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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1592 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1592

To improve Federal decisionmaking by requiring a thorough evaluation of 
the economic impact of Federal legislative and regulatory requirements 
 on State and local governments and the economic resources located in 
                   such State and local governments.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             October 27 (legislative day, October 13), 1993

  Mr. Dorgan (for himself and Mr. Domenici) introduced the following 
      bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL

 
To improve Federal decisionmaking by requiring a thorough evaluation of 
the economic impact of Federal legislative and regulatory requirements 
 on State and local governments and the economic resources located in 
                   such State and local governments.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fiscal Accountability and 
Intergovernmental Reform Act'' (``FAIR Act'').

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds and declares the following:
            (1) Federal legislation and regulatory requirements impose 
        burdens on State and local resources to implement federally 
        mandated programs without fully evaluating the costs to State 
        and local governments associated with compliance with those 
        requirements and oftentimes without provision of adequate 
        Federal financial assistance. Such Federal legislative and 
        regulatory initiatives--
                    (A) force State and local governments to utilize 
                scarce public resources to comply with Federal 
                mandates;
                    (B) prevent these resources from being available to 
                meet local needs; and
                    (C) detract from the ability of State and local 
                governments to establish local priorities for use of 
                local public resources.
            (2) Federal legislation and regulatory programs can result 
        in inefficient utilization of economic resources, thereby 
        reducing the pool of resources available--
                    (A) to enhance productivity, and increase the 
                quantity and quality of goods and services produced by 
                the American economy; and
                    (B) to enhance international competitiveness.
            (3) In implementing Congressional policy, Federal agencies 
        should, consistent with the requirements of Federal law, seek 
        to implement statutory requirements, to the maximum extent 
        feasible, in a manner that minimizes--
                    (A) the inefficient allocation of economic 
                resources;
                    (B) the burden that such requirements impose on use 
                of local public resources by State and local 
                governments; and
                    (C) the adverse economic effects of such 
                regulations on productivity, economic growth, full 
                employment, creation of productive jobs, and 
                international competitiveness of American goods and 
                services.
    (b) Purposes.--The purposes of this Act are to--
            (1) assist Congress in consideration of proposed 
        legislation establishing or revising Federal programs so as to 
        assure that, to the maximum extent practicable, legislation 
        enacted by Congress will--
                    (A) minimize the burden of such legislation on 
                expenditure of scarce local public resources by State 
                and local governments;
                    (B) minimize inefficient allocation of economic 
                resources; and
                    (C) reduce the adverse effect of such legislation--
                            (i) on the ability of State and local 
                        governmental entities to use local public 
                        resources to meet local needs and to establish 
                        local priorities for local public resources; 
                        and
                            (ii) on allocation of economic resources, 
                        productivity, economic growth, full employment, 
                        creation of productive jobs, and international 
                        competitiveness; and
            (2) require Federal agencies to exercise discretionary 
        authority and to implement statutory requirements in a manner 
        that, consistent with fulfillment of each agency's mission and 
        with the requirements of other laws, minimizes the impact 
        regulations affecting the economy have on--
                    (A) the ability of State and local governmental 
                entities to use local public resources to meet local 
                needs; and
                    (B) the allocation of economic resources, 
                productivity, economic growth, full employment, 
                creation of productive jobs, and international 
                competitiveness of American goods and services.

                      TITLE I--LEGISLATIVE REFORM

SEC. 101. REPORTS ON LEGISLATION.

    (a) Report Required.--
            (1) In general.--Except as provided in paragraph (2), when 
        a committee of the Senate or House of Representatives reports a 
        bill or resolution of a public character (not including a 
        resolution of ratification of a treaty) to its House that 
        mandates unfunded requirements upon State or local governments 
        or the private sector, the report accompanying the bill or 
        resolution shall contain an analysis, prepared after 
        consultation with the Director of the Congressional Budget 
        Office, detailing the effect of the new requirements on--
                    (A) State and local government expenditures 
                necessary to comply with Federal mandates;
                    (B) private businesses, including the economic 
                resources required annually to comply with the 
                legislation and implementing regulations; and
                    (C) economic growth and competitiveness.
            (2) Exception.--Paragraph (1) shall not apply to any bill 
        with respect to which the Director of the Congressional Budget 
        Office certifies in writing to the chairman of the committee 
        reporting the legislation that the estimated costs to State and 
        local governments and the private sector of implementation of 
        such legislation during the first 3 years will not exceed 
        $50,000,000 in the aggregate and during the first 5 years will 
        not exceed $100,000,000 in the aggregate.
    (b) Duties and Functions of Congressional Budget Office.--The 
Director of the Congressional Budget Office shall prepare for each bill 
or resolution of a public character reported by any committee of the 
House of Representatives or of the Senate, an economic analysis of the 
effects of the bill or resolution, satisfying the requirements of 
subsection (a). The analysis prepared by the Director of the 
Congressional Budget Office shall be included in the report 
accompanying such bill or resolution.
    (c) Legislation Subject to Point of Order.--A bill or resolution is 
subject to a point of order against consideration of the bill or 
resolution by the House of Representatives or the Senate (as the case 
may be) if the bill or resolution is reported for consideration by the 
House of Representatives or the Senate unaccompanied by the analysis 
required by this section.

SEC. 102. EXERCISE OF RULEMAKING POWERS.

    The provisions of this title are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such they 
        shall be considered as part of the rules of each 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 such House.

SEC. 103. EFFECTIVE DATE.

    This title shall apply to any bill or resolution introduced in the 
House of Representatives or the Senate after the date of enactment of 
this Act.

             TITLE II--FEDERAL INTERGOVERNMENTAL RELATIONS

SEC. 201. INTERGOVERNMENTAL AND ECONOMIC IMPACT ASSESSMENT.

    (a) Requirement.--When an agency publishes a general notice of 
proposed rulemaking for any proposed rule, the notice of proposed 
rulemaking shall be accompanied by an Intergovernmental and Economic 
Impact Assessment. Such Assessment shall be published in the Federal 
Register at the time of the publication of the general notice of 
proposed rulemaking for the rule.
    (b) Content.--Each Intergovernmental and Economic Impact Assessment 
required under this section shall contain--
            (1) a description of the reasons why action by the agency 
        is being considered;
            (2) a succinct statement of the objective of, and legal 
        basis for, the proposed rule;
            (3) a good-faith estimate, based on data readily available 
        to the agency, of the effect the proposed rule will have on the 
        expenditure of State or local public resources by State and 
        local governments; and
            (4) a good-faith estimate, based on data readily available 
        to the agency, or a description of the effect the proposed rule 
        will have on--
                    (A) the allocation of economic resources; and
                    (B) productivity, economic growth, full employment, 
                creation of productive jobs, and international 
                competitiveness of American goods and services.

SEC. 202. INTERGOVERNMENTAL AND ECONOMIC IMPACT STATEMENT.

    (a) Requirement.--When an agency promulgates a final rule, the 
agency shall prepare an Intergovernmental and Economic Impact 
Statement. The Intergovernmental and Economic Impact Statement shall 
contain--
            (1) a succinct statement of the need for, and the 
        objectives of, such rule;
            (2) a summary of the issues raised by the public comments 
        in response to the publication by the agency of the 
        Intergovernmental and Economic Impact Assessment prepared for 
        the rule, a summary of the agency's evaluation of such issues, 
        and a statement of any changes made in the proposed rule as a 
        result of such comments;
            (3) a good-faith estimate, based on information readily 
        available to the agency, of the effect the rule will have on 
        the expenditure of State or local public resources by State and 
        local governments; and
            (4) a good-faith estimate, based on information readily 
        available to the agency, or a description of the effect the 
        rule will have on productivity, economic growth, full 
        employment, creation of productive jobs, and international 
        competitiveness of American goods and services.
    (b) Availability.--The agency shall make copies of each 
Intergovernmental and Economic Impact Statement available to members of 
the public, and shall publish in the Federal Register at the time of 
publication of any final rule, a statement describing how the public 
may obtain copies of such Statement.

SEC. 203. EFFECT ON OTHER LAWS.

    The requirements of this title shall not alter in any manner the 
substantive standards otherwise applicable to the implementation by an 
agency of statutory requirements or to the exercise by an agency of 
authority delegated by law.

SEC. 204. EFFECTIVE DATE.

    This title shall apply to any rule proposed and any final rule 
promulgated by any agency after the date of the enactment of this Act.

SEC. 205. DEFINITION.

    In this title, the term ``agency'' has the meaning stated in 
section 551(1) of title 5, United States Code.

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