(C) Any other methodology designed to
provide the most unbiased representation of the
most plausible level of risk, given the current
scientific information available to the Federal
agency concerned.
(4) SUBSTITUTION
RISK.—The term ‘‘substi-
tution risk’’ means a potential increased risk to
human health, safety, or the environment from a
regulatory option designed to decrease other risks.
(5) FEDERAL
AGENCY.—The term ‘‘Federal
agency’’ means an executive department, military de-
partment, or independent establishment as defined
in part I of title 5 of the United States Code, except
that such term also includes the Office of Tech-
nology Assessment.
Subtitle B—Analysis of Risk
Reduction Benefits and Costs
SEC. 3201. ANALYSIS OF RISK REDUCTION BENEFITS AND
COSTS.
(a) IN GENERAL.—Except as provided in subsection
(b), the President shall require each executive branch
agency to prepare the following for each major rule de-
signed to protect human health, safety, or the environment
that is proposed or promulgated by the agency after the
date of enactment of this Act:
(1) For each such proposed or promulgated
rule, an assessment of incremental costs and incre-
mental risk reduction or other benefits associated
with each significant regulatory alternative consid-
ered by the agency in connection with the rule or
proposed rule.
(2) For each such proposed or promulgated
rule, to the extent feasible, a comparison of any
human health, safety, or environmental risks ad-
dressed by the regulatory alternatives to other risks
chosen by the head of the agency, including at least
3 other risks regulated by the agency and to at least
3 other risks with which the public is familiar.
(3) For each such proposed or promulgated
rule, a statement of other human health risks poten-
tially posed by implementing or complying with the
regulatory alternatives, including substitution risks.
(4) For each final rule, an assessment of the
costs and risk reduction or other benefits associated
with implementation of, and compliance with, the
rule.
(5) For each final rule, a certification by the
head of the agency of each of the following:
(A) A certification that the assessment
under paragraph (4) is based on an objective
and unbiased scientific and economic evaluation
of all significant and relevant information pro-
vided to the agency by interested parties relat-
ing to the costs, risks, and risk reduction or
other benefits addressed by the rule. Such in-
formation shall have been subjected to peer re-
view to the extent required by section 3301.
(B) A certification that the rule will sub-
stantially advance the purpose of protecting
human health or the environment, as applicable,
against the risk addressed by the rule.
(C) A certification that the rule will
produce benefits to human health or the envi-
ronment that will justify the costs incurred by
local and State governments, the Federal Gov-
ernment, and other public and private entities
as a result of implementation of and compliance
with the rule, as determined under paragraph
(1).
(D) A certification that there is no regu-
latory alternative that is allowed by the statute
under which the regulation is promulgated that
would achieve an equivalent reduction in risk in
a more cost-effective manner, along with a brief
explanation of why other regulatory alternatives
that were considered by the head of the agency
were found to be less cost-effective.
(b) PUBLICATION.—For each major rule referred to
in subsection (a) the head of each agency shall publish
in a clear and concise manner in the Federal Register
along with the proposed or final regulation, or otherwise
make publicly available, the information required to be
prepared under subsection (a) of this section.
(c) DEFINITIONS.—For purposes of this section:
(1) COSTS.—The term ‘‘costs’’ includes the di-
rect and indirect costs to the United States govern-
ment, costs to State and local governments, and
costs to the private sector, of implementing and
complying with a regulatory action.
(2) MAJOR
RULE.— The term ‘‘major rule’’
means any regulation that is likely to result in one
or more of the following:
(A) An annual effect on the economy of
$25,000,000 or more.
(B) A major increase in costs or prices for
consumers, 
individual 
industries, 
Federal,
State, or local government agencies, or geo-
graphic regions.
(C) Significant adverse effects on competi-
tion, employment, investment, productivity, in-
novation, or on the ability of United States-
based enterprises to compete with foreign-based
enterprises in domestic or export markets.
Subtitle C—Peer Review
SEC. 3301. PEER REVIEW PROGRAM.
(a) ESTABLISHMENT.—For regulatory programs ad-
dressing human health, safety, or the environment, the
head of each Federal agency shall develop a systematic
program for peer review of risk assessments and economic
assessments used by the agency. Such program shall be
applicable across the agency and—
(1) shall provide for the creation of peer review
panels consisting of independent and external ex-
perts who are broadly representative and balanced to
the extent feasible;
(2) may provide for differing levels of peer re-
view depending on the significance or the complexity
of the problems or the need for expeditiousness;
(3) shall not exclude peer reviewers merely be-
cause they represent entities that may have a poten-
tial interest in the outcome, provided that interest is
fully disclosed to the agency; and
(4) shall provide open opportunity to become
part of a peer review panel at a minimum by solicit-
ing nominations through a Federal Register an-
nouncement.
(b) REQUIREMENT FOR PEER REVIEW.—Each Fed-
eral agency shall provide for peer review of scientific and
economic information used for purposes of any evaluation
under section 3201(a)(5)(A) or for purposes of any signifi-
cant risk or cost assessment prepared in connection with
a major rule. In addition, the Director of the Office of
Management and Budget shall order that peer review be
provided for any major risk assessment or cost assessment
that may have a significant impact on public policy deci-
sions.
(c) CONTENTS.—
(1) IN GENERAL.—Each peer review under this
section shall include a report to the Federal agency
concerned with respect to each of the following:
(A) An evaluation of the technical, sci-
entific, and economic merit of the data and
methods used for the assessment and analysis.
(B) A list of any considerations that were
not taken into account in the assessment and
analysis, but were considered appropriated by a
majority of the members of the peer review
panel.
(C) A discussion of the methodology used
for the assessment and analysis.
(2) COMMENTS AND APPENDIX.—Each peer re-
view report under this subsection shall include—
(A) all comments supported by a majority
of the members of the peer review panel sub-
mitting the report; and
(B) an appendix which sets forth the dis-
senting opinions that any peer review panel
member wants to express.
(3) SEPARATION OF ASSESSMENTS.—Peer re-
view of human health, safety, environmental, and
economic assessments may be separated for purpose
of this subtitle.
(d) RESPONSE TO PEER REVIEW.—The head of the
Federal agency shall provide a written response to all sig-
nificant peer review comments.
(e) AVAILABILITY TO PUBLIC.—All peer review com-
ments or conclusions and the agency’s responses shall be
made available to the public and shall be made part of
the administrative record for purposes of judicial review
of any final agency action.
(f) PREVIOUSLY REVIEWED DATA AND ANALYSIS.—
No peer review shall be required under this section for
any data or analysis which has been previously subjected
to peer review or for any component of any evaluation or
assessment previously subjected to peer review.
(g) NATIONAL PANELS.—The President shall appoint
National Peer Review Panels to annually review the risk
assessment and cost assessment practices of each Federal
agency for programs designed to protect human health,
safety, or the environment. The Panel shall submit a re-
port to the Congress no less frequently than annually con-
taining the results of such review.
(h) MAJOR RULE DEFINED.—For purposes of this
section, the term ‘‘major rule’’ has the same meaning as
provided by section 3201(c) except that ‘‘$100,000,000’’
shall be substituted for ‘‘$25,000,000’’.
TITLE IV—ESTABLISHMENT OF
FEDERAL 
REGULATORY
BUDGET COST CONTROL
SEC. 4001. AMENDMENTS TO THE CONGRESSIONAL BUDGET
ACT OF 1974.
(a) FEDERAL REGULATORY BUDGET COST CONTROL
SYSTEM.—Title III of the Congressional Budget Act of
1974 is amended by inserting before section 300 the fol-
lowing new center heading ‘‘PART A—GENERAL
PROVISIONS’’ and by adding at the end the following
new part:
‘‘PART B—FEDERAL REGULATORY BUDGET COST
CONTROL
‘‘SEC. 321. OMB-CBO REPORTS.
‘‘(a) OMB-CBO INITIAL REPORT.—Within 1 year
after the date of enactment of this section, OMB and CBO
shall jointly issue a report to the President and each
House of Congress that contains the following:
‘‘(1) For the first budget year beginning after
the issuance of this report, a projection of the aggre-
gate direct cost to the private sector of complying
with all Federal regulations and rules in effect im-
mediately before issuance of the report containing
the projection for that budget year of the effect of
current-year Federal regulations and rules into the
budget year and the outyears based on those regula-
tions and rules.
‘‘(2) A calculation of the estimated aggregate
direct cost to the private sector of compliance with
all Federal regulations and rules as a percentage of
the gross domestic product (GDP).
‘‘(3) The estimated marginal cost (measured as
a reduction in estimated gross domestic product) to
the private sector of compliance with all Federal reg-
ulations and rules in excess of 5 percent of the gross
domestic product.
‘‘(4) The effect on the domestic economy of dif-
ferent types of Federal regulations and rules.
‘‘(5) The appropriate level of personnel, admin-
istrative overhead, and programmatic savings that
should be achieved on a fiscal year by fiscal year
basis by Federal agencies that issue regulations or
rules with direct costs to the private sector through
the reduction of such aggregate costs to the private
sector by equal percentage increments in the 6 years
following the budget year until the aggregate level of
such costs does not exceed 5 percent of the esti-
mated gross domestic product for the same fiscal
year as the estimated costs that will be incurred.
‘‘(6) Recommendations for budgeting, technical,
and estimating changes to improve the Federal regu-
latory budgeting process.
‘‘(b) UPDATE REPORTS.—OMB and CBO shall issue
update reports on September 15th of the fifth year begin-
ning after issuance of the initial report and at 5-year in-
tervals thereafter containing all the information required
in the initial report, but based upon all Federal regula-
tions and rules in effect immediately before issuance of
the most recent update report.
‘‘(c) INITIAL BASELINE REPORT.—Within 30 days
after the date of enactment of this section, OMB and CBO
shall jointly issue a report to the President and each
House of Congress that contains an initial aggregate regu-
latory baseline for the first budget year that begins at
least 120 days after that date of enactment. That baseline
will be a projection of the aggregate direct cost to the pri-
vate sector of complying with all Federal regulations and
rules in effect immediately before issuance of the report
containing the projection for that budget year of the effect
of current-year Federal regulations and rules into the
budget year and the outyears based on those regulations
and rules.
‘‘SEC. 322. AGGREGATE REGULATORY BASELINE.
‘‘(a) IN GENERAL.—For the first budget year begin-
ning after the date of enactment of this section and for
every other fiscal year thereafter, the aggregate regulatory
baseline refers to a projection of the aggregate direct cost
to the private sector of complying with all Federal regula-
tions and rules in effect immediately before issuance of
the report containing the projection for that budget year
of the effect of current-year Federal regulations and rules
into the budget year and the outyears based on those regu-
lations and rules. However, in the case of each of the suc-
ceeding fiscal years, the baseline shall be adjusted for the
estimated growth during that year in the gross domestic
product (GDP).
‘‘(b) OMB-CBO AGGREGATE REGULATORY BASE-
LINE REPORTS.—(1) The first budget year for which there
shall be an aggregate regulatory baseline shall be the
budget year to which the initial OMB-CBO baseline report
issued under section 321(c) pertains.
‘‘(2) In the case of each budget year after the budget
year referred to in paragraph (1), not later than Septem-
ber 15 of the current year, OMB and CBO shall jointly
issue a report containing the baseline referred to in sub-
section (a) for that budget year.
‘‘SEC. 323. RECONCILIATION AND ALLOCATIONS.
‘‘(a) RECONCILIATION DIRECTIVES.—In addition to
the requirements of section 310, a concurrent resolution
on the budget for any fiscal year shall specify—
‘‘(1) changes in laws and regulations and rules
necessary to reduce the aggregate direct cost to the
private sector of complying with all Federal regula-
tions by 6.5 percent for the budget year (as meas-
ured against the aggregate regulatory baseline for
the first budget year to which this part applies) and
by equal percentage increments for each of the out-
years (until the aggregate level of such costs does
not exceed 5 percent of the estimated gross domestic
product for the same fiscal year as the estimated
costs that will be incurred) for Federal agencies that
highly privileged, unamendable, and debateable for 30
minutes) which shall only prohibit the issuance of regula-
tions and rules by any agency under the jurisdiction of
that committee for the fiscal years covered by that alloca-
tion until that committee eliminates its breach.
‘‘SEC. 324. ANALYSIS OF REGULATORY COSTS BY CONGRES-
SIONAL BUDGET OFFICE.
‘‘CBO shall prepare for each bill or resolution of a
public character reported by any committee of the House
of Representatives or the Senate (except the Committee
on Appropriations of each House), and submit to such
committee—
‘‘(1) an estimate of the costs which would be in-
curred by the private sector in carrying out or com-
plying with such bill or resolution in the fiscal year
in which it is to become effective and in each of the
4 fiscal years following such fiscal year, together
with the basis of each such estimate; and
‘‘(2) a comparison of the estimate of costs de-
scribed in paragraph (1) with any available esti-
mates of costs made by such committee or by any
Federal agency.
‘‘SEC. 325. DEFINITIONS.
‘‘As used in this part:
‘‘(1) The term ‘CBO’ refers to the Director of
the Congressional Budget Office.
‘‘(2) The term ‘OMB’ refers to the Director of
the Office of Management and Budget.
‘‘(3) The term ‘regulatory authority’ or ‘regu-
latory cost’ means the direct cost to the private sec-
tor of complying with Federal regulations and rules.
‘‘(4) The term ‘direct costs’ means (recognizing
that direct costs are not the only costs associated
with Federal regulation) all expenditures occurring
as a direct result of complying with Federal regula-
tion, rule, statement, or legislation, except those ap-
plying to the military or agency organization, man-
agement, and personnel.
‘‘(5) The term ‘regulation’ or the term ‘rule’
means any agency statement of general applicability
and future effect designed to implement, interpret,
or prescribe law or policy or describing the proce-
dure or practice requirements of any agency, but
does not include—
‘‘(A) administrative actions governed by
the provisions of sections 556 and 557 of title
5, United States Code; or
‘‘(B) rules or regulations issued with re-
spect to a military or foreign affairs function of
the United States.
‘‘(6) The term ‘agency’ means any authority of
the United States that is an agency under title sec-
tion 3502(1) of title 44, United States Code, includ-
ing independent agencies.’’.
SEC. 4002. PRESIDENT’S ANNUAL BUDGET SUBMISSIONS.
Section 1105(a) of title 31, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(32) a regulatory authority budget analysis of
the aggregate direct cost to the private sector of
complying with all current and proposed Federal
regulations and rules and proposals for complying
with section 323 of the Congressional Budget Act of
1974 for the budget year and the outyears.’’
SEC. 4003. ESTIMATION AND DISCLOSURE OF COSTS OF
FEDERAL REGULATION.
Chapter 6 of title 5, United States Code, popularly
known as the ‘‘Regulatory Flexibility Act’’, is amended—
(1) in section 603(a) in the second sentence by
inserting before the period the following: ‘‘and the
monetary costs to small entities, other businesses,
and individuals of complying with the proposed
rule’’;
(2) by adding at the end of section 603 the
following:
‘‘(d) Each initial regulatory flexibility analysis shall
also contain a description of the nature and amount of
monetary costs that will be incurred by small entities,
other businesses, and individuals in complying with the
proposed rule.’’;
(3) in section 604(a)—
(A) in paragraph (2) by striking ‘‘and’’
after the semicolon;
(B) in paragraph (3) by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) a statement of the nature and amount of
monetary costs that will be incurred by small enti-
ties, other businesses, and individuals in complying
with the rule.’’; and
(4) in section 607 by inserting before the period
the following: ‘‘, except that estimates of monetary
costs under sections 603(d) and 604(a)(4) shall only
be in the form of a numerical description’’.
TITLE V—STRENGTHENING OF
PAPERWORK REDUCTION ACT
SEC. 5001. SHORT TITLE.
This title may be cited as the ‘‘Paperwork Reduction
Act of 1995’’.
Subtitle A—Authorization of
Appropriations
SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.
Section 3520(a) of title 44, United States Code, is
amended by striking out ‘‘$5,500,000 for each of the fiscal
years 1987, 1988, and 1989.’’ and inserting in lieu thereof
‘‘$7,000,000 for fiscal year 1994, $7,500,000 for fiscal
year 1995, $8,000,000 for fiscal year 1996, $8,500,000
for fiscal year 1997, and $9,000,000 for fiscal year
1998.’’.
Subtitle B—Reducing the Burden
of Federal Paperwork on the
Public
SEC. 5201. COVERAGE OF ALL FEDERALLY SPONSORED PA-
PERWORK BURDENS.
Section 3502 of title 44, United States Code, is
amended—
(1) by amending paragraph (3) to read as
follows:
‘‘(3) the term ‘burden’ means the time, effort,
financial resources, and opportunity costs imposed
on persons to generate, capture, assemble, process,
maintain, and report information to or for a Federal
agency, including—
‘‘(A) the resources expended for obtaining,
reviewing and understanding applicable instruc-
tions and requirements;
‘‘(B) developing a way to comply with the
applicable instructions and requirements;
‘‘(C) adjusting the existing ways to comply
with any previously applicable instructions and
requirements;
‘‘(D) searching existing data sources;
‘‘(E) obtaining, compiling and maintaining
the necessary data;
‘‘(F) implementing recordkeeping require-
ments;
‘‘(G) completing and reviewing the collec-
tion of information;
‘‘(H) retaining, sharing, notifying, report-
ing, transmitting, labeling, or otherwise disclos-
ing to third parties or the public the informa-
tion involved; and
‘‘(I) carrying out any other information
transaction which occurs as a result of the
collection of information;’’;
(2) in paragraph (4) by striking out ‘‘of facts
or opinions by’’ and inserting in lieu thereof
‘‘(through maintenance, retention, notifying, report-
ing, labeling or disclosure to third parties or the
public) of facts or opinions by or for’’; and
(3) in paragraph (17) by inserting ‘‘, including
the retention, reporting, notifying, or disclosure to
third parties or the public of such records’’ before
the period.
SEC. 5202. PAPERWORK REDUCTION GOALS.
Section 3505 of title 44, United States Code, is
amended to read as follows:
‘‘§ 3505. Assignment of tasks and deadlines
‘‘In carrying out the functions under this chapter, the
Director shall—
‘‘(1) set a governmentwide goal, consistent with
improving agency management of the process for the
review of each collection of information established
under section 3506(e), to reduce by September 30,
1995, the burden of Federal collections of informa-
tion existing on September 30, 1994, by at least 5
percent;
‘‘(2) for the fiscal year beginning on October 1,
1995, and the following 3 fiscal years, set a govern-
mentwide goal, consistent with improving agency
management of the process for the review of each
collection of information established under section
3506(e), to reduce the burden of Federal collections
of information existing at the end of the immediately
preceding fiscal year by at least 5 percent;
‘‘(3) in establishing the governmentwide goal
pursuant to paragraph (2), establish a goal for each
agency that—
‘‘(A) represents the maximum practicable
opportunity to reduce the paperwork burden
imposed upon the public by such agency’s col-
lections of information, after considering the
recommendations of the senior agency official
designated under section 3506(b)(1); and
‘‘(B) permits the attainment of the govern-
mentwide goal when such agency’s goal is ag-
gregated with the individual goals of all other
agencies included in the governmentwide goal;
and
‘‘(4) in each report issued under section 3514,
beginning with the report relating to fiscal year
1995, identify any agency initiatives to reduce the
burden of the Federal collections of information as-
sociated with—
‘‘(A) businesses, especially small businesses
and those engaged in international competition;
‘‘(B) State and local governments; and
‘‘(C) educational institutions.’’.
Subtitle 
C—Enhancing 
Govern-
ment 
Responsibility 
and 
Ac-
countability for Reducing the
Burden of Federal Paperwork
SEC. 5301. REEMPHASIZING THE RESPONSIBILITY OF THE
DIRECTOR TO CONTROL THE BURDEN OF
FEDERAL PAPERWORK.
Section 3504(c) of title 44, United States Code, is
amended—
(1) in paragraph (3) by redesignating subpara-
graphs (B) and (C) as subparagraphs (C) and (D),
respectively, and inserting after subparagraph (A)
the following new subparagraph:
‘‘(B) display, to the extent practicable, an
estimate of the burden for each response;’’;
(2) by amending paragraphs (5) and (6) to
read as follows:
‘‘(5) establishing procedures under which an
agency is to estimate the burden under this chapter
to comply with the proposed collection of informa-
tion;
‘‘(6) coordinating with the Office of Federal
Procurement Policy to eliminate paperwork burdens
associated with procurement and acquisition;’’;
(3) by striking out the period at the end of
paragraph (7) and inserting in lieu thereof a semi-
colon; and
(4) by adding at the end thereof the following
new paragraphs:
‘‘(8) minimizing the Federal paperwork burden
imposed through Federal collection of information,
with particular emphasis on those individuals or en-
tities most adversely affected, including—
‘‘(A) businesses, especially small businesses
and those engaged in international competition;
‘‘(B) State and local governments; and
‘‘(C) educational institutions; and
‘‘(9) initiating and conducting, with selected
agencies and non-Federal entities on a voluntary
basis, pilot projects to test or demonstrate the fea-
sibility and benefit of changes or innovations in Fed-
eral policies, rules, regulations, and agency proce-
dures to improve information management practices
and related management activities (including author-
ity for the Director to waive the application of des-
ignated agency regulations or administrative direc-
tives after giving timely notice to the public and
Congress regarding the need for such waiver).’’.
SEC. 5302. ENHANCING AGENCY RESPONSIBILITY TO OB-
TAIN PUBLIC REVIEW OF PROPOSED PAPER-
WORK BURDENS.
Section 3507(a) of title 44, United States Code, is
amended—
(1) in paragraph (2)(B) by inserting ‘‘a sum-
mary of the request,’’ after ‘‘title for the information
collection request,’’;
(2) by striking out ‘‘and’’ at the end of para-
graph (2); and
(3) by redesignating paragraph (3) as para-
graph (4) and inserting after paragraph (2) the
following:
‘‘(3) the agency provides at least 30 days for
public comment to the agency and the Office of
Management and Budget after publication of the no-
tice in the Federal Register, except as provided
under section 3507 (g) and (k), and the agency head
and the Director consider comments received regard-
ing the proposed collection of information; and’’.
SEC. 5303. EXPEDITING REVIEW AT THE OFFICE OF MAN-
AGEMENT AND BUDGET.
Section 3507(b) of title 44, United States Code, is
amended—
(1) by striking out the first sentence and insert-
ing in lieu thereof ‘‘The Director shall within 30
days after publication of the notice under subsection
(a)(3) that is applicable to a proposed information
collection request not contained in a proposed rule,
notify the agency involved of the decision to approve
or disapprove the proposed information collection re-
quest and shall make such decisions publicly avail-
able. Any decision to disapprove an information col-
lection request shall include an explanation of the
reasons for such decision.’’;
(2) by striking out ‘‘sixty’’ each place it appears
and inserting ‘‘30’’ in each such place;
(3) by striking out ‘‘thirty’’ and inserting in
lieu thereof ‘‘30’’; and
(4) by striking out ‘‘one’’ and inserting in lieu
thereof ‘‘1’’.
SEC. 5304. IMPROVING PUBLIC AND AGENCY SCRUTINY OF
PAPERWORK BURDENS PROPOSED FOR RE-
NEWAL.
(a) APPROVAL OF INFORMATION COLLECTION RE-
QUEST.—Section 3507(d) of title 44, United States Code,
is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end thereof the following:
‘‘(2)(A) If the head of the agency, or the senior offi-
cial designated under section 3506(b)(1), decides to seek
extension of the Director’s approval granted for a cur-
rently approved information collection request, the agency
shall, through the notice prescribed in subsection
(a)(2)(B) and such other practicable steps as may be rea-
sonable, seek comment from the agencies, and the public
on the continued need for, and burden imposed by, the
collection of information.
‘‘(B) The agency, after having made a reasonable ef-
fort to seek comment under subparagraph (A), but no
later than 60 days before the expiration date of the control
number assigned by the Director for the currently ap-
proved information collection request, shall—
‘‘(i) evaluate the public comments received;
‘‘(ii) conduct the review established under sec-
tion 3506(e); and
‘‘(iii) provide to the Director the certification
required by section 3506(f), including the text of the
certification and any additional relevant information
regarding how the information collection request
comports with the principles and requirements of
this chapter.
‘‘(C) Upon receipt of such certification, and prior to
the expiration of the control number for that information
collection request, the Director shall—
‘‘(i) ensure that the agency has taken the ac-
tions specified under section 3506(f)(2);
‘‘(ii) evaluate the public comments received by
the agency or by the Director;
‘‘(iii) determine whether the agency certification
complies 
with 
the 
standards 
under 
section
3506(f)(1); and
‘‘(iv) approve or disapprove the information col-
lection request under this chapter.
‘‘(3) If a certification is not provided to the Director
prior to the beginning of the 60-day period before the expi-
ration of the control number as provided under paragraph
(2)(B), the agency shall submit the information collection
request for review and approval or disapproval under this
chapter.
‘‘(4) An agency may not make a substantive or mate-
rial modification to an information collection request after
it has been approved by the Director, unless the modifica-
tion has been submitted to the Director for review and
approval or disapproval under this chapter.’’.
(b) APPROVAL OF INFORMATION COLLECTION RE-
QUIREMENTS.—Section 3507 of title 44, United States
Code, is further amended by adding at the end thereof
the following new subsections:
‘‘(i)(1) As soon as practicable, but no later than pub-
lication of a notice of proposed rulemaking in the Federal
Register, each agency shall forward to the Director a copy
of any proposed rule which contains a collection of infor-
mation requirement and upon request, information nec-
essary to make the determination required under this
chapter.
‘‘(2) Within 60 days after the notice of proposed rule-
making is published in the Federal Register, the Director
may file public comments under the standards set forth
in section 3508 on the collection of information require-
ment contained in the proposed rule.
‘‘(3) When a final rule is published in the Federal
Register, the agency shall explain how any collection of
information requirement contained in the final rule re-
sponds to the comments, if any, filed by the Director or
the public, or explain the reasons such comments were re-
jected.
‘‘(4) The Director has no authority to disapprove any
collection of information requirement specifically con-
tained in an agency rule, if the Director has received no-
tice and failed to comment on the rule within 60 days after
the notice of proposed rulemaking.
‘‘(5) No provision in this section shall be construed
to prevent the Director, at the discretion of such officer,
from—
‘‘(A) disapproving any information collection re-
quest which was not specifically required by an
agency rule;
‘‘(B) disapproving any collection of information
requirement contained in an agency rule, if the
agency failed to comply with the requirements of
paragraph (1) of this subsection;
‘‘(C) disapproving any collection of information
requirement contained in a final agency rule, if the
Director finds within 60 days after the publication
of the final rule that such a collection of information
requirement cannot be approved under the standards
set forth in section 3508, after reviewing the agen-
cy’s response to the comments of the Director filed
under paragraph (2) of this subsection; or
‘‘(D) disapproving any collection of information
requirement, if the Director determines that the
agency has substantially modified, in the final rule,
the collection of information requirement contained
in the proposed rule and the agency has not given
the Director the information required under para-
graph (1) with respect to the modified collection of
information requirement, at least 60 days before the
issuance of the final rule.
‘‘(6) The Director shall make publicly available any
decision to disapprove a collection of information require-
ment contained in an agency rule, together with the rea-
sons for such decision.
‘‘(7) The authority of the Director under this sub-
section is subject to subsection (c).
‘‘(8) This subsection shall apply only when an agency
publishes a notice of proposed rulemaking and requests
public comments.
‘‘(9) The decision of the Director to approve or not
to act upon a collection of information requirement con-
tained in an agency rule shall not be subject to judicial
review.
‘‘(j)(1) If the head of the agency, or the senior official
designated under section 3506(b)(1), decides to seek ex-
tension of the Director’s approval granted for a currently
approved collection of information requirement, the agency
shall, through the notice prescribed in subsection
(a)(2)(B) and such other practicable steps as may be rea-
sonable, seek comment from the agencies, and the public
on the continued need for, and burden imposed by, the
collection of information requirement.
‘‘(2) The agency, after having made a reasonable ef-
fort to seek comment under paragraph (1), but no later
than 60 days before the expiration date of the control
number assigned by the Director for the currently ap-
proved collection of information requirement, shall—
‘‘(A) evaluate the public comments received;
‘‘(B) conduct the review established under sec-
tion 3506(e); and
‘‘(C) provide to the Director the certification re-
quired by section 3506(f), including the text of the
certification and any additional relevant information
regarding how the collection of information require-
ment comports with the principles and requirements
of this chapter.
‘‘(3) Upon receipt of such certification, and prior to
the expiration date of the control number for that collec-
tion of information requirement, the Director shall—
‘‘(A) ensure that the agency has taken the ac-
tions specified in section 3506(f)(2);
‘‘(B) evaluate the public comments received by
the agency or by the Director;
‘‘(C) determine whether the agency certification
complies 
with 
the 
standards 
under 
section
3506(f)(1); and
‘‘(D) approve or disapprove the collection of in-
formation requirement under this chapter.
‘‘(4) If under the provisions of paragraph (3), the Di-
rector disapproves a collection of information requirement,
or recommends or instructs the agency to make a sub-
stantive or material change to a collection of information
requirement, the Director shall—
‘‘(A) publish an explanation thereof in the Fed-
eral Register; and
‘‘(B) instruct the agency to undertake a rule-
making within a reasonable time limited to consider-
ation of changes to the collection of information re-
quirement and thereafter to submit the collection of
information requirement for approval or disapproval
under this chapter.
‘‘(5) Nothing in this subsection affects the review
process for a collection of information requirement con-
tained in a proposed rule, including a proposed change to
an existing collection of information requirement, under
subsection (i) with respect to such collection of informa-
tion requirement.
‘‘(6) The Director may not approve a collection of
information requirement for a period in excess of 3
years.’’.
SEC. 5305. PROTECTION FOR WHISTLEBLOWERS OF UNAU-
THORIZED PAPERWORK BURDEN.
Section 3507(h) of title 44, United States Code, is
amended in the second sentence by inserting before the
period ‘‘, and any communication relating to a collection
of information, the disclosure of which could lead to retal-
iation or discrimination against the communicator’’.
SEC. 5306. ENHANCING PUBLIC PARTICIPATION.
Section 3517 of title 44, United States Code, is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘In development’’;
and
(2) by adding at the end thereof:
‘‘(b)(1) Under procedures established by the Direc-
tor, a person may request the Director to review any col-
lection of information conducted by or for an agency to
determine, if—
‘‘(A) the collection of information is subject to
the requirements of this chapter;
‘‘(B) the collection of information has been ap-
proved in conformity with this chapter; and
‘‘(C) the person that is to respond to the collec-
tion of information is entitled to the public protec-
tions afforded by this chapter.
‘‘(2) Any review requested under paragraph (1), un-
less the request is determined frivolous or does not on its
face state a valid basis for such review, shall—
‘‘(A) be completed by the Director within 60
days after receiving the request, unless such period
is extended by the Director to a specified date and
the person making the request is given notice of
such extension;
‘‘(B)(i) be coordinated with the agency respon-
sible for the collection of information to which the
request relates; and
‘‘(ii) be coordinated with the Administrator for
Federal Procurement Policy, if the request relates to
a collection of information applicable to an actual or
prospective Federal contractor or subcontractor at
any tier; and
‘‘(C) result in a written determination by the
Director, that shall be—
‘‘(i) furnished to the person making the re-
quest; and
‘‘(ii) made available to the public upon re-
quest (and listed and summarized in the annual
report required under section 3514), unless con-
fidentiality is requested by the person making
the request.’’.
SEC. 5307. EXPEDITING REVIEW OF AN AGENCY INFORMA-
TION COLLECTION REQUEST WITH A RE-
DUCED BURDEN.
Section 3507 of title 44, United States Code (as
amended by section 5304(b) of this title) is further
amended by adding at the end thereof the following new
subsection:
‘‘(k) Upon request by the head of an agency, the Di-
rector shall approve a proposed change to an existing in-
formation collection request (unless such proposed change
is subject to subsection (i)) within 30 days after the Direc-
tor receives the proposed change. The information collec-
tion request shall thereafter remain in effect at least for
the remainder of the period for which it was previously
approved by the Director, if—
‘‘(1) the information collection request has a
current control number; and
‘‘(2) the Director determines that the revi-
sion—
‘‘(A) reduces the burden resulting from the
information collection request; and
‘‘(B) does not substantially change the in-
formation collection request.’’.
Subtitle D—Enhancing Agency Re-
sponsibility for Sharing and Dis-
seminating Public Information
SEC. 5401. PRESCRIBING GOVERNMENTWIDE STANDARDS
FOR SHARING AND DISSEMINATING PUBLIC
INFORMATION.
Section 3504(h) of title 44, United States Code, is
amended to read as follows:
‘‘(h) The functions of the Director related to agency
dissemination and sharing of public information shall in-
clude—
‘‘(1) developing policies and practices for agen-
cy dissemination and sharing of public information
consistent with the agency responsibilities under sec-
tion 3506(g); and
‘‘(2) developing policy guidelines that instruct
Federal agencies on ways to fulfill agency respon-
sibilities to disseminate and share information that,
to the extent appropriate and practicable—
‘‘(A) make information dissemination prod-
ucts available on timely, equitable and cost
effective terms;
‘‘(B) encourage a diversity of public and
private information dissemination products;
‘‘(C) avoid establishing, or permitting oth-
ers to establish, exclusive, restricted, or other
distribution arrangements that interfere with
the availability of information dissemination
products on a timely and equitable basis; and
‘‘(D) avoid establishing restrictions or reg-
ulations, including the charging of fees or royal-
ties, on the reuse, resale, or redissemination of
Federal information dissemination products by
the public; and
‘‘(E) set user charges for information dis-
semination products at a level sufficient to re-
cover the cost of dissemination, except—
‘‘(i) where otherwise required by stat-
ute;
‘‘(ii) where the information is col-
lected, processed, and disseminated for the
benefit of a specific identifiable group be-
yond the benefit to the general public; or
‘‘(iii) where user charges are estab-
lished at less than cost of dissemination
because of a determination that higher
charges would interfere with the proper
performance of the agency’s functions.’’.
SEC. 5402. AGENCY RESPONSIBILITIES FOR SHARING AND
DISSEMINATING PUBLIC INFORMATION.
Section 3506 of title 44, United States Code, is
amended by adding at the end thereof the following new
subsection:
‘‘(g) The head of each agency shall, to the extent ap-
propriate and practicable, and in conformance with the
policy guidelines established under section 3504(h), estab-
lish and maintain a management system for the dissemi-
nation and sharing of information that—
‘‘(1) ensures that the public has timely, equi-
table and cost-effective access to the agency’s infor-
mation dissemination products;
‘‘(2) disseminates and shares information in a
manner that achieves the best balance between maxi-
mizing the usefulness of the information and mini-
mizing the cost to the Government and the public;
‘‘(3) takes advantage of all appropriate chan-
nels, Federal and non-Federal, including State and
local governments, libraries and private sector enti-
ties, in discharging agency responsibilities for the
dissemination and sharing of information;
‘‘(4) considers whether an information dissemi-
nation product available from other Federal or non-
Federal sources is equivalent to an agency informa-
tion dissemination product and reasonably achieves
the objectives of the agency;
‘‘(5) establishes and maintains inventories of all
agency information dissemination products in con-
formance with the requirements of section 3511;
‘‘(6) establishes and maintains communications
with members of the public and with State and local
governments so that the agency shares information
and otherwise creates information dissemination
products that meet their respective needs; and
‘‘(7) provides adequate notice when initiating,
substantially modifying, or terminating significant
information dissemination products.’’.
SEC. 5403. AGENCY INFORMATION INVENTORY/LOCATOR
SYSTEM.
(a) IN GENERAL.—Section 3511 of title 44, United
States Code, is amended to read as follows:
‘‘§ 3511. Inventory systems of information dissemina-
tion products
‘‘(a) Each agency having significant information dis-
semination products shall establish and maintain a com-
prehensive inventory of such products, which shall include,
at a minimum, the title of each such product, an abstract
of the contents of each product, the media in which each
product is available, and the cost, if any, of each product,
subject to any requirements promulgated pursuant to sub-
section (c).
‘‘(b) The inventory created pursuant to subsection (a)
shall be made available for public access by electronic
means, and in such other media as are appropriate and
practicable, at no charge to the public.
‘‘(c) The Director, in consultation with the Secretary
of Commerce, the Archivist of the United States, the Pub-
lic Printer, and the Librarian of Congress, may establish
a mechanism for developing technical standards and other
minimum requirements for the agency inventory systems
created under subsection (a).’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The table of sections for chapter 35 of title 44, United
States Code, is amended by amending the item relating
to section 3511 to read as follows:
‘‘3511. Inventory systems of information dissemination products.’’.
Subtitle E—Additional Government
Information 
Management 
Re-
sponsibility
SEC. 5501. STRENGTHENING THE STATISTICAL POLICY AND
COORDINATION FUNCTIONS OF THE DIREC-
TOR.
Section 3504(d) of title 44, United States Code, is
amended to read as follows:
‘‘(d)(1) The statistical policy and coordination func-
tions of the Director shall include—
‘‘(A) coordinating and providing leadership for
development of the Federal statistical system;
‘‘(B) developing and periodically reviewing and,
as necessary, revising long-range plans for the im-
proved coordination and performance of the statis-
tical activities and programs of the Federal Govern-
ment;
‘‘(C) ensuring the integrity, objectivity, impar-
tiality and confidentiality of the Federal statistical
system;
‘‘(D) reviewing budget proposals of agencies to
ensure that the proposals are consistent with such
long-range plans and developing a summary and
analysis of the budget submitted by the President to
the Congress for each fiscal year of the allocation for
all statistical activities;
‘‘(E) coordinating, through the review of budget
proposals and as otherwise provided under this chap-
ter, the functions of the Federal Government with
respect to gathering, interpreting and sharing statis-
tics and statistical information;
‘‘(F) developing and implementing government-
wide policies, principles, standards and guidelines
concerning statistical collection procedures and
methods, statistical data classification, statistical in-
formation presentation and sharing, and such statis-
tical data sources as may be required for the admin-
istration of Federal programs;
‘‘(G) evaluating statistical program perform-
ance and agency compliance with governmentwide
policies, principles, standards and guidelines;
‘‘(H) promoting the timely release by agencies
of statistical data to the public;
‘‘(I) coordinating the participation of the
United States in international statistical activities;
‘‘(J) preparing an annual report to submit to
the Congress on the statistical policy and coordina-
tion function;
‘‘(K) integrating the functions described under
this paragraph with the other information resources
management functions specified under this chapter;
and
‘‘(L) appointing a chief statistician who is a
trained and experienced professional to carry out the
functions described under this paragraph.
‘‘(2) The Director shall establish an interagency
working group on statistical policy, consisting of the heads
of the agencies with major statistical programs, headed
by the chief statistician to coordinate agency activities in
carrying out the functions under paragraph (1).
‘‘(3) The Director shall provide opportunities for
long-term training in the statistical policy functions of the
chief statistician to employees of the Federal Government.
Each trainee shall be selected at the discretion of the Di-
rector based on agency requests and shall serve for at least
6 months and no more than 1 year. All costs of the train-
ing are to be paid by the agency requesting training.’’.
SEC. 5502. USE OF ELECTRONIC INFORMATION COLLEC-
TION AND DISSEMINATION TECHNIQUES TO
REDUCE BURDEN.
Section 3504(g)(1) of title 44, United States Code,
is amended—
(1) by inserting ‘‘development and’’ after
‘‘overseeing the’’; and
(2) by inserting ‘‘(including standards that im-
prove the ability of agencies to use technology to
reduce burden)’’ after ‘‘establishment of standards’’.
SEC. 5503. AGENCY IMPLEMENTATION.
Section 3514(a) of title 44, United States Code, is
amended—
(1) in paragraph (9)(C) by striking out ‘‘and’’
at the end thereof;
(2) in paragraph (10)(C) by striking out the pe-
riod and inserting in lieu thereof a semicolon; and
(3) by adding at the end thereof the following
new paragraphs:
‘‘(11) a listing of any increase in the burden
imposed on the public during the year covered by the
report resulting from a collection of information con-
ducted or sponsored by or for an agency, which was
imposed by such agency—
‘‘(A) as specifically mandated by the provi-
sion of a statute; or
‘‘(B) as necessary to implement a statutory
requirement, which requirement shall be identi-
fied with particularity;
‘‘(12) a description of each such agency’s ef-
forts in implementing, and plans to implement, the
applicable policies, standards and guidelines with re-
spect to the functions under this chapter; and
‘‘(13) a strategic information resources man-
agement plan for the Federal Government, developed
in consultation with the Administrator of General
Services, the Secretary of Commerce, and the Archi-
vist of the United States, that includes an analysis
of cross-cutting issues of governmentwide impor-
tance.’’.
SEC. 5504. AUTOMATIC DATA PROCESSING EQUIPMENT
PLAN.
Section 3504(g) of title 44, United States Code, is
amended—
(1) by redesignating paragraphs (3), (4), and
(5) as paragraphs (4), (5), and (6), respectively; and
(2) by inserting after paragraph (2) the follow-
ing new paragraph:
‘‘(3) developing and annually revising, in con-
sultation with the Administrator of General Services,
a 5-year plan for meeting the automatic data proc-
essing equipment (including telecommunications)
and other information technology needs of the Fed-
eral Government in accordance with the require-
ments of sections 110 and 111 of the Federal Prop-
erty and Administrative Services Act of 1949 (40
U.S.C. 757 and 759) and the purposes of this
chapter;’’.
SEC. 5505. TECHNICAL AND CONFORMING AMENDMENTS.
(a) DEFINITIONS.—Section 3502(10) of title 44,
United States Code, is amended by striking out ‘‘the Fed-
eral Housing Finance Board’’ and inserting in lieu thereof
‘‘Federal Housing Finance Board’’.
(b) REVIEW PERIODS.—Section 3507(g)(1) of title
44, United States Code, is amended to read as follows:
‘‘(1) is needed prior to the expiration of the time periods
for public notice and review by the Director pursuant to
the requirements of this chapter,’’.
(c) DIRECTOR REVIEW.—Section 3513(a) of title 44,
United States Code, is amended in the first sentence by
inserting ‘‘resources’’ after ‘‘information’’.
(d) RESPONSIVENESS.—Section 3514(a) of title 44,
United States Code, is amended—
(1) in paragraph (9)(A) by inserting ‘‘and’’ at
the end thereof;
(2) in paragraph (9)(B) by striking out the
semicolon and inserting a period; and
(3) by striking out paragraph (9)(C).
Subtitle F—Effective Dates
SEC. 5601. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the provisions of this title shall become effective 120
days after the date of the enactment of this Act.
(b) IN PARTICULAR.—section 5101 and this section
shall become effective upon the date of the enactment of
this Act.
TITLE VI—STRENGTHENING
REGULATORY FLEXIBILITY
SEC. 6001. JUDICIAL REVIEW.
(a) IN GENERAL.—Section 611 of title 5, United
States Code, is repealed.
(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 6 of title 5, United
States Code, is amended by striking the item relating to
section 611.
SEC. 6002. CONSIDERATION OF DIRECT AND INDIRECT EF-
FECTS OF RULES.
(a) IN GENERAL.—Title 5, United States Code, is
amended by inserting after section 610 the following new
section:
‘‘§ 611. Consideration of direct and indirect effects of
rules
‘‘In determining under this chapter whether or not
a rule is likely to have a significant impact on a substan-
tial number of small entities, an agency shall consider both
the direct and indirect effects of the rule.’’.
(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 6 of title 5, United
States Code, is amended by inserting after the item relat-
ing to section 610 the following:
‘‘611. Consideration of direct and indirect effects of rules.’’.
SEC. 6003. RULES OPPOSED BY SBA CHIEF COUNSEL FOR
ADVOCACY.
(a) IN GENERAL.—Section 612 of title 5, United
States Code, is amended by adding at the end the follow-
ing new subsection:
‘‘(d) STATEMENT OF OPPOSITION.—
‘‘(1) TRANSMITTAL OF PROPOSED RULES AND
INITIAL
REGULATORY
FLEXIBILITY
ANALYSIS
TO
SBA CHIEF COUNSEL FOR ADVOCACY.—On or before
the 30th day preceding the date of publication by an
agency of general notice of proposed rulemaking for
a rule, the agency shall transmit to the Chief Coun-
sel for Advocacy of the Small Business Administra-
tion—
‘‘(A) a copy of the proposed rule; and
‘‘(B)(i) a copy of the initial regulatory
flexibility analysis for the rule if required under
section 603; or
‘‘(ii) a determination by the agency that an
initial regulatory flexibility analysis is not re-
quired for the proposed rule under section 603
and an explanation for the determination.
‘‘(2) STATEMENT OF OPPOSITION.—On or be-
fore the 15th day following receipt of a proposed
rule and initial regulatory flexibility analysis from an
agency under paragraph (1), the Chief Counsel for
Advocacy may transmit to the agency a written
statement of opposition of the proposed rule.
‘‘(3) RESPONSE.—If the Chief Counsel for Ad-
vocacy transmits to an agency a statement of opposi-
tion to a proposed rule in accordance with para-
graph (2), the agency shall publish the statement,
together with the response of the agency to the
statement, in the Federal Register at the time of
publication of general notice of proposed rulemaking
for the rule.’’.
(b) CONFORMING AMENDMENT.—Section 603(a) of
title 5, United States Code, is amended by inserting ‘‘in
accordance with section 612(d)’’ before the period at the
end of the last sentence.
SEC. 6004. SENSE OF CONGRESS REGARDING SBA CHIEF
COUNSEL FOR ADVOCACY.
It is the sense of Congress that the Chief Counsel
for Advocacy of the Small Business Administration should
be permitted to appear as amicus curiae in any action or
case brought in a court of the United States for the pur-
pose of reviewing a rule.
TITLE VII—REGULATORY
IMPACT ANALYSES
SEC. 7001. SHORT TITLE.
This title may be cited as the ‘‘Administrative Proce-
dure Reform Act of 1995’’.
SEC. 7002. RULE MAKING NOTICES FOR MAJOR RULES.
Section 553 of title 5, United States Code, is amend-
ed by adding at the end the following:
‘‘(f)(1)(A) The head of an agency shall publish in the
Federal Register, at least 90 days before the date of publi-
cation of general notice under subsection (b) for a pro-
posed major rule, a notice of intent to engage in rule mak-
ing.
‘‘(B) A notice under subparagraph (A) for a proposed
major rule shall include, to the extent possible, the infor-
mation required to be included in a Regulatory Impact
Analysis for the rule under section 7004(c) (1), (2), and
(8) of the Administrative Procedure Reform Act of 1995.
‘‘(2) The head of an agency shall include in a general
notice under subsection (b) for a major rule proposed by
the agency—
‘‘(A) a final Regulatory Impact Analysis for the
rule prepared in accordance with section 7004 of the
Administrative Procedure Reform Act of 1995; and
‘‘(B) clear delineation of all changes in the in-
formation included in the final Regulatory Impact
Analysis under section 7004(c)(1) and (2) of the Ad-
ministrative Procedure Reform Act of 1995 from
any such information that was included in the notice
for the rule under paragraph (1)(B) of this sub-
section.
‘‘(3) In this subsection, the term ‘major rule’ has the
meaning given that term in section 7004(b) of the Admin-
istrative Procedure Reform Act of 1995.’’.
SEC. 
7003. 
HEARING 
REQUIREMENT 
FOR 
PROPOSED
RULES; EXTENSION OF COMMENT PERIOD.
(a) HEARING REQUIREMENT.—Section 553 of title 5,
United States Code, is further amended—
(1) in subsection (b), in the matter following
paragraph (3), by inserting ‘‘(except subsection
(g))’’ after ‘‘this subsection’’; and
(2) by adding after subsection (f) (as added by
section 7002 of this title) the following:
‘‘(g) If more than 100 interested persons acting indi-
vidually submit comments to an agency regarding any rule
proposed by the agency, the agency shall hold a public
hearing on the proposed rule.’’.
(b) EXTENSION OF COMMENT PERIOD.—Section 553
of title 5, United States Code, is further amended by add-
ing after subsection (g) (as added by subsection (a)(2) of
this section) the following:
‘‘(h) If during the 30-day period beginning on the
date of publication of notice under subsection (f)(1)(A) for
a proposed major rule, or if during the 30-day period be-
ginning on the date of publication or service of notice re-
quired by subsection (b) for a proposed rule, more than
100 persons individually contact the agency to request an
extension of the period for making submissions under sub-
section (c) pursuant to the notice, the agency—
‘‘(1) shall provide an additional 30-day period
for making those submissions; and
‘‘(2) may not adopt the rule until after that ad-
ditional period.’’.
(c) RESPONSE TO COMMENTS.—Section 553(c) of
title 5, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(2) by adding at the end the following:
‘‘(2) The head of an agency shall publish in the Fed-
eral Register with each rule published under section
552(a)(1)(D) of this title, responses to the substance of
the comments received by the agency regarding the rule.’’.
SEC. 7004. REGULATORY IMPACT ANALYSIS.
(a) APPLICATION OF EXECUTIVE ORDER AS STATU-
TORY REQUIREMENT.—Except as otherwise provided in
this section, Executive Order 12291 (relating to Federal
regulation requirements and regulatory impact analysis),
as in effect on September 29, 1993, shall apply to each
agency in accordance with the provisions of the Order.
(b) DEFINITION OF MAJOR RULE IN ORDER.—Not-
withstanding section 1(b) of the Order, for purposes of
subsection (a) of this section, the term ‘‘major rule’’
means any proposed rulemaking—
(1) which affects more than 100 persons; or
(2) compliance with which will require the ex-
penditure of more than $1,000,000 by any single
person which is not a Federal agency.
(c) CONTENTS
OF REGULATORY IMPACT ANALY-
SES.—In lieu of the information specified in section 3(d)
of the Order, each preliminary and final Regulatory Im-
pact Analysis required under section 3 of the Order for
a rule shall contain the following:
(1) An explanation of the necessity, appro-
priateness and reasonableness of the rule.
(2) A description of the current condition that
the rule will address and how that condition will be
affected by the rule.
(3) A statement that the rule does not conflict
with nor duplicate any other rule, or an explanation
of why the conflict or duplication exists.
(4) A statement of whether the rule is in accord
with or in conflict with any legal precedent.
(5) A statement of the factual, scientific, or
technical basis for the agency’s determination that
the rule will accomplish its intended purpose.
(6) A statement that describes and, to the ex-
tent practicable, quantifies the risks to human
health or the environment to be addressed by the
rule.
(7) A demonstration that the rule provides the
least costly or least intrusive approach for meeting
its intended purpose.
(8) A description of any alternative approaches
considered by the agency or suggested by interested
persons and the reasons for their rejection.
(9) An estimate of the nature and number of
persons to be regulated or affected by the rule.
100
(10) An estimate of the economic costs of the
rule, including those incurred by persons in comply-
ing with the rule.
(11) An evaluation of the costs versus the bene-
fits derived from the rule, including evaluation of
how those benefits outweigh the cost.
(12) Whether the rule will require onsite inspec-
tions.
(13) An estimate of the paperwork burden on
persons regulated or affected by the rule, such as
the number of forms, impact statements, surveys,
and other documents required to be completed by
the person under the rule.
(14) Whether persons will be required by the
rule to maintain any records which will be subject to
inspection.
(15) Whether persons will be required by the
rule to obtain licenses, permits, or other certifi-
cations, and the fees and fines associated therewith.
(16) Whether persons will be required by the
rule to appear before the agency.
(17) Whether persons will be required by the
rule to disclose information on materials or proc-
esses, including trade secrets.
101
(18) Whether persons will be required by the
rule to report any particular type of incidents.
(19) Whether persons will be required by the
rule to adhere to design or performance standards.
(20) Whether persons may need to retain or
utilize any lawyer, accountant, engineer, or other
professional consultant in order to comply with the
regulations.
(21) An estimate of the costs to the agency for
implementation and enforcement of the regulations.
(22) Whether the agency can be reasonably ex-
pected to implement the rule with the current level
of appropriations.
(23) A statement that any person may submit
comments on the Regulatory Impact Analysis to the
Administrator of the Office of Information and Reg-
ulatory Affairs.
The requirements of this section shall be consistent
with, and not duplicative of, the requirements of section
3201.
(d) DEFINITIONS.—In this section—
(1) the term ‘‘Order’’ means Executive Order
12291, as in effect on September 29, 1993; and
(2) each of the terms ‘‘agency’’, ‘‘regulation’’,
and ‘‘rule’’ has the meaning given that term in sec-
102
tion 1 of the Order, except that the term ‘‘agency’’
includes an independent agency.
SEC. 7005. ADDITIONAL RESPONSIBILITIES OF DIRECTOR
OF 
THE 
OFFICE 
OF 
MANAGEMENT 
AND
BUDGET.
An agency may not adopt a major rule unless the
final Regulatory Impact Analysis for the rule is approved
in writing by the Director of the Office of Management
and Budget or by an individual designated by the Director
for that purpose.
SEC. 7006. STANDARD OF CLARITY.
To the extent practicable, the head of an agency may
not publish in the Federal Register any proposed major
rule, summary of a proposed major rule, or Regulatory
Impact Analysis unless the Director of the Office of Man-
agement and Budget certifies that the proposed major
rule, summary, or Analysis—
(1) is written in a reasonably simple and under-
standable manner and is easily readable;
(2) is written to provide adequate notice of the
content of the rule, summary, or Analysis to affected
persons and interested persons that have some sub-
ject matter expertise;
(3) conforms to commonly accepted principles
of grammar;
103
(4) contains only sentences that are as short as
practical and organized in a sensible manner; and
(5) to the extent practicable, does not contain
any double negatives, confusing cross references,
convoluted phrasing, unreasonably complex lan-
guage, or term of art or word with multiple mean-
ings that may be misinterpreted and is not defined
in the rule, summary, or analysis, respectively.
SEC. 7007. REPORT BY OIRA.
The Director of the Office of Management and Budg-
et shall submit a report to the Congress no later than 24
months after the date of the enactment of this Act con-
taining an analysis of rule making procedures of Federal
agencies and an analysis of the impact of those rule mak-
ing procedures on the regulated public and regulatory
process.
SEC. 7008. DEFINITIONS.
For purposes of this title—
(1) except as provided in section 7004(d)(2),
each of the terms ‘‘agency’’, ‘‘rule’’, and ‘‘rule mak-
ing’’ has the meaning given that term in section 551
of title 5, United States Code; and
(2) the term ‘‘major rule’’ has the meaning
given that term in section 7004(b).
104
TITLE 
VIII—PROTECTION
AGAINST 
FEDERAL 
REGU-
LATORY ABUSE
Subtitle A—Citizens’ Regulatory
Bill of Rights
SEC. 8101. CITIZENS’ REGULATORY BILL OF RIGHTS.
(a) IN GENERAL.—Except as provided in subsection
(c), each person that is the target of a Federal investiga-
tive or enforcement action shall, upon the initiation of an
inspection, investigation, or other official proceeding di-
rected against that person, have the right—
(1) to remain silent;
(2) to be advised as to whether the person has
a right to a warrant;
(3) to be warned that statements can be used
against them;
(4) to have an attorney or accountant present;
(5) to be informed as the the scope and purpose
of the agency action;
(6) to be present at the inspection, investiga-
tion, or proceeding;
(7) to be reimbursed for unreasonable damages;
(8) to be free of unreasonable seizures of prop-
erty or assets; and
105
(9) to receive attorneys fees and other expenses
from the Government when the Government com-
mences a frivolous civil action against such person,
except that nothing in this paragraph shall be con-
strued to affect the Equal Access to Justice Act.
(b) AGENCY RULES.—Each agency or other authority
of the Federal Government with respect to which this sec-
tion applies shall make appropriate rules within 90 days
after the date of the enactment of this Act to implement
this section in the context of that agency’s functions.
(c) LIMITATION
ON APPLICATION
OF REQUIRE-
MENTS.—A requirement of this section shall not apply if
compliance with the requirement would—
(1) substantially delay responding to an immi-
nent danger to person or property; or
(2) substantially or unreasonably impede a
criminal investigation.
Subtitle B—Private Sector
Whistleblowers’ Protection
SEC. 8201. SHORT TITLE.
This subtitle may be cited as the ‘‘Private Sector
Whistleblowers’ Protection Act of 1995’’.
SEC. 8202. PURPOSE.
The Federal regulatory system should be imple-
mented consistent with the principle that any person sub-
106
ject to Government regulation should be protected against
reprisal for disclosing information that the person believes
is indicative of—
(1) violation or inconsistent application of any
law, rule, regulation, policy, or internal standard;
(2) arbitrary action or other abuse of authority;
(3) mismanagement;
(4) waste or misallocation of resources;
(5) inconsistent, discriminatory or dispropor-
tionate enforcement proceedings;
(6) endangerment of public health or safety;
(7) personal favoritism; and
(8) coercion for partisan political purposes;
by any agency or its employees.
SEC. 8203. COVERAGE.
This subtitle shall apply to:
(1) Any agency of the Federal Government as
defined in section 551 of title 5, United States Code.
(2) Any agency of a State government that ex-
ercises authority under Federal law, or that exer-
cises authority under State law establishing a pro-
gram approved by a Federal agency as a substitute
for or supplement to a program established by Fed-
eral law.
107
SEC. 8204. PROHIBITED REGULATORY PRACTICES.
(a) DEFINED.—For purposes of this subtitle, ‘‘pro-
hibited regulatory practice’’ means any action described
in subsection (b)(i), (ii), or (iii) of this section.
(b) PROHIBITION.—(1) No employee of an Agency
who has authority—
(A) to take or direct other employees to take,
(B) to recommend, or
(C) to approve,
any regulatory action shall—
(i) take or fail to take, or threaten to take or
fail to take,
(ii) recommend or direct that others take or fail
to take, or threaten to so recommend or direct, or
(iii) approve the taking or failing to take, or
threaten to so approve,
such regulatory action because of any disclosure by a per-
son subject to the action, or by any other person, of infor-
mation that the person believed indicative of—
(I) violation or inconsistent application of any
law, rule, regulation, policy, or internal standard;
(II) arbitrary action or other abuse of author-
ity;
(III) mismanagement;
(IV) waste or misallocation of resources;
108
(V) inconsistent, discriminatory or dispropor-
tionate enforcement;
(VI) endangerment of public health or safety;
(VII personal favoritism; or
(VIII) coercion for partisan political purposes;
by any agency or its employees.
(2) An action shall be deemed to have been taken,
not taken, approved, or recommended because of the dis-
closure of information within the meaning of paragraph
(1) if the disclosure of information was a contributing fac-
tor to the decision to take, not to take, to approve, or to
recommend.
SEC. 8205. PROHIBITED REGULATORY PRACTICE AS A DE-
FENSE TO AGENCY ACTION.
(a) IN GENERAL.—In any administrative or judicial
action or proceeding, formal or informal, by an agency to
create, apply or enforce any obligation, duty or liability
under any law, rule or regulation against any person, the
person may assert as a defense that the agency or one
or more employees of the agency have engaged in a prohib-
ited regulatory practice with respect to the person or to
a related entity in connection with the action or proceed-
ing.
(b) COMPLIANCE.—If the existence of a prohibited
regulatory practice is established, the person may be re-
109
quired to comply with the obligation, duty or liability to
the extent compliance is required of and enforced against
other persons similarly situated, but no penalty, fine, dam-
ages, costs or other obligation except compliance shall be
imposed on the person.
SEC. 8206. ENFORCEMENT.
(a) CIVIL PENALTY.—Any agency, and any employee
of an agency, engaging in a prohibited regulatory practice
may be assessed a civil penalty of not more than $25,000
for each such practice. In the case of a continuing prohib-
ited regulatory practice, each day that the practice contin-
ues shall be deemed a separate practice.
(b) PROCEDURES.—The President shall, by regula-
tion, establish procedures providing for the administrative
enforcement of the requirements of subsection (a) of this
section.
SEC. 8207. CITIZEN SUITS.
(a) COMMENCEMENT.—Any person injured or threat-
ened by a prohibited regulatory practice may commence
a civil action on his own behalf against any person or
agency alleged to have engaged in or threatened to engage
in such practice.
(b) JURISDICTION AND VENUE.—Any action under
subsection (a) of this section shall be brought in the dis-
trict court for any district in which the alleged prohibited
110
regulatory practice occurred or in which the alleged injury
occurred. The district court shall have jurisdiction, with-
out regard to the amount in controversy or the citizenship
of the parties, to—
(1) restrain any agency or person who has en-
gaged or is engaging in any prohibited regulatory
practice;
(2) order the cancellation or remission of any
penalty, fine, damages, or other monetary assess-
ment that resulted from a prohibited regulatory
practice;
(3) order the rescission of any settlement that
resulted from a prohibited regulatory practice;
(4) order the issuance of any permit or license
that has been denied or delayed as a result of a pro-
hibited regulatory practice;
(5) order the agency and/or the employee en-
gaging in a prohibited regulatory practice to pay to
the injured person such damages as may be nec-
essary to compensate the person for any harm re-
sulting from the practice, including damages for—
(A) injury to, deterioration of, or destruc-
tion of real or personal property;
111
(B) 
loss 
of 
profits 
from 
idle 
or
underutilized resources, and from business for-
gone;
(C) costs incurred, including costs of com-
pliance where appropriate;
(D) loss in value of a business;
(E) reasonable legal, consulting and expert
witness fees; or
(F) payments to third parties;
(6) order the payment of punitive damages, in
an amount not to exceed $25,000 for each such pro-
hibited regulatory practice, provided that, in the case
of a continuing prohibited regulatory practice, each
day that the practice continues shall be deemed a
separate practice.
SEC. 8208. OFFICE OF THE SPECIAL COUNSEL.
(a) REQUEST FOR INVESTIGATION.—Any person who
has reason to believe that any employee of any agency has
engaged in a prohibited regulatory practice may request
the Special Counsel established by section 1211 of title
5, United States Code, to investigate.
(b) POWERS.—The Special Counsel shall have the
same power to investigate prohibited regulatory practices
that it has to investigate prohibited personnel practices
pursuant to section 1212 of title 5, United States Code.
112
SEC. 8209. RELATION TO CRIMINAL INVESTIGATIONS.
Nothing in this subtitle shall be construed so as sub-
stantially or unreasonably to impede a criminal investiga-
tion.
TITLE IX—PRIVATE PROPERTY
RIGHTS PROTECTIONS AND
COMPENSATION
SEC. 9001. STATEMENT OF PURPOSE.
It is the purpose of this title to compensate private
property owners with respect to certain actions that are
taken by the Federal Government for public purposes and
that limit the use of private property by property owners.
SEC. 9002. COMPENSATION FOR FEDERAL AGENCY IN-
FRINGEMENT OR DEPRIVATION OF RIGHTS
TO PRIVATE PROPERTY.
(a) ELIGIBILITY.—
(1) IN GENERAL.—A private property owner is
entitled to receive compensation from the United
States in accordance with this section for any agency
infringement or deprivation of rights to property
that is owned by the private property owner.
(2) AGENCY INFRINGEMENT OR DEPRIVATION
OF RIGHTS TO PROPERTY DEFINED.—For purposes
of paragraph (1), the term ‘‘agency infringement or
deprivation of rights to property’’ means a limitation
or condition that—
113
(A) is imposed by a final agency action on
a use of property that would be lawful but for
the agency action, and
(B) results in a reduction in the value of
the property equal to ten percent or more.
(3) CIRCUMSTANCES IN WHICH COMPENSATION
NOT REQUIRED.—A private property owner shall not
be entitled to receive compensation under this sub-
section for any of the following:
(A) A limitation on any action that would
constitute a violation of applicable State or local
law (including an action that would violate a
local zoning ordinance or would constitute a
nuisance under any applicable State or local
law).
(B) A limitation on any use of private
property, imposed pursuant to a determination
by the President that the use poses or would
pose a serious and imminent threat to public
health and safety or to the health and safety of
workers, or other individuals, lawfully on the
property.
(C) A limitation imposed pursuant to the
Federal navigational servitude.
114
(4) LIMITATION ON CUMULATIVE AMOUNT OF
COMPENSATION.—No payment may be made pursu-
ant to this subsection with respect to property if the
sum of such payment and all other payments made
pursuant to this subsection with respect to the prop-
erty would exceed the fair market value of the prop-
erty (as determined at the time of the payment).
(5) STATE
OR
LOCAL
LIMITATIONS
IMPOSED
PURSUANT TO FEDERAL MANDATES.—A limitation
or condition shall be considered to be a Federal
agency infringement or deprivation of rights to prop-
erty for purposes of paragraph (1) if it is a con-
sequence of a limitation or condition on the use of
the property by the private property owner that is
imposed by a State or local government pursuant to
an agency action that is intended to, or does, bind
the State or local government.
(b) REQUEST FOR COMPENSATION.—Within 90 days
after receipt of notice of an agency action with respect
to which compensation is required under subsection (a),
a private property owner may submit to the head of the
agency a request in writing for compensation under this
section.
(c) AGENCY DETERMINATION AND OFFER.—
115
(1) IN GENERAL.—Upon receipt of a request
for compensation, submitted in accordance with sub-
section (b), with respect to an agency action affect-
ing private property as described in subsection (a),
the head of the agency that took the action shall de-
termine whether the private property owner submit-
ting the request has demonstrated entitlement to
compensation under subsection (a). If the head of
the agency finds that the private property owner has
so demonstrated, the head of the agency shall offer
to compensate the private property owner for the re-
duction in the value of the property, as dem-
onstrated by the private property owner.
(2) TIMING OF DETERMINATION AND OFFER.—
The head of an agency shall make the determination
and offer, if any, required by paragraph (1) with re-
spect to a request for compensation not later than
180 days after receiving the request.
(d) PRIVATE PROPERTY OWNERS’ RESPONSE.—A
private property owner shall have 60 days after the date
of receipt of an offer under subsection (c) to accept or
to reject the offer.
(e) ARBITRATION.—If the head of an agency deter-
mines, under subsection (c), that a private property owner
is not entitled to compensation under subsection (a), or
116
a private property owner rejects an offer made under sub-
section (c), the private property owner may submit the
matter for arbitration to an arbitrator appointed by the
head of the agency from a list of arbitrators submitted
by the American Arbitration Association. The arbitrator
shall determine whether the request meets the require-
ments of subsection (a) (if such determination is called
for by the submission of the property owner) and shall
determine the amount of compensation to which the prop-
erty owner is entitled under this section, in accordance
with subsection (c). The arbitration shall be conducted in
accordance with the real estate valuation arbitration rules
of that association. For purposes of this section, an arbi-
tration is binding on the head of an agency and the private
property owner as to whether the property owner is enti-
tled to compensation under subsection (a) and as to the
amount, if any, of compensation owed to the private prop-
erty owner under this section.
(f) PAYMENT.—The head of an agency shall pay a
private property owner any compensation required under
the terms of an offer of the agency head that is accepted
by the private property owner in accordance with sub-
section (d), or under a decision of an arbiter under sub-
section (e), by not later than 60 days after the date of
119
(3) LAND
EXCHANGE.—In lieu of payment
under paragraph (1) or (2), the President may enter
into an agreement with the private property owner
who is entitled to the compensation for which the
payment is required to provide all or part of the
compensation by exchanging all or part of the af-
fected private property for property owned by the
United States and identified by the President as
suitable for such an exchange. The properties trans-
ferred as part of such an exchange shall be of equal
value, as determined under section 206(d) of the
Federal Land Policy and Management Act of 1976
(43 U.S.C. 1716(d)).
SEC. 9003. SEVERABILITY.
If any provision of this title, or the application thereof
to any person or circumstance, is held invalid, the remain-
der of this title and the application of such provision to
other persons and circumstances shall not be affected.
SEC. 9004. DEFINITIONS.
For purposes of this title:
(1) AGENCY.—The term ‘‘agency’’ has the
meaning given that term in section 551(1) of title 5,
United States Code.
120
(2) AGENCY ACTION.—The term ‘‘agency ac-
tion’’ has the meaning given that term in section
551(13) of title 5, United States Code.
(3) FAIR MARKET VALUE.—Unless stated other-
wise, the term ‘‘fair market value of the property’’
means the fair market value of property determined
as of the date on which the private property owner
makes a claim under this title with respect to the
property.
(4) FINAL AGENCY ACTION.—The term ‘‘final
agency action’’ means an agency action that is in-
tended to or does bind a private property owner with
respect to the use of the property. Such term in-
cludes but is not limited to the following:
(A) Denial of a permit.
(B) Issuance of a cease and desist order.
(C) Issuance of a statement under section
7(b)(3) of the Endangered Species Act of 1973
(16 U.S.C. 1536(b)(3)).
(D) Issuance of a permit with conditions.
(E) Commencement of a civil or criminal
proceeding arising out of failure to secure a
permit.
(5) PRIVATE
PROPERTY
OWNER.—The term
‘‘private property owner’’ means a person (other
121
than the United States, a department, agency, or in-
strumentality thereof, or an officer, employee, or
agent thereof when acting on behalf of his or her
employing authority) that—
(A) owns property referred to in paragraph
(6)(A); or
(B) holds property referred to in para-
graph (6)(B).
(6) PROPERTY.—The term ‘‘property’’ means—
(A) land; and
(B) the right to use or receive water.
(7) REDUCTION
IN
THE
VALUE
OF
PROP-
ERTY.—The term ‘‘reduction in the value of prop-
erty’’ means the difference, if greater than zero, be-
tween—
(A) the fair market value of property, as
determined based on the value of the property
if an agency action referred to in paragraph (2)
or (5) of section 9002(a), as the case may be,
were not implemented; minus
(B) the fair market value of property, as
determined based on the value of the property
if an agency action referred to in paragraph (2)
or (5) of section 9002(a), as the case may be,
were implemented.
122
(8) USE—The term ‘‘use’’ means a prior, exist-
ing, or potential utilization of property, by the pri-
vate property owner, which is—
(A) predictable; and
(B) consistent with the utilization of prop-
erty of the same general type or with property
usage in the geographic area in which the prop-
erty is located.
TITLE 
X—ESTABLISHMENT 
OF
FEDERAL MANDATE BUDGET
COST CONTROL
SEC. 10001. AMENDMENTS TO THE CONGRESSIONAL BUDG-
ET ACT OF 1974.
(a) FEDERAL REGULATORY BUDGET COST CONTROL
SYSTEM.—Title III of the Congressional Budget Act of
1974, as amended by section 4001(a) of this Act, is fur-
ther amended by adding after part B the following new
part:
‘‘PART C—FEDERAL MANDATE BUDGET COST
CONTROL
‘‘SEC. 331. OMB–CBO REPORTS.
‘‘(a) OMB–CBO INITIAL REPORT.—Within 1 year
after the date of enactment of this section, OMB and CBO
shall jointly issue a report to the President and each
House of Congress that contains the following:
123
‘‘(1) For the first budget year beginning after
the issuance of this report, a projection of the aggre-
gate direct cost to States and local governments of
complying with all Federal mandates in effect imme-
diately before issuance of the report containing the
projection for that budget year of the effect of cur-
rent-year Federal mandates into the budget year
and the outyears based on those mandates.
‘‘(2) A calculation of the estimated aggregate
direct cost to States and local governments of com-
pliance with all Federal mandates as a percentage of
the gross domestic product (GDP).
‘‘(3) The estimated marginal cost (measured as
a reduction in estimated gross domestic product) to
States and local governments of compliance with all
Federal mandates in excess of the cap (to be deter-
mined under paragraph (5)) allowable for the sixth
year following the budget year and subsequent fiscal
years.
‘‘(4) The effect on the domestic economy of dif-
ferent types of Federal mandates.
‘‘(5) The appropriate level of personnel, admin-
istrative overhead, and programmatic savings that
should be achieved on a fiscal year by fiscal year
basis by Federal agencies that issue mandates with
124
direct costs to States and local governments through
the reduction of such aggregate costs to States and
local governments by 6.5 percent for the budget year
(as measured against the aggregate mandate base-
line for the first budget year to which this part ap-
plies) and by 6.5 percent increments for each of the
outyears (until the aggregate level of such costs does
not exceed 3 percent of the estimated gross domestic
product for the same fiscal year as the estimated
costs that will be incurred).
‘‘(6) Recommendations for budgeting, technical,
and estimating changes to improve the Federal man-
date budgeting process.
‘‘(b) UPDATE REPORTS.—OMB and CBO shall issue
update reports on September 15th of the fifth year begin-
ning after issuance of the initial report and at 5-year in-
tervals thereafter containing all the information required
in the initial report, but based upon all Federal mandates
in effect immediately before issuance of the most recent
update report.
‘‘(c) INITIAL BASELINE REPORT.—Within 30 days
after the date of enactment of this section, OMB and CBO
shall jointly issue a report to the President and each
House of Congress that contains an initial aggregate man-
date baseline for the first budget year that begins at least
125
120 days after that date of enactment. That baseline will
be a projection of the aggregate direct cost to States and
local governments of complying with all Federal mandates
in effect immediately before issuance of the report contain-
ing the projection for that budget year of the effect of
current-year Federal mandates into the budget year and
the outyears based on those mandates.
‘‘SEC. 332. AGGREGATE MANDATE BASELINE.
‘‘(a) IN GENERAL.—For the first budget year begin-
ning after the date of enactment of this section and for
every other fiscal year thereafter, the aggregate mandate
baseline refers to a projection of the aggregate direct cost
to States and local governments of complying with all Fed-
eral mandates in effect immediately before issuance of the
report containing the projection for that budget year of
the effect of current-year Federal mandates into the budg-
et year and the outyears based on those mandates. How-
ever, in the case of each of the succeeding fiscal years,
the baseline shall be adjusted for the estimated growth
during that year in the gross domestic product (GDP).
‘‘(b) OMB–CBO AGGREGATE MANDATE BASELINE
REPORTS.—(1) The first budget year for which there shall
be an aggregate mandate baseline shall be the budget year
to which the initial OMB–CBO baseline report issued
under section 331(c) pertains.
126
‘‘(2) In the case of each budget year after the budget
year referred to in paragraph (1), not later than Septem-
ber 15 of the current year, OMB and CBO shall jointly
issue a report containing the baseline referred to in sub-
section (a) for that budget year.
‘‘SEC. 333. RECONCILIATION AND ALLOCATIONS.
‘‘(a) RECONCILIATION DIRECTIVES.—In addition to
the requirements of section 310, a concurrent resolution
on the budget for any fiscal year shall specify—
‘‘(1) changes in laws, regulations, and rules
necessary to reduce the aggregate direct cost to
States and local governments of complying with all
Federal mandates by 6.5 percent for the budget year
(as measured against the aggregate mandate base-
line for the first budget year to which this part ap-
plies) and by 6.5 percent increments for each of the
outyears (until the aggregate level of such costs does
not exceed 3 percent of the estimated gross domestic
product for the same fiscal year as the estimated
costs that will be incurred) for Federal agencies that
issue mandates producing direct costs to States and
local governments; and
‘‘(2) changes in laws necessary to achieve re-
ductions in the level of personnel and administrative
overhead and to achieve programmatic savings for
127
the budget year and the outyears for those agencies
of the following:
‘‘(A) In the first outyear, one-fourth of the
percent of reduction in mandate authority from
the aggregate mandate base.
‘‘(B) In the second outyear, one-third of
the percent of reduction in mandate authority
from the aggregate mandate base.
‘‘(C) In the third, fourth, fifth, and sixth
years following the budget year, one-half of the
percent of reduction in mandate authority from
the aggregate mandate base.
Section 310(c) shall not apply with respect to directions
made under this section.
‘‘(b) ALLOCATION OF TOTALS.—(1) The Committees
on the Budget of the House of Representatives and the
Senate shall each allocate aggregate 2-year mandate au-
thority among each committee of its House and by major
functional category for the first budget year beginning
after the date of enactment of this section and for the
second, fourth, and sixth years following the budget year
and then every other year thereafter.
‘‘(2) As soon as practicable after receiving an alloca-
tion under paragraph (1), each committee shall subdivide
128
its allocation among its subcommittees or among pro-
grams over which it has jurisdiction.
‘‘(c) POINT OF ORDER.—(1) It shall not be in order
in the House of Representatives or the Senate to consider
any bill or resolution, or amendment thereto, which would
cause the appropriate allocation made under subsection
(b) for a fiscal year of mandate authority to be exceeded.
‘‘(2) WAIVER.—The point of order set forth in para-
graph (1) may only be waived by the affirmative vote of
at least three-fifths of the Members voting, a quorum
being present.
‘‘(d) DETERMINATIONS BY BUDGET COMMITTEES.—
For purposes of this section, the level of mandate author-
ity for a fiscal year shall be determined by the Committee
on the Budget of the House of Representatives or the Sen-
ate, as the case may be.
‘‘(e) EXCEEDING ALLOCATION TOTALS.—Whenever
any Committee of the House of Representatives exceeds
its allocation of aggregate 2-year mandate authority under
subsection (b)(1), any Member of the House of Represent-
atives may offer a bill in the House (which shall be highly
privileged, unamendable, and debateable for 30 minutes)
which shall only prohibit the issuance of mandates by any
agency under the jurisdiction of that committee for the
129
fiscal years covered by that allocation until that committee
eliminates its breach.
‘‘SEC. 334. ANALYSIS OF MANDATES COSTS BY CONGRES-
SIONAL BUDGET OFFICE.
‘‘CBO shall prepare for each bill or resolution of a
public character reported by any committee of the House
of Representatives or the Senate (except the Committee
on Appropriations of each House), and submit to such
committee—
‘‘(1) an estimate of the costs which would be in-
curred by States and local governments in carrying
out or complying with such bill or resolution in the
fiscal year in which it is to become effective and in
each of the 4 fiscal years following such fiscal year,
together with the basis of each such estimate; and
‘‘(2) a comparison of the estimate of costs de-
scribed in paragraph (1) with any available esti-
mates of costs made by such committee or by any
Federal agency.
‘‘SEC. 335. DEFINITIONS.
‘‘As used in this part:
‘‘(1) The term ‘CBO’ refers to the Director of
the Congressional Budget Office.
‘‘(2) The term ‘OMB’ refers to the Director of
the Office of Management and Budget.
130
‘‘(3) The term ‘costs’ when referring to ‘man-
dates’ means the direct cost to States and local gov-
ernments of complying with Federal mandates.
‘‘(4) The term ‘direct costs’ means (recognizing
that direct costs are not the only costs associated
with Federal mandates) all expenditures occurring
as a direct result of complying with Federal man-
dates, except those applying to the military or agen-
cy organization, management, and personnel.’’.
SEC. 10002. PRESIDENT’S ANNUAL BUDGET SUBMISSIONS.
Section 1105(a) of title 31, United States Code, as
amended by section 4002 of this Act, is further amended
by adding after paragraph (32) the following new para-
graph:
‘‘(33) a mandate authority budget analysis of
the aggregate direct cost to States and local govern-
ments of complying with all current and proposed
Federal mandates and proposals for complying with
section 333 of the Congressional Budget Act of
1974 for the budget year and the outyears.’’
SEC. 10003. ESTIMATION AND DISCLOSURE OF COSTS OF
FEDERAL MANDATES.
(a) COSTS TO STATE AND LOCAL GOVERNMENTS.—
Chapter 6 of title 5, United States Code, popularly known
as the ‘‘Regulatory Flexibility Act’’, is amended—
131
(1) in section 603, as amended by section
4003(2) of this Act, by adding after subsection (d)
the following:
‘‘(e) Each initial regulatory flexibility analysis for a
proposed rule that establishes or implements a new Fed-
eral mandate shall also contain a description of the nature
and amount of monetary costs that will be incurred by
State and local governments in complying with the Federal
mandate.’’; and
(2) in section 604(a), as amended by section
4003(3) of this Act—
(A) in paragraph (3) by striking ‘‘and’’
after the semicolon;
(B) in paragraph (4) by striking the period
and inserting ‘‘; and’’; and
(C) by adding after paragraph (4) the fol-
lowing:
‘‘(5) in the case of an analysis for a rule that
establishes or implements a new Federal mandate, a
statement of the nature and amount of monetary
costs that will be incurred by State and local govern-
ments in complying with the Federal mandate.’’.
(b) AGENCY REPORTS.—Each agency that under
chapter 6 of title 5, United States Code, prepares an ini-
tial regulatory flexibility analysis for a proposed rule that
132
establishes or implements a new Federal mandate shall at
the same time submit to each House of Congress and to
CBO and OMB a cost estimate and cost/benefit analysis
of any new Federal mandate that would have an aggregate
direct cost to State and local governments of at least
$10,000,000 for any fiscal year.
TITLE XI—TAXPAYER DEBT BUY-
DOWN
SEC. 11001. DESIGNATION OF AMOUNTS FOR REDUCTION
OF PUBLIC DEBT.
(a) IN GENERAL.—Subchapter A of chapter 61 of the
Internal Revenue Code of 1986 (relating to returns and
records) is amended by adding at the end the following
new part:
‘‘PART IX—DESIGNATION FOR REDUCTION OF
PUBLIC DEBT
‘‘Sec. 6097. Designation.
‘‘SEC. 6097. DESIGNATION.
‘‘(a) IN GENERAL.—Every individual with adjusted
income tax liability for any taxable year may designate
that a portion of such liability (not to exceed 10 percent
thereof) shall be used to reduce the public debt.
‘‘(b) MANNER AND TIME OF DESIGNATION.—A des-
ignation under subsection (a) may be made with respect
to any taxable year only at the time of filing the return
133
of tax imposed by chapter 1 for the taxable year. The des-
ignation shall be made on the first page of the return or
on the page bearing the taxpayer’s signature.
‘‘(c) ADJUSTED INCOME TAX LIABILITY.—For pur-
poses of this section, the term ‘adjusted income tax liabil-
ity’ means income tax liability (as defined in section
6096(b)) reduced by any amount designated under section
6096 (relating to designation of income tax payments to
Presidential Election Campaign Fund).’’
(b) CLERICAL AMENDMENT.—The table of parts for
such subchapter A is amended by adding at the end the
following new item:
‘‘Part IX. Designation for reduction of public debt.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 11002. PUBLIC DEBT REDUCTION TRUST FUND.
(a) IN GENERAL.—Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 (relating to trust fund
code) is amended by adding at the end the following sec-
tion:
‘‘SEC. 9512. PUBLIC DEBT REDUCTION TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Public Debt Reduction Trust Fund’,
134
consisting of any amount appropriated or credited to the
Trust Fund as provided in this section or section 9602(b).
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Public Debt Reduction Trust Fund
amounts equivalent to the amounts designated under sec-
tion 6097 (relating to designation for public debt reduc-
tion).
‘‘(c) EXPENDITURES.—Amounts in the Public Debt
Reduction Trust Fund shall be used by the Secretary of
the Treasury for purposes of paying at maturity, or to
redeem or buy before maturity, any obligation of the Fed-
eral Government included in the public debt (other than
an obligation held by the Federal Old-Age and Survivors
Insurance Trust Fund, the Civil Service Retirement and
Disability Fund, or the Department of Defense Military
Retirement Fund). Any obligation which is paid, re-
deemed, or bought with amounts from the Public Debt Re-
duction Trust Fund shall be canceled and retired and may
not be reissued.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subchapter is amended by adding at the end the
following new item:
‘‘Sec. 9512. Public Debt Reduction Trust Fund.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts received after the date
of the enactment of this Act.
135
SEC. 11003. TAXPAYER-GENERATED SEQUESTRATION OF
FEDERAL SPENDING TO REDUCE THE PUBLIC
DEBT.
(a) SEQUESTRATION
TO
REDUCE
THE
PUBLIC
DEBT.—Part C of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by adding after
section 253 the following new section:
‘‘SEC. 253A. SEQUESTRATION TO REDUCE THE PUBLIC
DEBT.
‘‘(a) SEQUESTRATION.—Notwithstanding sections
255 and 256, within 15 days after Congress adjourns to
end a session, and on the same day as sequestration (if
any) under sections 251, 252, and 253, but after any se-
questration required by those sections, there shall be a se-
questration equivalent to the estimated aggregate amount
designated under section 6097 of the Internal Revenue
Code of 1986 for the last taxable year ending one year
before the beginning of that session of Congress, as esti-
mated by the Department of the Treasury on October 1
and as modified by the total of (1) any amounts by which
net discretionary spending is reduced by legislation below
the discretionary spending limits enacted after the enact-
ment of this section related to the fiscal year subject to
the sequestration (or, in the absence of such limits, any
net deficit change from the baseline amount calculated
under section 257 (except that such baseline for fiscal year
136
1996 and thereafter shall be based upon fiscal year 1995
enacted appropriations less any 1995 sequesters)) and (2)
the net deficit change that has resulted from all direct
spending legislation enacted after the enactment of this
section related to the fiscal year subject to the sequestra-
tion, as estimated by OMB. If the reduction in spending
under paragraphs (1) and (2) for a fiscal year is greater
than the estimated aggregate amount designated under
section 6097 of the Internal Revenue Code of 1986 re-
specting that fiscal year, then there shall be no sequestra-
tion under this section.
‘‘(b) APPLICABILITY.—
‘‘(1) IN
GENERAL.—Except as provided by
paragraph (2), each account of the United States
shall be reduced by a dollar amount calculated by
multiplying the level of budgetary resources in that
account at that time by the uniform percentage nec-
essary to carry out subsection (a). All obligational
authority reduced under this section shall be done in
a manner that makes such reductions permanent.
‘‘(2) EXEMPT
ACCOUNTS.—No order issued
under this part may—
‘‘(A) reduce benefits payable the old-age
and survivors insurance program established
under title II of the Social Security Act;
137
‘‘(B) reduce payments for net interest (all
of major functional category 900); or
‘‘(C) make any reduction in the following
accounts:
‘‘Federal Deposit Insurance Corpora-
tion, Bank Insurance Fund;
‘‘Federal Deposit Insurance Corpora-
tion, FSLIC Resolution Fund;
‘‘Federal Deposit Insurance Corpora-
tion, Savings Association Insurance Fund;
‘‘National Credit Union Administra-
tion, credit union share insurance fund; or
‘‘Resolution Trust Corporation.’’
(b) REPORTS.—Section 254 of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended—
(1) in subsection (a), by inserting after the item
relating to the GAO compliance report the following:
‘‘October 1 . . . Department of Treasury report to
Congress estimating amount of income tax designated
pursuant to section 6097 of the Internal Revenue Code
of 1986.’’;
(2) in subsection (d)(1), by inserting ‘‘, and se-
questration to reduce the public debt,’’;