Federal Mandate Funding Act of 1993

Summary: Federal Mandate Funding Act of 1993 - Makes inapplicable to a State or local government for a two-year period any duty or requirement imposed by Federal statute or regulation that creates a Federal mandate which is not funded in part by the Federal Government. 
Establishes in the Treasury the Federal Mandate Assistance Fund to provide financial assistance to qualified State and local governments for complying with Federal mandates.  Authorizes appropriations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Mandate Funding Act of 
1993''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act--
            (1)(A) The term ``Federal mandate'' means a Federal law or 
        regulation that requires a State or unit of general local 
        government to carry out an action for which the State or unit 
        of general local government incurs a direct program cost.
            (B) Such term does not include laws or regulations--
                    (i) enforcing the Constitutional or statutory 
                rights of individuals; or
                    (ii) requiring a State or unit of general local 
                government to contribute matching amounts of funding as 
                a condition for receiving Federal grant assistance.
            (2) The term ``Secretary'' means the Secretary of the 
        Treasury.
            (3) The term ``State'' has the same meaning as in section 
        6501(8) of title 31, United States Code.
            (4) The term ``unit of general local government'' has the 
        same meaning as in section 6501(9) of title 31, United States 
        Code.

SEC. 3. MORATORIUM.

    (a) In General.--For the period beginning on the date of enactment 
of this Act and ending 2 years after such date, any duty or requirement 
imposed by Federal statute or regulation that creates a Federal mandate 
shall not apply to a State or unit of general local government unless 
the State or unit of general local government receives a Federal share 
toward the cost of such mandate.
    (b) Application.--This section shall apply only to statutes or 
regulations that take effect on or after the date of the enactment of 
this Act.

SEC. 4. FEDERAL MANDATE ASSISTANCE FUND.

    (a) Establishment and Administration of Fund.--There is established 
in the Department of the Treasury a Federal Mandate Assistance Fund 
(referred to as the ``Fund''), which shall consist of amounts 
appropriated to the Fund.
    (b) Payment and Use.--
            (1) Payment.--The Secretary shall pay from the Fund, to 
        each State which qualifies for a payment under this section, an 
        amount equal to the sum of any amounts allocated to the State 
        under this section at the beginning of each fiscal year.
            (2) Use.--Amounts paid to a State under this section, and 
        allocated and paid to units of general local government within 
        such State under this section, shall be used by such State and 
        units of general local government to reimburse the costs of 
        Federal mandates.
    (c) Qualification for Payment.--Under regulations issued by the 
Secretary, a State shall qualify for payment of the amount allocable to 
it under subsection (d) only after it has furnished, to the Secretary's 
satisfaction, the following:
            (1) State and local mandate costs.--The State shall 
        furnish, and the Secretary shall certify, an estimate of the 
        combined cost to the State and to units of general local 
        government within such State of Federal mandates during the 
        next fiscal year.
            (2) Formula for allocation to units of general local 
        government.--The State shall submit, and the Secretary shall 
        approve, a plan for the allocation to units of general local 
        government in the State, out of the amount allocated to the 
        State under this section, in conformance with the conditions 
        and criteria set forth in subsection (d).
    (d) Allocation Formulas.--
            (1) State allocations.--(A) Under regulations issued by the 
        Secretary, the Secretary shall allocate to each State, out of 
        the amount authorized for the period under subsection (b), an 
        amount proportionate to the product of--
                    (i) the total estimated cost of Federal mandates to 
                the State, and units of general local government in the 
                State, as a ratio of the total estimate of such costs 
                for all States, multiplied by
                    (ii) the need factor of the State as a ratio of the 
                combined need factor of all States.
            (B) The need factor shall be the product of--
                            (i) the population of the State;
                            (ii) the relative per capita income of the 
                        State;
                            (iii) the general tax effort factor of the 
                        State; and
                            (iv) the relative fiscal gap factor of the 
                        State.
            (2) Allocations to units of general local government.--
                    (A) Set-aside of funds.--Each State shall set 
                aside, out of the amount paid to it by the Secretary 
                under this section, an amount equal to the ratio which 
                the federal mandate costs of all units of general local 
                government in the State bear to the combined Federal 
                mandate costs of both the State and its units of 
                general local government.
                    (B) Payment of funds.--Under the plan submitted by 
                the State for approval by the Secretary, pursuant to 
                subsection (c)(2), the State shall pay to each unit of 
                general local government in the State, from the amount 
                set aside under subparagraph (A), an amount 
                proportionate to the product of--
                            (i) the cost of Federal mandates to such 
                        unit of general local government, as a ratio of 
                        the cost of such mandates to all units of 
                        general government in the State; and
                            (ii) the local need factor of such unit of 
                        general local government, defined as the 
                        product of its population, relative per capita 
                        income, and general tax effort factor.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the purposes of 
this section.

SEC. 5. REQUIREMENT OF IMPLEMENTATION PROVISION; POINT OF ORDER.

    Section 403 of the Congressional Budget Act of 1974 is amended by 
inserting at the end thereof the following new subsection:
    ``(d) Point of Order.--
            ``(1) General rule.--(A) Except as provided by paragraph 
        (2), it shall not be in order in the Senate to consider any 
        bill or resolution which would impose any duty or requirement 
        on State or local governments which in the judgment of the 
        Director of the Congressional Budget Office is likely to result 
        in an annual cost to State and local governments of 
        $200,000,000 or more with respect to any particular program, 
        project, or activity, unless such bill or resolution contains 
        an implementation provision setting forth the Federal share of 
        such cost.
            ``(B)(i) The Federal share of costs referred to in 
        subparagraph (A) shall be not less than 20 percent of the costs 
        incurred by the State or local government in meeting direct 
        program costs.
            ``(ii) The Federal share of costs referred to in 
        subparagraph (A) may include--
                    ``(I) reimbursement for direct administrative costs 
                of State and local governments in implementing the 
                program, project, or activity; and
                    ``(II) Federal cost-sharing or matching grant 
                funding.
            ``(C) A point of order made under this subsection may be 
        waived in the Senate by a majority vote of the Members voting, 
        a quorum being present, or by the unanimous consent of the 
        Senate.
            ``(2) Exception.--Paragraph (1) shall not apply to any bill 
        or resolution, including any amendment thereto or conference 
        report thereon, which is in compliance with any order issued 
        under either section 251(b)(2)(D) or section 252(e) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985.
            ``(3) Definition.--For purposes of this subsection--
                    ``(A) The term `local government' has the same 
                meaning as in section 6501(6) of title 31, United 
                States Code.
                    ``(B)(i) The term `Federal mandate' means a Federal 
                law or regulation that requires a State or local 
                government to carry out an action for which the State 
                or local government incurs a direct program cost.
                    ``(ii) Such term does not include laws or 
                regulations--
                            ``(I) enforcing the Constitutional or 
                        statutory rights of individuals; or
                            ``(II) requiring a State or local 
                        government to contribute matching amounts of 
                        funding as a condition for receiving Federal 
                        grant assistance.''.

SEC. 6. EFFECTIVE DATE.

    The provisions of this Act shall take effect on the date of 
enactment of this Act.