[Weekly Compilation of Presidential Documents Volume 34, Number 20 (Monday, May 18, 1998)]
[Pages 866-869]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 13083--Federalism

May 14, 1998

    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, and in order to guarantee the 
division of governmental responsibilities, embodied in the Constitution, 
between the Federal Government and the States that was intended by the 
Framers and application of those principles by the Executive departments 
and agencies in the formulation and implementation of policies, it is 
hereby ordered as follows:
    Section 1. Definitions. For purposes of this order:
    (a) ``State'' or ``States'' refer to the States of the United States 
of America, individually or collectively, and, where relevant, to State 
governments, including units of local government and other political 
subdivisions established by the States.
    (b) ``Policies that have federalism implications'' refers to Federal 
regulations, proposed legislation, and other policy statements or 
actions that have substantial direct effects on the States or on the 
relationship, or the distribution of power and responsibilities, between 
the Federal Government and the States.

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    (c) ``Agency'' means any authority of the United States that is an 
``agency'' under 44 U.S.C. 3502(1), other than those considered to be 
independent regulatory agencies, as defined in 44 U.S.C. 3502(5).
    Sec. 2. Fundamental Federalism Principles. In formulating and 
implementing policies that have federalism implications, agencies shall 
be guided by the following fundamental federalism principles:
    (a) The structure of government established by the Constitution is 
premised upon a system of checks and balances.
    (b) The Constitution created a Federal Government of supreme, but 
limited, powers. The sovereign powers not granted to the Federal 
Government are reserved to the people or to the States, unless 
prohibited to the states by the Constitution.
    (c) Federalism reflects the principle that dividing power between 
the Federal Government and the States serves to protect individual 
liberty. Preserving State authority provides an essential balance to the 
power of the Federal Government, while preserving the supremacy of 
Federal law provides an essential balance to the power of the States.
    (d) The people of the States are at liberty, subject only to the 
limitations in the Constitution itself or in Federal law, to define the 
moral, political, and legal character of their lives.
    (e) Our constitutional system encourages a healthy diversity in the 
public policies adopted by the people of the several States according to 
their own conditions, needs, and desires. States and local governments 
are often uniquely situated to discern the sentiments of the people and 
to govern accordingly.
    (f) Effective public policy is often achieved when there is 
competition among the several States in the fashioning of different 
approaches to public policy issues. The search for enlightened public 
policy is often furthered when individual States and local governments 
are free to experiment with a variety of approaches to public issues. 
Uniform, national approaches to public policy problems can inhibit the 
creation of effective solutions to those problems.
    (g) Policies of the Federal Government should recognize the 
responsibility of--and should encourage opportunities for--States, local 
governments, private associations, neighborhoods, families, and 
individuals to achieve personal, social, environmental, and economic 
objectives through cooperative effort.
    Sec. 3. Federalism Policymaking Criteria. In addition to adhering to 
the fundamental federalism principles set forth in section 2 of this 
order, agencies shall adhere, to the extent permitted by law, to the 
following criteria when formulating and implementing policies that have 
federalism implications:
    (a) There should be strict adherence to constitutional principles. 
Agencies should closely examine the constitutional and statutory 
authority supporting any Federal action that would limit the 
policymaking discretion of States and local governments, and should 
carefully assess the necessity for such action.
    (b) Agencies may limit the policymaking discretion of States and 
local governments only after determining that there is constitutional 
and legal authority for the action.
    (c) With respect to Federal statutes and regulations administered by 
States and local governments, the Federal Government should grant States 
and local governments the maximum administrative discretion possible. 
Any Federal oversight of such State and local administration should not 
unnecessarily intrude on State and local discretion.
    (d) It is important to recognize the distinction between matters of 
national or multi-state scope (which may justify Federal action) and 
matters that are merely common to the States (which may not justify 
Federal action because individual States, acting individually or 
together, may effectively deal with them). Matters of national or multi-
state scope that justify Federal action may arise in a variety of 
circumstances, including:
    (1) When the matter to be addressed by Federal action occurs 
interstate as opposed to being contained within one State's boundaries.
    (2) When the source of the matter to be addressed occurs in a State 
different from the State (or States) where a significant amount of the 
harm occurs.
    (3) When there is a need for uniform national standards.

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    (4) When decentralization increases the costs of government thus 
imposing additional burdens on the taxpayer.
    (5) When States have not adequately protected individual rights and 
liberties.
    (6) When States would be reluctant to impose necessary regulations 
because of fears that regulated business activity will relocate to other 
States.
    (7) When placing regulatory authority at the State or local level 
would undermine regulatory goals because high costs or demands for 
specialized expertise will effectively place the regulatory matter 
beyond the resources of State authorities.
    (8) When the matter relates to Federally owned or managed property 
or natural resources, trust obligations, or international obligations.
    (9) When the matter to be regulated significantly or uniquely 
affects Indian tribal governments.
    Sec. 4. Consultation. (a) Each agency shall have an effective 
process to permit elected officials and other representatives of State 
and local governments to provide meaningful and timely input in the 
development of regulatory policies that have federalism implications.
    (b) To the extent practicable and permitted by law, no agency shall 
promulgate any regulation that is not required by statute, that has 
federalism implications, and that imposes substantial direct compliance 
costs on States and local governments, unless:
    (1) funds necessary to pay the direct costs incurred by the State or 
local government in complying with the regulation are provided by the 
Federal Government; or
    (2) the agency, prior to the formal promulgation of the regulation,
    (A) in a separately identified portion of the preamble to the 
regulation as it is to be issued in the Federal Register, provides to 
the Director of the Office of Management and Budget a description of the 
extent of the agency's prior consultation with representatives of 
affected States and local governments, a summary of the nature of their 
concerns, and the agency's position supporting the need to issue the 
regulation; and
    (B) makes available to the Director of the Office of Management and 
Budget any written communications submitted to the agency by States or 
local governments.
    Sec. 5. Increasing Flexibility for State and Local Waivers. (a) 
Agencies shall review the processes under which States and local 
governments apply for waivers of statutory and regulatory requirements 
and take appropriate steps to streamline those processes.
    (b) Each agency shall, to the extent practicable and permitted by 
law, consider any application by a State or local government for a 
waiver of statutory or regulatory requirements in connection with any 
program administered by that agency with a general view toward 
increasing opportunities for utilizing flexible policy approaches at the 
State or local level in cases in which the proposed waiver is consistent 
with applicable Federal policy objectives and is otherwise appropriate.
    (c) Each agency shall, to the extent practicable and permitted by 
law, render a decision upon a complete application for a waiver within 
120 days of receipt of such application by the agency. If the 
application for a waiver is not granted, the agency shall provide the 
applicant with timely written notice of the decision and the reasons 
therefor.
    (d) This section applies only to statutory or regulatory 
requirements that are discretionary and subject to waiver by the agency.
    Sec. 6. Independent Agencies. Independent regulatory agencies are 
encouraged to comply with the provisions of this order.
    Sec. 7. General Provisions. (a) This order is intended only to 
improve the internal management of the executive branch and is not 
intended to, and does not, create any right or benefit, substantive or 
procedural, enforceable at law or equity by a party against the United 
States, its agencies or instrumentalities, its officers or employees, or 
any other person.
    (b) This order shall supplement but not supersede the requirements 
contained in Executive Order 12866 (``Regulatory Planning and Review''), 
Executive Order 12988 (``Civil Justice Reform''), and OMB Circular A-19.
    (c) Executive Order 12612 of October 26, 1987, and Executive Order 
12875 of October 26, 1993, are revoked.

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    (d) The consultation and waiver provisions in sections 4 and 5 of 
this order shall complement the Executive order entitled, ``Consultation 
and Coordination with Indian Tribal Governments,'' being issued on this 
day.
    (e) This order shall be effective 90 days after the date of this 
order.
                                            William J. Clinton
The White House,
May 14, 1998.

[Filed with the Office of the Federal Register, 11:24 a.m., May 18, 
1998]

Note: This Executive order will be published in the Federal Register on 
May 19.