104TH CONGRESS

1ST SESSION H. R. 5

AN ACT

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—

8 (1) to strengthen the partnership between the

9 Federal Government and States, local governments,

10 and tribal governments;
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1 (2) to end the imposition, in the absence of full

2 consideration by Congress, of Federal mandates on

3 States, local governments, and tribal governments in

4 a manner that may displace other essential State,

5 local, and tribal governmental priorities;

6 (3) to assist Congress in its consideration of

7 proposed legislation establishing or revising Federal

8 programs containing Federal mandates affecting

9 States, local governments, tribal governments, and

10 the private sector by—

11 (A) providing for the development of infor12 mation about the nature and size of mandates

13 in proposed legislation; and

14 (B) establishing a mechanism to bring

15 such information to the attention of the Senate

16 and House of Representatives before the Senate

17 and House of Representatives votes on proposed

18 legislation;

19 (4) to promote informed and deliberate deci20 sions by Congress on the appropriateness of Federal

21 mandates in any particular instance;

22 (5) to establish a point-of-order vote on the con23 sideration in the Senate and House of Representa24 tives of legislation containing significant Federal

25 mandates;
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1 (6) to assist Federal agencies in their consider2 ation of proposed regulations affecting States, local

3 governments, and tribal governments, by—

4 (A) requiring that Federal agencies de5 velop a process to enable the elected and other

6 officials of States, local governments, and tribal

7 governments to provide input when Federal

8 agencies are developing regulations; and

9 (B) requiring that Federal agencies pre10 pare and consider better estimates of the budg11 etary impact of regulations containing Federal

12 mandates upon States, local governments, and

13 tribal governments before adopting such regula14 tions, and ensuring that small governments are

15 given special consideration in that process;

16 (7) to establish the general rule that Congress

17 shall not impose Federal mandates on States, local

18 governments, and tribal governments without provid19 ing adequate funding to comply with such mandates;

20 and

21 (8) to begin consideration of methods to relieve

22 States, local governments, and tribal governments of

23 unfunded mandates imposed by Federal court inter24 pretations of Federal statutes and regulations.
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1 SEC. 3. DEFINITIONS.

2 For purposes of this Act—

3 (1) the terms ‘‘agency’’, ‘‘Federal financial as4 sistance’’, ‘‘Federal private sector mandate’’, ‘‘Fed5 eral mandate’’ (except as provided by section 108),

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

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

8 terms by section 421 of the Congressional Budget

9 Act of 1974; and

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

11 small governmental jurisdiction as defined in section

12 601(5) of title 5, United States Code, and any tribal

13 government.

14 SEC. 4. LIMITATION ON APPLICATION.

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

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

17 (1) enforces constitutional rights of individuals;

18 (2) establishes or enforces any statutory rights

19 that prohibit discrimination on the basis of age,

20 race, religion, gender, national origin, or handi21 capped or 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 the

6 ratification or implementation of international treaty

7 obligations;

8 (6) the President designates as emergency legis9 lation and that the Congress so designates in stat10 ute; or

11 (7) pertains to Social Security.

12 TITLE I—REVIEW OF UNFUNDED

13 FEDERAL MANDATES

14 SEC. 101. REPORT ON UNFUNDED FEDERAL MANDATES BY

15 ADVISORY COMMISSION ON INTERGOVERN16 MENTAL RELATIONS.

17 (a) IN GENERAL.—The Advisory Commission shall in

18 accordance with this section—

19 (1) investigate and review the role of unfunded

20 Federal mandates in intergovernmental relations and

21 their impact on State, local, tribal, and Federal Gov22 ernment objectives and responsibilities, and their im23 pact on the competitive balance between States, local

24 and tribal governments, and the private sector and
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1 consider views of and the impact on working men

2 and women on those same matters;

3 (2) investigate and review the role of unfunded

4 State mandates imposed on local governments, the

5 private sector, and individuals;

6 (3) investigate and review the role of unfunded

7 local mandates imposed on the private sector and in8 dividuals; and

9 (4) make recommendations to the President

10 and the Congress regarding—

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

12 tribal governments in complying with specific

13 unfunded Federal mandates for which terms of

14 compliance are unnecessarily rigid or complex;

15 (B) reconciling any 2 or more unfunded

16 Federal mandates which impose contradictory

17 or inconsistent requirements;

18 (C) terminating unfunded Federal man19 dates which are duplicative, obsolete, or lacking

20 in practical utility;

21 (D) suspending, on a temporary basis, un22 funded Federal mandates which are not vital to

23 public health and safety and which compound

24 the fiscal difficulties of State, local, and tribal
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1 governments, including recommendations for

2 triggering such suspension;

3 (E) consolidating or simplifying unfunded

4 Federal mandates, or the planning or reporting

5 requirements of such mandates, in order to re6 duce duplication and facilitate compliance by

7 State, local, and tribal governments with those

8 mandates;

9 (F) establishing common Federal defini10 tions or standards to be used by State, local,

11 and tribal governments in complying with un12 funded Federal mandates that use different

13 definitions or standards for the same terms or

14 principles; and

15 (G) establishing procedures to ensure that,

16 in cases in which a Federal private sector man17 date applies to private sector entities which are

18 competing directly or indirectly with States,

19 local governments, or tribal governments for the

20 purpose of providing substantially similar goods

21 or services to the public, any relief from un22 funded Federal mandates is applied in the same

23 manner and to the same extent to the private

24 sector entities as it is to the States, local gov25 ernments, and tribal governments with which
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1 they compete, and to ensure that unfunded

2 Federal mandate relief does not increase private

3 sector burdens.

4 Each recommendation under paragraph (4) shall, to the

5 extent practicable, identify the specific unfunded Federal

6 mandates to which the recommendation applies.

7 (b) CRITERIA.—

8 (1) IN GENERAL.—The Advisory Commission

9 shall establish criteria for making recommendations

10 under subsection (a).

11 (2) ISSUANCE OF PROPOSED CRITERIA.—The

12 Advisory Commission shall issue proposed criteria

13 under this subsection not later than 60 days after

14 the date of the enactment of this Act, and thereafter

15 provide a period of 30 days for submission by the

16 public of comments on the proposed criteria.

17 (3) FINAL CRITERIA.—Not later than 45 days

18 after the date of issuance of proposed criteria, the

19 Advisory Commission shall—

20 (A) consider comments on the proposed

21 criteria received under paragraph (4);

22 (B) adopt and incorporate in final criteria

23 any recommendations submitted in those com24 ments that the Advisory Commission deter-
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1 mines will aid the Advisory Commission in car2 rying out its duties under this section; and

3 (C) issue final criteria under this sub4 section.

5 (c) PRELIMINARY REPORT.—

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

7 after the date of the enactment of this Act, the Ad8 visory Commission shall—

9 (A) prepare and publish a preliminary re10 port on its activities under this title, including

11 preliminary recommendations pursuant to sub12 section (a);

13 (B) publish in the Federal Register a no14 tice of availability of the preliminary report;

15 and

16 (C) provide copies of the preliminary re17 port to the public upon request.

18 (2) PUBLIC HEARINGS.—The Advisory Commis19 sion shall hold public hearings on the preliminary

20 recommendations contained in the preliminary re21 port of the Advisory Commission under this sub22 section.

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

24 the date of the publication of the preliminary report under

25 subsection (c), the Advisory Commission shall submit to
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1 the Congress, including the Committee on Government

2 Reform and Oversight of the House of Representatives

3 and the Committee on Governmental Affairs of the Sen4 ate, and to the President a final report on the findings,

5 conclusions, and recommendations of the Advisory Com6 mission under this section.

7 (e) PRIORITY TO MANDATES THAT ARE SUBJECT OF

8 JUDICIAL PROCEEDINGS.—In carrying out this section,

9 the Advisory Commission shall give the highest priority

10 to immediately investigating, reviewing, and making rec11 ommendations regarding unfunded Federal mandates that

12 are the subject of judicial proceedings between the United

13 States and a State, local, or tribal government.

14 (f) STATE MANDATE AND LOCAL MANDATE DE15 FINED.—As used in this title:

16 (1) STATE MANDATE.—The term ‘‘State man17 date’’ means any provision in a State statute or reg18 ulation that imposes an enforceable duty on local

19 governments, the private sector, or individuals, in20 cluding a condition of State assistance or a duty

21 arising from participation in a voluntary State pro22 gram.

23 (2) LOCAL MANDATE.—The term ‘‘local man24 date’’ means any provision in a local ordinance or

25 regulation that imposes an enforceable duty on the
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1 private sector or individuals, including a condition of

2 local assistance or a duty arising from participation

3 in a voluntary local program.

4 SEC. 102. SPECIAL AUTHORITIES OF ADVISORY COMMIS5 SION.

6 (a) EXPERTS AND CONSULTANTS.—The Advisory

7 Commission may procure temporary and intermittent

8 services of experts or consultants under section 3109(b)

9 of title 5, United States Code.

10 (b) STAFF OF FEDERAL AGENCIES.—Upon request

11 of the Executive Director of the Advisory Commission, the

12 head of any Federal department or agency may detail, on

13 a reimbursable basis, any of the personnel of that depart14 ment or agency to the Advisory Commission to assist it

15 in carrying out its duties under this title.

16 (c) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

17 request of the Advisory Commission, the Administrator of

18 General Services shall provide to the Advisory Commis19 sion, on a reimbursable basis, the administrative support

20 services necessary for the Advisory Commission to carry

21 out its duties under this title.

22 (d) CONTRACT AUTHORITY.—The Advisory Commis23 sion may, subject to appropriations, contract with and

24 compensate Government and private agencies or persons
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1 for property and services used to carry out its duties under

2 this title.

3 SEC. 103. DEFINITIONS.

4 In this title:

5 (1) ADVISORY COMMISSION.—The term ‘‘Advi6 sory Commission’’ means the Advisory Commission

7 on Intergovernmental Relations.

8 (2) FEDERAL MANDATE.—The term ‘‘Federal

9 mandate’’ means any provision in statute or regula10 tion or any Federal court ruling that imposes an en11 forceable duty upon States, local governments, or

12 tribal governments including a condition of Federal

13 assistance or a duty arising from participation in a

14 voluntary Federal program.

15 TITLE II—REGULATORY ACCOUNTABILITY

16 AND REFORM

17 SEC. 201. REGULATORY PROCESS.

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

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

20 States Code—

21 (1) assess the effects of Federal regulations on

22 States, local governments, tribal governments, and

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

24 regulations incorporate requirements specifically set

25 forth in legislation), including specifically the avail-
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1 ability of resources to carry out any Federal man2 dates in those regulations; and

3 (2) seek to minimize those burdens that unique4 ly or significantly affect such governmental entities

5 or the private sector, consistent with achieving statu6 tory and regulatory objectives.

7 (b) STATE, LOCAL GOVERNMENT, AND TRIBAL GOV8 ERNMENT INPUT.—Each agency shall develop an effective

9 process to permit elected officials (or their designated rep10 resentatives) of States, local governments, and tribal gov11 ernments to provide meaningful and timely input in the

12 development of regulatory proposals containing significant

13 Federal intergovernmental mandates.

14 (c) AGENCY PLAN.—Before establishing any regu15 latory requirements that might significantly or uniquely

16 affect small governments, an agency shall have developed

17 a plan under which the agency shall—

18 (1) provide notice of the contemplated require19 ments to potentially affected small governments, if

20 any;

21 (2) enable officials of affected small govern22 ments to provide input pursuant to subsection (b);

23 and

24 (3) inform, educate, and advise small govern25 ments on compliance with the requirements.
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1 (d) LEAST BURDENSOME OPTION OR EXPLANATION

2 REQUIRED.—An agency may not issue a rule that con3 tains a Federal mandate if the rulemaking record for the

4 rule indicates that there are 2 or more methods that could

5 be used to accomplish the objective of the rule, unless—

6 (1) the Federal mandate is the least costly

7 method, or has the least burdensome effect, for—

8 (A) States, local governments, and tribal

9 governments, in the case of a rule containing a

10 Federal intergovernmental mandate, and

11 (B) the private sector, in the case of a rule

12 containing a Federal private sector mandate; or

13 (2) the agency publishes with the final rule an

14 explanation of why the more costly or burdensome

15 method of the Federal mandate was adopted.

16 SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REG17 ULATORY ACTIONS.

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

19 rule that includes any Federal mandate that may result

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

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

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

23 any 1 year, and before promulgating any general notice

24 of proposed rulemaking that is likely to result in promul25 gation of any such rule, the agency shall prepare a written
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1 statement identifying the provision of Federal law under

2 which the rule is being promulgated and 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, worker benefits and pen5 sions, and international competitiveness of United

6 States goods and services;

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

8 prior consultation with elected representatives (or

9 their designated representatives) of the affected

10 States, local governments, and tribal governments,

11 and designated representatives of the private sector;

12 (6) a summary of the comments and concerns

13 that were presented by States, local governments, or

14 tribal governments and the private sector either oral15 ly or in writing to the agency;

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

17 those comments and concerns; and

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

19 issue the regulation containing the Federal man20 dates (considering, among other things, the extent to

21 which costs may or may not be paid with funds pro22 vided by the Federal Government).

23 (b) PROMULGATION.—In promulgating a general no24 tice of proposed rulemaking or a final rule for which a

25 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 Re12 lations 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 SEC. 206. JUDICIAL REVIEW.

20 (a) REVIEW OF AGENCY ACTIONS SUBJECT TO RE21 VIEW UNDER OTHER FEDERAL LAW.—If an agency ac22 tion that is subject to section 201 or 202 is subject to

23 judicial review under any other Federal law (other than

24 chapter 7 of title 5, United States Code)—
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1 (1) any court of the United States having juris2 diction to review the action under the other law shall

3 have jurisdiction to review the action under sections

4 201 and 202; and

5 (2) in any proceeding under paragraph (1), any

6 issue relating exhaustion of remedies, the time and

7 manner for seeking review, venue, or the availability

8 of a stay or preliminary injunctive relief pending re9 view shall be determined under the other law.

10 (b) LIMITATION ON PRELIMINARY INJUNCTIVE RE11 LIEF.—The second sentence of section 705 of title 5, Unit12 ed States Code (relating to preliminary relief pending re13 view), shall not apply with respect to review under sub14 section (a)(1) of an agency action, unless process author15 ized by that sentence is not authorized by the other law

16 under which the action is reviewed.

17 SEC. 207. ANNUAL STATEMENTS TO CONGRESS ON AGENCY

18 COMPLIANCE WITH REQUIREMENTS OF

19 TITLE.

20 Not later than one year after the effective date of

21 title III and annually thereafter, the Director of the Office

22 of Management and Budget shall submit to Congress, in23 cluding the Committee on Government Reform and Over24 sight of the House of Representatives and the Committee

25 on Governmental Affairs of the Senate, written statements
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1 detailing the compliance with the requirements of sections

2 201 and 202 by each agency during the period reported

3 on.

4 TITLE III—LEGISLATIVE

5 ACCOUNTABILITY AND REFORM

6 SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND

7 REFORM.

8 Title IV of the Congressional Budget Act of 1974 is

9 amended by—

10 (1) inserting before section 401 the following:

11 ‘‘PART A—GENERAL PROVISIONS’’; and

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

13 ‘‘PART B—FEDERAL MANDATES

14 ‘‘SEC. 421. DEFINITIONS.

15 ‘‘For purposes of this part:

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

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

18 States Code, but does not include independent regu19 latory agencies, as defined by section 3502(10) of

20 title 44, United States Code.

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

22 the Director of the Congressional Budget Office.

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

24 term ‘Federal financial assistance’ means the

25 amount of budget authority for any Federal grant
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1 assistance or any Federal program providing loan

2 guarantees or direct loans.

3 ‘‘(4) FEDERAL INTERGOVERNMENTAL MAN4 DATE.—The term ‘Federal intergovernmental man5 date’ means—

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

7 or regulation that—

8 ‘‘(i) would impose an enforceable duty

9 upon States, local governments, or tribal

10 governments, except—

11 ‘‘(I) a condition of Federal as12 sistance; or

13 ‘‘(II) a duty arising from partici14 pation in a voluntary Federal pro15 gram, except as provided in subpara16 graph (B); or

17 ‘‘(ii) would reduce or eliminate the

18 amount of authorization of appropriations

19 for Federal financial assistance that would

20 be provided to States, local governments,

21 or tribal governments for the purpose of

22 complying with any such previously im23 posed duty unless such duty is reduced or

24 eliminated by a corresponding amount; or
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1 ‘‘(B) any provision in legislation, statute,

2 or regulation that relates to a then-existing

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

4 more is provided annually to States, local gov5 ernments, and tribal governments under entitle6 ment authority, if—

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

8 the stringency of conditions of assistance

9 to States, local governments, or tribal gov10 ernments under the program; or

11 ‘‘(II) would place caps upon, or other12 wise decrease, the Federal Government’s

13 responsibility to provide funding to States,

14 local governments, or tribal governments

15 under the program; and

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

17 tribal governments that participate in the

18 Federal program lack authority under that

19 program to amend their financial or pro20 grammatic responsibilities to continue pro21 viding required services that are affected

22 by the legislation, statute, or regulation.

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

24 The term ‘Federal private sector mandate’ means
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1 any provision in legislation, statute, or regulation

2 that—

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

4 the private sector except—

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

6 or

7 ‘‘(ii) a duty arising from participation

8 in a voluntary Federal program; or

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

10 of authorization of appropriations for Federal

11 financial assistance that will be provided to the

12 private sector for the purpose of ensuring com13 pliance with such duty.

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

15 mandate’ means a Federal intergovernmental man16 date or a Federal private sector mandate, as defined

17 in paragraphs (4) and (5).

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

19 ‘‘(A) FEDERAL INTERGOVERNMENTAL DI20 RECT COSTS.—In the case of a Federal inter21 governmental mandate, the term ‘direct costs’

22 means the aggregate estimated amounts that all

23 States, local governments, and tribal govern24 ments would be required to spend or would be

25 required to forgo in revenues in order to comply
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1 with the Federal intergovernmental mandate,

2 or, in the case of a provision referred to in

3 paragraph (4)(A)(ii), the amount of Federal fi4 nancial assistance eliminated or reduced.

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

6 the case of a Federal private sector mandate,

7 the term ‘direct costs’ means the aggregate esti8 mated amounts that the private sector would be

9 required to spend in order to comply with a

10 Federal private sector mandate.

11 ‘‘(C) EXCLUSION FROM DIRECT COSTS.—

12 The term ‘direct costs’ does not include—

13 ‘‘(i) estimated amounts that the

14 States, local governments, and tribal gov15 ernments (in the case of a Federal inter16 governmental mandate), or the private sec17 tor (in the case of a Federal private sector

18 mandate), would spend—

19 ‘‘(I) to comply with or carry out

20 all applicable Federal, State, local,

21 and tribal laws and regulations in ef22 fect at the time of the adoption of a

23 Federal mandate for the same activity

24 as is affected by that Federal man25 date; or
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1 ‘‘(II) to comply with or carry out

2 State, local governmental, and tribal

3 governmental programs, or private4 sector business or other activities in

5 effect at the time of the adoption of a

6 Federal mandate for the same activity

7 as is affected by that mandate; or

8 ‘‘(ii) expenditures to the extent that

9 they will be offset by any direct savings to

10 be enjoyed by the States, local govern11 ments, and tribal governments, or by the

12 private sector, as a result of—

13 ‘‘(I) their compliance with the

14 Federal mandate; or

15 ‘‘(II) other changes in Federal

16 law or regulation that are enacted or

17 adopted in the same bill or joint reso18 lution or proposed or final Federal

19 regulation and that govern the same

20 activity as is affected by the Federal

21 mandate.

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

23 costs shall be determined based on the assump24 tion that States, local governments, tribal gov25 ernments, and the private sector will take all
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1 reasonable steps necessary to mitigate the costs

2 resulting from the Federal mandate, and will

3 comply with applicable standards of practice

4 and conduct established by recognized profes5 sional or trade associations. Reasonable steps to

6 mitigate the costs shall not include increases in

7 State, local, or tribal taxes or fees.

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

9 government’ has the same meaning as in section

10 6501(6) of title 31, United States Code.

11 ‘‘(9) PRIVATE SECTOR.—The term ‘private sec12 tor’ means individuals, partnerships, associations,

13 corporations, business trusts, or legal representa14 tives, organized groups of individuals, and edu15 cational and other nonprofit institutions.

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

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

18 601(2) of title 5, United States Code.

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

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

21 States Code.

22 ‘‘(12) SIGNIFICANT EMPLOYMENT IMPACT.—

23 The term ‘significant employment impact’ means an

24 estimated net aggregate loss of 10,000 or more jobs.
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1 ‘‘SEC. 422. LIMITATION ON APPLICATION.

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

3 joint resolution, motion, amendment, or conference report

4 before Congress that—

5 ‘‘(1) enforces constitutional rights of individ6 uals;

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

8 that prohibit discrimination on the basis of age,

9 race, religion, gender, national origin, or handi10 capped or disability status;

11 ‘‘(3) requires compliance with accounting and

12 auditing procedures with respect to grants or other

13 money or property provided by the Federal Govern14 ment;

15 ‘‘(4) provides for emergency assistance or relief

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

17 tribal government or any official of such a govern18 ment;

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

20 the ratification or implementation of international

21 treaty obligations;

22 ‘‘(6) the President designates as emergency leg23 islation and that the Congress so designates in stat24 ute; or

25 ‘‘(7) pertains to Social Security.
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1 ‘‘SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.

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

3 When a committee of authorization of the House of Rep4 resentatives or the Senate orders a bill or joint resolution

5 of a public character reported, the committee shall

6 promptly provide the text of the bill or joint resolution

7 to the Director and shall identify to the Director any Fed8 eral mandate contained in the bill or resolution.

9 ‘‘(b) COMMITTEE REPORT.—

10 ‘‘(1) INFORMATION REGARDING FEDERAL MAN11 DATES.—When a committee of authorization of the

12 House of Representatives or the Senate reports a

13 bill or joint resolution of a public character that in14 cludes any Federal mandate, the report of the com15 mittee accompanying the bill or joint resolution shall

16 contain the information required by paragraph (2)

17 and, in the case of a Federal intergovernmental

18 mandate, paragraph (3).

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

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

21 ‘‘(A) an identification and description of

22 each Federal mandate in the bill or joint resolu23 tion, including the statement, if available, from

24 the Director pursuant to section 424(a);

25 ‘‘(B) a qualitative assessment, and if prac26 ticable, a quantitative assessment of costs and
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1 benefits anticipated from the Federal mandate

2 (including the effects on health and safety and

3 protection of the natural environment); and

4 ‘‘(C) a statement of—

5 ‘‘(i) the degree to which the Federal

6 mandate affects each of the public and pri7 vate sectors, including a description of the

8 actions, if any, taken by the committee to

9 avoid any adverse impact on the private

10 sector or on the competitive balance be11 tween the public sector and the private sec12 tor; and

13 ‘‘(ii) in the case of a Federal mandate

14 that is a Federal intergovernmental man15 date, the extent to which limiting or elimi16 nating the Federal intergovernmental man17 date or Federal payment of direct costs of

18 the Federal intergovernmental mandate (if

19 applicable) would affect the competitive

20 balance between States, local governments,

21 or tribal governments and the private sec22 tor.

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 $50,000,000 (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;

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

13 private sector; or

14 ‘‘(C) significant employment impact on the

15 private sector.

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

17 shall conduct continuing studies to enhance compari18 sons of budget outlays, credit authority, and tax ex19 penditures.

20 ‘‘(3) FEDERAL MANDATE STUDIES.—

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

22 the House of Representatives or the Senate, the

23 Director shall, to the extent practicable, con24 duct a study of a legislative proposal containing

25 a Federal mandate.
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1 ‘‘(B) In conducting a study under subpara2 graph (A), the Director shall—

3 ‘‘(i) solicit and consider information

4 or comments from elected officials (includ5 ing their designated representatives) of

6 States, local governments, tribal govern7 ments, designated representatives of the

8 private sector, and such other persons as

9 may provide helpful information or com10 ments;

11 ‘‘(ii) consider establishing advisory

12 panels of elected officials (including their

13 designated representatives) of States, local

14 governments, tribal governments, des15 ignated representatives of the private sec16 tor, and other persons if the Director de17 termines, in the Director’s discretion, that

18 such advisory panels would be helpful in

19 performing the Director’s responsibilities

20 under this section; and

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

22 extent that the Director determines that

23 accurate estimates are reasonably feasible,

24 of—
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1 ‘‘(I) the future direct cost of the

2 Federal mandates concerned to the

3 extent that they significantly differ

4 from or extend beyond the 5-year pe5 riod after the mandate is first effec6 tive; and

7 ‘‘(II) any disproportionate budg8 etary effects of the Federal mandates

9 concerned upon particular industries

10 or sectors of the economy, States, re11 gions, and urban, or rural or other

12 types of communities, as appropriate.

13 ‘‘(C) In conducting a study on private sec14 tor mandates under subparagraph (A), the Di15 rector shall provide estimates, if and to the ex16 tent that the Director determines that such es17 timates are reasonably feasible, of—

18 ‘‘(i) future costs of Federal private

19 sector mandates to the extent that such

20 mandates differ significantly from or ex21 tend beyond the 5-year period referred to

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

23 ‘‘(ii) any disproportionate financial ef24 fects of Federal private sector mandates

25 and of any Federal financial assistance in
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1 the bill or joint resolution upon any par2 ticular industries or sectors of the econ3 omy, States, regions, and urban or rural or

4 other types of communities; and

5 ‘‘(iii) the effect of Federal private sec6 tor mandates in the bill or joint resolution

7 on the national economy, including the ef8 fect on productivity, economic growth, full

9 employment, creation of productive jobs,

10 and international competitiveness of Unit11 ed States goods and services.

12 ‘‘(c) VIEWS OF COMMITTEES.—Any committee of the

13 House of Representatives or the Senate which anticipates

14 that the committee will consider any proposed legislation

15 establishing, amending, or reauthorizing any Federal pro16 gram likely to have a significant budgetary impact on the

17 States, local governments, or tribal governments, or likely

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

19 including any legislative proposal submitted by the execu20 tive branch likely to have such a budgetary or financial

21 impact, shall provide its views and estimates on such pro22 posal to the Committee on the Budget of its House.

23 ‘‘(d) ESTIMATES.—If the Director determines that it

24 is not feasible to make a reasonable estimate that would

25 be required for a statement under subsection (a)(1) for
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1 a bill or joint resolution, the Director shall not make such

2 a statement and shall inform the committees involved that

3 such an estimate cannot be made and the reasons for that

4 determination. The bill or joint resolution for which such

5 statement was to be made shall be subject to a point of

6 order under section 425(a)(1).

7 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

8 is authorized to be appropriated to the Congressional

9 Budget Office to carry out this part $4,500,000 for each

10 of fiscal years 1996 through 2002.

11 ‘‘SEC. 425. POINT OF ORDER.

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

13 House of Representatives or the Senate to consider—

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

15 by a committee unless the committee has published

16 the statement of the Director pursuant to section

17 424(a) prior to such consideration, except that this

18 paragraph shall not apply to any supplemental state19 ment prepared by the Director under section

20 424(a)(4); or

21 ‘‘(2) any bill, joint resolution, amendment, mo22 tion, or conference report that contains a Federal

23 intergovernmental mandate having direct costs that

24 exceed the threshold specified in section

25 424(a)(1)(A), or that would cause the direct costs of
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1 any other Federal intergovernmental mandate to ex2 ceed the threshold specified in section 424(a)(1)(A),

3 unless—

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

5 motion, or conference report provides new budg6 et authority or new entitlement authority in the

7 House of Representatives or direct spending au8 thority in the Senate for each fiscal year for the

9 Federal intergovernmental mandates included

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

11 or conference report in an amount that equals

12 or exceeds the estimated direct costs of such

13 mandate; or

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

15 motion, or conference report provides an in16 crease in receipts or a decrease in new budget

17 authority or new entitlement authority in the

18 House of Representatives or direct spending au19 thority in the Senate and an increase in new

20 budget authority or new entitlement authority

21 in the House of Representatives or an increase

22 in direct spending authority for each fiscal year

23 for the Federal intergovernmental mandates in24 cluded in the bill, joint resolution, amendment,

25 motion, or conference report in an amount that
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1 equals or exceeds the estimated direct costs of

2 such mandate; or

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

4 motion, or conference report—

5 ‘‘(i) provides that—

6 ‘‘(I) such mandate shall be effec7 tive for any fiscal year only if all di8 rect costs of such mandate in the fis9 cal year are provided in appropria10 tions Acts, and

11 ‘‘(II) in the case of such a man12 date contained in the bill, joint resolu13 tion, amendment, motion, or con14 ference report, the mandate is re15 pealed effective on the first day of any

16 fiscal year for which all direct costs of

17 such mandate are not provided in ap18 propriations Acts; or

19 ‘‘(ii) requires a Federal agency to re20 duce programmatic and financial respon21 sibilities of State, local, and tribal govern22 ments for meeting the objectives of the

23 mandate such that the estimated direct

24 costs of the mandate to such governments

25 do not exceed the amount of Federal fund-
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1 ing provided to those governments to carry

2 out the mandate in the form of appropria3 tions or new budget authority or new enti4 tlement authority in the House of Rep5 resentatives or direct spending authority in

6 the Senate, and establishes criteria and

7 procedures for that reduction.

8 ‘‘(b) LIMITATION ON APPLICATION TO APPROPRIA9 TIONS BILLS.—Subsection (a) shall not apply to a bill that

10 is reported by the Committee on Appropriations or an

11 amendment thereto.

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

13 ESTIMATES BY BUDGET COMMITTEES.—For the purposes

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

15 mandate for a fiscal year shall be determined based on

16 estimates made by the Committee on the Budget, in con17 sultation with the Director, of the House of Representa18 tives or the Senate, as the case may be.

19 ‘‘(d) LIMITATION ON APPLICATION OF SUBSECTION

20 (a)(2).—Subsection (a)(2) shall not apply to any bill, joint

21 resolution, amendment, or conference report that reau22 thorizes appropriations for carrying out, or that amends,

23 any statute if enactment of the bill, joint resolution,

24 amendment, or conference report—
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1 ‘‘(1) would not result in a net increase in the

2 aggregate amount of direct costs of Federal inter3 governmental mandates; and

4 ‘‘(2)(A) would not result in a net reduction or

5 elimination of authorizations of appropriations for

6 Federal financial assistance that would be provided

7 to State, local governments, or tribal governments

8 for use to comply with any Federal intergovern9 mental mandate; or

10 ‘‘(B) in the case of any net reduction or elimi11 nation of authorizations of appropriations for such

12 Federal financial assistance that would result from

13 such enactment, would reduce the duties imposed by

14 the Federal intergovernmental mandate by a cor15 responding amount.

16 ‘‘SEC. 426. ENFORCEMENT IN THE HOUSE OF REPRESENT17 ATIVES.

18 ‘‘It shall not be in order in the House of Representa19 tives to consider a rule or order that waives the application

20 of section 425(a).

21 ‘‘SEC. 427. DISPOSITION OF POINTS OF ORDER.

22 ‘‘(a) THRESHOLD BURDEN.—In order to be cog23 nizable by the Chair, a point of order under section 425(a)

24 or 426 must specify the precise language on which it is

25 premised.
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1 ‘‘(b) QUESTION OF CONSIDERATION.—As disposition

2 of points of order under section 425(a) or 426, the Chair

3 shall put the question of consideration with respect to the

4 proposition that is the subject of the points of order.

5 ‘‘(c) DEBATE AND INTERVENING MOTIONS.—A ques6 tion of consideration under this section shall be debatable

7 for 10 minutes by each Member initiating a point of order

8 and for 10 minutes by an opponent on each point of order,

9 but shall otherwise be decided without intervening motion

10 except one that the House adjourn or that the Committee

11 of the Whole rise, as the case may be.

12 ‘‘(d) EFFECT ON AMENDMENT IN ORDER AS ORIGI13 NAL TEXT.—The disposition of the question of consider14 ation under this section with respect to a bill or joint reso15 lution shall be considered also to determine the question

16 of consideration under this section with respect to an

17 amendment made in order as original text.’’.

18 SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTA19 TIVES.

20 (a) MOTIONS TO STRIKE IN THE COMMITTEE OF

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

22 House of Representatives is amended by adding at the end

23 the following:

24 ‘‘(c) In the consideration of any measure for amend25 ment in the Committee of the Whole containing any Fed-
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1 eral mandate the direct costs of which exceed the threshold

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

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

4 waived by terms of a rule governing consideration of that

5 measure, to move to strike such Federal mandate from

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

7 (b) COMMITTEE ON RULES REPORTS ON WAIVED

8 POINTS OF ORDER.—The Committee on Rules shall in9 clude in the report required by clause 1(d) of rule XI (re10 lating to its activities during the Congress) of the Rules

11 of the House of Representatives a separate item identify12 ing all waivers of points of order relating to Federal man13 dates, listed by bill or joint resolution number and the sub14 ject matter of that measure.

15 SEC. 303. EXERCISE OF RULEMAKING POWERS.

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

17 enacted by Congress—

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

19 the House of Representatives and the Senate, and as

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

21 the House of Representatives and the Senate, re22 spectively, and such rules shall supersede other rules

23 only to the extent that they are inconsistent there24 with; and
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1 (2) with full recognition of the constitutional

2 right of the House of Representatives and the Sen3 ate to change such rules at anytime, in the same

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

5 any other rule of the House of Representatives or

6 the Senate, respectively.

7 SEC. 304. CONFORMING AMENDMENT TO TABLE OF CON8 TENTS.

9 Section 1(b) of the Congressional Budget and Im10 poundment Control Act of 1974 is amended by inserting

11 ‘‘PART A—GENERAL PROVISIONS’’ before the item relat12 ing to section 401 and by inserting after the item relating

13 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.’’.

14 SEC. 305. TECHNICAL AMENDMENTS.

15 (a) TECHNICAL AMENDMENT.—The State and Local

16 Government Cost Estimate Act of 1981 (Public Law 97–

17 108) is repealed.

18 (b) TECHNICAL AMENDMENT.—Section 403 of the

19 Congressional Budget Act of 1974 is amended to read as

20 follows:
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1 ‘‘ANALYSIS BY CONGRESSIONAL BUDGET OFFICE

2 ‘‘SEC. 403. The Director of the Congressional Budget

3 Office shall, to the extent practicable, prepare for each bill

4 or resolution of a public character reported by any com5 mittee of the House of Representatives or the Senate (ex6 cept the Committee on Appropriations of each House),

7 and submit to such committee—

8 ‘‘(1) an estimate of the costs which would be in9 curred in carrying out such bill or resolution in the

10 fiscal year in which it is to become effective and in

11 each of the 4 fiscal years following such fiscal year,

12 together with the basis for each such estimate; and

13 ‘‘(2) a comparison of the estimate of costs de14 scribed in paragraph (1) with any available estimate

15 of costs made by such committee or by any Federal

16 agency.

17 The estimate and comparison so submitted shall be in18 cluded in the report accompanying such bill or resolution

19 if timely submitted to such committee before such report

20 is filed.’’.
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1 SEC. 306. EFFECTIVE DATE.

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

Passed the House of Representatives February 1,

1995.

Attest:

Clerk.
104TH CONGRESS

1ST SESSION H. R. 5

AN ACT

To curb the practice of imposing unfunded Federal

tor, and for other purposes.the cost of Federal mandates on the private secand regulations, and to provide information onwith certain requirements under Federal statutescosts incurred by those governments in complyingensure that the Federal Government pays themandates on States and local governments, to