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[104th Congress Public Law 4]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ4.104]

                  UNFUNDED MANDATES REFORM ACT OF 1995

[[Page 109 STAT. 48]]

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. <<NOTE: Mar. 22, 1995 -  [S. 1]>> 

<<NOTE: Unfunded Mandates Reform Act of 1995.>>     Be it enacted by the 
Senate and House of Representatives of the United States of America in 
Congress assembled,

SECTION 1. <<NOTE: 2 USC 1501 note.>> SHORT TITLE.

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

SEC. 2. <<NOTE: 2 USC 1501.>> 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;

[[Page 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. <<NOTE: 2 USC 1502.>> 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. <<NOTE: 2 USC 1503.>> 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)).

[[Page 109 STAT. 50]]

SEC. 5. <<NOTE: 2 USC 1504.>> 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. <<NOTE: 2 USC 658.>> 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 
                      intergov

[[Page 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

[[Page 109 STAT. 52]]

                                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.

[[Page 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. <<NOTE: 2 USC 658a.>> 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. <<NOTE: 2 USC 658b.>> 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;

[[Page 109 STAT. 54]]

            ``(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.
        <<NOTE: Congressional Record, publication.>>     ``(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

[[Page 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. <<NOTE: 2 USC 658c.>> 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

[[Page 109 STAT. 56]]

        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. <<NOTE: 2 USC 658d.>> 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--

[[Page 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
                      <<NOTE: Termination date.>>     ``(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

[[Page 109 STAT. 58]]

                                    ``(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.

[[Page 109 STAT. 59]]

``SEC. 426. <<NOTE: 2 USC 658e.>> 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. <<NOTE: 2 USC 658f.>> 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. <<NOTE: 2 USC 658g.>> 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).

[[Page 109 STAT. 60]]

    ``(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--
        <<NOTE: 2 USC 602.>>     (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--

[[Page 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

[[Page 109 STAT. 62]]

                          ``(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
        <<NOTE: 2 USC 632.>>     (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. <<NOTE: 2 USC 1511.>> 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-- <<NOTE: 2 USC 653.>> 
            (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. <<NOTE: 2 USC 1512.>> 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

[[Page 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. <<NOTE: 2 USC 1513.>> 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. <<NOTE: 2 USC 1514.>> 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. <<NOTE: 2 USC 1515.>> EXERCISE OF RULEMAKING POWERS.

    The provisions of sections 101 and 107 are enacted by Congress--

[[Page 109 STAT. 64]]

            (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. <<NOTE: 2 USC 1516.>> 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. <<NOTE: 2 USC 1511 note.>> 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. <<NOTE: 2 USC 1531.>> 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. <<NOTE: 2 USC 1532.>> 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

[[Page 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 
                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. <<NOTE: 2 USC 1533.>> 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. <<NOTE: 2 USC 1534.>> 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

[[Page 109 STAT. 66]]

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. <<NOTE: 2 USC 1535.>> 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. <<NOTE: 2 USC 1536.>> 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.

[[Page 109 STAT. 67]]

SEC. 207. <<NOTE: 2 USC 1537.>> 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. <<NOTE: Reports.>> ANNUAL STATEMENTS TO CONGRESS ON AGENCY 
            COMPLIANCE.

<<NOTE: 2 USC 1538.>>     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. <<NOTE: 2 USC 1531 note.>> 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. <<NOTE: 2 USC 1551.>> 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. <<NOTE: 2 USC 1552.>> 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;

[[Page 109 STAT. 68]]

            (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);

[[Page 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--
                <<NOTE: Publication.>>     (A) prepare and publish a 
                preliminary report on its activities under this title, 
                including preliminary recommendations pursuant to 
                subsection (a);
                <<NOTE: Federal Register, publication.>>     (B) publish 
                in the Federal Register a notice of availability of the 
                preliminary report; and
                <<NOTE: Public information.>>     (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. <<NOTE: 2 USC 1553.>> 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

[[Page 109 STAT. 70]]

and private persons (including agencies) for property and services used 
to carry out its duties under this title.

SEC. 304. <<NOTE: 2 USC 1554.>> 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. <<NOTE: 2 USC 1555.>> 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. <<NOTE: 2 USC 1556.>> 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. <<NOTE: 2 USC 1571.>> 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

[[Page 109 STAT. 71]]

        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.

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.

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