Federal Mandate Reduction, Reform, and Budget Act of 1993

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Mandate Reduction, Reform, 
and Budget Act of 1993''.

SEC. 2. 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 MANDATE 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 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.
            ``(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. 322. 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 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 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. 324. 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. 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 `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. 3. 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:
            ``(29) 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 323 of the Congressional Budget Act of 
        1974 for the budget year and the outyears.''

SEC. 4. 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) by adding at the end of section 603 the following:
    ``(d) 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.'';
            (2) 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) 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.''; and
            (3) 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''.
    (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 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.

Summary: Federal Mandate Reduction, Reform, and Budget Act of 1993 - Amends the Congressional Budget Act of 1974 to set forth reporting requirements for the Office of Management and Budget and the Congressional Budget Office (CBO) with respect to reducing the direct costs to States and local governments of complying with Federal mandates. Requires concurrent resolutions on the budget to provide for such reductions until such costs do not exceed three percent of the estimated gross national product for the same fiscal year as the costs will be incurred. Requires CBO to prepare an analysis of mandated costs for States and local governments for each public bill or resolution reported in the Congress . Requires a similar analysis in the President's annual budget submissions. Requires initial regulatory flexibility analyses for proposed rules that establish or implement new Federal mandates to contain a description of the nature and amount of monetary costs to be incurred by State and local governments. Requires Federal agencies to prepare a cost estimate and cost benefit analysis of such mandates that would cost State and local governments at least $10 million for a fiscal year.