IB

104TH CONGRESS

1ST SESSION H. R. 5

[Report No. 104–1 Parts I and II]

To curb the practice of imposing unfunded Federal mandates on States

and local governments, to ensure that the Federal Government pays

the costs incurred by those governments in complying with certain requirements under Federal statutes and regulations, and to provide information on the cost of Federal mandates on the private sector, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. CLINGER, Mr. PORTMAN, Mr. CONDIT, and Mr. DAVIS (for themselves,

Mr. SHAYS, Mr. MCHUGH, Mr. MICA, Mr. HORN, Mr. ZELIFF, Mr. BURTON of Indiana, Mr. SCHIFF, Mr. BLUTE, Mr. FOX, Mr. WALSH, and Mr.

CUNNINGHAM) introduced the following bill; which was referred to the

Committee on Government Reform and Oversight, and in addition to the

Committees on Rules, the Budget, and the Judiciary, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee concerned

JANUARY 13, 1995

Reported from the Committee on Rules with amendments

[Omit the part in black brackets and insert the part in boldface roman]

JANUARY 13, 1995

Additional sponsors: Mr. CHABOT, Mr. NEY, Mr. HASTERT, Mr. DORNAN, Mr.

CREMEANS, Mr. FORBES, Mrs. FOWLER, Mr. HANCOCK, Mr. DICKEY,

Mr. LEWIS of Kentucky, Mr. MONTGOMERY, Mr. BONILLA, Mr. HAYES,

Mr. PETE GEREN of Texas, Mr. STENHOLM, Mr. STUMP, Mr. PAYNE of

Virginia, Mr. PETERSON of Minnesota, Mr. CLEMENT, Mr. SHADEGG,

Mr. GOODLING, Ms. PRYCE, Mr. INGLIS of South Carolina, Mr. TATE,

Mr. WOLF, Mrs. SMITH of Washington, Mr. HASTINGS of Washington,

Mr. SCARBOROUGH, Mr. LINDER, Mr. ROHRABACHER, Mr. BEREUTER,

Mr. JONES, Mr. HOUGHTON, Mr. HEINEMAN, Mr. WALKER, Mr. SMITH

of Texas, Mr. TAYLOR of North Carolina, Mr. STOCKMAN, Mr. LUCAS,

Mr. GILLMOR, Mr. CRANE, Mr. EMERSON, Mr. TALENT, Mr. BAKER of

California, Mr. HUNTER, Mr. HANSEN, Mr. ARMEY, Mr. BACHUS, Mr.
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BAKER of Louisiana, Mr. BALLENGER, Mr. BARR, Mr. BARTLETT of

Maryland, Mr. BASS, Mr. BILBRAY, Mr. BROWNBACK, Mr. BUNNING of

Kentucky, Mr. CALLAHAN, Mr. CALVERT, Mr. CAMP, Mr. CHRISTENSEN,

Mr. CHRYSLER, Mr. COLLINS of Georgia, Mr. DOOLITTLE, Ms. DUNN of

Washington, Mr. ENSIGN, Mr. FIELDS of Texas, Mr. FLANAGAN, Mr.

FRELINGHUYSEN, Mr. FRANKS of New Jersey, Mr. GILCHREST, Mr.

GOODLATTE, Mr. GUNDERSON, Mr. GUTKNECHT, Mr. HERGER, Mr.

HOBSON, Mr. HOKE, Mr. HOSTETTLER, Mr. SAM JOHNSON of Texas,

Mr. KASICH, Mr. KINGSTON, Mr. KNOLLENBERG, Mr. LIVINGSTON, Mr.

LAHOOD, Mr. LATOURETTE, Mr. MCINTOSH, Mr. MARTINI, Mr.

MANZULLO, Mr. PACKARD, Mr. QUILLEN, Mr. SALMON, Mr. SOLOMON,

Mr. SANFORD, Mr. SMITH of Michigan, Mr. SOUDER, Mr. SPENCE, Mr.

THORNBERRY, Mr. WAMP, and Mr. WELLER

JANUARY 13, 1995

Reported from the Committee on Government Reform and Oversight with

amendments

[Omit the part struck through and insert the part printed in italic]

A BILL

To curb the practice of imposing unfunded Federal mandates

on States and local governments, to ensure that the

Federal Government pays the costs incurred by those

governments in complying with certain requirements

under Federal statutes and regulations, and to provide

information on the cost of Federal mandates on the

private sector, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Unfunded Mandate

5 Reform Act of 1995’’.

6 SEC. 2. PURPOSES.

7 The purposes of this Act are—
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1 (1) to strengthen the partnership between the

2 Federal Government and States, local governments,

3 and tribal governments;

4 (2) to end the imposition, in the absence of full

5 consideration by Congress, of Federal mandates on

6 States, local governments, and tribal governments in

7 a manner that may displace other essential State,

8 local, and tribal governmental priorities;

9 (3) to assist Congress in its consideration of

10 proposed legislation establishing or revising Federal

11 programs containing Federal mandates affecting

12 States, local governments, tribal governments, and

13 the private sector by—

14 (A) providing for the development of infor15 mation about the nature and size of mandates

16 in proposed legislation; and

17 (B) establishing a mechanism to bring

18 such information to the attention of the Senate

19 and House of Representatives before the Senate

20 and House of Representatives votes on proposed

21 legislation;

22 (4) to promote informed and deliberate deci23 sions by Congress on the appropriateness of Federal

24 mandates in any particular instance;
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1 (5) to establish a point-of-order vote on the con2 sideration in the Senate and House of Representa3 tives of legislation containing significant Federal

4 mandates;

5 (6) to assist Federal agencies in their consider6 ation of proposed regulations affecting States, local

7 governments, and tribal governments, by—

8 (A) requiring that Federal agencies de9 velop a process to enable the elected and other

10 officials of States, local governments, and tribal

11 governments to provide input when Federal

12 agencies are developing regulations; and

13 (B) requiring that Federal agencies pre14 pare and consider better estimates of the budg15 etary impact of regulations containing Federal

16 mandates upon States, local governments, and

17 tribal governments before adopting such regula18 tions, and ensuring that small governments are

19 given special consideration in that process; and

20 (7) to establish the general rule that Congress

21 shall not impose Federal mandates on States, local

22 governments, and tribal governments without provid23 ing adequate funding to comply with such man24 dates.; and
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1 (8) to begin consideration of methods to relieve

2 States, local governments, and tribal governments of

3 unfunded mandates imposed by Federal court inter4 pretations of Federal statutes and regulations.

5 SEC. 3. DEFINITIONS.

6 For purposes of this Act—

7 (1) the terms ‘‘agency’’, ‘‘Federal financial as8 sistance’’, ‘‘Federal private sector mandate’’, ‘‘Fed9 eral mandate’’ (except as provided by section 108),

10 ‘‘local government’’, ‘‘private sector’’, ‘‘regulation’’

11 or ‘‘rule’’, and ‘‘State’’ have the meaning given those

12 terms by section 421 of the Congressional Budget

13 Act of 1974; and

14 (2) the term ‘‘small government’’ means any

15 small governmental jurisdiction as defined in section

16 601(5) of title 5, United States Code, and any tribal

17 government.

18 SEC. 4. LIMITATION ON APPLICATION.

19 This Act shall not apply to any provision in a Federal

20 statute or a proposed or final Federal regulation, that—

21 (1) enforces constitutional rights of individuals;

22 (2) establishes or enforces any statutory rights

23 that prohibit discrimination on the basis of race, re24 ligion, gender, national origin, or handicapped or

25 disability status;
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1 (3) requires compliance with accounting and

2 auditing procedures with respect to grants or other

3 money or property provided by the Federal Govern4 ment;

5 (4) provides for emergency assistance or relief

6 at the request of any State, local government, or

7 tribal government or any official of such a govern8 ment;

9 (5) is necessary for the national security or the

10 ratification or implementation of international treaty

11 obligations; or

12 (6) the President designates as emergency legis13 lation and that the Congress so designates in stat14 ute.; or

15 (7) pertains to Social Security.

16 TITLE I—REVIEW OF UNFUNDED

17 FEDERAL MANDATES

18 SEC. 101. ESTABLISHMENT.

19 There is established a commission which shall be

20 known as the ‘‘Commission on Unfunded Federal Man21 dates’’ (in this title referred to as the ‘‘Commission’’).

22 SEC. 102. REPORT ON UNFUNDED FEDERAL MANDATES BY

23 THE COMMISSION.

24 (a) IN GENERAL.—The Commission shall in accord25 ance with this section—
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1 (1) investigate and review the role of unfunded

2 Federal mandates in intergovernmental relations and

3 their impact on State, local, tribal, and Federal gov4 ernment objectives and responsibilities; and

5 (2) make recommendations to the President

6 and the Congress regarding—

7 (A) allowing flexibility for State, local, and

8 tribal governments in complying with specific

9 unfunded Federal mandates for which terms of

10 compliance are unnecessarily rigid or complex;

11 (B) reconciling any 2 or more unfunded

12 Federal mandates which impose contradictory

13 or inconsistent requirements;

14 (C) terminating unfunded Federal man15 dates which are duplicative, obsolete, or lacking

16 in practical utility;

17 (D) suspending, on a temporary basis, un18 funded Federal mandates which are not vital to

19 public health and safety and which compound

20 the fiscal difficulties of State, local, and tribal

21 governments, including recommendations for

22 triggering such suspension;

23 (E) consolidating or simplifying unfunded

24 Federal mandates, or the planning or reporting

25 requirements of such mandates, in order to re-
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1 duce duplication and facilitate compliance by

2 State, local, and tribal governments with those

3 mandates; and

4 (F) establishing common Federal defini5 tions or standards to be used by State, local,

6 and tribal governments in complying with un7 funded Federal mandates that use different

8 definitions or standards for the same terms or

9 principles.

10 (3) IDENTIFICATION OF RELEVANT UNFUNDED

11 FEDERAL MANDATES.—Each recommendation under

12 paragraph (2) shall, to the extent practicable, iden13 tify the specific unfunded Federal mandates to

14 which the recommendation applies.

15 (b) CRITERIA.—

16 (1) IN GENERAL.—The Commission shall estab17 lish criteria for making recommendations under sub18 section (a).

19 (2) ISSUANCE OF PROPOSED CRITERIA.—The

20 Commission shall issue proposed criteria under this

21 subsection not later than 60 days after the date of

22 the enactment of this Act, and thereafter provide a

23 period of 30 days for submission by the public of

24 comments on the proposed criteria.
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1 (3) FINAL CRITERIA.—Not later than 45 days

2 after the date of issuance of proposed criteria, the

3 Commission shall—

4 (A) consider comments on the proposed

5 criteria received under paragraph (2);

6 (B) adopt and incorporate in final criteria

7 any recommendations submitted in those com8 ments that the Commission determines will aid

9 the Commission in carrying out its duties under

10 this section; and

11 (C) issue final criteria under this sub12 section.

13 (c) PRELIMINARY REPORT.—

14 (1) IN GENERAL.—Not later than 9 months

15 after the date of the enactment of this Act, the

16 Commission shall—

17 (A) prepare and publish a preliminary re18 port on its activities under this title, including

19 preliminary recommendations pursuant to sub20 section (a);

21 (B) publish in the Federal Register a no22 tice of availability of the preliminary report;

23 and

24 (C) provide copies of the preliminary re25 port to the public upon request.
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1 (2) PUBLIC HEARINGS.—The Commission shall

2 hold public hearings on the preliminary rec3 ommendations contained in the preliminary report of

4 the Commission under this subsection.

5 (d) FINAL REPORT.—Not later than 3 months after

6 the date of the publication of the preliminary report under

7 subsection (c), the Commission shall submit to the Con8 gress, including the Committee on Government Reform

9 and Oversight of the House of Representatives and the

10 Committee on Governmental Affairs of the Senate, and

11 to the President a final report on the findings, conclusions,

12 and recommendations of the Commission under this sec13 tion.

14 SEC. 103. MEMBERSHIP.

15 (a) NUMBER AND APPOINTMENT.—The Commission

16 shall be composed of 9 members appointed from individ17 uals who possess extensive leadership experience in and

18 knowledge of State, local, and tribal governments and

19 intergovernmental relations, including State and local

20 elected officials, as follows:

21 (1) 3 members appointed by the Speaker of the

22 House of Representatives, in consultation with the

23 minority leader of the House of Representatives.
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1 (2) 3 members appointed by the majority leader

2 of the Senate, in consultation with the minority lead3 er of the Senate.

4 (3) 3 members appointed by the President.

5 (b) WAIVER OF LIMITATION ON EXECUTIVE SCHED6 ULE POSITIONS.—Appointments may be made under this

7 section without regard to section 5311(b) of title 5, United

8 States Code.

9 (c) TERMS.—

10 (1) IN GENERAL.—Each member of the Com11 mission shall be appointed for the life of the Com12 mission.

13 (2) VACANCIES.—A vacancy in the Commission

14 shall be filled in the manner in which the original

15 appointment was made.

16 (d) BASIC PAY.—

17 (1) RATES OF PAY.—Members of the Commis18 sion shall serve without pay.

19 (2) PROHIBITION OF COMPENSATION OF FED20 ERAL EMPLOYEES.—Members of the Commission

21 who are full-time officers or employees of the United

22 States may not receive additional pay, allowances, or

23 benefits by reason of their service on the Commis24 sion.
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1 (e) TRAVEL EXPENSES.—Each member of the Com2 mission shall may receive travel expenses, including per

3 diem in lieu of subsistence, in accordance with sections

4 5702 and 5703 of title 5, United States Code.

5 (f) CHAIRPERSON.—The President shall designate a

6 member of the Commission as Chairperson at the time of

7 the appointment of that member.

8 (g) MEETINGS.—

9 (1) IN GENERAL.—Subject to paragraph (2),

10 the Commission shall meet at the call of the Chair11 person or a majority of its members.

12 (2) FIRST MEETING.—The Commission shall

13 convene its first meeting by not later than 45 days

14 after the date of the completion of appointment of

15 the members of the Commission.

16 (3) QUORUM.—A majority of members of the

17 Commission shall constitute a quorum but a lesser

18 number may hold hearings.

19 SEC. 104. DIRECTOR AND STAFF OF COMMISSION; EXPERTS

20 AND CONSULTANTS.

21 (a) DIRECTOR.—The Commission shall have a Direc22 tor who shall be appointed by the Commission. The Direc23 tor shall be paid at a level not to exceed the rate of basic

24 pay payable for level IV of the Executive Schedule.
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1 (b) STAFF.—With the approval of the Commission,

2 and without regard to section 5311(b) of title 5, United

3 States Code, the Director may appoint and fix the pay

4 of such staff as is sufficient to enable the Commission to

5 carry out its duties.

6 (c) APPLICABILITY OF CERTAIN CIVIL SERVICE

7 LAWS.—The Director and staff of the Commission may

8 be appointed without regard to the provisions of title 5,

9 United States Code, governing appointments in the com10 petitive service, and may be paid without regard to the

11 provisions of chapter 51 and subchapter III of chapter 53

12 of that title relating to classification and General Schedule

13 pay rates, except that an individual so appointed may not

14 receive pay in excess of the annual rate payable under

15 section 5376 of title 5, United States Code.

16 (d) EXPERTS AND CONSULTANTS.—The Commission

17 may procure temporary and intermittent services of ex18 perts or consultants under section 3109(b) of title 5,

19 United States Code.

20 (e) STAFF OF FEDERAL AGENCIES.—Upon request

21 of the Director, the head of any Federal department or

22 agency may detail, on a reimbursable basis, any of the

23 personnel of that department or agency to the Commission

24 to assist it in carrying out its duties under this title.
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1 SEC. 105. POWERS OF COMMISSION.

2 (a) HEARINGS AND SESSIONS.—The Commission

3 may, for the purpose of carrying out this title, hold hear4 ings, sit and act at times and places, take testimony, and

5 receive evidence as the Commission considers appropriate.

6 (b) POWERS OF MEMBERS AND AGENTS.—Any mem7 ber or agent of the Commission may, if authorized by the

8 Commission, take any action which the Commission is

9 authorized to take by this section.

10 (c) OBTAINING OFFICIAL DATA.—The Commission

11 may secure directly from any department or agency of the

12 United States information necessary to enable it to carry

13 out this title, except information—

14 (1) which is specifically exempted from disclo15 sure by law; or

16 (2) which that department or agency deter17 mines will disclose—

18 (A) matters necessary to be kept secret in

19 the interests of national defense or the con20 fidential conduct of the foreign relations of the

21 United States;

22 (B) information relating to trade secrets or

23 financial or commercial information pertaining

24 specifically to a given person if the information

25 has been obtained by the Government on a con26 fidential basis, other than through an applica-
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1 tion by such person for a specific financial or

2 other benefit, and is required to be kept secret

3 in order to prevent undue injury to the competi4 tive position of such person; or

5 (C) personnel or medical data or similar

6 data the disclosure of which would constitute a

7 clearly unwarranted invasion of personal pri8 vacy;

9 unless the portions containing such matters, infor10 mation, or data have been excised.

11 Upon request of the Chairperson of the Commission, the

12 head of that department or agency shall furnish that infor13 mation to the Commission.

14 (d) MAILS.—The Commission may use the United

15 States mails in the same manner and under the same con16 ditions as other departments and agencies of the United

17 States.

18 (e) ADMINISTRATIVE SUPPORT SERVICES.—Upon

19 the request of the Commission, the Administrator of Gen20 eral Services shall provide to the Commission, on a reim21 bursable basis, the administrative support services nec22 essary for the Commission to carry out its duties under

23 this title.

24 (f) CONTRACT AUTHORITY.—The Commission may,

25 subject to appropriations, contract with and compensate
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1 government and private agencies or persons for property

2 and services used to carry out its duties under this title.

3 SEC. 106. TERMINATION.

4 The Commission shall terminate 90 days after sub5 mitting its final report pursuant to section 102(d).

6 SEC. 107. AUTHORIZATION OF APPROPRIATIONS.

7 There is authorized to be appropriated to the Com8 mission $1,000,000 to carry out this title.

9 SEC. 108. DEFINITION.

10 As used in this title, the term ‘‘Federal mandate’’

11 means any provision in statute or regulation or any Fed12 eral court ruling that imposes an enforceable duty upon

13 States, local governments, or tribal governments including

14 a condition of Federal assistance or a duty arising from

15 participation in a voluntary Federal program.

16 SEC. 109. EFFECTIVE DATE.

17 This title shall take effect 60 days after the date of

18 the enactment of this Act.

19 TITLE II—REGULATORY

20 ACCOUNTABILITY AND REFORM

21 SEC. 201. REGULATORY PROCESS.

22 (a) IN GENERAL.—Each agency shall, to the extent

23 permitted by subchapter II of chapter 5 of title 5, United

24 States Code—
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1 (1) assess the effects of Federal regulations on

2 States, local governments, tribal governments, and

3 the private sector (other than to the extent that such

4 regulations incorporate requirements specifically set

5 forth in legislation), including specifically the avail6 ability of resources to carry out any Federal man7 dates in those regulations; and

8 (2) seek to minimize those burdens that unique9 ly or significantly affect such governmental entities

10 or the private sector, consistent with achieving statu11 tory and regulatory objectives.

12 (b) STATE, LOCAL GOVERNMENT, AND TRIBAL GOV13 ERNMENT INPUT.—Each agency shall develop an effective

14 process to permit elected officials (or their designated rep15 resentatives) of States, local governments, and tribal gov16 ernments to provide meaningful and timely input in the

17 development of regulatory proposals containing significant

18 Federal intergovernmental mandates.

19 (c) AGENCY PLAN.—

20 (1) IN GENERAL.—Before establishing any reg21 ulatory requirements that might significantly or

22 uniquely affect small governments, an agency shall

23 have developed a plan under which the agency

24 shall—
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1 (A) provide notice of the contemplated re2 quirements to potentially affected small govern3 ments, if any;

4 (B) enable officials of affected small gov5 ernments to provide input pursuant to sub6 section (b); and

7 (C) inform, educate, and advise small gov8 ernments on compliance with the requirements.

9 (2) EFFECTS ON PRIVATE SECTOR.—Before es10 tablishing any regulatory requirements, agencies

11 shall prepare estimates, based on available data, of

12 the effect of Federal private sector mandates on the

13 national economy, including the effect on productiv14 ity, economic growth, full employment, creation of

15 productive jobs, and international competitiveness of

16 United States goods and services.

17 SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REG18 ULATORY ACTIONS.

19 (a) IN GENERAL.—Before promulgating any final

20 rule that includes any Federal mandate that may result

21 in the expenditure by States, local governments, or tribal

22 governments, in the aggregate, or the private sector of at

23 least $100,000,000 (adjusted annually for inflation) in

24 any 1 year, and before promulgating any general notice

25 of proposed rulemaking that is likely to result in promul-
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1 gation of any such rule, the agency shall prepare a written

2 statement containing—

3 (1) estimates by the agency, including the un4 derlying analysis, of the anticipated costs to States,

5 local governments, tribal governments, and the pri6 vate sector of complying with the Federal mandates,

7 and of the extent to which such costs may be paid

8 with funds provided by the Federal Government or

9 otherwise paid through Federal financial assistance;

10 (2) estimates by the agency, if and to the ex11 tent that the agency determines that accurate esti12 mates are reasonably feasible, of—

13 (A) the future costs of the Federal man14 date; and

15 (B) any disproportionate budgetary effects

16 of the Federal mandates upon any particular

17 regions of the country or particular States, local

18 governments, tribal governments, urban or

19 rural or other types of communities, or particu20 lar segments of the private sector;

21 (3) a qualitative, and if possible, a quantitative

22 assessment of costs and benefits anticipated from

23 the Federal mandates (such as the enhancement of

24 health and safety and the protection of the natural

25 environment);
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1 (4) the effect of Federal private sector man2 dates on the national economy, including the effect

3 on productivity, economic growth, full employment,

4 creation of productive jobs, and international com5 petitiveness of United States goods and services;

6 (5) a description of the extent of the agency’s

7 prior consultation with elected representatives (or

8 their designated representatives) of the affected

9 States, local governments, and tribal governments,

10 and designated representatives of the private sector;

11 (6) a summary of the comments and concerns

12 that were presented by States, local governments, or

13 tribal governments and the private sector either oral14 ly or in writing to the agency;

15 (7) a summary of the agency’s evaluation of

16 those comments and concerns; and

17 (8) the agency’s position supporting the need to

18 issue the regulation containing the Federal man19 dates (considering, among other things, the extent to

20 which costs may or may not be paid with funds pro21 vided by the Federal Government).

22 (b) PROMULGATION.—In promulgating a general no23 tice of proposed rulemaking or a final rule for which a

24 statement under subsection (a) is required, the agency
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1 shall include in the promulgation a summary of the infor2 mation contained in the statement.

3 (c) PREPARATION IN CONJUNCTION WITH OTHER

4 STATEMENT.—Any agency may prepare any statement re5 quired by subsection (a) in conjunction with or as part

6 of any other statement or analysis, if the statement or

7 analysis satisfies the provisions of subsection (a).

8 SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET

9 OFFICE.

10 The Director of the Office of Management and Budg11 et shall—

12 (1) collect from agencies the statements pre13 pared under section 202; and

14 (2) periodically forward copies of them to the

15 Director of the Congressional Budget Office on a

16 reasonably timely basis after promulgation of the

17 general notice of proposed rulemaking or of the final

18 rule for which the statement was prepared.

19 SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXI20 BILITY.

21 (a) IN GENERAL.—The Director of the Office of

22 Management and Budget, in consultation with Federal

23 agencies, shall establish pilot programs in at least 2 agen24 cies to test innovative and more flexible regulatory ap25 proaches that—
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1 (1) reduce reporting and compliance burdens on

2 small governments; and

3 (2) meet overall statutory goals and objectives.

4 (b) PROGRAM FOCUS.—The pilot programs shall

5 focus on rules in effect or proposed rules, or on a combina6 tion thereof.

7 SEC. 205. ANNUAL REPORT TO CONGRESS REGARDING FED8 ERAL COURT RULINGS.

9 Not later than 4 months after the date of enactment

10 of this Act, and no later than March 15 of each year there11 after, the Advisory Commission on Intergovernmental Rela12 tions shall submit to the Congress, including each of the

13 Committee on Government Reform and Oversight of the

14 House of Representatives and the Committee on Govern15 mental Affairs of the Senate, and to the President a report

16 describing Federal court rulings in the preceding calendar

17 year which imposed an enforceable duty on 1 or more

18 States, local governments, or tribal governments.

19 TITLE III—LEGISLATIVE

20 ACCOUNTABILITY AND REFORM

21 SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND

22 REFORM.

23 Title IV of the Congressional Budget Act of 1974 is

24 amended by—

25 (1) inserting before section 401 the following:
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1 ‘‘PART A—GENERAL PROVISIONS’’; and

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

3 ‘‘PART B—FEDERAL MANDATES

4 ‘‘SEC. 421. DEFINITIONS.

5 ‘‘For purposes of this part:

6 ‘‘(1) AGENCY.—The term ‘agency’ has the

7 meaning stated in section 551(1) of title 5, United

8 States Code, but does not include independent regu9 latory agencies, as defined by section 3502(10) of

10 title 44, United States Code.

11 ‘‘(2) DIRECTOR.—The term ‘Director’ means

12 the Director of the Congressional Budget Office.

13 ‘‘(3) FEDERAL FINANCIAL ASSISTANCE.—The

14 term ‘Federal financial assistance’ means the

15 amount of budget authority for any Federal grant

16 assistance or any Federal program providing loan

17 guarantees or direct loans.

18 ‘‘(4) FEDERAL INTERGOVERNMENTAL MAN19 DATE.—The term ‘Federal intergovernmental man20 date’ means—

21 ‘‘(A) any provision in legislation, statute,

22 or regulation that—

23 ‘‘(i) would impose an enforceable duty

24 upon States, local governments, or tribal

25 governments, except—
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1 ‘‘(I) a condition of Federal as2 sistance; or

3 ‘‘(II) a duty arising from partici4 pation in a voluntary Federal pro5 gram, except as provided in subpara6 graph (B); or

7 ‘‘(ii) would reduce or eliminate the

8 amount of authorization of appropriations

9 for Federal financial assistance that would

10 be provided to States, local governments,

11 or tribal governments for the purpose of

12 complying with any such previously im13 posed duty unless such duty is reduced or

14 eliminated by a corresponding amount; or

15 ‘‘(B) any provision in legislation, statute,

16 or regulation that relates to a then-existing

17 Federal program under which $500,000,000 or

18 more is provided annually to States, local gov19 ernments, and tribal governments under entitle20 ment authority, if—

21 ‘‘(i)(I) the provision would increase

22 the stringency of conditions of assistance

23 to States, local governments, or tribal gov24 ernments under the program; or
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1 ‘‘(II) would place caps upon, or other2 wise decrease, the Federal Government’s

3 responsibility to provide funding to States,

4 local governments, or tribal governments

5 under the program; and

6 ‘‘(ii) the States, local governments, or

7 tribal governments that participate in the

8 Federal program lack authority under that

9 program to amend their financial or pro10 grammatic responsibilities to continue pro11 viding required services that are affected

12 by the legislation, statute, or regulation.

13 ‘‘(5) FEDERAL PRIVATE SECTOR MANDATE.—

14 The term ‘Federal private sector mandate’ means

15 any provision in legislation, statute, or regulation

16 that—

17 ‘‘(A) would impose an enforceable duty on

18 the private sector except—

19 ‘‘(i) a condition of Federal assistance;

20 or

21 ‘‘(ii) a duty arising from participation

22 in a voluntary Federal program; or

23 ‘‘(B) would reduce or eliminate the amount

24 of authorization of appropriations for Federal

25 financial assistance that will be provided to the
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1 private sector for the purpose of ensuring com2 pliance with such duty.

3 ‘‘(6) FEDERAL MANDATE.—The term ‘Federal

4 mandate’ means a Federal intergovernmental man5 date or a Federal private sector mandate, as defined

6 in paragraphs (4) and (5).

7 ‘‘(7) FEDERAL MANDATE DIRECT COSTS.—

8 ‘‘(A) FEDERAL INTERGOVERNMENTAL DI9 RECT COSTS.—In the case of a Federal inter10 governmental mandate, the term ‘direct costs’

11 means the aggregate estimated amounts that all

12 States, local governments, and tribal govern13 ments would be required to spend or would be

14 required to forego in revenues in order to com15 ply with the Federal intergovernmental man16 date, or, in the case of a provision referred to

17 in paragraph (4)(A)(ii), the amount of Federal

18 financial assistance eliminated or reduced.

19 ‘‘(B) PRIVATE SECTOR DIRECT COSTS.—In

20 the case of a Federal private sector mandate,

21 the term ‘direct costs’ means the aggregate esti22 mated amounts that the private sector would be

23 required to spend in order to comply with a

24 Federal private sector mandate.
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1 ‘‘(C) EXCLUSION FROM DIRECT COSTS.—

2 The term ‘direct costs’ does not include—

3 ‘‘(i) estimated amounts that the

4 States, local governments, and tribal gov5 ernments (in the case of a Federal inter6 governmental mandate), or the private sec7 tor (in the case of a Federal private sector

8 mandate), would spend—

9 ‘‘(I) to comply with or carry out

10 all applicable Federal, State, local,

11 and tribal laws and regulations in ef12 fect at the time of the adoption of a

13 Federal mandate for the same activity

14 as is affected by that Federal man15 date; or

16 ‘‘(II) to comply with or carry out

17 State, local governmental, and tribal

18 governmental programs, or private19 sector business or other activities in

20 effect at the time of the adoption of a

21 Federal mandate for the same activity

22 as is affected by that mandate; or

23 ‘‘(ii) expenditures to the extent that

24 they will be offset by any direct savings to

25 be enjoyed by the States, local govern-
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1 ments, and tribal governments, or by the

2 private sector, as a result of—

3 ‘‘(I) their compliance with the

4 Federal mandate; or

5 ‘‘(II) other changes in Federal

6 law or regulation that are enacted or

7 adopted in the same bill or joint reso8 lution or proposed or final Federal

9 regulation and that govern the same

10 activity as is affected by the Federal

11 mandate.

12 ‘‘(D) DETERMINATION OF COSTS.—Direct

13 costs shall be determined based on the assump14 tion that States, local governments, tribal gov15 ernments, and the private sector will take all

16 reasonable steps necessary to mitigate the costs

17 resulting from the Federal mandate, and will

18 comply with applicable standards of practice

19 and conduct established by recognized profes20 sional or trade associations. Reasonable steps to

21 mitigate the costs shall not include increases in

22 State, local, or tribal taxes or fees.

23 ‘‘(8) LOCAL GOVERNMENT.—The term ‘local

24 government’ has the same meaning as in section

25 6501(6) of title 31, United States Code.
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1 ‘‘(9) PRIVATE SECTOR.—The term ‘private sec2 tor’ means individuals, partnerships, associations,

3 corporations, business trusts, or legal representa4 tives, organized groups of individuals, and edu5 cational and other nonprofit institutions.

6 ‘‘(10) REGULATION.—The term ‘regulation’ or

7 ‘rule’ has the meaning of ‘rule’ as defined in section

8 601(2) of title 5, United States Code.

9 ‘‘(11) STATE.—The term ‘State’ has the same

10 meaning as in section 6501(9) of title 31, United

11 States Code.

12 ‘‘SEC. 422. LIMITATION ON APPLICATION.

13 ‘‘This part shall not apply to any provision in a bill,

14 joint resolution, motion, amendment, or conference report

15 before Congress that—

16 ‘‘(1) enforces constitutional rights of individ17 uals;

18 ‘‘(2) establishes or enforces any statutory rights

19 that prohibit discrimination on the basis of race, re20 ligion, gender, national origin, or handicapped or

21 disability status;

22 ‘‘(3) requires compliance with accounting and

23 auditing procedures with respect to grants or other

24 money or property provided by the Federal Govern25 ment;
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1 ‘‘(4) provides for emergency assistance or relief

2 at the request of any State, local government, or

3 tribal government or any official of such a govern4 ment;

5 ‘‘(5) is necessary for the national security or

6 the ratification or implementation of international

7 treaty obligations; or

8 ‘‘(6) the President designates as emergency leg9 islation and that the Congress so designates in stat10 ute.; or

11 ‘‘(7) pertains to Social Security.

12 ‘‘SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

13 ‘‘(a) SUBMISSION OF BILLS TO THE DIRECTOR.—

14 When a committee of authorization of the House of Rep15 resentatives or the Senate orders a bill or joint resolution

16 of a public character reported, the committee shall

17 promptly provide the text of the bill or joint resolution

18 to the Director and shall identify to the Director any Fed19 eral mandate contained in the bill or resolution.

20 ‘‘(b) COMMITTEE REPORT.—

21 ‘‘(1) INFORMATION REGARDING FEDERAL MAN22 DATES.—When a committee of authorization of the

23 House of Representatives or the Senate reports a

24 bill or joint resolution of a public character that in25 cludes any Federal mandate, the report of the com-
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1 mittee accompanying the bill or joint resolution shall

2 contain the information required by paragraph (2)

3 and, in the case of a Federal intergovernmental

4 mandate, paragraph (3).

5 ‘‘(2) REPORTS ON FEDERAL MANDATES.—Each

6 report referred to in paragraph (1) shall contain—

7 ‘‘(A) an identification and description of

8 each Federal mandate in the bill or joint resolu9 tion, including the statement, if available, from

10 the Director pursuant to section 424(a);

11 ‘‘(B) a qualitative assessment, and if prac12 ticable, a quantitative assessment of costs and

13 benefits anticipated from the Federal mandate

14 (including the effects on health and safety and

15 protection of the natural environment); and

16 ‘‘(C) a statement of the degree to which

17 the Federal mandate affects each of the public

18 and private sectors and the extent to which

19 Federal payment of public sector costs would

20 affect the competitive balance between States,

21 local governments, or tribal governments and

22 privately owned businesses. the private sector.

23 ‘‘(3) INTERGOVERNMENTAL MANDATES.—If any

24 of the Federal mandates in the bill or joint resolu25 tion are Federal intergovernmental mandates, the
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1 report referred to in paragraph (1) shall also con2 tain—

3 ‘‘(A)(i) a statement of the amount, if any,

4 of increase or decrease in authorization of ap5 propriations under existing Federal financial

6 assistance programs or for new Federal finan7 cial assistance, provided by the bill or joint res8 olution and usable for activities of States, local

9 governments, or tribal governments subject to

10 Federal intergovernmental mandates; and

11 ‘‘(ii) a statement of whether the committee

12 intends that the Federal intergovernmental

13 mandates be partly or entirely unfunded, and,

14 if so, the reasons for that intention; and

15 ‘‘(B) a statement of any existing sources of

16 Federal financial assistance in addition to those

17 identified in subparagraph (A) that may assist

18 States, local governments, and tribal govern19 ments in paying the direct costs of the Federal

20 intergovernmental mandates.

21 ‘‘(4) INFORMATION REGARDING PREEMPTION.—

22 When a committee of authorization of the House of

23 Representatives or the Senate reports a bill or joint

24 resolution of a public character, the committee re25 port accompanying the bill or joint resolution shall
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1 contain, if relevant to the bill or joint resolution, an

2 explicit statement on whether the bill or joint resolu3 tion, in whole or in part, is intended to preempt any

4 State, local, or tribal law, and if so, an explanation

5 of the reasons for such intention.

6 ‘‘(c) PUBLICATION OF STATEMENT FROM THE DI7 RECTOR.—

8 ‘‘(1) IN GENERAL.—Upon receiving a statement

9 (including any supplemental statement) from the Di10 rector pursuant to section 424(a), a committee of

11 the House of Representatives or the Senate shall

12 publish the statement in the committee report ac13 companying the bill or joint resolution to which the

14 statement relates if the statement is available to be

15 included in the printed report.

16 ‘‘(2) OTHER PUBLICATION OF STATEMENT OF

17 DIRECTOR.—If the statement is not published in the

18 report, or if the bill or joint resolution to which the

19 statement relates is expected to be considered by the

20 House of Representatives or the Senate before the

21 report is published, the committee shall cause the

22 statement, or a summary thereof, to be published in

23 the Congressional Record in advance of floor consid24 eration of the bill or joint resolution.
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1 ‘‘SEC. 424. DUTIES OF THE DIRECTOR.

2 ‘‘(a) STATEMENTS ON BILLS AND JOINT RESOLU3 TIONS OTHER THAN APPROPRIATIONS BILLS AND JOINT

4 RESOLUTIONS.—

5 ‘‘(1) FEDERAL INTERGOVERNMENTAL MAN6 DATES IN REPORTED BILLS AND RESOLUTIONS.—

7 For each bill or joint resolution of a public character

8 reported by any committee of authorization of the

9 House of Representatives or the Senate, the Director

10 shall prepare and submit to the committee a state11 ment as follows:

12 ‘‘(A) If the Director estimates that the di13 rect cost of all Federal intergovernmental man14 dates in the bill or joint resolution will equal or

15 exceed $50,000,000 (adjusted annually for in16 flation) in the fiscal year in which such a Fed17 eral intergovernmental mandate (or in any nec18 essary implementing regulation) would first be

19 effective or in any of the 4 fiscal years following

20 such year, the Director shall so state, specify

21 the estimate, and briefly explain the basis of

22 the estimate.

23 ‘‘(B) The estimate required by subpara24 graph (A) shall include estimates (and brief ex25 planations of the basis of the estimates) of—
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1 ‘‘(i) the total amount of direct cost of

2 complying with the Federal intergovern3 mental mandates in the bill or joint resolu4 tion; and

5 ‘‘(ii) the amount, if any, of increase in

6 authorization of appropriations or budget

7 authority or entitlement authority under

8 existing Federal financial assistance pro9 grams, or of authorization of appropria10 tions for new Federal financial assistance,

11 provided by the bill or joint resolution and

12 usable by States, local governments, or

13 tribal governments for activities subject to

14 the Federal intergovernmental mandates.

15 ‘‘(2) FEDERAL PRIVATE SECTOR MANDATES IN

16 REPORTED BILLS AND JOINT RESOLUTIONS.—For

17 each bill or joint resolution of a public character re18 ported by any committee of authorization of the

19 House of Representatives or the Senate, the Director

20 shall prepare and submit to the committee a state21 ment as follows:

22 ‘‘(A) If the Director estimates that the di23 rect cost of all Federal private sector mandates

24 in the bill or joint resolution will equal or ex25 ceed $100,000,000 (adjusted annually for infla-
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1 tion) in the fiscal year in which any Federal

2 private sector mandate in the bill or joint reso3 lution (or in any necessary implementing regu4 lation) would first be effective or in any of the

5 4 fiscal years following such fiscal year, the Di6 rector shall so state, specify the estimate, and

7 briefly explain the basis of the estimate.

8 ‘‘(B) The estimate required by subpara9 graph (A) shall include estimates (and brief ex10 planations of the basis of the estimates) of—

11 ‘‘(i) the total amount of direct costs of

12 complying with the Federal private sector

13 mandates in the bill or joint resolution;

14 and

15 ‘‘(ii) the amount, if any, of increase in

16 authorization of appropriations under ex17 isting Federal financial assistance pro18 grams, or of authorization of appropria19 tions for new Federal financial assistance,

20 provided by the bill or joint resolution usa21 ble by the private sector for the activities

22 subject to the Federal private sector man23 dates.

24 ‘‘(C) If the Director determines that it is

25 not feasible to make a reasonable estimate that
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1 would be required under subparagraphs (A) and

2 (B), the Director shall not make the estimate,

3 but shall report in the statement that the rea4 sonable estimate cannot be made and shall in5 clude the reasons for that determination in the

6 statement.

7 ‘‘(3) LEGISLATION FALLING BELOW THE DI8 RECT COSTS THRESHOLDS.—If the Director esti9 mates that the direct costs of a Federal mandate

10 will not equal or exceed the threshold specified in

11 paragraph (1)(A) or (2)(A), the Director shall so

12 state and shall briefly explain the basis of the esti13 mate.

14 ‘‘(4) AMENDED BILLS AND JOINT RESOLU15 TIONS; CONFERENCE REPORTS.—If the Director has

16 prepared the statement pursuant to subsection (a)

17 for a bill or joint resolution, and if that bill or joint

18 resolution is reported or passed in an amended form

19 (including if passed by one House as an amendment

20 in the nature of a substitute for the text of a bill

21 or joint resolution from the other House) or is re22 ported by a committee of conference in an amended

23 form, the committee of conference shall ensure, to

24 the greatest extent practicable, that the Director
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1 shall prepare a supplemental statement for the bill

2 or joint resolution in that amended form.

3 ‘‘(b) ASSISTANCE TO COMMITTEES AND STUDIES.—

4 ‘‘(1) IN GENERAL.—At the request of any com5 mittee of the House of Representatives or of the

6 Senate, the Director shall, to the extent practicable,

7 consult with and assist such committee in analyzing

8 the budgetary or financial impact of any proposed

9 legislation that may have—

10 ‘‘(A) a significant budgetary impact on

11 State, local, or tribal governments; or

12 ‘‘(B) a significant financial impact on the

13 private sector.

14 ‘‘(2) CONTINUING STUDIES.—The Director

15 shall conduct continuing studies to enhance compari16 sons of budget outlays, credit authority, and tax ex17 penditures.

18 ‘‘(3) FEDERAL MANDATE STUDIES.—

19 ‘‘(A) At the request of any committee of

20 the House of Representatives or the Senate, the

21 Director shall, to the extent practicable, con22 duct a study of a legislative proposal containing

23 a Federal mandate.

24 ‘‘(B) In conducting a study under subpara25 graph (A), the Director shall—
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1 ‘‘(i) solicit and consider information

2 or comments from elected officials (includ3 ing their designated representatives) of

4 States, local governments, tribal govern5 ments, designated representatives of the

6 private sector, and such other persons as

7 may provide helpful information or com8 ments;

9 ‘‘(ii) consider establishing advisory

10 panels of elected officials (including their

11 designated representatives) of States, local

12 governments, tribal governments, des13 ignated representatives of the private sec14 tor, and other persons if the Director de15 termines, in the Director’s discretion, that

16 such advisory panels would be helpful in

17 performing the Director’s responsibilities

18 under this section; and

19 ‘‘(iii) include estimates, if and to the

20 extent that the Director determines that

21 accurate estimates are reasonably feasible,

22 of—

23 ‘‘(I) the future direct cost of the

24 Federal mandates concerned to the

25 extent that they significantly differ
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1 from or extend beyond the 5-year pe2 riod after the mandate is first effec3 tive; and

4 ‘‘(II) any disproportionate budg5 etary effects of the Federal mandates

6 concerned upon particular industries

7 or sectors of the economy, States, re8 gions, and urban, or rural or other

9 types of communities, as appropriate.

10 ‘‘(C) In conducting a study on private sec11 tor mandates under subparagraph (A), the Di12 rector shall provide estimates, if and to the ex13 tent that the Director determines that such es14 timates are reasonably feasible, of—

15 ‘‘(i) future costs of Federal private

16 sector mandates to the extent that such

17 mandates differ significantly from or ex18 tend beyond the 5-year period referred to

19 in subparagraph (B)(iii)(I);

20 ‘‘(ii) any disproportionate financial ef21 fects of Federal private sector mandates

22 and of any Federal financial assistance in

23 the bill or joint resolution upon any par24 ticular industries or sectors of the econ-
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1 omy, States, regions, and urban or rural or

2 other types of communities; and

3 ‘‘(iii) the effect of Federal private sec4 tor mandates in the bill or joint resolution

5 on the national economy, including the ef6 fect on productivity, economic growth, full

7 employment, creation of productive jobs,

8 and international competitiveness of

9 United States goods and services.

10 ø‘‘(c) VIEWS AND ESTIMATES OF COMMITTEES.—

11 Any committee of the House of Representatives or the

12 Senate that anticipates that it will consider any proposed

13 legislation establishing, amending, or reauthorizing any

14 Federal program likely to have a significant budgetary im15 pact on any State, local, or tribal government, or likely

16 to have a significant financial impact on the private sector,

17 including any legislative proposal submitted by the execu18 tive branch likely to have such a budgetary or financial

19 impact, shall include that information in its views and esti20 mates on that proposal to the Committee on the Budget

21 of the applicable House pursuant to section 301(d).¿

22 ‘‘ø(d)¿ (c) VIEWS OF COMMITTEES.—Any committee

23 of the House of Representatives or the Senate which an24 ticipates that the committee will consider any proposed

25 legislation establishing, amending, or reauthorizing any
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1 Federal program likely to have a significant budgetary im2 pact on the States, local governments, or tribal govern3 ments, or likely to have a significant financial impact on

4 the private sector, including any legislative proposal sub5 mitted by the executive branch likely to have such a budg6 etary or financial impact, shall provide its views and esti7 mates on such proposal to the Committee on the Budget

8 of its House.

9 ‘‘ø(e)¿ (d) AUTHORIZATION OF APPROPRIATIONS.—

10 There is authorized to be appropriated to the Congres11 sional Budget Office to carry out this part $4,500,000 for

12 each of fiscal years 1996 through 2002.

13 ‘‘SEC. 425. POINT OF ORDER.

14 ‘‘(a) IN GENERAL.—It shall not be in order in the

15 House of Representatives or the Senate to consider—

16 ‘‘(1) any bill or joint resolution that is reported

17 by a committee unless the committee has published

18 the statement of the Director pursuant to section

19 424(a) prior to such consideration, except that this

20 paragraph shall not apply to any supplemental state21 ment prepared by the Director under section

22 424(a)(4); or

23 ‘‘(2) any bill, joint resolution, amendment, mo24 tion, or conference report that contains a Federal

25 intergovernmental mandate having direct costs that
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1 exceed the threshold specified in section

2 424(a)(1)(A), or that would cause the direct costs of

3 any other Federal intergovernmental mandate to ex4 ceed the threshold specified in section 424(a)(1)(A),

5 unless—

6 ‘‘(A) the bill, joint resolution, amendment,

7 motion, or conference report provides new budg8 et authority or new entitlement authority in the

9 House of Representatives or direct spending au10 thority in the Senate for each fiscal year for the

11 Federal intergovernmental mandates included

12 in the bill, joint resolution, amendment, motion,

13 or conference report in an amount that equals

14 or exceeds the estimated direct costs of such

15 mandate; or

16 ‘‘(B) the bill, joint resolution, amendment,

17 motion, or conference report provides an in18 crease in receipts or a decrease in new budget

19 authority or new entitlement authority in the

20 House of Representatives or direct spending au21 thority in the Senate and an increase in new

22 budget authority or new entitlement authority

23 in the House of Representatives or an increase

24 direct spending authority for each fiscal year

25 for the Federal intergovernmental mandates in-
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1 cluded in the bill, joint resolution, amendment,

2 motion, or conference report in an amount that

3 equals or exceeds the estimated direct costs of

4 such mandate; or

5 ‘‘(C) the bill, joint resolution, amendment,

6 motion, or conference report—

7 ‘‘(i) provides that—

8 ‘‘(I) such mandate shall be effec9 tive for any fiscal year only if all di10 rect costs of such mandate in the fis11 cal year are provided in appropria12 tions Acts, and

13 ‘‘(II) in the case of such a man14 date contained in the bill, joint resolu15 tion, amendment, motion, or con16 ference report, the mandate is re17 pealed effective on the first day of any

18 fiscal year for which all direct costs of

19 such mandate are not provided in ap20 propriations Acts; or

21 ‘‘(ii) requires a Federal agency to re22 duce programmatic and financial respon23 sibilities of State, local, and tribal govern24 ments for meeting the objectives of the

25 mandate such that the estimated direct
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1 costs of the mandate to such governments

2 do not exceed the amount of Federal fund3 ing provided to those governments to carry

4 out the mandate in the form of appropria5 tions or new budget authority or new enti6 tlement authority in the House of Rep7 resentatives or direct spending authority in

8 the Senate, and establishes criteria and

9 procedures for that reduction.

10 ‘‘(b) LIMITATION ON APPLICATION TO APPROPRIA11 TIONS BILLS.—Subsection (a) shall not apply to a bill that

12 is reported by the Committee on Appropriations or an

13 amendment thereto.

14 ‘‘(c) DETERMINATION OF DIRECT COSTS BASED ON

15 ESTIMATES BY BUDGET COMMITTEES.—For the purposes

16 of this section, the amount of direct costs of a Federal

17 mandate for a fiscal year shall be determined based on

18 estimates made by the Committee on the Budget, in con19 sultation with the Director, of the House of Representa20 tives or the Senate, as the case may be.

21 ‘‘(d) DETERMINATION OF EXISTENCE OF FEDERAL

22 MANDATE BY GOVERNMENT REFORM AND OVERSIGHT

23 AND GOVERNMENTAL AFFAIRS COMMITTEES.—For the

24 purposes of this section, øthe Committee on Government

25 Reform and Oversight of the House of Representatives or
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1 the Committee on Governmental Affairs of the Senate, as

2 applicable, shall have the authority to make final deter3 minations of whether a bill, joint resolution, amendment,

4 motion, or conference report contains a Federal intergov5 ernmental mandate.¿ the question of whether a

6 bill, joint resolution, amendment, motion, or

7 conference report contains a Federal inter8 governmental mandate shall be determined

9 after consideration of the recommendation, if

10 available, of the Chairman of the Committee

11 on Government Reform and Oversight of the

12 House of Representatives or the Chairman of

13 the Committee on Governmental Affairs of the

14 Senate, as applicable.

15 ‘‘(e) LIMITATION ON APPLICATION OF SUB16 SECTION (a)(2).—Subsection (a)(2) shall not

17 apply to any bill, joint resolution, amendment,

18 or conference report that reauthorizes appro19 priations for carrying out, or that amends,

20 any statute if enactment of the bill, joint reso21 lution, amendment, or conference report—

22 ‘‘(1) would not result in a net increase

23 in the aggregate amount of direct costs of

24 Federal intergovernmental mandates;

25 and
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1 ‘‘(2)(A) would not result in a net re2 duction or elimination of authorizations

3 of appropriations for Federal financial

4 assistance that would be provided to

5 States, local governments, or tribal gov6 ernments for use to comply with any Fed7 eral intergovernmental mandate; or

8 ‘‘(B) in the case of any net reduction

9 or elimination of authorizations of appro10 priations for such Federal financial as11 sistance that would result from such en12 actment, would reduce the duties im13 posed by the Federal intergovernmental

14 mandate by a corresponding amount.

15 ‘‘SEC. 426. ENFORCEMENT IN THE HOUSE OF REPRESENTA16 TIVES.

17 ‘‘It shall not be in order in the House of Representa18 tives to consider a rule or order that waives the application

19 of section 425(a) øto a bill or joint resolution reported

20 by a committee of authorization.’’.¿ : Provided, how21 ever, That pending a point of order under sec22 tion 425(a) or under this section a Member

23 may move to waive the point of order. Such

24 a motion shall be debatable for 10 minutes

25 equally divided and controlled by the pro-
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1 ponent and an opponent but, if offered in the

2 House, shall otherwise be decided without in3 tervening motion except a motion that the

4 House adjourn. The adoption of a motion to

5 waive such a point of order against consider6 ation of a bill or joint resolution shall be con7 sidered also to waive a like point of order

8 against an amendment made in order as origi9 nal text.’’.

10 SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTA11 TIVES.

12 (a) MOTIONS TO STRIKE IN THE COMMITTEE OF

13 THE WHOLE.—Clause 5 of rule XXIII of the Rules of the

14 House of Representatives is amended by adding at the end

15 the following:

16 ‘‘(c) In the consideration of any measure for amend17 ment in the Committee of the Whole containing any Fed18 eral mandate the direct costs of which exceed the threshold

19 in section 424(a)(1)(A) of the Unfunded Mandate Reform

20 Act of 1995, it shall always be in order, unless specifically

21 waived by terms of a rule governing consideration of that

22 measure, to move to strike such Federal mandate from

23 the portion of the bill then open to amendment.’’.

24 (b) COMMITTEE ON RULES REPORTS ON WAIVED

25 POINTS OF ORDER.—The Committee on Rules shall in-
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1 clude in the report required by clause 1(d) of Rule XI (re2 lating to its activities during the Congress) of the Rules

3 of the House of Representatives a separate item identify4 ing all waivers of points of order relating to Federal man5 dates, listed by bill or joint resolution number and the sub6 ject matter of that measure.

7 SEC. 303. EXERCISE OF RULEMAKING POWERS.

8 The provisions of this title (except section 305) are

9 enacted by Congress—

10 (1) as an exercise of the rulemaking powers of

11 the House of Representatives and the Senate, and as

12 such they shall be considered as part of the rules of

13 the House of Representatives and the Senate, re14 spectively, and such rules shall supersede other rules

15 only to the extent that they are inconsistent there16 with; and

17 (2) with full recognition of the constitutional

18 right of the House of Representatives and the Sen19 ate to change such rules at anytime, in the same

20 manner, and to the same extent as in the case of

21 any other rule of the House of Representatives or

22 the Senate, respectively.
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1 SEC. 304. CONFORMING AMEMDMENT TO TABLE OF CON2 TENTS.

3 Section 1(b) of the Congressional Budget and Im4 poundment Control Act of 1974 is amended by inserting

5 ‘‘PART A—GENERAL PROVISIONS’’ before the item relat6 ing to section 401 and by inserting after the item relating

7 to section 407 the following:

‘‘PART B—FEDERAL MANDATES

‘‘Sec. 421. Definitions.

‘‘Sec. 422. Limitation on application.

‘‘Sec. 423. Duties of congressional committees.

‘‘Sec. 424. Duties of the Director.

‘‘Sec. 425. Point of order.

‘‘Sec. 426. Enforcement in the House of Representatives.’’.

8 SEC. 305. TECHNICAL AMENDMENT.

9 The State and Local Government Cost Estimate Act

10 of 1981 (Public Law 97–108) is repealed.

11 SEC. 306. EFFECTIVE DATE.

12 This title shall take effect on October 1, 1995.

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