I

103D CONGRESS

1ST SESSION H. R. 410

To reduce the growing costs imposed on State and local governments by

unfunded Federal mandates.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. STUMP introduced the following bill; which was referred jointly to the

Committees on Government Operations, the Judiciary, and Rules

A BILL

To reduce the growing costs imposed on State and local

governments by unfunded Federal mandates.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the ‘‘Intergovernmental

4 Mandate Relief Act of 1993’’.

5 FINDINGS AND PURPOSE

6 SEC. 2. (a) The Congress finds and declares that—

7 (1) Federal regulation of State and local gov8 ernments has become increasingly extensive and in9 trusive in recent years;
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1 (2) such regulation has, in many instances, ad2 versely affected the ability of State and local govern3 ments to achieve their independent responsibilities;

4 and

5 (3) such excessive fiscal burdens also undermine

6 the attainment of the goals of Federal regulations.

7 (b) Therefore, it is the purpose of this Act to estab8 lish procedures to assure that the Federal Government

9 pays the total amount of additional direct costs incurred

10 by State and local governments in complying with any

11 intergovernmental regulation which takes effect on or

12 after the date of enactment of this Act.

13 DEFINITIONS

14 SEC. 3. For purposes of this Act, the term—

15 (1) ‘‘additional direct costs’’ means the amount

16 of costs incurred by a State or local government

17 solely in complying with an intergovernmental regu18 lation promulgated pursuant to a Federal law con19 cerning a particular activity which is in excess of the

20 amount that such State or local government would

21 be required to expend in carrying out such activity

22 in the absence of such law, except that such term

23 does not include any amount which a State or local

24 government is required by law to contribute as a

25 non-Federal share under a Federal assistance pro26 gram;
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1 (2) ‘‘Director’’ means the Director of the Con2 gressional Budget Office;

3 (3) ‘‘Federal agency’’ has the meaning given to

4 the term ‘‘executive agency’’ in section 6501(3) of

5 title 31, United States Code;

6 (4) ‘‘Federal assistance’’ means any assistance

7 provided by a Federal agency to State and local gov8 ernments or other recipients, in the form of grants,

9 loans, loan guarantees, property, cooperative agree10 ments, or technical assistance, except that such term

11 does not include direct cash assistance to individ12 uals, contracts for the procurement of goods or serv13 ices for the United States, or insurance;

14 (5) ‘‘Intergovernmental regulation’’ means a

15 regulation promulgated by a Federal agency that re16 quires a State or local government to take certain

17 actions or requires a State or local government to

18 comply with certain specified conditions in order to

19 receive or continue to receive Federal assistance and

20 which requires the termination or reduction of such

21 assistance if such government fails to comply with

22 such conditions;

23 (6) ‘‘local government’’ has the same meaning

24 as in section 6501(6) of title 31, United States

25 Code;
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1 (7) ‘‘significant law’’ means any Federal law

2 which is likely, in the judgment of the Director, to

3 result in total additional direct costs to all State and

4 local governments of $25,000,000 or more in any

5 fiscal year, or is likely to have exceptional fiscal con6 sequences for a geographic region or a particular

7 level of government; and

8 (8) ‘‘State’’ means each of the several States,

9 the District of Columbia, Guam, the Commonwealth

10 of Puerto Rico, the Commonwealth of the Northern

11 Mariana Islands, the Virgin Islands, American

12 Samoa, and the Trust Territory of the Pacific Is13 lands.

14 COMPENSATION OF STATE AND LOCAL GOVERNMENTS

15 FOR ADDITIONAL DIRECT COSTS

16 SEC. 4. (a) Except as provided in subsection (b), a

17 Federal agency or a court of the United States shall not

18 require State governments or local governments to comply,

19 in any fiscal year, with any intergovernmental regulation

20 which—

21 (1) takes effect on or after the date of enact22 ment of this Act; and

23 (2) is promulgated pursuant to a significant

24 law, unless provisions of law have been enacted

25 which provide a sufficient amount of funds for such

26 fiscal year to reimburse such governments for the
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1 total amount of additional direct costs that will be

2 incurred by such governments in complying with

3 such regulation during such fiscal year.

4 (b)(1) Notwithstanding subsection (a), a Federal

5 agency or a court of the United States may require State

6 and local governments to comply with an intergovern7 mental regulation to which subsection (a) applies and

8 which will be in effect during a fiscal year if, with respect

9 to such intergovernmental regulation and such fiscal year,

10 a joint resolution described in paragraph (2) is enacted

11 by a two-thirds vote of the Members of each House of Con12 gress, duly chosen and sworn.

13 (2) A joint resolution referred to in paragraph (1)

14 is a joint resolution which, with respect to an intergovern15 mental regulation that will be in effect during a fiscal

16 year, waives the provisions of subsection (a) that require

17 that provisions of law be enacted to provide a sufficient

18 amount of funds for such fiscal year to reimburse State

19 and local governments for the total amount of additional

20 direct costs that will be incurred by such governments in

21 complying with such regulation during such fiscal year.

22 (c) For purposes of this section, the total amount of

23 additional direct costs that will be incurred by State gov24 ernments and local governments in complying with an

25 intergovernmental regulation in any fiscal year shall be the
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1 total amount of such costs for such regulation estimated

2 by the Director for such fiscal year in the report required

3 under section 5 for such fiscal year.

4 REPORT BY THE DIRECTOR

5 SEC. 5. (a) For each fiscal year in which an intergov6 ernmental regulation promulgated pursuant to a signifi7 cant law will be in effect, the Director shall prepare and

8 transmit to the President and the Congress a report speci9 fying, for each such intergovernmental regulation and with

10 respect to such fiscal year and the fiscal year succeeding

11 such fiscal year—

12 (1) an estimate of the total amount of addi13 tional direct costs that will be incurred by all State

14 governments and local governments in complying

15 with such intergovernmental regulation in each such

16 fiscal year; and

17 (2) an estimate, for each such intergovern18 mental regulation, of—

19 (A) the total amount of additional direct

20 costs that have been incurred or will be in21 curred in each such fiscal year by the govern22 ment of each State and all local governments in

23 such State in complying with such regulation in

24 each such fiscal year; and

25 (B) the ratio (stated as a percentage)

26 which the total amount of additional direct
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1 costs that have been incurred or will be in2 curred by all local governments in a State in

3 complying with such regulation in each such fis4 cal year bears to the total amount of additional

5 direct costs that have been incurred or will be

6 incurred by the government of such State and

7 all local governments in such State in comply8 ing with such regulation in such fiscal year.

9 (b) The Director shall transmit each report required

10 by subsection (a) for a fiscal year to the President and

11 the Congress by September 1 of the fiscal year preceding

12 such fiscal year.

13 CERTAIN LEGISLATIVE ACTION REQUIRED

14 SEC. 6. (a) For each fiscal year in which an intergov15 ernmental regulation promulgated pursuant to a signifi16 cant law will be in effect, the chairman of the committees

17 of the Senate and of the House of Representatives having

18 legislative jurisdiction over such significant law shall pro19 pose, to an appropriate bill or resolution providing funds

20 for such fiscal year, an amendment containing provisions

21 to appropriate funds to reimburse State governments and

22 local governments for the additional direct costs incurred

23 in complying with such regulation. The amount of funds

24 proposed to be appropriated by such amendment shall be

25 equal to or in excess of the amount described in section

26 4(a).
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1 (b) Subsection (a) does not apply with respect to an

2 intergovernmental regulation which will be in effect during

3 a fiscal year if, with respect to such intergovernmental

4 regulation and such fiscal year, a joint resolution has been

5 enacted in accordance with section 4(b).

6 PAYMENT OF REIMBURSEMENTS

7 SEC. 7. (a)(1) The head of each Federal agency which

8 administers an intergovernmental regulation promulgated

9 pursuant to a significant law shall pay to each State gov10 ernment in each fiscal year the amount determined pursu11 ant to this section to reimburse the State government and

12 local governments in the State for the additional direct

13 costs incurred by such governments in complying with

14 such regulation in such fiscal year.

15 (2) A State government which receives payments

16 under this section for reimbursement for additional direct

17 costs incurred in complying with an intergovernmental

18 regulation in any fiscal year shall pay to each local govern19 ment in the State the amount determined pursuant to this

20 section to reimburse such local government for the addi21 tional direct costs incurred by such local government in

22 complying with such regulation in such fiscal year.

23 (b) The total amount to be paid to a State to reim24 burse the government of the State and local governments

25 in the State for additional direct costs incurred by such

26 governments in complying with an intergovernmental reg-
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1 ulation in any fiscal year shall be an amount which bears

2 the same ratio to the total amount for reimbursement of

3 additional direct costs for all State governments and local

4 governments described in section 4(a) with respect to such

5 regulation for such fiscal year as the total amount of addi6 tional direct costs with respect to such regulation specified

7 under section 5(a)(2)(A) for such State government and

8 local governments in such State for such fiscal year in the

9 report submitted by the Director under section 5 for such

10 fiscal year bears to the total amount of additional direct

11 costs with respect to such regulation which are specified

12 under section 5(a)(1) in such report for all State govern13 ments and all local governments for such fiscal year.

14 (c)(1) The total amount to be paid by a State govern15 ment to local governments in such State to reimburse such

16 governments for additional direct costs incurred by such

17 governments in complying with an intergovernmental reg18 ulation in any fiscal year shall be equal to the product

19 of the amount paid to the State under subsection (b) for

20 such fiscal year multiplied by the ratio specified by the

21 Director for such State under section 5(a)(2)(B) with re22 spect to such regulation for such fiscal year in the report

23 submitted by the Director under section 5 for such fiscal

24 year.
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1 (2)(A) A State government which receives payments

2 under this section to reimburse local governments in the

3 State for the additional direct costs incurred by such gov4 ernments in complying with an intergovernmental regula5 tion in any fiscal year shall pay to each such local govern6 ment an amount equal to the product of—

7 (i) the total amount determined under para8 graph (1) with respect to such regulation for such

9 fiscal year, multiplied by

10 (ii) the ratio (stated as a percentage and esti11 mated by the State in accordance with subparagraph

12 (B)) that the total amount of additional direct costs

13 incurred by such local government in complying with

14 such regulation in such fiscal year bears to the total

15 amount of additional direct costs incurred by all

16 local governments in such State in complying with

17 such regulation in such fiscal year.

18 (B) Each State government which receives payments

19 under this section for any fiscal year shall provide by law

20 for the estimation of the amount of additional direct costs

21 incurred by each local government in such State in com22 plying with an intergovernmental regulation for which

23 such payments are received. In providing for the esti24 mation of such costs, the State shall establish procedures

25 and methods for the estimation of such costs which are
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1 reasonably related to the actual additional direct costs in2 curred by such governments in complying with such regu3 lation in such fiscal year.

4 (d) This section does not apply with respect to an

5 intergovernmental regulation which will be in effect during

6 a fiscal year if, with respect to such intergovernmental

7 regulation and such fiscal year, a joint resolution has been

8 enacted in accordance with section 4(b).

9 EFFECT OF SUBSEQUENT ENACTMENTS

10 SEC 8. No law enacted after the date of enactment

11 of this Act shall supersede the provisions of this Act unless

12 such law does so in specific terms, referring to this Act

13 and declares that such law supersedes the provisions of

14 this Act.

15 MISCELLANEOUS

16 SEC. 9. Section 403(c) of the Congressional Budget

17 Act of 1974 is amended by striking out ‘‘$200,000,000’’

18 and inserting in lieu thereof ‘‘$100,000,000’’.

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