    Date: January 18, 1995.
    Measure: Rule for H.R. 5.
    Motion By: Mr. Moakley.
    Summary of Motion: Strike optional pre-printing in Record 
provision for amendments.
    Results: Rejected, 3 to 8.
    Vote by Member: Quillen--Not voting; Dreier--Nay; Goss--
Nay; Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Not 
voting; Hall--Yea; Solomon--Nay.

                    Rules Committee Roll Call No. 8

    Date: January 18, 1995.
    Measure: Rule for H.R. 5.
    Motion By: Mr. Dreier.
    Summary of Motion: Motion to order rule reported with 
recommendation it be adopted.
    Results: Adopted 8 to 3.
    Vote by Member: Quillen--Not voting; Dreier--Yea; Goss--
Yea; Linder--Yea; Pryce--Yea; Diaz-Balart--Yea; McInnis--Yea; 
Waldholtz--Yea; Moakley--Nay; Beilenson--Nay; Frost--Not 
voting; Hall--Nay; Solomon--Yea.

           Amendment in Nature of a Substitute Made in Order

    The text of the amendment in the nature of a substitute 
made in order as original text by the rule is printed in this 
report beginning on the following page:
    Strike all out after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Unfunded Mandate Reform Act 
of 1995''.

SEC. 2. PURPOSES.

    The purposes of this Act are--
          (1) to strengthen the partnership between the Federal 
        Government and States, local governments, and tribal 
        governments;
          (2) to end the imposition, in the absence of full 
        consideration by Congress, of Federal mandates on 
        States, local governments, and tribal governments in a 
        manner that may displace other essential State, local, 
        and tribal governmental priorities;
          (3) to assist Congress in its consideration of 
        proposed legislation establishing or revising Federal 
        programs containing Federal mandates affecting States, 
        local governments, tribal governments, and the private 
        sector by--
                  (A) providing for the development of 
                information about the nature and size of 
                mandates in proposed legislation; and
                  (B) establishing a mechanism to bring such 
                information to the attention of the Senate and 
                House of Representatives before the Senate and 
                House of Representatives votes on proposed 
                legislation;
          (4) to promote informed and deliberate decisions by 
        Congress on the appropriateness of Federal mandates in 
        any particular instance;
          (5) to establish a point-of-order vote on the 
        consideration in the Senate and House Representatives 
        of legislation containing significant Federal mandates;
          (6) to assist Federal agencies in their consideration 
        of proposed regulations affecting States, local 
        governments, and tribal governments, by--
                  (A) requiring that Federal agencies develop a 
                process to enable the elected and other 
                officials of States, local governments, and 
                tribal governments to provide input when 
                Federal agencies are developing regulations; 
                and
                  (B) requiring that Federal agencies prepare 
                and consider better estimates of the budgetary 
                impact of regulations containing Federal 
                mandates upon States, local governments, and 
                tribal governments before adopting such 
                regulations, and ensuring that small 
                governments are given special consideration in 
                that process;
          (7) to establish the general rule that Congress shall 
        not impose Federal mandates on States, local 
        governments, and tribal governments without providing 
        adequate funding to comply with such mandates; and
          (8) to being consideration of methods to relieve 
        States, local governments, and tribal governments of 
        unfunded mandates imposed by Federal court 
        interpretations of Federal statutes and regulations.

SEC. 3. DEFINITIONS.

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

SEC. 4. LIMITATION ON APPLICATION.

    This Act shall not apply to any provision in a Federal 
statute or a proposed or final Federal regulation, that--
          (1) enforces constitutional rights of individuals;
          (2) establishes or enforces any statutory rights that 
        prohibit discrimination on the basis of race, religion, 
        gender, national origin, or handicapped or disability 
        status;
          (3) requires compliance with accounting and auditing 
        procedures with respect to grants or other money or 
        property provided by the Federal Government;
          (4) provides for emergency assistance or relief at 
        the request of any State, local government, or tribal 
        government or any official of such a government;
          (5) is necessary for the national security or the 
        ratification or implementation of international treaty 
        obligations;
          (6) the President designates as emergency legislation 
        and that the Congress so designates in statute; or
          (7) pertains to Social Security.

              TITLE I--REVIEW OF UNFUNDED FEDERAL MANDATES

SEC. 101. ESTABLISHMENT.

    There is established a commission which shall be known as 
the ``Commission on Unfunded Federal Mandates'' (in this title 
referred to as the ``Commission'').

SEC. 102. REPORT ON UNFUNDED FEDERAL MANDATES BY THE COMMISSION.

    (a) In General.--The Commission shall in accordance with 
this section--
          (1) investigate and review the role of unfunded 
        Federal mandates in intergovernmental relations and 
        their impact on State, local, tribal, and Federal 
        government objectives and responsibilities; and
          (2) make recommendations to the President and the 
        Congress regarding--
                  (A) allowing flexibility for State, local, 
                and tribal governments in complying with 
                specific unfunded Federal mandates for which 
                terms of compliance are unnecessarily rigid or 
                complex;
                  (B) reconciling any 2 or more unfunded 
                Federal mandates which impose contradictory or 
                inconsistent requirements;
                  (C) terminating unfunded Federal mandates 
                which are duplicative, obsolete, or lacking in 
                practical utility;
                  (D) suspending, on a temporary basis, 
                unfunded Federal mandates which are not vital 
                to public health and safety and which compound 
                the fiscal difficulties of State, local, and 
                tribal governments, including recommendations 
                for triggering such suspension;
                  (E) consolidating or simplifying unfunded 
                Federal mandates, or the planning or reporting 
                requirements of such mandates, in order to 
                reduce duplication and facilitate compliance by 
                State, local, and tribal governments with those 
                mandates; and
                  (F) establishing common Federal definitions 
                or standards to be used by State, local, and 
                tribal governments in complying with unfunded 
                Federal mandates that use different definitions 
                or standards for the same terms or principles.
          (3) Identification of relevant unfunded federal 
        mandates.--Each recommendation under paragraph (2) 
        shall, to the extent practicable, identify the specific 
        unfunded Federal mandates to which the recommendation 
        applies.
    (b) Criteria.--
          (1) In general.--The Commission shall establish 
        criteria for making recommendations under subsection 
        (a).
          (2) Issuance of proposed criteria.--The Commission 
        shall issue proposed criteria under this subsection not 
        later than 60 days after the date of the enactment of 
        this Act, and thereafter provide a period of 30 days 
        for submission by the public of comments on the 
        proposed criteria.
          (3) Final criteria.--Not later than 45 days after the 
        date of issuance of proposed criteria, the Commission 
        shall--
                  (A) consider comments on the proposed 
                criteria received under paragraph (2);
                  (B) adopt and incorporate in final criteria 
                any recommendations submitted in those comments 
                that the Commission determines will aid the 
                Commission in carrying out its duties under 
                this section; and
                  (C) issue final criteria under this 
                subsection.
    (c) Preliminary Report.--
          (1) In general.--Not later than 9 months after the 
        date of the enactment of this Act, the Commission 
        shall--
                  (A) prepare and publish a preliminary report 
                on its activities under this title, including 
                preliminary recommendations pursuant to 
                subsection (a);
                  (B) publish in the Federal Register a notice 
                of availability of the preliminary report; and
                  (C) provide copies of the preliminary report 
                to the public upon request.
          (2) Public hearings.--The Commission shall hold 
        public hearings on the preliminary recommendations 
        contained in the preliminary report of the Commission 
        under this subsection.
    (d) Final Report.--Not later than 3 months after the date 
of the publication of the preliminary report under subsection 
(c), the Commission shall submit to the Congress, including the 
Committee on Government Reform and Oversight of the House of 
Representatives and the Committee on Governmental Affairs of 
the Senate, and to the President a final report on the 
findings, conclusions, and recommendations of the Commission 
under this section.

SEC. 103. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be 
composed of 9 members appointed from individuals who possess 
extensive leadership experience in and knowledge of State, 
local, and tribal governments and intergovernmental relations, 
including State and local elected officials, as follows:
          (1) 3 members appointed by the Speaker of the House 
        of Representatives, in consultation with the minority 
        leader of the House of Representatives.
          (2) 3 members appointed by the majority leader of the 
        Senate, in consultation with the minority leader of the 
        Senate.
          (3) 3 members appointed by the President.
    (b) Waiver of Limitation on Executive Schedule Positions.--
Appointments may be made under this section without regard to 
section 5311(b) of title 5, United States Code.
    (c) Terms.--
          (1) In general.--Each member of the Commission shall 
        be appointed for the life of the Commission.
          (2) Vacancies.--A vacancy in the Commission shall be 
        filled in the manner in which the original appointment 
        was made.
    (d) Basic Pay.--
         (1) Rates of pay.--Members of the Commission shall 
        serve without pay.
          (2) Prohibition of Compensation of federal 
        employees.--Members of the Commission who are full-time 
        officers or employees of the United States may not 
        receive additional pay, allowances, or benefits by 
        reason of their service on the Commission.
    (e) Travel Expenses.--Each member of the Commission may 
receive travel expenses, including per diem in lieu of 
subsistence, in accordance with sections 5702 and 5703 of title 
5, United States Code.
    (f) Chairperson.--The President shall designate a member of 
the Commission as Chairperson at the time of the appointment of 
that member.
    (g) Meetings.--
         (1) In general.--Subject to paragraph (2), the 
        Commission shall meet at the call of the Chairperson or 
        a majority of its members.
         (2) First meeting.--The Commission shall convene its 
        first meeting by not later than 45 days after the date 
        of the completion of appointment of the members of the 
        Commission.
         (3) Quorum.--A majority of members of the Commission 
        shall constitute a quorum but a lesser number may hold 
        hearings.

SEC. 104. DIRECTOR AND STAFF OF COMMISSION EXPERTS AND CONSULTANTS.

    (a) Director.--The Commission shall have a Director who 
shall be appointed by the Commission. The Director shall be 
paid at a level not to exceed the rate of basic pay payable for 
level IV of the Executive Schedule.
    (b) Staff.--With the approval of the Commission, and 
without regard to section 5311(b) of title 5, United States 
Code, the Director may appoint and fix the pay of such staff as 
is sufficient to enable the Commission to carry out its duties.
    (c) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Commission may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
annual rate payable under section 5376 of title 5, United 
States Code.
    (d) Experts and Consultants.--The Commission may procure 
temporary and intermittent services of experts or consultants 
under section 3109(b) of title 5, United States Code.
    (e) Staff of Federal Agencies.--Upon request of the 
Director, the head of any Federal department or agency may 
detail, on a reimbursable basis, any of the personnel of that 
department or agency to the Commission to assist it in carrying 
out its duties under this title.

SEC. 105. POWER OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the 
purpose of carrying out this title, hold hearings, sit and act 
at times and places, take testimony, and receive evidence as 
the Commission considers appropriate.
    (b) Powers of Members and Agents.--Any member or agent of 
the Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take by this 
section.
    (c) Obtaining Official Data.--The Commission may secure 
directly from any department or agency of the United States 
information necessary to enable it to carry out this title, 
except information--
          (1) which is specifically exempted from disclosure by 
        law; or
          (2) which that department or agency determines will 
        disclose--
                  (A) matters necessary to be kept secret in 
                the interests of national defense or the 
                confidential conduct of the foreign relations 
                of the United States.
                  (B) information relating to trade secrets or 
                financial or commercial information pertaining 
                specifically to a given person if the 
                information has been obtained by the Government 
                on a confidential basis, other than through an 
                application by such person for a specific 
                financial or other benefit, and is required to 
                be kept secret in order to prevent undue injury 
                to the competitive position of such person; or
                  (C) personnel or medical data or similar data 
                the disclosure of which would constitute a 
                clearly unwarranted invasion of personal 
                privacy;
        unless the portions containing such matters, 
        information, or data have been excised.
Upon request of the Chairperson of the Commission, the head of 
that department or agency shall furnish that information to the 
Commission.
    (d) Mails.--The Commission may use the United States mails 
in the same manner and under the same conditions as other 
departments and agencies of the United States.
    (e) Administrative Support Services.--Upon the request of 
the Commission, the Administrator of General Services shall 
provide to the Commission, on a reimbursable basis, the 
administrative support services necessary for the Commission to 
carry out its duties under this title.
    (f) Contract Authority.--The Commission may, subject to 
appropriations, contract with and compensate government and 
private agencies or persons for property and services used to 
carry out its duties under this title.

SEC 106. TERMINATION.

    The Commission shall terminate 90 days after submitting its 
final report pursuant to section 102(d).

SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Commission 
$1,000,000 to carry out this title.

SEC. 108. DEFINITION.

    As used in this title, the term ``Federal mandate'' means 
any provision in statute or regulation or any Federal court 
ruling that imposes an enforceable duty upon States, local 
governments, or tribal governments including a condition of 
Federal assistance or a duty arising from participation in a 
voluntary Federal program.

SEC. 109. EFFECTIVE DATE.

    This title shall take effect 60 days after the date of the 
enactment of this Act.

             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

SEC. 201. REGULATORY PROCESS.

    (a) In General.--Each agency shall, to the extent permitted 
by subchapter II of chapter 5 of title 5, United States Code--
          (1) assess the effects of Federal regulations on 
        States, local governments, tribal governments, and the 
        private sector (other than to the extent that such 
        regulations incorporate requirements specifically set 
        forth in legislation), including specifically the 
        availability of resources to carry out any Federal 
        mandates in those regulations; and
          (2) seek to minimize those burdens that uniquely or 
        significantly affect such governmental entities or the 
        private sector, consistent with achieving statutory and 
        regulatory objectives.
    (b) State, Local Government, and Tribal Government Input.--
Each agency shall develop an effective process to permit 
elected officials (or their designated representatives) of 
States, local governments, and tribal governments to provide 
meaningful and timely input in the development of regulatory 
proposals containing significant Federal intergovernmental 
mandates.
    (c) Agency Plan.--
          (1) In general.--Before establishing any regulatory 
        requirements that might significantly or uniquely 
        affect small governments, an agency shall have 
        developed a plan under which the agency shall--
                  (A) provide notice of the contemplated 
                requirements to potentially affected small 
                governments, if any;
                  (B) enable officials of affected small 
                governments to provide input pursuant to 
                subsection (b); and.
                  (C) inform, educate, and advise small 
                governments on compliance with the 
                requirements.
          (2) Effects on private sector.--Before establishing 
        any regulatory requirements, agencies shall prepare 
        estimates, based on available data, of the effect of 
        Federal private sector mandates on the national 
        economy, including the effect on productivity, economic 
        growth, full employment, creation of productive jobs, 
        and international competitiveness of United States 
        goods and services.

SEC. 202 STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.

    (a) In General.--Before promulgating any final rule that 
includes any Federal mandate that may result in the expenditure 
by States, local governments, or tribal governments, in the 
aggregate, or the private sector of at least $100,000,000 
(adjusted annually for inflation) in any 1 year, and before 
promulgating any general notice of proposed rulemaking that is 
likely to result in promulgation of any such rule, the agency 
shall prepare a written statement containing--
          (1) estimates by the agency, including the underlying 
        analysis, of the anticipated costs to States, local 
        governments, tribal governments, and the private sector 
        of complying with the Federal mandates, and of the 
        extent to which such costs may be paid with funds 
        provided by the Federal Government or otherwise paid 
        through Federal financial assistance;
          (2) estimates by the agency, if and to the extent 
        that the agency determines that accurate estimates are 
        reasonably feasible, of--
                  (A) the future costs of the Federal mandate; 
                and
                  (B) any disproportionate budgetary effects of 
                the Federal mandates upon any particular 
                regions of the country or particular States, 
                local governments, tribal governments, urban or 
                rural or other types of communities, or 
                particular segments of the private sector;
          (3) a qualitative, and if possible, a quantitative 
        assessment of costs and benefits anticipated from the 
        Federal mandates (such as the enhancement of health and 
        safety and the protection of the natural environment);
          (4) the effect of Federal private sector mandates on 
        the national economy, including the effect on 
        productivity, economic growth, full employment, 
        creation of productive jobs, and international 
        competitiveness of United States goods and services;
          (5) a description of the extent of the agency's prior 
        consultation with elected representatives (or their 
        designated representatives) of the affected States, 
        local governments, and tribal governments, and 
        designated representatives of the private sector;
          (6) a summary of the comments and concerns that were 
        presented by States, local governments, or tribal 
        governments and the private sector either orally or in 
        writing to the agency;
          (7) a summary of the agency's evaluation of those 
        comments and concerns; and
          (8) the agency's position supporting the need to 
        issue the regulation containing the Federal mandates 
        (considering, among other things, the extent to which 
        costs may or may not be paid with funds provided by the 
        Federal Government).
    (b) Promulgation.--In promulgating a general notice of 
proposed rulemaking or a final rule for which a statement under 
subsection (a) is required, the agency shall include in the 
promulgation a summary of the information contained in the 
statement.
    (c) Preparation in Conjunction With Other Statement.--Any 
agency may prepare any statement required by subsection (a) in 
conjunction with or as part of any other statement or analysis, 
if the statement or analysis satisfies the provisions of 
subsection (a).

SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE.

    The Director of the Office of Management and Budget shall--
          (1) collect from agencies the statements prepared 
        under section 202; and
          (2) periodically forward copies of them to the 
        Director of the Congressional Budget Office on a 
        reasonably timely basis after promulgation of the 
        general notice of proposed rulemaking or of the final 
        rule for which the statement was prepared.

SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY.

    (a) In General.--The Director of the Office of Management 
and Budget, in consultation with Federal agencies, shall 
establish pilot programs in at least 2 agencies to test 
innovative and more flexible regulatory approaches that--
          (1) reduce reporting and compliance burdens on small 
        governments; and
          (2) meet overall statutory goals and objectives.
    (b) Program Focus.--The pilot programs shall focus on rules 
in effect or proposed rules, or on a combination thereof.

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

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

            TITLE III--LEGISLATIVE ACCOUNTABILITY AND REFORM

SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.

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

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

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

                       ``Part B--Federal Mandates

``SEC. 421. DEFINITIONS.

    ``For purposes of this part:
          ``(1) Agency.--The term `agency' has the meaning 
        stated in section 551(1) of title 5, United States 
        Code, but does not include independent regulatory 
        agencies, as defined by section 3502(10) of title 44, 
        United States Code.
          ``(2) Director.--The term `Director' means the 
        Director of the Congressional Budget Office.
          ``(3) Federal financial assistance.--The term 
        `Federal financial assistance' means the amount of 
        budget authority for any Federal grant assistance or 
        any Federal program providing loan guarantees or direct 
        loans.
          ``(4) Federal intergovernmental mandate.--The term 
        `Federal intergovernmental mandate' means--
                  ``(A) any provision in legislation, statute, 
                or regulation that--
                          ``(i) would impose an enforceable 
                        duty upon States, local governments, or 
                        tribal governments, except--
                                  ``(I) a condition of Federal 
                                assistance; or
                                  ``(II) a duty arising from 
                                participation in a voluntary 
                                Federal program, except as 
                                provided in subparagraph (B); 
                                or
                          ``(ii) would reduce or eliminate the 
                        amount of authorization of 
                        appropriations for Federal financial 
                        assistance that would be provided to 
                        States, local governments, or tribal 
                        governments for the purpose of 
                        complying with any such previously 
                        imposed duty unless such duty is 
                        reduced or eliminated by a 
                        corresponding amount; or
                  ``(B) any provision in legislation, statute, 
                or regulation that relates to a then-existing 
                Federal program under which $500,000,000 or 
                more is provided annually to States, local 
                governments, and tribal governments under 
                entitlement authority, if--
                          ``(i)(I) the provision would increase 
                        the stringency of conditions of 
                        assistance to States, local 
                        governments, or tribal governments 
                        under the program; or
                          ``(II) would place caps upon, or 
                        otherwise decrease, the Federal 
                        Government's responsibility to provide 
                        funding to States, local governments, 
                        or tribal governments under the 
                        program; and
                          ``(ii) the States, local governments, 
                        or tribal governments that participate 
                        in the Federal program lack authority 
                        under that program to amend their 
                        financial or programmatic 
                        responsibilities to continue providing 
                        required services that are affected by 
                        the legislation, statute, or 
                        regulation.
          ``(5) Federal private sector mandate.--The term 
        `Federal private sector mandate' means any provision in 
        legislation, statute, or regulation that--
                  ``(A) would impose an enforceable duty on the 
                private sector except--
                          ``(i) a condition of Federal 
                        assistance; or
                          ``(ii) a duty arising from 
                        participation in a voluntary Federal 
                        program; or
                  ``(B) would reduce or eliminate the amount of 
                authorization of appropriations for Federal 
                financial assistance that will be provided to 
                the private sector for the purpose of ensuring 
                compliance with such duty.
          ``(6) Federal mandate.--The term `Federal mandate' 
        means a Federal intergovernmental mandate or a Federal 
        private sector mandate, as defined in paragraphs (4) 
        and (5).
          ``(7) Federal mandate direct costs.--
                  ``(A) Federal intergovernmental direct 
                costs.--In the case of a Federal 
                intergovernmental mandate, the term `direct 
                costs' means the aggregate estimated amounts 
                that all States, local governments, and tribal 
                governments would be required to spend or would 
                be required to forego in revenues in order to 
                comply with the Federal intergovernmental 
                mandate, or, in the case of a provision 
                referred to in paragraph (4)(A)(ii), the amount 
                of Federal financial assistance eliminated or 
                reduced.
                  ``(B) Private sector direct costs.--In the 
                case of a Federal private sector mandate, the 
                term `direct costs' means the aggregate 
                estimated amounts that the private sector would 
                be required to spend in order to comply with a 
                Federal private sector mandate.
                  ``(C) Exclusion from direct costs.--The term 
                `direct costs' does not include--
                          ``(i) estimated amounts that the 
                        States, local governments, and tribal 
                        governments (in the case of a Federal 
                        intergovernmental mandate), or the 
                        private sector (in the case of a 
                        Federal private sector mandate), would 
                        spend--
                                  ``(I) to comply with or carry 
                                out all applicable Federal, 
                                State, local, and tribal laws 
                                and regulations in effect at 
                                the time of the adoption of a 
                                Federal mandate for the same 
                                activity as is affected by that 
                                Federal mandate; or
                                  ``(II) to comply with or 
                                carry out State, local 
                                government, and tribal 
                                governmental programs, or 
                                private-sector business or 
                                other activities in effect at 
                                the time of the adoption of a 
                                Federal mandate for the same 
                                activity as is affected by that 
                                mandate; or
                          ``(ii) expenditures to the extent 
                        that they will be offset by any direct 
                        savings to be enjoyed by the States, 
                        local governments, and tribal 
                        governments, or by the private sector, 
                        as a result of--
                                  ``(I) their compliance with 
                                the Federal mandate; or
                                  ``(II) other changes in 
                                Federal law or regulation that 
                                are enacted or adopted in the 
                                same bill or joint resolution 
                                or proposed or final Federal 
                                regulation and that govern the 
                                same activity as is affected by 
                                the Federal mandate.
                  ``(D) Determination of costs.--Direct costs 
                shall be determined based on the assumption 
                that States, local governments, tribal 
                governments, and the private sector will take 
                all reasonable steps necessary to mitigate the 
                costs resulting from the Federal mandate, and 
                will comply with applicable standards of 
                practice and conduct established by recognized 
                professional or trade associations. Reasonable 
                steps to mitigate the costs shall not include 
                increases in State, local, or tribal taxes or 
                fees.
          ``(8) Local government.--The term `local government' 
        has the same meaning as in section 6501(6) of title 31, 
        United States Code.
          ``(9) Private sector.--The term `private sector' 
        means individuals, partnerships, associations, 
        corporations, business trusts, or legal 
        representatives, organized groups of individuals, and 
        educational and other nonprofit institutions.
          ``(10) Regulation.--The term `regulation' or `rule' 
        has the meaning of `rule' as defined in section 601(2) 
        of title 5, United States Code.
          ``(11) State.--The term `State' has the same meaning 
        as in section 6501(9) of title 31, United States Code.

``SEC. 422. LIMITATION ON APPLICATION.

    ``This part shall not apply to any provision in a bill, 
joint resolution, motion, amendment, or conference report 
before Congress that--
          ``(1) enforces constitutional rights of individuals;
          ``(2) establishes or enforces any statutory rights 
        that prohibit discrimination on the basis of race, 
        religion, gender, national origin, or handicapped or 
        disability status;
          ``(3) requires compliance with accounting and 
        auditing procedures with respect to grants or other 
        money or property provided by the Federal Government;
          ``(4) provides for emergency assistance or relief at 
        the request of any State, local government, or tribal 
        government or any official of such a government;
          ``(5) is necessary for the national security or the 
        ratification or implementation of international treaty 
        obligations;
          ``(6) the President designates as emergency 
        legislation and that the Congress so designates in 
        statute; or
          ``(7) pertains to Social Security.

``SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

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

``SEC. 424. DUTIES OF THE DIRECTOR.

    ``(a) Statements on Bills and Joint Resolutions Other Than 
Appropriations Bills and Joint Resolutions.--
          ``(1) Federal intergovernmental mandates in reported 
        bills and resolutions.--For each bill or joint 
        resolution of a public character reported by any 
        committee of authorization of the House of 
        Representatives or the Senate, the Director shall 
        prepare and submit to the committee a statement as 
        follows:
                  ``(A) If the Director estimates that the 
                direct cost of all Federal intergovernmental 
                mandates in the bill or joint resolution will 
                equal or exceed $50,000,000 (adjusted annually 
                for inflation) in the fiscal year in which such 
                a Federal intergovernmental mandate (or in any 
                necessary implementing regulation) would first 
                be effective or in any of the 4 fiscal years 
                following such year, the Director shall so 
                state, specify the estimate, and briefly 
                explain the basis of the estimate.
                  ``(B) The estimate required by subparagraph 
                (A) shall include estimates (and brief 
                explanations of the basis of the estimates) 
                of--
                          ``(i) the total amount of direct cost 
                        of complying with the Federal 
                        intergovernmental mandates in the bill 
                        or joint resolution; and
                          ``(ii) the amount, if any, of 
                        increase in authorization of 
                        appropriations or budget authority or 
                        entitlement authority under existing 
                        Federal financial assistance programs, 
                        or of authorization of appropriations 
                        for new Federal financial assistance, 
                        provided by the bill or joint 
                        resolution and usable by States, local 
                        governments, or tribal governments for 
                        activities subject to the Federal 
                        intergovernmental mandates.
          ``(2) Federal private sector mandates in reported 
        bills and joint resolutions.--For each bill or joint 
        resolution of a public character reported by any 
        committee of authorization of the House of 
        Representatives or the Senate, the Director shall 
        prepare and submit to the committee a statement as 
        follows:
                  ``(A) If the Director estimates that the 
                direct cost of all Federal private sector 
                mandates in the bill or joint resolution will 
                equal or exceed $100,000,000 (adjusted annually 
                for inflation) in the fiscal year in which any 
                Federal private sector mandate in the bill or 
                joint resolution (or in any necessary 
                implementing regulation) would first be 
                effective or in any of the 4 fiscal years 
                following such fiscal year, the Director shall 
                so state, specify the estimate, and briefly 
                explain the basis of the estimate.
                  ``(B) The estimate required by subparagraph 
                (A) shall include estimates (and brief 
                explanations of the basis of the estimates) 
                of--
                          ``(i) the total amount of direct 
                        costs of complying with the Federal 
                        private sector mandates in the bill or 
                        joint resolution; and
                          ``(ii) the amount, if any, of 
                        increase in authorization of 
                        appropriations under existing Federal 
                        financial assistance programs, or of 
                        authorization of appropriations for new 
                        Federal financial assistance, provided 
                        by the bill or joint resolution usable 
                        by the private sector for the 
                        activities subject to the Federal 
                        private sector mandates.
                  ``(C) If the Director determines that it is 
                not feasible to make a reasonable estimate that 
                would be required under subparagraphs (A) and 
                (B), the Director shall not make the estimate, 
                but shall report in the statement that the 
                reasonable estimate cannot be made and shall 
                include the reasons for that determination in 
                the statement.
          ``(3) Legislation falling below the direct costs 
        thresholds.--If the Director estimates that the direct 
        costs of a Federal mandate will not equal or exceed the 
        threshold specified in paragraph (1)(A) or (2)(A), the 
        Director shall so state and shall briefly explain the 
        basis of the estimate.
          ``(4) Amended bills and joint resolutions; conference 
        reports.--If the Director has prepared the statement 
        pursuant to subsection (a) for a bill or joint 
        resolution, and if that bill or joint resolution is 
        reported or passed in an amended form (including if 
        passed by one House as an amendment in the nature of a 
        substitute for the text of a bill or joint resolution 
        from the other House) or is reported by a committee of 
        conference in an amended form, the committee of 
        conference shall ensure, to the greatest extent 
        practicable, that the Director shall prepare a 
        supplemental statement for the bill or joint resolution 
        in that amended form.
    ``(b) Assistance to Committees and Studies.--
          ``(1) In general.--At the request of any committee of 
        the House of Representatives or of the Senate, the 
        Director shall, to the extent practicable, consult with 
        and assist such committee in analyzing the budgetary or 
        financial impact of any proposed legislation that may 
        have--
                  ``(A) a significant budgetary impact on 
                State, local, or tribal governments; or
                  ``(B) a significant financial impact on the 
                private sector.
          ``(2) Continuing studies.--The Director shall conduct 
        continuing studies to enhance comparisons of budget 
        outlays, credit authority, and tax expenditures.
          ``(3) Federal mandate studies.--
                  ``(A) At the request of any committee of the 
                House of Representatives or the Senate, the 
                Director shall, to the extent practicable, 
                conduct a study of a legislative proposal 
                containing a Federal mandate.
                  ``(B) In conducting a study under 
                subparagraph (A), the Director shall--
                          ``(i) solicit and consider 
                        information or comments from elected 
                        officials (including their designated 
                        representatives) of States, local 
                        governments, tribal governments, 
                        designated representatives of the 
                        private sector, and such other persons 
                        as may provide helpful information or 
                        comments;
                          ``(ii) consider establishing advisory 
                        panels of elected officials (including 
                        their designated representatives) of 
                        States, local governments, tribal 
                        governments, designated representatives 
                        of the private sector, and other 
                        persons if the Director determines, in 
                        the Director's discretion, that such 
                        advisory panels would be helpful in 
                        performing the Director's 
                        responsibilities under this section; 
                        and
                          ``(iii) include estimates, if and to 
                        the extent that the Director determines 
                        that accurate estimates are reasonably 
                        feasible, of--
                                  ``(I) the future direct cost 
                                of the Federal mandates 
                                concerned to the extent that 
                                they significantly differ from 
                                or extend beyond the 5-year 
                                period after the mandate is 
                                first effective; and
                                  ``(II) any disproportionate 
                                budgetary effects of the 
                                Federal mandates concerned upon 
                                particular industries or 
                                sectors of the economy, States, 
                                regions, and urban, or rural or 
                                other types of communities, as 
                                appropriate.
                  ``(C) In conducting a study on private sector 
                mandates under subparagraph (A), the Director 
                shall provide estimates, if and to the extent 
                that the Director determines that such 
                estimates are reasonably feasible, of--
                          ``(i) future costs of Federal private 
                        sector mandates to the extent that such 
                        mandates differ significantly from or 
                        extend beyond the 5-year period 
                        referred to in subparagraph 
                        (B)(iii)(I);
                          ``(ii) any disproportionate financial 
                        effects of Federal private sector 
                        mandates and of any Federal financial 
                        assistance in the bill or joint 
                        resolution upon any particular 
                        industries or sectors of the economy, 
                        States, regions, and urban or rural or 
                        other types of communities; and
                          ``(iii) the effect of Federal private 
                        sector mandates in the bill or joint 
                        resolution on the national economy, 
                        including the effect on productivity, 
                        economic growth, full employment, 
                        creation of productive jobs, and 
                        international competitiveness of United 
                        States goods and services.
      ``(c) Views of Committees.--Any committee of the House of 
Representatives or the Senate which anticipates that the 
committee will consider any proposed legislation establishing, 
amending, or reauthorizing any Federal program likely to have a 
significant budgetary impact on the States, local governments, 
or tribal governments, or likely to have a significant 
financial impact on the private sector, including any 
legislative proposal submitted by the executive branch likely 
to have such a budgetary or financial impact, shall provide its 
views and estimates on such proposal to the Committee on the 
Budget of its House.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Congressional Budget Office to carry 
out this part $4,500,000 for each of fiscal years 1996 through 
2002.

``SEC. 425. POINT OF ORDER.

    ``(a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider--
          ``(1) any bill or joint resolution that is reported 
        by a committee unless the committee has published the 
        statement of the Director pursuant to section 424(a) 
        prior to such consideration, except that this paragraph 
        shall not apply to any supplemental statement prepared 
        by the Director under section 424(a)(4); or
          ``(2) any bill, joint resolution, amendment, motion, 
        or conference report that contains a Federal 
        intergovernmental mandate having direct costs that 
        exceed the threshold specified in section 424(a)(1)(A), 
        or that would cause the direct costs of any other 
        Federal intergovernmental mandate to exceed the 
        threshold specified in section 424(a)(1)(A), unless--
                  ``(A) the bill, joint resolution, amendment, 
                motion, or conference report provides new 
                budget authority or new entitlement authority 
                in the House of Representatives or direct 
                spending authority in the Senate for each 
                fiscal year for the Federal intergovernmental 
                mandates included in the bill, joint 
                resolution, amendment, motion, or conference 
                report in an amount that equals or exceeds the 
                estimated direct costs of such mandate; or
                  ``(B) the bill, joint resolution, amendment, 
                motion, or conference report provides an 
                increase in receipts or a decrease in new 
                budget authority or new entitlement authority 
                in the House of Representatives or direct 
                spending authority in the Senate and an 
                increase in new budget authority or new 
                entitlement authority in the House of 
                Representatives or an increase direct spending 
                authority for each fiscal year for the Federal 
                intergovernmental mandates included in the 
                bill, joint resolution, amendment, motion, or 
                conference report in an amount that equals or 
                exceeds the estimated direct costs of such 
                mandate; or
                  ``(C) the bill, joint resolution, amendment, 
                motion, or conference report--
                          ``(i) provides that--
                                  ``(I) such mandate shall be 
                                effective for any fiscal year 
                                only if all direct costs of 
                                such mandate in the fiscal year 
                                are provided in appropriations 
                                Acts, and
                                  ``(II) in the case of such a 
                                mandate contained in the bill, 
                                joint resolution, amendment, 
                                motion, or conference report, 
                                the mandate is repealed 
                                effective on the first day of 
                                any fiscal year for which all 
                                direct costs of such mandate 
                                are not provided in 
                                appropriations Acts; or
                          ``(ii) requires a Federal agency to 
                        reduce programmatic and financial 
                        responsibilities of State, local, and 
                        tribal governments for meeting the 
                        objectives of the mandate such that the 
                        estimated direct costs of the mandate 
                        to such governments do not exceed the 
                        amount of Federal funding provided to 
                        those governments to carry out the 
                        mandate in the form of appropriations 
                        or new budget authority or new 
                        entitlement authority in the House of 
                        Representatives or direct spending 
                        authority in the Senate, and 
                        establishes criteria and procedures for 
                        that reduction.
    ``(b) Limitation on Application to Appropriations Bills.--
Subsection (a) shall not apply to a bill that is reported by 
the Committee on Appropriations or an amendment thereto.
    ``(c) Determination of Direct Costs Based on Estimates by 
Budget Committees.--For the purposes of this section, the 
amount of direct costs of a Federal mandate for a fiscal year 
shall be determined based on estimates made by the Committee on 
the Budget, in consultation with the Director, of the House of 
Representatives or the Senate, as the case may be.
    ``(d) Determination of Existence of Federal Mandate by 
Government Reform and Oversight and Governmental Affairs 
Committees.--For the purposes of this section, the question of 
whether a bill, joint resolution, amendment, motion, or 
conference report contains a Federal intergovernmental mandate 
shall be determined after consideration of the recommendation, 
if available, of the Chairman of the Committee on Government 
Reform and Oversight of the House of Representatives or the 
Chairman of the Committee on Governmental Affairs of the 
Senate, as applicable.
    ``(e) Limitation on Application of Subsection (a)(2).--
Subsection (a)(2) shall not apply to any bill, joint 
resolution, amendment, or conference report that reauthorizes 
appropriations for carrying out, or that amends, any statute if 
enactment of the bill, joint resolution, amendment, or 
conference report--
          ``(1) would not result in a net increase in the 
        aggregate amount of direct costs of Federal 
        intergovernmental mandates; and
          ``(2)(A) would not result in a net reduction or 
        elimination of authorizations of appropriations for 
        Federal financial assistance that would be provided to 
        States, local governments, or tribal governments for 
        use to comply with any Federal intergovernmental 
        mandate; or
          ``(B) in the case of any net reduction or elimination 
        of authorizations of appropriations for such Federal 
        financial assistance that would result from such 
        enactment, would reduce the duties imposed by the 
        Federal intergovernmental mandate by a corresponding 
        amount.

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

    ``It shall not be in order in the House of Representatives 
to consider a rule or order that waives the application of 
section 425(a): Provided, however, That pending a point of 
order under section 425(a) or under this section a Member may 
move to waive the point of order. Such a motion shall be 
debatable for 10 minutes equally divided and controlled by the 
proponent and an opponent but, if offered in the House, shall 
otherwise be decided without intervening motion except a motion 
that the House adjourn. The adoption of a motion to waive such 
a point of order against consideration of a bill or joint 
resolution shall be considered also to waive a like point of 
order against an amendment made in order as original text.''.

SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

    (a) Motions To Strike in the Committee of the Whole.--
Clause 5 of rule XXIII of the Rules of the House of 
Representatives is amended by adding at the end the following:
    ``(c) In the consideration of any measure for amendment in 
the Committee of the Whole containing any Federal mandate the 
direct costs of which exceed the threshold in section 
424(a)(1)(A) of the Unfunded Mandate Reform Act of 1995, it 
shall always be in order, unless specifically waived by terms 
of a rule governing consideration of that measure, to move to 
strike such Federal mandate from the portion of the bill then 
open to amendment.''.
    (b) Committee on Rules Reports on Waived Points of Order.--
The Committee on Rules shall include in the report required by 
clause 1(d) of Rule XI (relating to its activities during the 
Congress) of the Rules of the House of Representatives a 
separate item identifying all waivers of points of order 
relating to Federal mandates, listed by bill or joint 
resolution number and the subject matter of that measure.

SEC. 303. EXERCISE OF RULEMAKING POWERS.

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

SEC. 304. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

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

                       ``Part B--Federal Mandates

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

SEC. 305. TECHNICAL AMENDMENT.

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

               ``analysis by congressional budget office

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

SEC. 306. EFFECTIVE DATE.

    This title shall take effect on October 1, 1995.