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[Journal of the House of Representatives, 1995]
[Thursday, March 16, 1995 (46), Para 46.16 Unfunded Federal Mandates]
[Pages 407-414]
[From the U.S. Government Publishing Office, www.gpo.gov]

para.46.16  unfunded federal mandates

  Mr. CLINGER called up the following conference report (Rept. No. 104-
76):

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 1), 
     to curb the practice of imposing unfunded Federal mandates on 
     States and local governments; to strengthen the partnership 
     between the Federal Government and State, local and tribal 
     governments; to end the imposition, in the absence of full 
     consideration by Congress, of Federal mandates on State, 
     local, and tribal governments without adequate funding, in a 
     manner that may displace other essential governmental 
     priorities; and to ensure that the Federal Government pays 
     the costs incurred by those governments in complying with 
     certain requirements under Federal statutes and regulations; 
     and for other purposes, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to strengthen the partnership between the Federal 
     Government and State, local, and tribal governments;
       (2) to end the imposition, in the absence of full 
     consideration by Congress, of Federal mandates on State, 
     local, and tribal governments without adequate Federal 
     funding, 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 State, local, and 
     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 the House of Representatives 
     before the Senate and the House of Representatives vote on 
     proposed legislation;
       (4) to promote informed and deliberate decisions by 
     Congress on the appropriateness of Federal mandates in any 
     particular instance;
       (5) to require that Congress consider whether to provide 
     funding to assist State, local, and tribal governments in 
     complying with Federal mandates, to require analyses of the 
     impact of private sector mandates, and through the 
     dissemination of that information provide informed and 
     deliberate decisions by Congress and Federal agencies and 
     retain competitive balance between the public and private 
     sectors;
       (6) to establish a point-of-order vote on the consideration 
     in the Senate and House of Representatives of legislation 
     containing significant Federal intergovernmental mandates 
     without providing adequate funding to comply with such 
     mandates;
       (7) to assist Federal agencies in their consideration of 
     proposed regulations affecting State, local, and tribal 
     governments, by--
       (A) requiring that Federal agencies develop a process to 
     enable the elected and other officials of State, local, and 
     tribal governments to provide input when Federal agencies are 
     developing regulations; and
       (B) requiring that Federal agencies prepare and consider 
     estimates of the budgetary impact of regulations containing 
     Federal mandates upon State, local, and tribal governments 
     and the private sector before adopting such regulations, and 
     ensuring that small governments are given special 
     consideration in that process; and
       (8) to begin consideration of the effect of previously 
     imposed Federal mandates, including the impact on State, 
     local, and tribal governments of Federal court 
     interpretations of Federal statutes and regulations that 
     impose Federal intergovernmental mandates.

     SEC. 3. DEFINITIONS.

       For purposes of this Act--
       (1) except as provided in section 305 of this Act, the 
     terms defined under section 421 of the Congressional Budget 
     and Impoundment Control Act of 1974 (as added by section 101 
     of this Act) shall have the meanings as so defined; and
       (2) the term ``Director'' means the Director of the 
     Congressional Budget Office.

     SEC. 4. EXCLUSIONS.

       This Act shall not apply to any provision in a bill, joint 
     resolution, amendment, motion, or conference report before 
     Congress and any provision in 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, color, 
     religion, sex, national origin, age, handicap, or disability;
       (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, or tribal government or any 
     official of a State, local, or tribal 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

[[Page 408]]

       (7) relates to the old-age, survivors, and disability 
     insurance program under title II of the Social Security Act 
     (including taxes imposed by sections 3101(a) and 3111(a) of 
     the Internal Revenue Code of 1986 (relating to old-age, 
     survivors, and disability insurance)).

     SEC. 5. AGENCY ASSISTANCE.

       Each agency shall provide to the Director such information 
     and assistance as the Director may reasonably request to 
     assist the Director in carrying out this Act.
             TITLE I--LEGISLATIVE ACCOUNTABILITY AND REFORM

     SEC. 101. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.

       (a) In General.--Title IV of the Congressional Budget and 
     Impoundment Control Act of 1974 is amended by--
       (1) inserting before section 401 the following:

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

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

                       ``Part B--Federal Mandates

     ``SEC. 421. DEFINITIONS.

       ``For purposes of this part:
       ``(1) Agency.--The term `agency' has the same meaning as 
     defined in section 551(1) of title 5, United States Code, but 
     does not include independent regulatory agencies.
       ``(2) Amount.--The term `amount', with respect to an 
     authorization of appropriations for Federal financial 
     assistance, means the amount of budget authority for any 
     Federal grant assistance program or any Federal program 
     providing loan guarantees or direct loans.
       ``(3) Direct costs.--The term `direct costs'--
       ``(A)(i) in the case of a Federal intergovernmental 
     mandate, means the aggregate estimated amounts that all 
     State, local, and tribal governments would be required to 
     spend or would be prohibited from raising in revenues in 
     order to comply with the Federal intergovernmental mandate; 
     or
       ``(ii) in the case of a provision referred to in paragraph 
     (5)(A)(ii), means the amount of Federal financial assistance 
     eliminated or reduced;
       ``(B) in the case of a Federal private sector mandate, 
     means the aggregate estimated amounts that the private sector 
     will be required to spend in order to comply with the Federal 
     private sector mandate;
       ``(C) shall be determined on the assumption that--
       ``(i) State, local, and 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; and
       ``(ii) reasonable steps to mitigate the costs shall not 
     include increases in State, local, or tribal taxes or fees; 
     and
       ``(D) shall not include--
       ``(i) estimated amounts that the State, local, 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 the Federal mandate for the same 
     activity as is affected by that Federal mandate; or
       ``(II) to comply with or carry out State, local, and tribal 
     governmental programs, or private-sector business or other 
     activities in effect at the time of the adoption of the 
     Federal mandate for the same activity as is affected by that 
     mandate; or

       ``(ii) expenditures to the extent that such expenditures 
     will be offset by any direct savings to the State, local, and 
     tribal governments, or by the private sector, as a result 
     of--

       ``(I) 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.

       ``(4) Direct savings.--The term `direct savings', when used 
     with respect to the result of compliance with the Federal 
     mandate--
       ``(A) in the case of a Federal intergovernmental mandate, 
     means the aggregate estimated reduction in costs to any 
     State, local, or tribal government as a result of compliance 
     with the Federal intergovernmental mandate; and
       ``(B) in the case of a Federal private sector mandate, 
     means the aggregate estimated reduction in costs to the 
     private sector as a result of compliance with the Federal 
     private sector mandate.
       ``(5) 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 State, local, 
     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--

       ``(I) Federal financial assistance that would be provided 
     to State, local, 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

       ``(II) the control of borders by the Federal Government; or 
     reimbursement to State, local, or tribal governments for the 
     net cost associated with illegal, deportable, and excludable 
     aliens, including court-mandated expenses related to 
     emergency health care, education or criminal justice; when 
     such a reduction or elimination would result in increased net 
     costs to State, local, or tribal governments in providing 
     education or emergency health care to, or incarceration of, 
     illegal aliens; except that this subclause shall not be in 
     effect with respect to a State, local, or tribal government, 
     to the extent that such government has not fully cooperated 
     in the efforts of the Federal Government to locate, 
     apprehend, and deport illegal aliens;

       ``(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 State, local, 
     and tribal governments under entitlement authority, if the 
     provision--
       ``(i)(I) would increase the stringency of conditions of 
     assistance to State, local, or tribal governments under the 
     program; or
       ``(II) would place caps upon, or otherwise decrease, the 
     Federal Government's responsibility to provide funding to 
     State, local, or tribal governments under the program; and
       ``(ii) the State, local, 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.
       ``(6) Federal mandate.--The term `Federal mandate' means a 
     Federal intergovernmental mandate or a Federal private sector 
     mandate, as defined in paragraphs (5) and (7).
       ``(7) 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 upon 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 purposes of 
     ensuring compliance with such duty.
       ``(8) Local government.--The term `local government' has 
     the same meaning as defined in section 6501(6) of title 31, 
     United States Code.
       ``(9) Private sector.--The term `private sector' means all 
     persons or entities in the United States, including 
     individuals, partnerships, associations, corporations, and 
     educational and nonprofit institutions, but shall not include 
     State, local, or tribal governments.
       ``(10) Regulation; rule.--The term `regulation' or `rule' 
     (except with respect to a rule of either House of the 
     Congress) has the meaning of `rule' as defined in section 
     601(2) of title 5, United States Code.
       ``(11) Small government.--The term `small government' means 
     any small governmental jurisdictions defined in section 
     601(5) of title 5, United States Code, and any tribal 
     government.
       ``(12) State.--The term `State' has the same meaning as 
     defined in section 6501(9) of title 31, United States Code.
       ``(13) Tribal government.--The term `tribal government' 
     means any Indian tribe, band, nation, or other organized 
     group or community, including any Alaska Native village or 
     regional or village corporation as defined in or established 
     pursuant to the Alaska Native Claims Settlement Act (85 Stat. 
     688; 43 U.S.C. 1601 et seq.) which is recognized as eligible 
     for the special programs and services provided by the United 
     States to Indians because of their special status as Indians.

     ``SEC. 422. EXCLUSIONS.

       ``This part shall not apply to any provision in a bill, 
     joint resolution, amendment, motion, 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, color, 
     religion, sex, national origin, age, handicap, or disability;
       ``(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, or tribal government or any 
     official of a State, local, or tribal 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) relates to the old-age, survivors, and disability 
     insurance program under title II of the Social Security Act 
     (including taxes imposed by sections 3101(a) and 3111(a) of 
     the Internal Revenue Code of 1986 (relating to old-age, 
     survivors, and disability insurance)).

     ``SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

       ``(a) In General.--When a committee of authorization of the 
     Senate or the House of Representatives reports a bill or 
     joint resolution of public character that includes any 
     Federal mandate, the report of the committee accompanying the 
     bill or joint resolution shall contain the information 
     required by subsections (c) and (d).

[[Page 409]]

       ``(b) Submission of Bills to the Director.--When a 
     committee of authorization of the Senate or the House of 
     Representatives orders reported a bill or joint resolution of 
     a public character, the committee shall promptly provide the 
     bill or joint resolution to the Director of the Congressional 
     Budget Office and shall identify to the Director any Federal 
     mandates contained in the bill or resolution.
       ``(c) Reports on Federal Mandates.--Each report described 
     under subsection (a) shall contain--
       ``(1) an identification and description of any Federal 
     mandates in the bill or joint resolution, including the 
     direct costs to State, local, and tribal governments, and to 
     the private sector, required to comply with the Federal 
     mandates;
       ``(2) a qualitative, and if practicable, a quantitative 
     assessment of costs and benefits anticipated from the Federal 
     mandates (including the effects on health and safety and the 
     protection of the natural environment); and
       ``(3) a statement of the degree to which a Federal mandate 
     affects both the public and private sectors and the extent to 
     which Federal payment of public sector costs or the 
     modification or termination of the Federal mandate as 
     provided under section 425(a)(2) would affect the competitive 
     balance between State, local, or tribal governments and the 
     private sector including a description of the actions, if 
     any, taken by the committee to avoid any adverse impact on 
     the private sector or the competitive balance between the 
     public sector and the private sector.
       ``(d) Intergovernmental Mandates.--If any of the Federal 
     mandates in the bill or joint resolution are Federal 
     intergovernmental mandates, the report required under 
     subsection (a) shall also contain--
       ``(1)(A) a statement of the amount, if any, of increase or 
     decrease 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 and usable for activities of 
     State, local, or tribal governments subject to the Federal 
     intergovernmental mandates;
       ``(B) 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
       ``(C) if funded in whole or in part, a statement of whether 
     and how the committee has created a mechanism to allocate the 
     funding in a manner that is reasonably consistent with the 
     expected direct costs among and between the respective levels 
     of State, local, and tribal government; and
       ``(2) any existing sources of Federal assistance in 
     addition to those identified in paragraph (1) that may assist 
     State, local, and tribal governments in meeting the direct 
     costs of the Federal intergovernmental mandates.
       ``(e) Preemption Clarification and Information.--When a 
     committee of authorization of the Senate or the House of 
     Representatives reports a bill or joint resolution of 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 the extent to 
     which the bill or joint resolution is intended to preempt any 
     State, local, or tribal law, and, if so, an explanation of 
     the effect of such preemption.
       ``(f) Publication of Statement From the Director.--
       ``(1) In general.--Upon receiving a statement from the 
     Director under section 424, a committee of the Senate or the 
     House of Representatives shall publish the statement in the 
     committee report accompanying the bill or joint resolution to 
     which the statement relates if the statement is available at 
     the time the report is printed.
       ``(2) Other publication of 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 Senate or the House of 
     Representatives 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; STATEMENTS ON BILLS AND 
                   JOINT RESOLUTIONS OTHER THAN APPROPRIATIONS 
                   BILLS AND JOINT RESOLUTIONS.

       ``(a) 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 Senate or the House of Representatives, the Director 
     of the Congressional Budget Office shall prepare and submit 
     to the committee a statement as follows:
       ``(1) Contents.--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 any 
     Federal intergovernmental 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.
       ``(2) Estimates.--Estimates required under paragraph (1) 
     shall include estimates (and brief explanations of the basis 
     of the estimates) of--
       ``(A) the total amount of direct cost of complying with the 
     Federal intergovernmental mandates in the bill or joint 
     resolution;
       ``(B) if the bill or resolution contains an authorization 
     of appropriations under section 425(a)(2)(B), the amount of 
     new budget authority for each fiscal year for a period not to 
     exceed 10 years beyond the effective date necessary for the 
     direct cost of the intergovernmental mandate; and
       ``(C) 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 and usable by State, local, or tribal governments 
     for activities subject to the Federal intergovernmental 
     mandates.
       ``(3) Estimate not feasible.--If the Director determines 
     that it is not feasible to make a reasonable estimate that 
     would be required under paragraphs (1) and (2), 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. If such determination is made by the Director, a 
     point of order under this part shall lie only under section 
     425(a)(1) and as if the requirement of section 425(a)(1) had 
     not been met.
       ``(b) 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 Senate or the House of Representatives, the Director 
     of the Congressional Budget Office shall prepare and submit 
     to the committee a statement as follows:
       ``(1) Contents.--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.
       ``(2) Estimates.--Estimates required under paragraph (1) 
     shall include estimates (and a brief explanation of the basis 
     of the estimates) of--
       ``(A) the total amount of direct costs of complying with 
     the Federal private sector mandates in the bill or joint 
     resolution; and
       ``(B) 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.
       ``(3) Estimate not feasible.--If the Director determines 
     that it is not feasible to make a reasonable estimate that 
     would be required under paragraphs (1) and (2), 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.
       ``(c) 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 thresholds 
     specified in subsections (a) and (b), the Director shall so 
     state and shall briefly explain the basis of the estimate.
       ``(d) Amended Bills and Joint Resolutions; Conference 
     Reports.--If a bill or joint resolution is 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 amended form, and the amended 
     form contains a Federal mandate not previously considered by 
     either House or which contains an increase in the direct cost 
     of a previously considered Federal mandate, then the 
     committee of conference shall ensure, to the greatest extent 
     practicable, that the Director shall prepare a statement as 
     provided in this subsection or a supplemental statement for 
     the bill or joint resolution in that amended form.

     ``SEC. 425. LEGISLATION SUBJECT TO POINT OF ORDER.

       ``(a) In General.--It shall not be in order in the Senate 
     or the House of Representatives to consider--
       ``(1) any bill or joint resolution that is reported by a 
     committee unless the committee has published a statement of 
     the Director on the direct costs of Federal mandates in 
     accordance with section 423(f) before such consideration, 
     except this paragraph shall not apply to any supplemental 
     statement prepared by the Director under section 424(d); and
       ``(2) any bill, joint resolution, amendment, motion, or 
     conference report that would increase the direct costs of 
     Federal intergovernmental mandates by an amount that causes 
     the thresholds specified in section 424(a)(1) to be exceeded, 
     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 such mandates included in the bill, joint resolution, 
     amendment, motion, or conference report in an amount equal to 
     or exceeding the direct costs of such mandate; or

[[Page 410]]

       ``(B) the bill, joint resolution, amendment, motion, or 
     conference report includes an authorization for 
     appropriations in an amount equal to or exceeding the direct 
     costs of such mandate, and--
       ``(i) identifies a specific dollar amount of the direct 
     costs of such mandate for each year up to 10 years during 
     which such mandate shall be in effect under the bill, joint 
     resolution, amendment, motion or conference report, and such 
     estimate is consistent with the estimate determined under 
     subsection (e) for each fiscal year;
       ``(ii) identifies any appropriation bill that is expected 
     to provide for Federal funding of the direct cost referred to 
     under clause (i); and
       ``(iii)(I) provides that for any fiscal year the 
     responsible Federal agency shall determine whether there are 
     insufficient appropriations for that fiscal year to provide 
     for the direct costs under clause (i) of such mandate, and 
     shall (no later than 30 days after the beginning of the 
     fiscal year) notify the appropriate authorizing committees of 
     Congress of the determination and submit either--

       ``(aa) a statement that the agency has determined, based on 
     a re-estimate of the direct costs of such mandate, after 
     consultation with State, local, and tribal governments, that 
     the amount appropriated is sufficient to pay for the direct 
     costs of such mandate; or
       ``(bb) legislative recommendations for either implementing 
     a less costly mandate or making such mandate ineffective for 
     the fiscal year;

       ``(II) provides for expedited procedures for the 
     consideration of the statement or legislative recommendations 
     referred to in subclause (I) by Congress no later than 30 
     days after the statement or recommendations are submitted to 
     Congress; and
       ``(III) provides that such mandate shall--

       ``(aa) in the case of a statement referred to in subclause 
     (I)(aa), cease to be effective 60 days after the statement is 
     submitted unless Congress has approved the agency's 
     determination by joint resolution during the 60-day period;
       ``(bb) cease to be effective 60 days after the date the 
     legislative recommendations of the responsible Federal agency 
     are submitted to Congress under subclause (I)(bb) unless 
     Congress provides otherwise by law; or
       ``(cc) in the case that such mandate that has not yet taken 
     effect, continue not to be effective unless Congress provides 
     otherwise by law.

       ``(b) Rule of Construction.--The provisions of subsection 
     (a)(2)(B)(iii) shall not be construed to prohibit or 
     otherwise restrict a State, local, or tribal government from 
     voluntarily electing to remain subject to the original 
     Federal intergovernmental mandate, complying with the 
     programmatic or financial responsibilities of the original 
     Federal intergovernmental mandate and providing the funding 
     necessary consistent with the costs of Federal agency 
     assistance, monitoring, and enforcement.
       ``(c) Committee on Appropriations.--
       ``(1) Application.--The provisions of subsection (a)--
       ``(A) shall not apply to any bill or resolution reported by 
     the Committee on Appropriations of the Senate or the House of 
     Representatives; except
       ``(B) shall apply to--
       ``(i) any legislative provision increasing direct costs of 
     a Federal intergovernmental mandate contained in any bill or 
     resolution reported by the Committee on Appropriations of the 
     Senate or House of Representatives;
       ``(ii) any legislative provision increasing direct costs of 
     a Federal intergovernmental mandate contained in any 
     amendment offered to a bill or resolution reported by the 
     Committee on Appropriations of the Senate or House of 
     Representatives;
       ``(iii) any legislative provision increasing direct costs 
     of a Federal intergovernmental mandate in a conference report 
     accompanying a bill or resolution reported by the Committee 
     on Appropriations of the Senate or House of Representatives; 
     and
       ``(iv) any legislative provision increasing direct costs of 
     a Federal intergovernmental mandate contained in any 
     amendments in disagreement between the two Houses to any bill 
     or resolution reported by the Committee on Appropriations of 
     the Senate or House of Representatives.
       ``(2) Certain provisions stricken in senate.--Upon a point 
     of order being made by any Senator against any provision 
     listed in paragraph (1)(B), and the point of order being 
     sustained by the Chair, such specific provision shall be 
     deemed stricken from the bill, resolution, amendment, 
     amendment in disagreement, or conference report and may not 
     be offered as an amendment from the floor.
       ``(d) Determinations of Applicability to Pending 
     Legislation.--For purposes of this section, in the Senate, 
     the presiding officer of the Senate shall consult with the 
     Committee on Governmental Affairs, to the extent practicable, 
     on questions concerning the applicability of this part to a 
     pending bill, joint resolution, amendment, motion, or 
     conference report.
       ``(e) Determinations of Federal Mandate Levels.--For 
     purposes of this section, in the Senate, the levels of 
     Federal mandates for a fiscal year shall be determined based 
     on the estimates made by the Committee on the Budget.

     ``SEC. 426. PROVISIONS RELATING TO THE HOUSE OF 
                   REPRESENTATIVES.

       ``(a) 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.
       ``(b) Disposition of Points of Order.--
       ``(1) Application to the house of representatives.--This 
     subsection shall apply only to the House of Representatives.
       ``(2) Threshold burden.--In order to be cognizable by the 
     Chair, a point of order under section 425 or subsection (a) 
     of this section must specify the precise language on which it 
     is premised.
       ``(3) Question of consideration.--As disposition of points 
     of order under section 425 or subsection (a) of this section, 
     the Chair shall put the question of consideration with 
     respect to the proposition that is the subject of the points 
     of order.
       ``(4) Debate and intervening motions.--A question of 
     consideration under this section shall be debatable for 10 
     minutes by each Member initiating a point of order and for 10 
     minutes by an opponent on each point of order, but shall 
     otherwise be decided without intervening motion except one 
     that the House adjourn or that the Committee of the Whole 
     rise, as the case may be.
       ``(5) Effect on amendment in order as original text.--The 
     disposition of the question of consideration under this 
     subsection with respect to a bill or joint resolution shall 
     be considered also to determine the question of consideration 
     under this subsection with respect to an amendment made in 
     order as original text.

     ``SEC. 427. REQUESTS TO THE CONGRESSIONAL BUDGET OFFICE FROM 
                   SENATORS.

       ``At the written request of a Senator, the Director shall, 
     to the extent practicable, prepare an estimate of the direct 
     costs of a Federal intergovernmental mandate contained in an 
     amendment of such Senator.

     ``SEC. 428. CLARIFICATION OF APPLICATION.

       ``(a) In General.--This part applies to any bill, joint 
     resolution, amendment, motion, or conference report that 
     reauthorizes appropriations, or that amends existing 
     authorizations of appropriations, to carry out any statute, 
     or that otherwise amends any statute, only if enactment of 
     the bill, joint resolution, amendment, motion, or conference 
     report--
       ``(1) would result in a net reduction in or elimination of 
     authorization of appropriations for Federal financial 
     assistance that would be provided to State, local, or tribal 
     governments for use for the purpose of complying with any 
     Federal intergovernmental mandate, or to the private sector 
     for use to comply with any Federal private sector mandate, 
     and would not eliminate or reduce duties established by the 
     Federal mandate by a corresponding amount; or
       ``(2) would result in a net increase in the aggregate 
     amount of direct costs of Federal intergovernmental mandates 
     or Federal private sector mandates other than as described in 
     paragraph (1).
       ``(b) Direct Costs.--
       ``(1) In general.--For purposes of this part, the direct 
     cost of the Federal mandates in a bill, joint resolution, 
     amendment, motion, or conference report that reauthorizes 
     appropriations, or that amends existing authorizations of 
     appropriations, to carry out a statute, or that otherwise 
     amends any statute, means the net increase, resulting from 
     enactment of the bill, joint resolution, amendment, motion, 
     or conference report, in the amount described under paragraph 
     (2)(A) over the amount described under paragraph (2)(B).
       ``(2) Amounts.--The amounts referred to under paragraph (1) 
     are--
       ``(A) the aggregate amount of direct costs of Federal 
     mandates that would result under the statute if the bill, 
     joint resolution, amendment, motion, or conference report is 
     enacted; and
       ``(B) the aggregate amount of direct costs of Federal 
     mandates that would result under the statute if the bill, 
     joint resolution, amendment, motion, or conference report 
     were not enacted.
       ``(3) Extension of authorization of appropriations.--For 
     purposes of this section, in the case of legislation to 
     extend authorization of appropriations, the authorization 
     level that would be provided by the extension shall be 
     compared to the authorization level for the last year in 
     which authorization of appropriations is already provided.''.
       (b) Technical and Conforming Amendments.--Section 1(b) of 
     the Congressional Budget and Impoundment Control Act of 1974 
     is amended--
       (1) by inserting ``Part A--General Provisions'' before the 
     item relating to section 401; and
       (2) by inserting after the item relating to section 407 the 
     following:

                       ``Part B--Federal Mandates

``Sec. 421. Definitions.
``Sec. 422. Exclusions.
``Sec. 423. Duties of congressional committees.
``Sec. 424. Duties of the Director; statements on bills and joint 
              resolutions other than appropriations bills and joint 
              resolutions.
``Sec. 425. Legislation subject to point of order.
``Sec. 426. Provisions relating to the House of Representatives.
``Sec. 427. Requests to the Congressional Budget Office from Senators.
``Sec. 428. Clarification of application.''.

     SEC. 102. ASSISTANCE TO COMMITTEES AND STUDIES.

       The Congressional Budget and Impoundment Control Act of 
     1974 is amended--
       (1) in section 202--
       (A) in subsection (c)--

[[Page 411]]

       (i) by redesignating paragraph (2) as paragraph (3); and
       (ii) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) At the request of any committee of the Senate or the 
     House of Representatives, the Office 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;
       ``(B) a significant financial impact on the private sector; 
     or
       ``(C) a significant employment impact on the private 
     sector.''; and
       (B) by amending subsection (h) to read as follows:
       ``(h) Studies.--
       ``(1) Continuing studies.--The Director of the 
     Congressional Budget Office shall conduct continuing studies 
     to enhance comparisons of budget outlays, credit authority, 
     and tax expenditures.
       ``(2) Federal mandate studies.--
       ``(A) At the request of any Chairman or ranking member of 
     the minority of a Committee of the Senate or the House of 
     Representatives, the Director shall, to the extent 
     practicable, conduct a study of a legislative proposal 
     containing a Federal mandate.
       ``(B) In conducting a study on intergovernmental mandates 
     under subparagraph (A), the Director shall--
       ``(i) solicit and consider information or comments from 
     elected officials (including their designated 
     representatives) of State, local, or tribal governments as 
     may provide helpful information or comments;
       ``(ii) consider establishing advisory panels of elected 
     officials or their designated representatives, of State, 
     local, or tribal governments if the Director determines that 
     such advisory panels would be helpful in performing 
     responsibilities of the Director under this section; and
       ``(iii) if, and to the extent that the Director determines 
     that accurate estimates are reasonably feasible, include 
     estimates of--

       ``(I) the future direct cost of the Federal mandate to the 
     extent that such costs significantly differ from or extend 
     beyond the 5-year period after the mandate is first 
     effective; and
       ``(II) any disproportionate budgetary effects of Federal 
     mandates 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 time 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.''; and
       (2) in section 301(d) by adding at the end thereof the 
     following new sentence: ``Any Committee of the House of 
     Representatives or the Senate that anticipates that the 
     committee will consider any proposed legislation 
     establishing, amending, or reauthorizing any Federal program 
     likely to have a significant budgetary impact on any State, 
     local, or tribal government, 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 include 
     its views and estimates on that proposal to the Committee on 
     the Budget of the applicable House.''.

     SEC. 103. COST OF REGULATIONS.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that Federal agencies should review and evaluate planned 
     regulations to ensure that the cost estimates provided by the 
     Congressional Budget Office will be carefully considered as 
     regulations are promulgated.
       (b) Statement of Cost.--At the request of a committee 
     chairman or ranking minority member, the Director shall, to 
     the extent practicable, prepare a comparison between--
       (1) an estimate by the relevant agency, prepared under 
     section 202 of this Act, of the costs of regulations 
     implementing an Act containing a Federal mandate; and
       (2) the cost estimate prepared by the Congressional Budget 
     Office for such Act when it was enacted by the Congress.
       (c) Cooperation of Office of Management and Budget.--At the 
     request of the Director of the Congressional Budget Office, 
     the Director of the Office of Management and Budget shall 
     provide data and cost estimates for regulations implementing 
     an Act containing a Federal mandate covered by part B of 
     title IV of the Congressional Budget and Impoundment Control 
     Act of 1974 (as added by section 101 of this Act).

     SEC. 104. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET 
                   OFFICE.

       Section 403 of the Congressional Budget and Impoundment 
     Control Act of 1974 is amended--
       (1) in subsection (a)--
       (A) by striking out paragraph (2);
       (B) in paragraph (3) by striking out ``paragraphs (1) and 
     (2)'' and inserting in lieu thereof ``paragraph (1)''; and
       (C) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively;
       (2) by striking out ``(a)''; and
       (3) by striking out subsections (b) and (c).

     SEC. 105. CONSIDERATION FOR FEDERAL FUNDING.

       Nothing in this Act shall preclude a State, local, or 
     tribal government that already complies with all or part of 
     the Federal intergovernmental mandates included in the bill, 
     joint resolution, amendment, motion, or conference report 
     from consideration for Federal funding under section 
     425(a)(2) of the Congressional Budget and Impoundment Control 
     Act of 1974 (as added by section 101 of this Act) for the 
     cost of the mandate, including the costs the State, local, or 
     tribal government is currently paying and any additional 
     costs necessary to meet the mandate.

     SEC. 106. IMPACT ON LOCAL GOVERNMENTS.

       (a) Findings.--The Senate finds that--
       (1) the Congress should be concerned about shifting costs 
     from Federal to State and local authorities and should be 
     equally concerned about the growing tendency of States to 
     shift costs to local governments;
       (2) cost shifting from States to local governments has, in 
     many instances, forced local governments to raise property 
     taxes or curtail sometimes essential services; and
       (3) increases in local property taxes and cuts in essential 
     services threaten the ability of many citizens to attain and 
     maintain the American dream of owning a home in a safe, 
     secure community.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the Federal Government should not shift certain costs 
     to the State, and States should end the practice of shifting 
     costs to local governments, which forces many local 
     governments to increase property taxes;
       (2) States should end the imposition, in the absence of 
     full consideration by their legislatures, of State issued 
     mandates on local governments without adequate State funding, 
     in a manner that may displace other essential government 
     priorities; and
       (3) one primary objective of this Act and other efforts to 
     change the relationship among Federal, State, and local 
     governments should be to reduce taxes and spending at all 
     levels and to end the practice of shifting costs from one 
     level of government to another with little or no benefit to 
     taxpayers.

     SEC. 107. 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) 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. 108. EXERCISE OF RULEMAKING POWERS.

       The provisions of sections 101 and 107 are enacted by 
     Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and as such 
     they shall be considered as part of the rules of such House, 
     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 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of each House.

     SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the 
     Congressional Budget Office $4,500,000 for each of the fiscal 
     years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 to carry 
     out the provisions of this title.

     SEC. 110. EFFECTIVE DATE.

       This title shall take effect on January 1, 1996 or on the 
     date 90 days after appropriations are made available as 
     authorized under section 109, whichever is earlier and shall 
     apply to legislation considered on and after such date.
             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

     SEC. 201. REGULATORY PROCESS.

       Each agency shall, unless otherwise prohibited by law, 
     assess the effects of Federal regulatory actions on State, 
     local, and tribal governments, and the private sector (other 
     than to the extent that such regulations incorporate 
     requirements specifically set forth in law).

[[Page 412]]

     SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY 
                   ACTIONS.

       (a) In General.--Unless otherwise prohibited by law, before 
     promulgating any general notice of proposed rulemaking that 
     is likely to result in promulgation of any rule that includes 
     any Federal mandate that may result in the expenditure by 
     State, local, and tribal governments, in the aggregate, or by 
     the private sector, of $100,000,000 or more (adjusted 
     annually for inflation) in any 1 year, and before 
     promulgating any final rule for which a general notice of 
     proposed rulemaking was published, the agency shall prepare a 
     written statement containing--
       (1) an identification of the provision of Federal law under 
     which the rule is being promulgated;
       (2) a qualitative and quantitative assessment of the 
     anticipated costs and benefits of the Federal mandate, 
     including the costs and benefits to State, local, and tribal 
     governments or the private sector, as well as the effect of 
     the Federal mandate on health, safety, and the natural 
     environment and such an assessment shall include--
       (A) an analysis of the extent to which such costs to State, 
     local, and tribal governments may be paid with Federal 
     financial assistance (or otherwise paid for by the Federal 
     Government); and
       (B) the extent to which there are available Federal 
     resources to carry out the intergovernmental mandate;
       (3) estimates by the agency, if and to the extent that the 
     agency determines that accurate estimates are reasonably 
     feasible, of--
       (A) the future compliance costs of the Federal mandate; and
       (B) any disproportionate budgetary effects of the Federal 
     mandate upon any particular regions of the nation or 
     particular State, local, or tribal governments, urban or 
     rural or other types of communities, or particular segments 
     of the private sector;
       (4) estimates by the agency of the effect on the national 
     economy, such as the effect on productivity, economic growth, 
     full employment, creation of productive jobs, and 
     international competitiveness of United States goods and 
     services, if and to the extent that the agency in its sole 
     discretion determines that accurate estimates are reasonably 
     feasible and that such effect is relevant and material; and
       (5)(A) a description of the extent of the agency's prior 
     consultation with elected representatives (under section 204) 
     of the affected State, local, and tribal governments;
       (B) a summary of the comments and concerns that were 
     presented by State, local, or tribal governments either 
     orally or in writing to the agency; and
       (C) a summary of the agency's evaluation of those comments 
     and concerns.
       (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 under subsection 
     (a) in conjunction with or as a part of any other statement 
     or analysis, provided that the statement or analysis 
     satisfies the provisions of subsection (a).

     SEC. 203. SMALL GOVERNMENT AGENCY PLAN.

       (a) Effects on Small Governments.--Before establishing any 
     regulatory requirements that might significantly or uniquely 
     affect small governments, agencies shall have developed a 
     plan under which the agency shall--
       (1) provide notice of the requirements to potentially 
     affected small governments, if any;
       (2) enable officials of affected small governments to 
     provide meaningful and timely input in the development of 
     regulatory proposals containing significant Federal 
     intergovernmental mandates; and
       (3) inform, educate, and advise small governments on 
     compliance with the requirements.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to each agency to carry out the provisions 
     of this section and for no other purpose, such sums as are 
     necessary.

     SEC. 204. STATE, LOCAL, AND TRIBAL GOVERNMENT INPUT.

       (a) In General.--Each agency shall, to the extent permitted 
     in law, develop an effective process to permit elected 
     officers of State, local, and tribal governments (or their 
     designated employees with authority to act on their behalf) 
     to provide meaningful and timely input in the development of 
     regulatory proposals containing significant Federal 
     intergovernmental mandates.
       (b) Meetings Between State, Local, Tribal and Federal 
     Officers.--The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply to actions in support of intergovernmental 
     communications where--
       (1) meetings are held exclusively between Federal officials 
     and elected officers of State, local, and tribal governments 
     (or their designated employees with authority to act on their 
     behalf) acting in their official capacities; and
       (2) such meetings are solely for the purposes of exchanging 
     views, information, or advice relating to the management or 
     implementation of Federal programs established pursuant to 
     public law that explicitly or inherently share 
     intergovernmental responsibilities or administration.
       (c) Implementing Guidelines.--No later than 6 months after 
     the date of enactment of this Act, the President shall issue 
     guidelines and instructions to Federal agencies for 
     appropriate implementation of subsections (a) and (b) 
     consistent with applicable laws and regulations.

     SEC. 205. LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED.

       (a) In General.--Except as provided in subsection (b), 
     before promulgating any rule for which a written statement is 
     required under section 202, the agency shall identify and 
     consider a reasonable number of regulatory alternatives and 
     from those alternatives select the least costly, most cost-
     effective or least burdensome alternative that achieves the 
     objectives of the rule, for--
       (1) State, local, and tribal governments, in the case of a 
     rule containing a Federal intergovernmental mandate; and
       (2) the private sector, in the case of a rule containing a 
     Federal private sector mandate.
       (b) Exception.--The provisions of subsection (a) shall 
     apply unless--
       (1) the head of the affected agency publishes with the 
     final rule an explanation of why the least costly, most cost-
     effective or least burdensome method of achieving the 
     objectives of the rule was not adopted; or
       (2) the provisions are inconsistent with law.
       (c) OMB Certification.--No later than 1 year after the date 
     of the enactment of this Act, the Director of the Office of 
     Management and Budget shall certify to Congress, with a 
     written explanation, agency compliance with this section and 
     include in that certification agencies and rulemakings that 
     fail to adequately comply with this section.

     SEC. 206. 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 such statements 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. 207. 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 a combination thereof.

     SEC. 208. ANNUAL STATEMENTS TO CONGRESS ON AGENCY COMPLIANCE.

       No later than 1 year after the effective date of this title 
     and annually thereafter, the Director of the Office of 
     Management and Budget shall submit to the Congress, including 
     the Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform and Oversight of the House of 
     Representatives, a written report detailing compliance by 
     each agency during the preceding reporting period with the 
     requirements of this title.

     SEC. 209. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on the date of the enactment of this Act.
                 TITLE III--REVIEW OF FEDERAL MANDATES

     SEC. 301. BASELINE STUDY OF COSTS AND BENEFITS.

       (a) In General.--No later than 18 months after the date of 
     enactment of this Act, the Advisory Commission on 
     Intergovernmental Relations (hereafter in this title referred 
     to as the ``Advisory Commission''), in consultation with the 
     Director, shall complete a study to examine the measurement 
     and definition issues involved in calculating the total costs 
     and benefits to State, local, and tribal governments of 
     compliance with Federal law.
       (b) Considerations.--The study required by this section 
     shall consider--
       (1) the feasibility of measuring indirect costs and 
     benefits as well as direct costs and benefits of the Federal, 
     State, local, and tribal relationship; and
       (2) how to measure both the direct and indirect benefits of 
     Federal financial assistance and tax benefits to State, 
     local, and tribal governments.

     SEC. 302. REPORT ON FEDERAL MANDATES BY ADVISORY COMMISSION 
                   ON INTERGOVERNMENTAL RELATIONS.

       (a) In General.--The Advisory Commission on 
     Intergovernmental Relations shall in accordance with this 
     section--
       (1) investigate and review the role of Federal mandates in 
     intergovernmental relations and their impact on State, local, 
     tribal, and Federal government objectives and 
     responsibilities, and their impact on the competitive balance 
     between State, local, and tribal governments, and the private 
     sector and consider views of and the impact on working men 
     and women on those same matters;
       (2) investigate and review the role of unfunded State 
     mandates imposed on local governments;
       (3) make recommendations to the President and the Congress 
     regarding--
       (A) allowing flexibility for State, local, and tribal 
     governments in complying with specific Federal mandates for 
     which terms of compliance are unnecessarily rigid or complex;

[[Page 413]]

       (B) reconciling any 2 or more Federal mandates which impose 
     contradictory or inconsistent requirements;
       (C) terminating Federal mandates which are duplicative, 
     obsolete, or lacking in practical utility;
       (D) suspending, on a temporary basis, 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 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;
       (F) establishing common Federal definitions or standards to 
     be used by State, local, and tribal governments in complying 
     with Federal mandates that use different definitions or 
     standards for the same terms or principles; and
       (G)(i) the mitigation of negative impacts on the private 
     sector that may result from relieving State, local, and 
     tribal governments from Federal mandates (if and to the 
     extent that such negative impacts exist on the private 
     sector); and
       (ii) the feasibility of applying relief from Federal 
     mandates in the same manner and to the same extent to private 
     sector entities as such relief is applied to State, local, 
     and tribal governments; and
       (4) identify and consider in each recommendation made under 
     paragraph (3), to the extent practicable--
       (A) the specific Federal mandates to which the 
     recommendation applies, including requirements of the 
     departments, agencies, and other entities of the Federal 
     Government that State, local, and tribal governments utilize 
     metric systems of measurement; and
       (B) any negative impact on the private sector that may 
     result from implementation of the recommendation.
       (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 no 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.--No 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.--No 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.--No 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, the Committee on Governmental Affairs of 
     the Senate, the Committee on the Budget of the Senate, and 
     the Committee on the Budget of the House of Representatives, 
     and to the President a final report on the findings, 
     conclusions, and recommendations of the Commission under this 
     section.
       (e) Priority to Mandates That Are Subject of Judicial 
     Proceedings.--In carrying out this section, the Advisory 
     Commission shall give the highest priority to immediately 
     investigating, reviewing, and making recommendations 
     regarding Federal mandates that are the subject of judicial 
     proceedings between the United States and a State, local, or 
     tribal government.
       (f) Definition.--For purposes of this section the term 
     ``State mandate'' means any provision in a State statute or 
     regulation that imposes an enforceable duty on local 
     governments, the private sector, or individuals, including a 
     condition of State assistance or a duty arising from 
     participation in a voluntary State program.

     SEC. 303. SPECIAL AUTHORITIES OF ADVISORY COMMISSION.

       (a) Experts and Consultants.--For purposes of carrying out 
     this title, the Advisory Commission may procure temporary and 
     intermittent services of experts or consultants under section 
     3109(b) of title 5, United States Code.
       (b) Detail of Staff of Federal Agencies.--Upon request of 
     the Executive Director of the Advisory Commission, 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 Advisory Commission to assist it in carrying 
     out this title.
       (c) Administrative Support Services.--Upon the request of 
     the Advisory Commission, the Administrator of General 
     Services shall provide to the Advisory Commission, on a 
     reimbursable basis, the administrative support services 
     necessary for the Advisory Commission to carry out its duties 
     under this title.
       (d) Contract Authority.--The Advisory Commission may, 
     subject to appropriations, contract with and compensate 
     government and private persons (including agencies) for 
     property and services used to carry out its duties under this 
     title.

     SEC. 304. ANNUAL REPORT TO CONGRESS REGARDING FEDERAL COURT 
                   RULINGS.

       No 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 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 any Federal court case to which 
     a State, local, or tribal government was a party in the 
     preceding calendar year that required such State, local, or 
     tribal government to undertake responsibilities or 
     activities, beyond those such government would otherwise have 
     undertaken, to comply with Federal statutes and regulations.

     SEC. 305. DEFINITION.

       Notwithstanding section 3 of this Act, for purposes of this 
     title the term ``Federal mandate'' means any provision in 
     statute or regulation or any Federal court ruling that 
     imposes an enforceable duty upon State, local, or tribal 
     governments including a condition of Federal assistance or a 
     duty arising from participation in a voluntary Federal 
     program.

     SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Advisory 
     Commission to carry out section 301 and section 302, $500,000 
     for each of fiscal years 1995 and 1996.
                       TITLE IV--JUDICIAL REVIEW

     SEC. 401. JUDICIAL REVIEW.

       (a) Agency Statements on Significant Regulatory Actions.--
       (1) In general.--Compliance or noncompliance by any agency 
     with the provisions of sections 202 and 203(a) (1) and (2) 
     shall be subject to judicial review only in accordance with 
     this section.
       (2) Limited review of agency compliance or noncompliance.--
     (A) Agency compliance or noncompliance with the provisions of 
     sections 202 and 203(a) (1) and (2) shall be subject to 
     judicial review only under section 706(1) of title 5, United 
     States Code, and only as provided under subparagraph (B).
       (B) If an agency fails to prepare the written statement 
     (including the preparation of the estimates, analyses, 
     statements, or descriptions) under section 202 or the written 
     plan under section 203(a) (1) and (2), a court may compel the 
     agency to prepare such written statement.
       (3) Review of agency rules.--In any judicial review under 
     any other Federal law of an agency rule for which a written 
     statement or plan is required under sections 202 and 203(a) 
     (1) and (2), the inadequacy or failure to prepare such 
     statement (including the inadequacy or failure to prepare any 
     estimate, analysis, statement or description) or written plan 
     shall not be used as a basis for staying, enjoining, 
     invalidating or otherwise affecting such agency rule.
       (4) Certain information as part of record.--Any information 
     generated under sections 202 and 203(a) (1) and (2) that is 
     part of the rulemaking record for judicial review under the 
     provisions of any other Federal law may be considered as part 
     of the record for judicial review conducted under such other 
     provisions of Federal law.
       (5) Application of other federal law.--For any petition 
     under paragraph (2) the provisions of such other Federal law 
     shall control all other matters, such as exhaustion of 
     administrative remedies, the time for and manner of seeking 
     review and venue, except that if such other Federal law does 
     not provide a limitation on the time for filing a petition 
     for judicial review that is less than 180 days, such 
     limitation shall be 180 days after a final rule is 
     promulgated by the appropriate agency.
       (6) Effective date.--This subsection shall take effect on 
     October 1, 1995, and shall apply only to any agency rule for 
     which a general notice of proposed rulemaking is promulgated 
     on or after such date.
       (b) Judicial Review and Rule of Construction.--Except as 
     provided in subsection (a)--
       (1) any estimate, analysis, statement, description or 
     report prepared under this Act, and any compliance or 
     noncompliance with the provisions of this Act, and any 
     determination concerning the applicability of the provisions 
     of this Act shall not be subject to judicial review; and
       (2) no provision of this Act shall be construed to create 
     any right or benefit, substantive or procedural, enforceable 
     by any person in any administrative or judicial action.

       And the House agree to the same.
     William F. Clinger,
     Rob Portman,
     David Dreier,
     Tom Davis,

[[Page 414]]

     Gary Condit,
     Cardiss Collins,
     Edolphus Towns,
     Joe Moakley,
                                Managers on the Part of the House.
     Dirk Kempthorne,
     Bill Roth,
     Pete V. Domenici,
     John Glenn,
     J.J. Exon,
                               Managers on the Part of the Senate.

  When said conference report was considered.
  After debate,
  By unanimous consent, the previous question was ordered on the 
conference report to its adoption or rejection.
  The question being put, viva voce,
  Will the House agree to said conference report?
  The SPEAKER pro tempore, Mr. EMERSON, announced that the yeas had it.
  Mr. CLINGER objected to the vote on the ground that a quorum was not 
present and not voting.
  A quorum not being present,
  The roll was called under clause 4, rule XV, and the call was taken by 
electronic device.

Yeas

394

When there appeared

Nays

28
```