PUBLIC LAW 104–4—MAR. 22, 1995

UNFUNDED MANDATES REFORM ACT OF 1995
109 STAT. 48 PUBLIC LAW 104–4—MAR. 22, 1995

Public Law 104–4

104th Congress

An Act

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

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;

2 USC 1501.

2 USC 1501 note.

Unfunded

Mandates

Reform Act of

1995.

Mar. 22, 1995

[S. 1]
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 49

(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

(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)).

2 USC 1503.

2 USC 1502.
109 STAT. 50 PUBLIC LAW 104–4—MAR. 22, 1995

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 man- date, 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 intergov2 USC 658.

2 USC 1504.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 51

ernmental 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
109 STAT. 52 PUBLIC LAW 104–4—MAR. 22, 1995

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.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 53

‘‘(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).

‘‘(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 USC 658b.

2 USC 658a.
109 STAT. 54 PUBLIC LAW 104–4—MAR. 22, 1995

‘‘(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

Congressional

Record,

publication.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 55

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

2 USC 658c.
109 STAT. 56 PUBLIC LAW 104–4—MAR. 22, 1995

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—

2 USC 658d.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 57

‘‘(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

‘‘(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

Termination

date.
109 STAT. 58 PUBLIC LAW 104–4—MAR. 22, 1995

‘‘(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.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 59

‘‘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).

2 USC 658g.

2 USC 658f.

2 USC 658e.
109 STAT. 60 PUBLIC LAW 104–4—MAR. 22, 1995

‘‘(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)—

(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—

2 USC 602.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 61

‘‘(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
109 STAT. 62 PUBLIC LAW 104–4—MAR. 22, 1995

‘‘(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

2 USC 1512.

2 USC 653.

2 USC 1511.

2 USC 632.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 63

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—

2 USC 1515.

2 USC 1514.

2 USC 1513.
109 STAT. 64 PUBLIC LAW 104–4—MAR. 22, 1995

(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).

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

2 USC 1532.

2 USC 1531.

2 USC 1511 note.

2 USC 1516.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 65

(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 Fed- eral 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 com- ments and concerns.

(b) PROMULGATION.—In promulgating a general notice of pro- posed 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

2 USC 1534.

2 USC 1533.
109 STAT. 66 PUBLIC LAW 104–4—MAR. 22, 1995

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 costeffective 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.

2 USC 1536.

2 USC 1535.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 67

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 USC 1552.

2 USC 1551.

2 USC 1531 note.

2 USC 1538.

Reports.

2 USC 1537.
109 STAT. 68 PUBLIC LAW 104–4—MAR. 22, 1995

(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;

(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);
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 69

(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

2 USC 1553.

Public

information.

Federal Register,

publication.

Publication.
109 STAT. 70 PUBLIC LAW 104–4—MAR. 22, 1995

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

2 USC 1571.

2 USC 1556.

2 USC 1555.

2 USC 1554.
PUBLIC LAW 104–4—MAR. 22, 1995 109 STAT. 71

LEGISLATIVE HISTORY—S. 1 (H.R. 5) (S. 169):

HOUSE REPORTS: Nos. 104–1, Pt. 1 (Comm. on Rules) and Pt. 2 (Comm. on Government Reform and Oversight), both accompanying H.R. 5,

and 104–76 (Comm. of Conference).

SENATE REPORTS: Nos. 104–1 (Comm. on Governmental Affairs) and 104–2

(Comm. on the Budget).

CONGRESSIONAL RECORD, Vol. 141 (1995):

Jan. 12, 13, 17–19, 23–27, considered and passed Senate.

Jan. 19, 20, 23, 24, 27, 30, 31, Feb. 1, considered and passed House, amended, in lieu of H.R. 5.

Mar. 14, 15, Senate considered and agreed to conference report.

Mar. 16, House agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995):

Mar. 22, Presidential remarks.

Æ

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.

Approved March 22, 1995.