104TH CONGRESS
1ST SESSION
H. R. 5
AN ACT
To curb the practice of imposing unfunded Federal mandates
on States and local governments, to ensure that the
Federal Government pays the costs incurred by those
governments in complying with certain requirements
under Federal statutes and regulations, and to provide
information on the cost of Federal mandates on the
private sector, and for other purposes.
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 ‘‘Unfunded Mandate
Reform Act of 1995’’.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to strengthen the partnership between the
Federal Government and States, local governments,
and tribal governments;
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(2) to end the imposition, in the absence of full
consideration by Congress, of Federal mandates on
States, local governments, and tribal governments in
a manner that may displace other essential State,
local, and tribal governmental priorities;
(3) to assist Congress in its consideration of
proposed legislation establishing or revising Federal
programs containing Federal mandates affecting
States, local governments, tribal governments, and
the private sector by—
(A) providing for the development of infor-
mation about the nature and size of mandates
in proposed legislation; and
(B) establishing a mechanism to bring
such information to the attention of the Senate
and House of Representatives before the Senate
and House of Representatives votes on proposed
legislation;
(4) to promote informed and deliberate deci-
sions by Congress on the appropriateness of Federal
mandates in any particular instance;
(5) to establish a point-of-order vote on the con-
sideration in the Senate and House of Representa-
tives of legislation containing significant Federal
mandates;
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(6) to assist Federal agencies in their consider-
ation of proposed regulations affecting States, local
governments, and tribal governments, by—
(A) requiring that Federal agencies de-
velop a process to enable the elected and other
officials of States, local governments, and tribal
governments to provide input when Federal
agencies are developing regulations; and
(B) requiring that Federal agencies pre-
pare and consider better estimates of the budg-
etary impact of regulations containing Federal
mandates upon States, local governments, and
tribal governments before adopting such regula-
tions, and ensuring that small governments are
given special consideration in that process;
(7) to establish the general rule that Congress
shall not impose Federal mandates on States, local
governments, and tribal governments without provid-
ing adequate funding to comply with such mandates;
and
(8) to begin consideration of methods to relieve
States, local governments, and tribal governments of
unfunded mandates imposed by Federal court inter-
pretations of Federal statutes and regulations.
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SEC. 3. DEFINITIONS.
For purposes of this Act—
(1) the terms ‘‘agency’’, ‘‘Federal financial as-
sistance’’, ‘‘Federal private sector mandate’’, ‘‘Fed-
eral mandate’’ (except as provided by section 108),
‘‘local government’’, ‘‘private sector’’, ‘‘regulation’’
or ‘‘rule’’, and ‘‘State’’ have the meaning given those
terms by section 421 of the Congressional Budget
Act of 1974; and
(2) the term ‘‘small government’’ means any
small governmental jurisdiction as defined in section
601(5) of title 5, United States Code, and any tribal
government.
SEC. 4. LIMITATION ON APPLICATION.
This Act shall not apply to any provision in a Federal
statute or a proposed or final Federal regulation, that—
(1) enforces constitutional rights of individuals;
(2) establishes or enforces any statutory rights
that prohibit discrimination on the basis of age,
race, religion, gender, national origin, or handi-
capped or disability status;
(3) requires compliance with accounting and
auditing procedures with respect to grants or other
money or property provided by the Federal Govern-
ment;
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(4) provides for emergency assistance or relief
at the request of any State, local government, or
tribal government or any official of such a govern-
ment;
(5) is necessary for the national security or the
ratification or implementation of international treaty
obligations;
(6) the President designates as emergency legis-
lation and that the Congress so designates in stat-
ute; or
(7) pertains to Social Security.
TITLE I—REVIEW OF UNFUNDED
FEDERAL MANDATES
SEC. 101. REPORT ON UNFUNDED FEDERAL MANDATES BY
ADVISORY COMMISSION ON INTERGOVERN-
MENTAL RELATIONS.
(a) IN GENERAL.—The Advisory Commission shall in
accordance with this section—
(1) investigate and review the role of unfunded
Federal mandates in intergovernmental relations and
their impact on State, local, tribal, and Federal Gov-
ernment objectives and responsibilities, and their im-
pact on the competitive balance between States, local
and tribal governments, and the private sector and
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consider views of and the impact on working men
and women on those same matters;
(2) investigate and review the role of unfunded
State mandates imposed on local governments, the
private sector, and individuals;
(3) investigate and review the role of unfunded
local mandates imposed on the private sector and in-
dividuals; and
(4) make recommendations to the President
and the Congress regarding—
(A) allowing flexibility for State, local, and
tribal governments in complying with specific
unfunded Federal mandates for which terms of
compliance are unnecessarily rigid or complex;
(B) reconciling any 2 or more unfunded
Federal mandates which impose contradictory
or inconsistent requirements;
(C) terminating unfunded Federal man-
dates which are duplicative, obsolete, or lacking
in practical utility;
(D) suspending, on a temporary basis, un-
funded Federal mandates which are not vital to
public health and safety and which compound
the fiscal difficulties of State, local, and tribal
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governments, including recommendations for
triggering such suspension;
(E) consolidating or simplifying unfunded
Federal mandates, or the planning or reporting
requirements of such mandates, in order to re-
duce duplication and facilitate compliance by
State, local, and tribal governments with those
mandates;
(F) establishing common Federal defini-
tions or standards to be used by State, local,
and tribal governments in complying with un-
funded Federal mandates that use different
definitions or standards for the same terms or
principles; and
(G) establishing procedures to ensure that,
in cases in which a Federal private sector man-
date applies to private sector entities which are
competing directly or indirectly with States,
local governments, or tribal governments for the
purpose of providing substantially similar goods
or services to the public, any relief from un-
funded Federal mandates is applied in the same
manner and to the same extent to the private
sector entities as it is to the States, local gov-
ernments, and tribal governments with which
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they compete, and to ensure that unfunded
Federal mandate relief does not increase private
sector burdens.
Each recommendation under paragraph (4) shall, to the
extent practicable, identify the specific unfunded Federal
mandates to which the recommendation applies.
(b) CRITERIA.—
(1) IN
GENERAL.—The Advisory Commission
shall establish criteria for making recommendations
under subsection (a).
(2) ISSUANCE
OF
PROPOSED
CRITERIA.—The
Advisory Commission shall issue proposed criteria
under this subsection not later than 60 days after
the date of the enactment of this Act, and thereafter
provide a period of 30 days for submission by the
public of comments on the proposed criteria.
(3) FINAL CRITERIA.—Not later than 45 days
after the date of issuance of proposed criteria, the
Advisory Commission shall—
(A) consider comments on the proposed
criteria received under paragraph (4);
(B) adopt and incorporate in final criteria
any recommendations submitted in those com-
ments that the Advisory Commission deter-
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mines will aid the Advisory Commission in car-
rying out its duties under this section; and
(C) issue final criteria under this sub-
section.
(c) PRELIMINARY REPORT.—
(1) IN
GENERAL.—Not later than 9 months
after the date of the enactment of this Act, the Ad-
visory Commission shall—
(A) prepare and publish a preliminary re-
port on its activities under this title, including
preliminary recommendations pursuant to sub-
section (a);
(B) publish in the Federal Register a no-
tice of availability of the preliminary report;
and
(C) provide copies of the preliminary re-
port to the public upon request.
(2) PUBLIC HEARINGS.—The Advisory Commis-
sion shall hold public hearings on the preliminary
recommendations contained in the preliminary re-
port of the Advisory Commission under this sub-
section.
(d) FINAL REPORT.—Not later than 3 months after
the date of the publication of the preliminary report under
subsection (c), the Advisory Commission shall submit to
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the Congress, including the Committee on Government
Reform and Oversight of the House of Representatives
and the Committee on Governmental Affairs of the Sen-
ate, and to the President a final report on the findings,
conclusions, and recommendations of the Advisory Com-
mission under this section.
(e) PRIORITY TO MANDATES THAT ARE SUBJECT OF
JUDICIAL PROCEEDINGS.—In carrying out this section,
the Advisory Commission shall give the highest priority
to immediately investigating, reviewing, and making rec-
ommendations regarding unfunded Federal mandates that
are the subject of judicial proceedings between the United
States and a State, local, or tribal government.
(f) STATE MANDATE
AND LOCAL MANDATE DE-
FINED.—As used in this title:
(1) STATE MANDATE.—The term ‘‘State man-
date’’ means any provision in a State statute or reg-
ulation that imposes an enforceable duty on local
governments, the private sector, or individuals, in-
cluding a condition of State assistance or a duty
arising from participation in a voluntary State pro-
gram.
(2) LOCAL MANDATE.—The term ‘‘local man-
date’’ means any provision in a local ordinance or
regulation that imposes an enforceable duty on the
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private sector or individuals, including a condition of
local assistance or a duty arising from participation
in a voluntary local program.
SEC. 102. SPECIAL AUTHORITIES OF ADVISORY COMMIS-
SION.
(a) EXPERTS
AND CONSULTANTS.—The Advisory
Commission may procure temporary and intermittent
services of experts or consultants under section 3109(b)
of title 5, United States Code.
(b) STAFF OF FEDERAL AGENCIES.—Upon request
of the Executive Director of the Advisory Commission, the
head of any Federal department or agency may detail, on
a reimbursable basis, any of the personnel of that depart-
ment or agency to the Advisory Commission to assist it
in carrying out its duties under this title.
(c) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Advisory Commission, the Administrator of
General Services shall provide to the Advisory Commis-
sion, on a reimbursable basis, the administrative support
services necessary for the Advisory Commission to carry
out its duties under this title.
(d) CONTRACT AUTHORITY.—The Advisory Commis-
sion may, subject to appropriations, contract with and
compensate Government and private agencies or persons
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for property and services used to carry out its duties under
this title.
SEC. 103. DEFINITIONS.
In this title:
(1) ADVISORY COMMISSION.—The term ‘‘Advi-
sory Commission’’ means the Advisory Commission
on Intergovernmental Relations.
(2) FEDERAL MANDATE.—The term ‘‘Federal
mandate’’ means any provision in statute or regula-
tion or any Federal court ruling that imposes an en-
forceable duty upon States, local governments, or
tribal governments including a condition of Federal
assistance or a duty arising from participation in a
voluntary Federal program.
TITLE II—REGULATORY ACCOUNTABILITY
AND REFORM
SEC. 201. REGULATORY PROCESS.
(a) IN GENERAL.—Each agency shall, to the extent
permitted by subchapter II of chapter 5 of title 5, United
States Code—
(1) assess the effects of Federal regulations on
States, local governments, tribal governments, and
the private sector (other than to the extent that such
regulations incorporate requirements specifically set
forth in legislation), including specifically the avail-
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ability of resources to carry out any Federal man-
dates in those regulations; and
(2) seek to minimize those burdens that unique-
ly or significantly affect such governmental entities
or the private sector, consistent with achieving statu-
tory and regulatory objectives.
(b) STATE, LOCAL GOVERNMENT, AND TRIBAL GOV-
ERNMENT INPUT.—Each agency shall develop an effective
process to permit elected officials (or their designated rep-
resentatives) of States, local governments, and tribal gov-
ernments to provide meaningful and timely input in the
development of regulatory proposals containing significant
Federal intergovernmental mandates.
(c) AGENCY PLAN.—Before establishing any regu-
latory requirements that might significantly or uniquely
affect small governments, an agency shall have developed
a plan under which the agency shall—
(1) provide notice of the contemplated require-
ments to potentially affected small governments, if
any;
(2) enable officials of affected small govern-
ments to provide input pursuant to subsection (b);
and
(3) inform, educate, and advise small govern-
ments on compliance with the requirements.
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(d) LEAST BURDENSOME OPTION OR EXPLANATION
REQUIRED.—An agency may not issue a rule that con-
tains a Federal mandate if the rulemaking record for the
rule indicates that there are 2 or more methods that could
be used to accomplish the objective of the rule, unless—
(1) the Federal mandate is the least costly
method, or has the least burdensome effect, for—
(A) States, local governments, and tribal
governments, in the case of a rule containing a
Federal intergovernmental mandate, and
(B) the private sector, in the case of a rule
containing a Federal private sector mandate; or
(2) the agency publishes with the final rule an
explanation of why the more costly or burdensome
method of the Federal mandate was adopted.
SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REG-
ULATORY ACTIONS.
(a) IN GENERAL.—Before promulgating any final
rule that includes any Federal mandate that may result
in the expenditure by States, local governments, or tribal
governments, in the aggregate, or the private sector of at
least $100,000,000 (adjusted annually for inflation) in
any 1 year, and before promulgating any general notice
of proposed rulemaking that is likely to result in promul-
gation of any such rule, the agency shall prepare a written
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(4) the effect of Federal private sector man-
dates on the national economy, including the effect
on productivity, economic growth, full employment,
creation of productive jobs, worker benefits and pen-
sions, and international competitiveness of United
States goods and services;
(5) a description of the extent of the agency’s
prior consultation with elected representatives (or
their designated representatives) of the affected
States, local governments, and tribal governments,
and designated representatives of the private sector;
(6) a summary of the comments and concerns
that were presented by States, local governments, or
tribal governments and the private sector either oral-
ly or in writing to the agency;
(7) a summary of the agency’s evaluation of
those comments and concerns; and
(8) the agency’s position supporting the need to
issue the regulation containing the Federal man-
dates (considering, among other things, the extent to
which costs may or may not be paid with funds pro-
vided by the Federal Government).
(b) PROMULGATION.—In promulgating a general no-
tice of proposed rulemaking or a final rule for which a
statement under subsection (a) is required, the agency
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shall include in the promulgation a summary of the infor-
mation contained in the statement.
(c) PREPARATION IN CONJUNCTION WITH OTHER
STATEMENT.—Any agency may prepare any statement re-
quired by subsection (a) in conjunction with or as part
of any other statement or analysis, if the statement or
analysis satisfies the provisions of subsection (a).
SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET
OFFICE.
The Director of the Office of Management and Budg-
et shall—
(1) collect from agencies the statements pre-
pared under section 202; and
(2) periodically forward copies of them to the
Director of the Congressional Budget Office on a
reasonably timely basis after promulgation of the
general notice of proposed rulemaking or of the final
rule for which the statement was prepared.
SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXI-
BILITY.
(a) IN GENERAL.—The Director of the Office of
Management and Budget, in consultation with Federal
agencies, shall establish pilot programs in at least 2 agen-
cies to test innovative and more flexible regulatory ap-
proaches that—
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(1) reduce reporting and compliance burdens on
small governments; and
(2) meet overall statutory goals and objectives.
(b) PROGRAM FOCUS.—The pilot programs shall
focus on rules in effect or proposed rules or on a combina-
tion thereof.
SEC. 205. ANNUAL REPORT TO CONGRESS REGARDING FED-
ERAL COURT RULINGS.
Not later than 4 months after the date of enactment
of this Act, and no later than March 15 of each year there-
after, the Advisory Commission on Intergovernmental Re-
lations shall submit to the Congress, including each of the
Committee on Government Reform and Oversight of the
House of Representatives and the Committee on Govern-
mental Affairs of the Senate, and to the President a report
describing Federal court rulings in the preceding calendar
year which imposed an enforceable duty on 1 or more
States, local governments, or tribal governments.
SEC. 206. JUDICIAL REVIEW.
(a) REVIEW OF AGENCY ACTIONS SUBJECT TO RE-
VIEW UNDER OTHER FEDERAL LAW.—If an agency ac-
tion that is subject to section 201 or 202 is subject to
judicial review under any other Federal law (other than
chapter 7 of title 5, United States Code)—
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(1) any court of the United States having juris-
diction to review the action under the other law shall
have jurisdiction to review the action under sections
201 and 202; and
(2) in any proceeding under paragraph (1), any
issue relating exhaustion of remedies, the time and
manner for seeking review, venue, or the availability
of a stay or preliminary injunctive relief pending re-
view shall be determined under the other law.
(b) LIMITATION ON PRELIMINARY INJUNCTIVE RE-
LIEF.—The second sentence of section 705 of title 5, Unit-
ed States Code (relating to preliminary relief pending re-
view), shall not apply with respect to review under sub-
section (a)(1) of an agency action, unless process author-
ized by that sentence is not authorized by the other law
under which the action is reviewed.
SEC. 207. ANNUAL STATEMENTS TO CONGRESS ON AGENCY
COMPLIANCE 
WITH 
REQUIREMENTS 
OF
TITLE.
Not later than one year after the effective date of
title III and annually thereafter, the Director of the Office
of Management and Budget shall submit to Congress, in-
cluding the Committee on Government Reform and Over-
sight of the House of Representatives and the Committee
on Governmental Affairs of the Senate, written statements
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detailing the compliance with the requirements of sections
201 and 202 by each agency during the period reported
on.
TITLE III—LEGISLATIVE
ACCOUNTABILITY AND REFORM
SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND
REFORM.
Title IV of the Congressional Budget Act of 1974 is
amended by—
(1) inserting before section 401 the following:
‘‘PART A—GENERAL PROVISIONS’’; and
(2) adding at the end the following new part:
‘‘PART B—FEDERAL MANDATES
‘‘SEC. 421. DEFINITIONS.
‘‘For purposes of this part:
‘‘(1) AGENCY.—The term ‘agency’ has the
meaning stated in section 551(1) of title 5, United
States Code, but does not include independent regu-
latory agencies, as defined by section 3502(10) of
title 44, United States Code.
‘‘(2) DIRECTOR.—The term ‘Director’ means
the Director of the Congressional Budget Office.
‘‘(3) FEDERAL
FINANCIAL
ASSISTANCE.—The
term ‘Federal financial assistance’ means the
amount of budget authority for any Federal grant
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assistance or any Federal program providing loan
guarantees or direct loans.
‘‘(4) FEDERAL
INTERGOVERNMENTAL
MAN-
DATE.—The term ‘Federal intergovernmental man-
date’ means—
‘‘(A) any provision in legislation, statute,
or regulation that—
‘‘(i) would impose an enforceable duty
upon States, local governments, or tribal
governments, except—
‘‘(I) a condition of Federal as-
sistance; or
‘‘(II) a duty arising from partici-
pation in a voluntary Federal pro-
gram, except as provided in subpara-
graph (B); or
‘‘(ii) would reduce or eliminate the
amount of authorization of appropriations
for Federal financial assistance that would
be provided to States, local governments,
or tribal governments for the purpose of
complying with any such previously im-
posed duty unless such duty is reduced or
eliminated by a corresponding amount; or
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‘‘(B) any provision in legislation, statute,
or regulation that relates to a then-existing
Federal program under which $500,000,000 or
more is provided annually to States, local gov-
ernments, and tribal governments under entitle-
ment authority, if—
‘‘(i)(I) the provision would increase
the stringency of conditions of assistance
to States, local governments, or tribal gov-
ernments under the program; or
‘‘(II) would place caps upon, or other-
wise decrease, the Federal Government’s
responsibility to provide funding to States,
local governments, or tribal governments
under the program; and
‘‘(ii) the States, local governments, or
tribal governments that participate in the
Federal program lack authority under that
program to amend their financial or pro-
grammatic responsibilities to continue pro-
viding required services that are affected
by the legislation, statute, or regulation.
‘‘(5) FEDERAL PRIVATE SECTOR MANDATE.—
The term ‘Federal private sector mandate’ means
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any provision in legislation, statute, or regulation
that—
‘‘(A) would impose an enforceable duty on
the private sector except—
‘‘(i) a condition of Federal assistance;
or
‘‘(ii) a duty arising from participation
in a voluntary Federal program; or
‘‘(B) would reduce or eliminate the amount
of authorization of appropriations for Federal
financial assistance that will be provided to the
private sector for the purpose of ensuring com-
pliance with such duty.
‘‘(6) FEDERAL MANDATE.—The term ‘Federal
mandate’ means a Federal intergovernmental man-
date or a Federal private sector mandate, as defined
in paragraphs (4) and (5).
‘‘(7) FEDERAL MANDATE DIRECT COSTS.—
‘‘(A) FEDERAL INTERGOVERNMENTAL DI-
RECT COSTS.—In the case of a Federal inter-
governmental mandate, the term ‘direct costs’
means the aggregate estimated amounts that all
States, local governments, and tribal govern-
ments would be required to spend or would be
required to forgo in revenues in order to comply
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with the Federal intergovernmental mandate,
or, in the case of a provision referred to in
paragraph (4)(A)(ii), the amount of Federal fi-
nancial assistance eliminated or reduced.
‘‘(B) PRIVATE SECTOR DIRECT COSTS.—In
the case of a Federal private sector mandate,
the term ‘direct costs’ means the aggregate esti-
mated amounts that the private sector would be
required to spend in order to comply with a
Federal private sector mandate.
‘‘(C) EXCLUSION FROM DIRECT COSTS.—
The term ‘direct costs’ does not include—
‘‘(i) estimated amounts that the
States, local governments, and tribal gov-
ernments (in the case of a Federal inter-
governmental mandate), or the private sec-
tor (in the case of a Federal private sector
mandate), would spend—
‘‘(I) to comply with or carry out
all applicable Federal, State, local,
and tribal laws and regulations in ef-
fect at the time of the adoption of a
Federal mandate for the same activity
as is affected by that Federal man-
date; or
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‘‘(II) to comply with or carry out
State, local governmental, and tribal
governmental programs, or private-
sector business or other activities in
effect at the time of the adoption of a
Federal mandate for the same activity
as is affected by that mandate; or
‘‘(ii) expenditures to the extent that
they will be offset by any direct savings to
be enjoyed by the States, local govern-
ments, and tribal governments, or by the
private sector, as a result of—
‘‘(I) their compliance with the
Federal mandate; or
‘‘(II) other changes in Federal
law or regulation that are enacted or
adopted in the same bill or joint reso-
lution or proposed or final Federal
regulation and that govern the same
activity as is affected by the Federal
mandate.
‘‘(D) DETERMINATION OF COSTS.—Direct
costs shall be determined based on the assump-
tion that States, local governments, tribal gov-
ernments, and the private sector will take all
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reasonable steps necessary to mitigate the costs
resulting from the Federal mandate, and will
comply with applicable standards of practice
and conduct established by recognized profes-
sional or trade associations. Reasonable steps to
mitigate the costs shall not include increases in
State, local, or tribal taxes or fees.
‘‘(8) LOCAL
GOVERNMENT.—The term ‘local
government’ has the same meaning as in section
6501(6) of title 31, United States Code.
‘‘(9) PRIVATE SECTOR.—The term ‘private sec-
tor’ means individuals, partnerships, associations,
corporations, business trusts, or legal representa-
tives, organized groups of individuals, and edu-
cational and other nonprofit institutions.
‘‘(10) REGULATION.—The term ‘regulation’ or
‘rule’ has the meaning of ‘rule’ as defined in section
601(2) of title 5, United States Code.
‘‘(11) STATE.—The term ‘State’ has the same
meaning as in section 6501(9) of title 31, United
States Code.
‘‘(12) SIGNIFICANT
EMPLOYMENT
IMPACT.—
The term ‘significant employment impact’ means an
estimated net aggregate loss of 10,000 or more jobs.
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‘‘SEC. 422. LIMITATION ON APPLICATION.
‘‘This part shall not apply to any provision in a bill,
joint resolution, motion, amendment, or conference report
before Congress that—
‘‘(1) enforces constitutional rights of individ-
uals;
‘‘(2) establishes or enforces any statutory rights
that prohibit discrimination on the basis of age,
race, religion, gender, national origin, or handi-
capped or disability status;
‘‘(3) requires compliance with accounting and
auditing procedures with respect to grants or other
money or property provided by the Federal Govern-
ment;
‘‘(4) provides for emergency assistance or relief
at the request of any State, local government, or
tribal government or any official of such a govern-
ment;
‘‘(5) is necessary for the national security or
the ratification or implementation of international
treaty obligations;
‘‘(6) the President designates as emergency leg-
islation and that the Congress so designates in stat-
ute; or
‘‘(7) pertains to Social Security.
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‘‘SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.
‘‘(a) SUBMISSION OF BILLS TO THE DIRECTOR.—
When a committee of authorization of the House of Rep-
resentatives or the Senate orders a bill or joint resolution
of a public character reported, the committee shall
promptly provide the text of the bill or joint resolution
to the Director and shall identify to the Director any Fed-
eral mandate contained in the bill or resolution.
‘‘(b) COMMITTEE REPORT.—
‘‘(1) INFORMATION REGARDING FEDERAL MAN-
DATES.—When a committee of authorization of the
House of Representatives or the Senate reports a
bill or joint resolution of a public character that in-
cludes any Federal mandate, the report of the com-
mittee accompanying the bill or joint resolution shall
contain the information required by paragraph (2)
and, in the case of a Federal intergovernmental
mandate, paragraph (3).
‘‘(2) REPORTS ON FEDERAL MANDATES.—Each
report referred to in paragraph (1) shall contain—
‘‘(A) an identification and description of
each Federal mandate in the bill or joint resolu-
tion, including the statement, if available, from
the Director pursuant to section 424(a);
‘‘(B) a qualitative assessment, and if prac-
ticable, a quantitative assessment of costs and
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benefits anticipated from the Federal mandate
(including the effects on health and safety and
protection of the natural environment); and
‘‘(C) a statement of—
‘‘(i) the degree to which the Federal
mandate affects each of the public and pri-
vate sectors, including a description of the
actions, if any, taken by the committee to
avoid any adverse impact on the private
sector or on the competitive balance be-
tween the public sector and the private sec-
tor; and
‘‘(ii) in the case of a Federal mandate
that is a Federal intergovernmental man-
date, the extent to which limiting or elimi-
nating the Federal intergovernmental man-
date or Federal payment of direct costs of
the Federal intergovernmental mandate (if
applicable) would affect the competitive
balance between States, local governments,
or tribal governments and the private sec-
tor.
‘‘(3) INTERGOVERNMENTAL MANDATES.—If any
of the Federal mandates in the bill or joint resolu-
tion are Federal intergovernmental mandates, the
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report referred to in paragraph (1) shall also con-
tain—
‘‘(A)(i) a statement of the amount, if any,
of increase or decrease in authorization of ap-
propriations under existing Federal financial
assistance programs or for new Federal finan-
cial assistance, provided by the bill or joint res-
olution and usable for activities of States, local
governments, or tribal governments subject to
Federal intergovernmental mandates; and
‘‘(ii) a statement of whether the committee
intends that the Federal intergovernmental
mandates be partly or entirely unfunded, and,
if so, the reasons for that intention; and
‘‘(B) a statement of any existing sources of
Federal financial assistance in addition to those
identified in subparagraph (A) that may assist
States, local governments, and tribal govern-
ments in paying the direct costs of the Federal
intergovernmental mandates.
‘‘(4) INFORMATION REGARDING PREEMPTION.—
When a committee of authorization of the House of
Representatives or the Senate reports a bill or joint
resolution of a public character, the committee re-
port accompanying the bill or joint resolution shall
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contain, if relevant to the bill or joint resolution, an
explicit statement on whether the bill or joint resolu-
tion, in whole or in part, is intended to preempt any
State, local, or tribal law, and if so, an explanation
of the reasons for such intention.
‘‘(c) PUBLICATION OF STATEMENT FROM THE DI-
RECTOR.—
‘‘(1) IN GENERAL.—Upon receiving a statement
(including any supplemental statement) from the Di-
rector pursuant to section 424(a), a committee of
the House of Representatives or the Senate shall
publish the statement in the committee report ac-
companying the bill or joint resolution to which the
statement relates if the statement is available to be
included in the printed report.
‘‘(2) OTHER PUBLICATION OF STATEMENT OF
DIRECTOR.—If the statement is not published in the
report, or if the bill or joint resolution to which the
statement relates is expected to be considered by the
House of Representatives or the Senate before the
report is published, the committee shall cause the
statement, or a summary thereof, to be published in
the Congressional Record in advance of floor consid-
eration of the bill or joint resolution.
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‘‘SEC. 424. DUTIES OF THE DIRECTOR.
‘‘(a) STATEMENTS ON BILLS AND JOINT RESOLU-
TIONS OTHER THAN APPROPRIATIONS BILLS AND JOINT
RESOLUTIONS.—
‘‘(1) FEDERAL
INTERGOVERNMENTAL
MAN-
DATES IN REPORTED BILLS AND RESOLUTIONS.—
For each bill or joint resolution of a public character
reported by any committee of authorization of the
House of Representatives or the Senate, the Director
shall prepare and submit to the committee a state-
ment as follows:
‘‘(A) If the Director estimates that the di-
rect cost of all Federal intergovernmental man-
dates in the bill or joint resolution will equal or
exceed $50,000,000 (adjusted annually for in-
flation) in the fiscal year in which such a Fed-
eral intergovernmental mandate (or in any nec-
essary implementing regulation) would first be
effective or in any of the 4 fiscal years following
such year, the Director shall so state, specify
the estimate, and briefly explain the basis of
the estimate.
‘‘(B) The estimate required by subpara-
graph (A) shall include estimates (and brief ex-
planations of the basis of the estimates) of—
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‘‘(i) the total amount of direct cost of
complying with the Federal intergovern-
mental mandates in the bill or joint resolu-
tion; and
‘‘(ii) the amount, if any, of increase in
authorization of appropriations or budget
authority or entitlement authority under
existing Federal financial assistance pro-
grams, or of authorization of appropria-
tions for new Federal financial assistance,
provided by the bill or joint resolution and
usable by States, local governments, or
tribal governments for activities subject to
the Federal intergovernmental mandates.
‘‘(2) FEDERAL PRIVATE SECTOR MANDATES IN
REPORTED
BILLS
AND
JOINT
RESOLUTIONS.—For
each bill or joint resolution of a public character re-
ported by any committee of authorization of the
House of Representatives or the Senate, the Director
shall prepare and submit to the committee a state-
ment as follows:
‘‘(A) If the Director estimates that the di-
rect cost of all Federal private sector mandates
in the bill or joint resolution will equal or ex-
ceed $50,000,000 (adjusted annually for infla-
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tion) in the fiscal year in which any Federal
private sector mandate in the bill or joint reso-
lution (or in any necessary implementing regu-
lation) would first be effective or in any of the
4 fiscal years following such fiscal year, the Di-
rector shall so state, specify the estimate, and
briefly explain the basis of the estimate.
‘‘(B) The estimate required by subpara-
graph (A) shall include estimates (and brief ex-
planations of the basis of the estimates) of—
‘‘(i) the total amount of direct costs of
complying with the Federal private sector
mandates in the bill or joint resolution;
and
‘‘(ii) the amount, if any, of increase in
authorization of appropriations under ex-
isting Federal financial assistance pro-
grams, or of authorization of appropria-
tions for new Federal financial assistance,
provided by the bill or joint resolution usa-
ble by the private sector for the activities
subject to the Federal private sector man-
dates.
‘‘(C) If the Director determines that it is
not feasible to make a reasonable estimate that
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would be required under subparagraphs (A) and
(B), the Director shall not make the estimate,
but shall report in the statement that the rea-
sonable estimate cannot be made and shall in-
clude the reasons for that determination in the
statement.
‘‘(3) LEGISLATION
FALLING
BELOW
THE
DI-
RECT
COSTS
THRESHOLDS.—If the Director esti-
mates that the direct costs of a Federal mandate
will not equal or exceed the threshold specified in
paragraph (1)(A) or (2)(A), the Director shall so
state and shall briefly explain the basis of the esti-
mate.
‘‘(4) AMENDED
BILLS
AND
JOINT
RESOLU-
TIONS; CONFERENCE REPORTS.—If the Director has
prepared the statement pursuant to subsection (a)
for a bill or joint resolution, and if that bill or joint
resolution is reported or passed in an amended form
(including if passed by one House as an amendment
in the nature of a substitute for the text of a bill
or joint resolution from the other House) or is re-
ported by a committee of conference in an amended
form, the committee of conference shall ensure, to
the greatest extent practicable, that the Director
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shall prepare a supplemental statement for the bill
or joint resolution in that amended form.
‘‘(b) ASSISTANCE TO COMMITTEES AND STUDIES.—
‘‘(1) IN GENERAL.—At the request of any com-
mittee of the House of Representatives or of the
Senate, the Director shall, to the extent practicable,
consult with and assist such committee in analyzing
the budgetary or financial impact of any proposed
legislation that may have—
‘‘(A) a significant budgetary impact on
State, local, or tribal governments;
‘‘(B) a significant financial impact on the
private sector; or
‘‘(C) significant employment impact on the
private sector.
‘‘(2) CONTINUING
STUDIES.—The Director
shall conduct continuing studies to enhance compari-
sons of budget outlays, credit authority, and tax ex-
penditures.
‘‘(3) FEDERAL MANDATE STUDIES.—
‘‘(A) At the request of any committee of
the House of Representatives or the Senate, the
Director shall, to the extent practicable, con-
duct a study of a legislative proposal containing
a Federal mandate.
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‘‘(B) In conducting a study under subpara-
graph (A), the Director shall—
‘‘(i) solicit and consider information
or comments from elected officials (includ-
ing their designated representatives) of
States, local governments, tribal govern-
ments, designated representatives of the
private sector, and such other persons as
may provide helpful information or com-
ments;
‘‘(ii) consider establishing advisory
panels of elected officials (including their
designated representatives) of States, local
governments, 
tribal 
governments, 
des-
ignated representatives of the private sec-
tor, and other persons if the Director de-
termines, in the Director’s discretion, that
such advisory panels would be helpful in
performing the Director’s responsibilities
under this section; and
‘‘(iii) include estimates, if and to the
extent that the Director determines that
accurate estimates are reasonably feasible,
of—
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‘‘(I) the future direct cost of the
Federal mandates concerned to the
extent that they significantly differ
from or extend beyond the 5-year pe-
riod after the mandate is first effec-
tive; and
‘‘(II) any disproportionate budg-
etary effects of the Federal mandates
concerned upon particular industries
or sectors of the economy, States, re-
gions, and urban, or rural or other
types of communities, as appropriate.
‘‘(C) In conducting a study on private sec-
tor mandates under subparagraph (A), the Di-
rector shall provide estimates, if and to the ex-
tent that the Director determines that such es-
timates are reasonably feasible, of—
‘‘(i) future costs of Federal private
sector mandates to the extent that such
mandates differ significantly from or ex-
tend beyond the 5-year period referred to
in subparagraph (B)(iii)(I);
‘‘(ii) any disproportionate financial ef-
fects of Federal private sector mandates
and of any Federal financial assistance in
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the bill or joint resolution upon any par-
ticular industries or sectors of the econ-
omy, States, regions, and urban or rural or
other types of communities; and
‘‘(iii) the effect of Federal private sec-
tor mandates in the bill or joint resolution
on the national economy, including the ef-
fect on productivity, economic growth, full
employment, creation of productive jobs,
and international competitiveness of Unit-
ed States goods and services.
‘‘(c) VIEWS OF COMMITTEES.—Any committee of the
House of Representatives or the Senate which anticipates
that the committee will consider any proposed legislation
establishing, amending, or reauthorizing any Federal pro-
gram likely to have a significant budgetary impact on the
States, local governments, or tribal governments, or likely
to have a significant financial impact on the private sector,
including any legislative proposal submitted by the execu-
tive branch likely to have such a budgetary or financial
impact, shall provide its views and estimates on such pro-
posal to the Committee on the Budget of its House.
‘‘(d) ESTIMATES.—If the Director determines that it
is not feasible to make a reasonable estimate that would
be required for a statement under subsection (a)(1) for
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a bill or joint resolution, the Director shall not make such
a statement and shall inform the committees involved that
such an estimate cannot be made and the reasons for that
determination. The bill or joint resolution for which such
statement was to be made shall be subject to a point of
order under section 425(a)(1).
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to the Congressional
Budget Office to carry out this part $4,500,000 for each
of fiscal years 1996 through 2002.
‘‘SEC. 425. POINT OF ORDER.
‘‘(a) IN GENERAL.—It shall not be in order in the
House of Representatives or the Senate to consider—
‘‘(1) any bill or joint resolution that is reported
by a committee unless the committee has published
the statement of the Director pursuant to section
424(a) prior to such consideration, except that this
paragraph shall not apply to any supplemental state-
ment prepared by the Director under section
424(a)(4); or
‘‘(2) any bill, joint resolution, amendment, mo-
tion, or conference report that contains a Federal
intergovernmental mandate having direct costs that
exceed 
the 
threshold 
specified 
in 
section
424(a)(1)(A), or that would cause the direct costs of
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any other Federal intergovernmental mandate to ex-
ceed the threshold specified in section 424(a)(1)(A),
unless—
‘‘(A) the bill, joint resolution, amendment,
motion, or conference report provides new budg-
et authority or new entitlement authority in the
House of Representatives or direct spending au-
thority in the Senate for each fiscal year for the
Federal intergovernmental mandates included
in the bill, joint resolution, amendment, motion,
or conference report in an amount that equals
or exceeds the estimated direct costs of such
mandate; or
‘‘(B) the bill, joint resolution, amendment,
motion, or conference report provides an in-
crease in receipts or a decrease in new budget
authority or new entitlement authority in the
House of Representatives or direct spending au-
thority in the Senate and an increase in new
budget authority or new entitlement authority
in the House of Representatives or an increase
in direct spending authority for each fiscal year
for the Federal intergovernmental mandates in-
cluded in the bill, joint resolution, amendment,
motion, or conference report in an amount that
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equals or exceeds the estimated direct costs of
such mandate; or
‘‘(C) the bill, joint resolution, amendment,
motion, or conference report—
‘‘(i) provides that—
‘‘(I) such mandate shall be effec-
tive for any fiscal year only if all di-
rect costs of such mandate in the fis-
cal year are provided in appropria-
tions Acts, and
‘‘(II) in the case of such a man-
date contained in the bill, joint resolu-
tion, amendment, motion, or con-
ference report, the mandate is re-
pealed effective on the first day of any
fiscal year for which all direct costs of
such mandate are not provided in ap-
propriations Acts; or
‘‘(ii) requires a Federal agency to re-
duce programmatic and financial respon-
sibilities of State, local, and tribal govern-
ments for meeting the objectives of the
mandate such that the estimated direct
costs of the mandate to such governments
do not exceed the amount of Federal fund-
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ing provided to those governments to carry
out the mandate in the form of appropria-
tions or new budget authority or new enti-
tlement authority in the House of Rep-
resentatives or direct spending authority in
the Senate, and establishes criteria and
procedures for that reduction.
‘‘(b) LIMITATION ON APPLICATION TO APPROPRIA-
TIONS BILLS.—Subsection (a) shall not apply to a bill that
is reported by the Committee on Appropriations or an
amendment thereto.
‘‘(c) DETERMINATION OF DIRECT COSTS BASED ON
ESTIMATES BY BUDGET COMMITTEES.—For the purposes
of this section, the amount of direct costs of a Federal
mandate for a fiscal year shall be determined based on
estimates made by the Committee on the Budget, in con-
sultation with the Director, of the House of Representa-
tives or the Senate, as the case may be.
‘‘(d) LIMITATION ON APPLICATION OF SUBSECTION
(a)(2).—Subsection (a)(2) shall not apply to any bill, joint
resolution, amendment, or conference report that reau-
thorizes appropriations for carrying out, or that amends,
any statute if enactment of the bill, joint resolution,
amendment, or conference report—
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‘‘(1) would not result in a net increase in the
aggregate amount of direct costs of Federal inter-
governmental mandates; and
‘‘(2)(A) would not result in a net reduction or
elimination of authorizations of appropriations for
Federal financial assistance that would be provided
to State, local governments, or tribal governments
for use to comply with any Federal intergovern-
mental mandate; or
‘‘(B) in the case of any net reduction or elimi-
nation of authorizations of appropriations for such
Federal financial assistance that would result from
such enactment, would reduce the duties imposed by
the Federal intergovernmental mandate by a cor-
responding amount.
‘‘SEC. 426. ENFORCEMENT IN THE HOUSE OF REPRESENT-
ATIVES.
‘‘It shall not be in order in the House of Representa-
tives to consider a rule or order that waives the application
of section 425(a).
‘‘SEC. 427. DISPOSITION OF POINTS OF ORDER.
‘‘(a) THRESHOLD BURDEN.—In order to be cog-
nizable by the Chair, a point of order under section 425(a)
or 426 must specify the precise language on which it is
premised.
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‘‘(b) QUESTION OF CONSIDERATION.—As disposition
of points of order under section 425(a) or 426, the Chair
shall put the question of consideration with respect to the
proposition that is the subject of the points of order.
‘‘(c) DEBATE AND INTERVENING MOTIONS.—A ques-
tion of consideration under this section shall be debatable
for 10 minutes by each Member initiating a point of order
and for 10 minutes by an opponent on each point of order,
but shall otherwise be decided without intervening motion
except one that the House adjourn or that the Committee
of the Whole rise, as the case may be.
‘‘(d) EFFECT ON AMENDMENT IN ORDER AS ORIGI-
NAL TEXT.—The disposition of the question of consider-
ation under this section with respect to a bill or joint reso-
lution shall be considered also to determine the question
of consideration under this section with respect to an
amendment made in order as original text.’’.
SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTA-
TIVES.
(a) MOTIONS TO STRIKE IN THE COMMITTEE OF
THE WHOLE.—Clause 5 of rule XXIII of the Rules of the
House of Representatives is amended by adding at the end
the following:
‘‘(c) In the consideration of any measure for amend-
ment in the Committee of the Whole containing any Fed-
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eral mandate the direct costs of which exceed the threshold
in section 424(a)(1)(A) of the Unfunded Mandate Reform
Act of 1995, it shall always be in order, unless specifically
waived by terms of a rule governing consideration of that
measure, to move to strike such Federal mandate from
the portion of the bill then open to amendment.’’.
(b) COMMITTEE ON RULES REPORTS ON WAIVED
POINTS OF ORDER.—The Committee on Rules shall in-
clude in the report required by clause 1(d) of rule XI (re-
lating to its activities during the Congress) of the Rules
of the House of Representatives a separate item identify-
ing all waivers of points of order relating to Federal man-
dates, listed by bill or joint resolution number and the sub-
ject matter of that measure.
SEC. 303. EXERCISE OF RULEMAKING POWERS.
The provisions of this title (except section 305) are
enacted by Congress—
(1) as an exercise of the rulemaking powers of
the House of Representatives and the Senate, and as
such they shall be considered as part of the rules of
the House of Representatives and the Senate, re-
spectively, and such rules shall supersede other rules
only to the extent that they are inconsistent there-
with; and
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‘‘ANALYSIS BY CONGRESSIONAL BUDGET OFFICE
‘‘SEC. 403. The Director of the Congressional Budget
Office shall, to the extent practicable, prepare for each bill
or resolution of a public character reported by any com-
mittee of the House of Representatives or the Senate (ex-
cept the Committee on Appropriations of each House),
and submit to such committee—
‘‘(1) an estimate of the costs which would be in-
curred in carrying out 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 for each such estimate; and
‘‘(2) a comparison of the estimate of costs de-
scribed in paragraph (1) with any available estimate
of costs made by such committee or by any Federal
agency.
The estimate and comparison so submitted shall be in-
cluded in the report accompanying such bill or resolution
if timely submitted to such committee before such report
is filed.’’.
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SEC. 306. EFFECTIVE DATE.
This title shall take effect on October 1, 1995.
Passed the House of Representatives February 1,
1995.
Attest:
Clerk.
104TH CONGRESS
1ST SESSION
H. R. 5
AN ACT
To curb the practice of imposing unfunded Federal
mandates on States and local governments, to
ensure that the Federal Government pays the
costs incurred by those governments in complying
with certain requirements under Federal statutes
and regulations, and to provide information on
the cost of Federal mandates on the private sec-
tor, and for other purposes.