for such fiscal year to reimburse such governments for the
total amount of additional direct costs that will be in-
curred by such governments in complying with such regu-
lation during such fiscal year.
(b) For purposes of this section, the total amount of
additional direct costs that will be incurred by State gov-
ernments and local governments in complying with an
intergovernmental regulation in any fiscal year shall be the
total amount of such costs for such regulation estimated
by the Director of the Congressional Budget Office for
such fiscal year in the report required under section 202
for such fiscal year.
REPORT BY THE DIRECTOR OF THE CONGRESSIONAL
BUDGET OFFICE
SEC. 202. (a) For each fiscal year in which an inter-
governmental regulation promulgated pursuant to a sig-
nificant law will be in effect, the Director of the Congres-
sional Budget Office shall prepare and transmit to the
President and the Congress a report specifying, for such
fiscal year and the fiscal year succeeding such fiscal year,
an estimate of the total amount of additional direct costs
that will be incurred by State governments and local gov-
ernments in complying with such regulation in each such
fiscal year.
(b) In preparing each report required by subsection
(a), the Director of the Congressional Budget Office shall
consider the estimate of additional direct costs for a fiscal
year resulting from compliance with an intergovernmental
regulation which are specified in the report submitted by
the President under title I during the fiscal year preceding
such fiscal year.
(c) The Director of the Congressional Budget Office
shall transmit each report required by subsection (a) for
a fiscal year to the President and the Congress by Septem-
ber 1 of the fiscal year preceding such fiscal year.
IMPLEMENTATION
SEC. 203. For each fiscal year in which an intergov-
ernmental regulation promulgated pursuant to a signifi-
cant law will be in effect, the chairman of the committees
of the Senate and of the House of Representatives having
legislative jurisdiction over such significant law shall pro-
pose, to an appropriate bill or resolution providing funds
for such fiscal year, an amendment containing provisions
to appropriate funds to reimburse State governments and
local governments for the additional direct costs incurred
in complying with such regulation. The amount of funds
proposed to be appropriated by such amendment shall be
equal to or in excess of the amount described in section
201(a).
PROCEDURES FOR REIMBURSEMENTS TO STATE AND
LOCAL GOVERNMENTS
SEC. 204. (a)(1) The head of each Federal agency
which administers an intergovernmental regulation pro-
mulgated pursuant to a significant law shall pay to each
State government in each fiscal year the amount deter-
mined pursuant to this section to reimburse the State gov-
ernment and local governments in the State for the addi-
tional direct costs incurred by such governments in com-
plying with such regulation in such fiscal year.
(2) A State government which receives payments
under this section for reimbursement for additional direct
costs incurred in complying with an intergovernmental
regulation in any fiscal year shall pay to each local govern-
ment in the State the amount determined pursuant to this
section to reimburse such local government for the addi-
tional direct costs incurred by such local government in
complying with such regulation in such fiscal year.
(b) The total amount to be paid to a State to reim-
burse the government of the State and local governments
in the State for additional direct costs incurred by such
governments in complying with an intergovernmental reg-
ulation in any fiscal year shall be an amount which bears
the same ratio to the total amount for reimbursement of
additional direct costs for all State governments and local
governments described in section 201(a) with respect to
such regulation for such fiscal year as the total amount
of additional direct costs with respect to such regulation
which is specified in the report submitted by the President
under title I for such fiscal year for such State government
and local governments in such State for such fiscal year
bears to the sum of the total amounts of additional direct
costs with respect to such regulation which are specified
in such report for all State governments and all local gov-
ernments for such fiscal year.
(c)(1) The total amount to be paid by a State govern-
ment to local governments in such State to reimburse such
governments for additional direct costs incurred by such
governments in complying with an intergovernmental reg-
ulation in any fiscal year shall be the amount which is
equal to the product of the amount paid to the State under
subsection (b) for such fiscal year multiplied by the ratio
determined by the President for such State with respect
to such regulation for such fiscal year pursuant to section
101(b)(2)(B).
(2)(A) A State government which receives payments
under this section to reimburse local governments in the
State for the additional direct costs incurred by such gov-
ernments in complying with an intergovernmental regula-