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103D CONGRESS
1ST SESSION
H. R. 1295
To improve Federal decisionmaking by requiring a thorough evaluation of
the economic impact of Federal legislative and regulatory requirements
on State and local governments and the economic resources located
therein.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 1993
Mr. MORAN (for himself, Mr. GOODLING, Mr. HOLDEN, Mr. CONDIT, Mr.
BROWDER, Mr. DEAL, Mr. SISISKY, Mr. PAYNE of Virginia, Mr. WOLF,
Ms. MCKINNEY, Mr. PENNY, Mr. WHEAT, Mr. LANCASTER, Mr. PARKER,
Mr. GOODLATTE, Mr. MAZZOLI, Mr. BEREUTER, Ms. DANNER, Mr.
CANADY, Mr. GREENWOOD, Mr. PICKETT, Mr. KLINK, Mr. COOPER, Mr.
GENE GREEN of Texas, Mr. STENHOLM, Mr. TAYLOR of North Carolina,
Mr. PETERSON of Minnesota, Mr. TAYLOR of Mississippi, Mr. BILBRAY,
Mr. ROGERS, Mr. JOHNSTON of Florida, Mr. CRAMER, Mr. CRAPO, Mr.
MURPHY, Mr. TRAFICANT, Mr. THOMAS of Wyoming, Mr. EMERSON, Mr.
ORTON, Mr. CLINGER, Mr. MCHALE, Mrs. MEYERS of Kansas, Mr.
CAMP, Mr. LEWIS of Florida, Mr. SLATTERY, Mr. LIVINGSTON, Mr.
HYDE, Mr. CLEMENT, Mr. BLILEY, Mr. KANJORSKI, Mr. SPRATT, Mr.
TANNER, Mr. SARPALIUS, Mr. ROSE, Mr. MCCURDY, Mr. MONTGOMERY,
Mr. HOAGLAND, Mr. SWETT, Mr. ROWLAND, Mr. HALL of Texas, Mr.
POSHARD, Mr. BURTON of Indiana, Mr. RAHALL, Mr. WILSON, Mr. PE-
TERSON of Florida, Mr. PETRI, Mr. ALLARD, Mr. BUYER, Mr. COLLINS
of Georgia, Mr. LAFALCE, Mr. COPPERSMITH, Mr. LIGHTFOOT, Mr.
BATEMAN, Mr. ENGLISH of Oklahoma, Mr. SKEEN, and Mr. MYERS of
Indiana) introduced the following bill; which was referred jointly to the
Committees on Government Operations and Rules
A BILL
To improve Federal decisionmaking by requiring a thorough
evaluation of the economic impact of Federal legislative
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and regulatory requirements on State and local govern-
ments and the economic resources located therein.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Fiscal Accountability
and Intergovernmental Reform Act’’ (‘‘FAIR Act’’).
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds and declares:
(1) Federal legislation and regulatory require-
ments impose burdens on State and local resources
to implement federally mandated programs without
fully evaluating the costs to State and local govern-
ments associated with compliance with those require-
ments and often times without provision of adequate
Federal financial assistance. These Federal legisla-
tive and regulatory initiatives—
(A) force State and local governments to
utilize scarce public resources to comply with
Federal mandates;
(B) prevent these resources from being
available to meet local needs; and
(C) detract from the ability of State and
local governments to establish local priorities
for use of local public resources.
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(2) Federal legislation and regulatory programs
result in inefficient utilization of economic resources,
thereby reducing the pool of resources available—
(A) to enhance productivity, and increase
the quantity and quality of goods and services
produced by the American economy; and
(B) to enhance international competitive-
ness.
(3) In implementing Congressional policy, Fed-
eral agencies should, consistent with the require-
ments of Federal law, seek to implement statutory
requirements, to the maximum extent feasible, in a
manner which minimizes—
(A) the inefficient allocation of economic
resources;
(B) the burden such requirements impose
on use of local public resources by State and
local governments; and
(C) the adverse economic effects of such
regulations on productivity, economic growth,
full employment, creation of productive jobs,
and international competitiveness of American
goods and services.
(b) PURPOSES.—The purposes of this Act are:
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(1) To assist Congress in consideration of pro-
posed legislation establishing or revising Federal
programs so as to assure that, to the maximum ex-
tent practicable, legislation enacted by Congress
will—
(A) minimize the burden of such legislation
on expenditure of scarce local public resources
by State and local governments;
(B) minimize inefficient allocation of eco-
nomic resources; and
(C) reduce the adverse effect of such legis-
lation—
(i) on the ability of State and local
governmental entities to use local public
resources to meet local needs and to estab-
lish local priorities for local public re-
sources; and
(ii) on allocation of economic re-
sources, productivity, economic growth, full
employment, creation of productive jobs,
and international competitiveness.
(2) To require Federal agencies to exercise dis-
cretionary authority and to implement statutory re-
quirements in a manner which consistent with fulfill-
ment of each agency’s mission and with the require-
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ments of other laws, minimizes the impact regula-
tions and other major Federal actions affecting the
economy have on—
(A) the ability of State and local govern-
mental entities to use local public resources to
meet local needs; and
(B) the allocation of economic resources,
productivity, economic growth, full employment,
creation of productive jobs, and international
competitiveness of American goods and services.
TITLE I—LEGISLATIVE REFORM
SEC. 101. REPORTS ON LEGISLATION.
(a) REPORT REQUIRED.—(1) Except as provided in
paragraph (2), whenever a committee of either House re-
ports a bill or resolution of a public character to its House
which mandates unfunded requirements upon State or
local governments or the private sector, the report accom-
panying that bill or resolution shall contain an analysis,
prepared after consultation with the Director of the Con-
gressional Budget Office, detailing the effect of the new
requirements on—
(A) State and local government expenditures
necessary to comply with Federal mandates;
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(B) private businesses, including the economic
resources required annually to comply with the legis-
lation and implementing regulations; and
(C) economic growth and competitiveness.
(2) EXCEPTION.—The requirements of paragraph (1)
shall not apply to any bill or resolution with respect to
which the Director of the Congressional Budget Office cer-
tifies in writing to the Chairman of the Committee report-
ing the legislation that the estimated costs to State and
local governments and the private sector of implementa-
tion of such legislation during the first three years will
not exceed $50,000,000 in the aggregate and during the
first five years will not exceed $100,000,000 in the aggre-
gate. For this purpose, a year shall be a period of three
hundred and sixty five consecutive days.
(b) DUTIES AND FUNCTIONS OF CONGRESSIONAL
BUDGET OFFICE.—The Director of the Congressional
Budget Office shall prepare for each bill or resolution of
a public character reported by any committee of the House
of Representatives or of the Senate, an economic analysis
of the effects of such bill or resolution, satisfying the re-
quirements of subsection (a). The analysis prepared by the
Director of the Congressional Budget Office shall be in-
cluded in the report accompanying such bill or resolution
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if timely submitted to such committee before such report
is filed.
(c) LEGISLATION SUBJECT TO POINT OF ORDER.—
Any bill or resolution shall be subject to a point of order
against consideration of the bill by the House of Rep-
resentatives or the Senate (as the case may be) if such
bill or resolution is reported for consideration by the
House of Representatives or the Senate unaccompanied by
the analysis required by this section.
SEC. 102. EXERCISE OF RULEMAKING POWERS.
The provisions of this title are enacted by the Con-
gress—
(1) as an exercise of the rulemaking power of
the House of Representatives and the Senate, re-
spectively, and as such they shall be considered as
part of the rules of each House, respectively, and
such rules shall supersede other rules only to the ex-
tent that they are inconsistent therewith; and
(2) with full recognition of the constitutional
right of either House to change such rules (so far
as relating to such House) at any time, in the same
manner, and to the same extent as in the case of
any other rule of such House.
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SEC. 103. EFFECTIVE DATE.
This title shall apply to any bill or resolution ordered
reported by any committee of the House of Representa-
tives or of the Senate after the date of enactment of this
Act.
TITLE II—FEDERAL INTERGOVERNMENTAL
RELATIONS
SEC. 201. GENERAL REQUIREMENTS.
The Congress authorizes and directs that, to the full-
est extent practicable:
(1) the policies, regulations, and public laws of
the United States shall be interpreted and adminis-
tered in accordance with the purposes of this Act;
(2) all agencies of the Federal Government
shall, consistent with attainment of the requirements
of Federal law, minimize—
(A) the burden which rules and other
major Federal actions affecting the economy
impose on State and local governments,
(B) the effect of rules and other major
Federal actions affecting the economy on alloca-
tion of private economic resources, and
(C) the adverse effects of rules and other
major Federal actions affecting the economy on
productivity, economic growth, full employment,
creation of productive, and international com-
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petitiveness of American goods and services;
and
(3) in promulgating new rules, reviewing exist-
ing rules, developing legislative proposals, or initiat-
ing any other major Federal action affecting the
economy, whenever an agency identifies two or more
alternatives which will satisfy the agency’s statutory
obligations, the agency shall—
(A) select the alternative which, on bal-
ance—
(i) imposes the least burden on ex-
penditure of local public resources by State
and local governments, and
(ii) has the least adverse effect on
productivity, economic growth, full employ-
ment, creation of productive jobs, and
international competitiveness of American
goods or services; or
(B) provide a written statement—
(i) that the agency’s failure to select
such alternative is precluded by the re-
quirements of Federal law; or
(ii) that the agency’s failure to select
such alternative is consistent with the pur-
poses of this Act.
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SEC. 202. INTERGOVERNMENTAL AND ECONOMIC IMPACT
ASSESSMENT.
(a) REQUIREMENT.—Whenever an agency publishes
a general notice of proposed rulemaking for any proposed
rule, and before initiating any other major Federal action
affecting the economy, the agency shall prepare and make
available for public comment an Intergovernmental and
Economic Impact Assessment. Such Assessment shall be
published in the Federal Register at the time of the publi-
cation of general notice of proposed rulemaking for the
rule or prior to implementing such other major agency ac-
tion affecting the economy.
(b) CONTENT.—Each Intergovernmental and Eco-
nomic Impact Assessment required under this section shall
contain—
(1) a description of the reasons why action by
the agency is being considered;
(2) a succinct statement of the objective of, and
legal basis for, the proposed rule or other action;
and
(3) a description and an estimate of the effect
the proposed rule or other major Federal action will
have on—
(A) expenditure of State or local public re-
sources by State and local governments,
(B) allocation of economic resources, and
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(C) productivity, economic growth, full em-
ployment, creation of productive jobs, and inter-
national competitiveness of American goods and
services.
(c) ALTERNATIVES CONSIDERED.—Each Intergov-
ernmental and Economic Impact Assessment shall also
contain a detailed description of any significant alter-
natives to the proposed rule or other major Federal action
which would accomplish applicable statutory objectives
while reducing—
(1) the need for expenditure of State or local
public resources by State and local governments; and
(2) the potential adverse effects of such pro-
posed rule or other major Federal action on produc-
tivity, economic growth, full employment, creation of
productive jobs, and international competitiveness of
American goods and services.
SEC. 203. INTERGOVERNMENTAL AND ECONOMIC IMPACT
STATEMENT.
(a) REQUIREMENT.—When an agency promulgates a
final rule or implements any other major Federal action
affecting the economy, the agency shall prepare an Inter-
governmental and Economic Impact Statement. Each
Intergovernmental and Economic Impact Statement shall
contain—
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(1) a succinct statement of the need for, and
the objectives of, such rule or other major Federal
action;
(2) a summary of the issues raised by the pub-
lic comments in response to the publication by the
agency of the Economic Impact Assessment, a sum-
mary of the agency’s evaluation of such issues, and
a statement of any changes made in the proposed
rule or other proposed action as a result of such
comments;
(3) a description of each of the significant alter-
natives to the rule or other major Federal action af-
fecting the economy, considered by the agency,
which, consistent with fulfillment of agency statutory
obligations, would—
(A) lessen the need for expenditure of
State or local public resources by State and
local governments; or
(B) reduce the potential adverse effects of
such proposed rule or other major Federal ac-
tion on productivity, economic growth, full em-
ployment, creation of productive jobs, and inter-
national competitiveness of American goods and
services,
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along with a statement of the reasons why each such
alternatives was rejected by the agency; and
(4) an estimate of the effect the rule or other
major Federal action will have on—
(A) expenditure of State or local public re-
sources by State and local governments; and
(B) productivity, economic growth, full em-
ployment, creation of productive jobs, and inter-
national competitiveness of American goods and
services.
(b) AVAILABILITY.—The agency shall make copies of
each Intergovernmental and Economic Impact Statement
available to members of the public and shall publish in
the Federal Register at the time of publication of any final
rule or at the time of implementing any other major Fed-
eral action affecting the economy, a statement describing
how the public may obtain copies of such Statement.
SEC. 204. EFFECT ON OTHER LAWS.
The requirements of this title shall not alter in any
manner the substantive standards otherwise applicable to
the implementation by an agency of statutory require-
ments or to the exercise by an agency of authority dele-
gated by law.
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SEC. 205. EFFECTIVE DATE AND EXEMPTION.
This title shall apply to any rule proposed, any final
rule promulgated, and any other major Federal action af-
fecting the economy implemented by any agency after the
date of the enactment of this Act. This title shall not apply
to any agency which is not an agency within the meaning
of section 551(1) of title 5, United States Code.
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