I
103D CONGRESS
1ST SESSION
H. R. 3421
To amend the Congressional Budget Act of 1974 to establish a Federal
mandate budget and to impose cost controls on that budget, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 1, 1993
Mr. SMITH of Texas (for himself, Mr. KASICH, Mr. COX, Mr. FRANKS of New
Jersey, Mr. BAKER of California, Mr. BALLENGER, Mr. BLUTE, Mr.
BOEHNER, Mr. BURTON of Indiana, Mr. CRAPO, Mr. DICKEY, Mr. DUN-
CAN, Mr. GALLEGLY, Mr. GREENWOOD, Mr. HANCOCK, Mr. HANSEN, Mr.
KINGSTON, Mr. LIVINGSTON, Mr. MCHUGH, Mr. PACKARD, Mr.
ROHRABACHER, Mr. ROGERS, Mr. ROYCE, Mr. SOLOMON, Mr. TALENT,
Mr. TORKILDSEN, and Mr. ZELIFF) introduced the following bill; which
was referred jointly to the Committees on Government Operations, Rules,
and the Judiciary
A BILL
To amend the Congressional Budget Act of 1974 to establish
a Federal mandate budget and to impose cost controls
on that budget, 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 ‘‘Federal Mandate Re-
duction, Reform, and Budget Act of 1993’’.
SEC. 2. 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 MANDATE 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 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
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
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. 322. 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 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 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 baseline
for the first budget year to which this part applies)
and by 6.5 percent increments for each of the out-
years (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
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
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
fiscal years covered by that allocation until that committee
eliminates its breach.
‘‘SEC. 324. 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. 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 ‘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. 3. 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:
‘‘(29) 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 323 of the Congressional Budget Act of
1974 for the budget year and the outyears.’’
SEC. 4. ESTIMATION AND DISCLOSURE OF COSTS OF FED-
ERAL 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—
(1) by adding at the end of section 603 the fol-
lowing:
‘‘(d) 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.’’;
(2) 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) 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.’’; and
(3) 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’’.
(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
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.
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