governmental regulations during the most recently com-
pleted fiscal year, the fiscal year in progress, and the first
two fiscal years immediately succeeding the fiscal year in
progress.
(b) Each report required under subsection (a) shall
include—
(1) a list of each intergovernmental regulation
in effect during each fiscal year for which the report
is made and a citation of statutory and administra-
tive authority for each such intergovernmental regu-
lation;
(2) an estimate, for each such intergovern-
mental regulation, of—
(A) the total amount of economic costs,
noneconomic costs, and additional direct costs
that have been incurred or will be incurred in
each such fiscal year by the government of each
State and all local governments in such State in
complying with such regulation in each such fis-
cal year; and
(B) the ratio (stated as a percentage)
which the total amount of additional direct
costs that have been incurred or will be in-
curred by all local governments in a State in
complying with such regulation in each such fis-
cal year bears to the total amount of additional
direct costs that have been incurred or will be
incurred by the government of such State and
all local governments in such State in comply-
ing with such regulation in such fiscal year;
(3) an estimate, for each such regulation, of the
economic and noneconomic benefits that will be pro-
vided in each such fiscal year to each State govern-
ment and all local governments in such State as a
result of compliance with such regulation during
each such fiscal year;
(4) recommendations for changes in laws and
regulations that will reduce the costs specified pur-
suant to paragraph (2), or that will achieve a more
favorable balance between the benefits specified pur-
suant to paragraph (3) and the costs specified pur-
suant to paragraph (2); and
(5) proposals for legislation, and a statement of
planned administrative actions, to implement the
recommendations specified pursuant to paragraph
(4).
PROCEDURES FOR PREPARATION OF REPORT
SEC. 102. (a) The President may delegate to the Di-
rector or to the head of any other Federal agency the re-
sponsibility for preparing the annual report required by
section 101.
(b)(1) In carrying out the provisions of this title, the
President, the Director, or the head of a Federal agency
to which a delegation is made under subsection (a), shall
prescribe standards to be used by Federal agencies in esti-
mating the costs of compliance with, and the benefits pro-
vided by, intergovernmental regulations administered by
such agencies.
(2) The President, the Director, or the head of a Fed-
eral agency to which a delegation is made under subsection
(a) shall prescribe the standards required under para-
graph (1)—
(A) after consultation with State and local gov-
ernments and the Comptroller General of the United
States; and
(B) after providing public notice and an oppor-
tunity for comment in accordance with section 553
of title 5, United States Code.
(3) Standards prescribed under paragraph (1) may
be revised from time to time to reflect changes in relevant
economic and social circumstances and advances in perti-
nent branches of knowledge.
(c) The standards prescribed under subsection (b)
shall provide, to the extent possible, for—
(1) uniform categories of costs of compliance
with, and benefits provided by, intergovernmental
regulations;
(2) methods to be used by the President, and
by Federal agencies, in estimating the additional di-
rect costs that will be incurred by State and local
governments in complying with each intergovern-
mental regulation, including methods to estimate the
amount of such costs that will be incurred for each
fiscal year in which each such regulation is in effect;
(3) methods to be used by Federal agencies in
compiling the information required to be submitted
under subsection (d) which shall be designed to—
(A) minimize the costs that will be in-
curred by the State and local governments and
the Federal assistance recipients from which
such information will be collected; and
(B) ensure the collection of reasonably ac-
curate information in a form that will be useful
to States in complying with section 204(c);
(4) methods for preventing disclosure of infor-
mation about individuals or businesses the confiden-
tiality of which is protected under Federal law;
(5) procedures to be followed by Federal agen-
cies in reporting the information required to be sub-
mitted under subsection (d); and
(6) such other procedures and guidelines as
may be necessary for the implementation of this
title.
(d) Each year, at a time prescribed by the President,
the Director, or the head of the Federal agency to which
a delegation is made under subsection (a), the head of
each Federal agency which administered any intergovern-
mental regulation during a fiscal year for which a report
is required under section 101, shall prepare and submit
to the President, the Director, or such agency head, a re-
port setting forth, for each such regulation, the informa-
tion required to be included for such regulation in the re-
port required under section 101.
TITLE 
II—COMPENSATION 
OF 
STATE 
AND
LOCAL GOVERNMENTS FOR ADDITIONAL
DIRECT COSTS
COMPENSATION REQUIRED
SEC. 201. (a) A Federal agency or a court of the
United States shall not require State governments or local
governments to comply, in any fiscal year, with any inter-
governmental regulation unless provisions of law have
been enacted which provide a sufficient amount of funds
for such fiscal year to reimburse such governments for the
total amount of additional direct costs that will be in-
curred by such governments in complying with such regu-
lation during such fiscal year.
(b) For purposes of this section, the total amount of
additional direct costs that will be incurred by State gov-
ernments and local governments in complying with an
intergovernmental regulation in any fiscal year shall be the
total amount of such costs for such regulation estimated
by the Director of the Congressional Budget Office for
such fiscal year in the report required under section 202
for such fiscal year.
REPORT BY THE DIRECTOR OF THE CONGRESSIONAL
BUDGET OFFICE
SEC. 202. (a) For each fiscal year in which an inter-
governmental regulation promulgated pursuant to a sig-
nificant law will be in effect, the Director of the Congres-
sional Budget Office shall prepare and transmit to the
President and the Congress a report specifying, for such
fiscal year and the fiscal year succeeding such fiscal year,
an estimate of the total amount of additional direct costs
that will be incurred by State governments and local gov-
ernments in complying with such regulation in each such
fiscal year.
(b) In preparing each report required by subsection
(a), the Director of the Congressional Budget Office shall
PROCEDURES FOR REIMBURSEMENTS TO STATE AND
LOCAL GOVERNMENTS
SEC. 204. (a)(1) The head of each Federal agency
which administers an intergovernmental regulation pro-
mulgated pursuant to a significant law shall pay to each
State government in each fiscal year the amount deter-
mined pursuant to this section to reimburse the State gov-
ernment and local governments in the State for the addi-
tional direct costs incurred by such governments in com-
plying with such regulation in such fiscal year.
(2) A State government which receives payments
under this section for reimbursement for additional direct
costs incurred in complying with an intergovernmental
regulation in any fiscal year shall pay to each local govern-
ment in the State the amount determined pursuant to this
section to reimburse such local government for the addi-
tional direct costs incurred by such local government in
complying with such regulation in such fiscal year.
(b) The total amount to be paid to a State to reim-
burse the government of the State and local governments
in the State for additional direct costs incurred by such
governments in complying with an intergovernmental reg-
ulation in any fiscal year shall be an amount which bears
the same ratio to the total amount for reimbursement of
additional direct costs for all State governments and local
governments described in section 201(a) with respect to
such regulation for such fiscal year as the total amount
of additional direct costs with respect to such regulation
which is specified in the report submitted by the President
under title I for such fiscal year for such State government
and local governments in such State for such fiscal year
bears to the sum of the total amounts of additional direct
costs with respect to such regulation which are specified
in such report for all State governments and all local gov-
ernments for such fiscal year.
(c)(1) The total amount to be paid by a State govern-
ment to local governments in such State to reimburse such
governments for additional direct costs incurred by such
governments in complying with an intergovernmental reg-
ulation in any fiscal year shall be the amount which is
equal to the product of the amount paid to the State under
subsection (b) for such fiscal year multiplied by the ratio
determined by the President for such State with respect
to such regulation for such fiscal year pursuant to section
101(b)(2)(B).
(2)(A) A State government which receives payments
under this section to reimburse local governments in the
State for the additional direct costs incurred by such gov-
ernments in complying with an intergovernmental regula-
tion in any fiscal year shall pay to each such local govern-
ment an amount equal to the product of—
(i) the total amount determined under para-
graph (1) with respect to such regulation for such
fiscal year, multiplied by
(ii) the ratio (stated as a percentage and esti-
mated by the State in accordance with subparagraph
(B)) that the total amount of additional direct costs
incurred by such local government in complying with
such regulation in such fiscal year bears to the total
amount of additional direct costs incurred by all
local governments in such State in complying with
such regulation in such fiscal year.
(B) Each State government which receives payments
under this section for any fiscal year shall provide by law
for the estimation of the amount of additional direct costs
incurred by each local government in such State in com-
plying with an intergovernmental regulation for which
such payments are received. In providing for the esti-
mation of such costs, the State shall establish procedures
and methods for the estimation of such costs which are
reasonably related to the actual additional direct costs in-
curred by such governments in complying with such regu-
lation in such fiscal year.
EFFECT OF SUBSEQUENT ENACTMENTS
SEC. 205. No law enacted after the date of enactment
of this title shall supersede the provisions of this title un-
less such law does so in specific terms, referring to this
title, and declares that such law supersedes the provisions
of this title.
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