I
103D CONGRESS
2D SESSION
H. R. 4771
To strengthen the partnership between the Federal Government and State,
local, and tribal governments, to end the imposition, in the absence
of full consideration by Congress, of Federal mandates on State, local,
and tribal governments without adequate funding, in a manner that
may displace other essential governmental priorities, to better assess
both costs and benefits of Federal legislation and regulations on State,
local, and tribal governments, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 14, 1994
Mr. TOWNS (for himself, Mr. CONYERS, Mr. MORAN, Mr. BARRETT of Wiscon-
sin, and Mr. PAYNE of New Jersey) introduced the following bill; which
was referred jointly to the Committees on Rules and Government Oper-
ations
A BILL
To strengthen the partnership between the Federal Govern-
ment and State, local, and tribal governments, to end
the imposition, in the absence of full consideration by
Congress, of Federal mandates on State, local, and tribal
governments without adequate funding, in a manner that
may displace other essential governmental priorities, to
better assess both costs and benefits of Federal legisla-
tion and regulations on State, local, and tribal govern-
ments, 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 Ac-
countability and Reform Act of 1994’’.
SEC. 2. PURPOSES.
(a) The purposes of this Act are—
(1) to strengthen the partnership between the
Federal Government and States, local governments,
and tribal governments;
(2) to end the imposition, in the absence of full
consideration by Congress, of Federal mandates on
States, local governments, and tribal governments
without adequate Federal funding, in a manner that
may displace other essential governmental priorities;
(3) to assist Congress in its consideration of
proposed legislation establishing or revising Federal
programs containing Federal mandates affecting
States, local governments, and tribal governments
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 House of
Representatives and the Senate before the
House of Representatives or Senate, respec-
tively, votes on proposed legislation;
(4) to promote informed and deliberate deci-
sions by Congress on the appropriateness of Federal
mandates in any particular instances;
(5) to require a point-of-order vote on the con-
sideration in the House of Representatives and the
Senate of legislation containing significant Federal
mandates; and
(6) to improve the quality of Federal regula-
tions affecting States, local governments, and tribal
governments and the process by which such regula-
tions are developed, by—
(A) requiring that Federal agencies consult
with elected and other officials of States, local
governments, and tribal governments when de-
veloping regulations; and
(B) requiring that Federal agencies pre-
pare and consider better estimates of the budg-
etary impact of Federal regulatory mandates
upon States, local governments, and tribal gov-
ernments before adopting such regulations, and
ensuring that small governments are given spe-
cial consideration in that process.
SEC. 3. DEFINITIONS.
For purposes of this Act—
(1) FEDERAL MANDATE DEFINED.—The term
‘‘Federal mandate’’ means—
(A) any provision in a bill or joint resolu-
tion before Congress or in a proposed or final
Federal regulation that—
(i) would impose a duty that is en-
forceable by administrative, civil, or crimi-
nal penalty or by injunction (other than a
condition of Federal assistance or a duty
arising from participation in a voluntary
Federal program, except as stated in sub-
paragraph (B)), upon States, local govern-
ments, or tribal governments, or
(ii) would reduce or eliminate the
amount of authorization of Federal finan-
cial assistance that will be provided to
States, local governments, or tribal govern-
ments for the purpose of complying with
any such duty; or
(B) any provision in a bill or joint resolu-
tion before Congress or in a proposed or final
Federal regulation that relates to a then-exist-
ing Federal program under which $500,000,000
or more is provided annually to States, local
governments, and tribal governments under en-
titlement authority (as that term is defined in
section 3(9) of the Congressional Budget Act of
1974 (2 U.S.C. 622(9))), if—
(i)(I) the bill or joint resolution or
regulation would increase the stringency of
conditions of assistance to States, local
governments, or tribal governments 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 bill or joint resolution or implement-
ing regulation.
(2) DIRECT COSTS DEFINED.—
(A) The term ‘‘direct costs’’ means the ag-
gregate estimated amounts that all States, local
governments, and tribal governments will be re-
quired to spend in order to comply with a Fed-
eral mandate, or, in the case of a bill or joint
resolution referred to in paragraph (1)(A)(ii),
the amount of Federal financial assistance
eliminated or reduced.
(B) Direct cost shall not include amounts
that it is estimated that the States, local gov-
ernments, 
and 
tribal 
governments 
would
spend—
(i) to comply with or carry out all ap-
plicable Federal, State, local, and tribal
laws and regulations adopted before the
adoption of the Federal mandate; or
(ii) to continue to carry out State,
local governmental, and tribal govern-
mental programs established at the time of
adoption of the Federal mandate;
(C) Direct costs shall not include expendi-
tures to the extent that they will be offset by
any direct savings to be enjoyed by the States,
local governments, and tribal governments 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 resolution or pro-
posed or final Federal regulation and that
govern the same activity as is affected by
the Federal mandate.
(D) Direct costs shall be determined on the
assumption that States, local governments, and
tribal governments will take all reasonable steps
necessary to mitigate the costs resulting from
the Federal mandate, and will comply with ap-
plicable standards of practice and conduct es-
tablished by recognized professional or trade as-
sociations.
(3) AMOUNT OF FEDERAL FINANCIAL ASSIST-
ANCE DEFINED.—The amount of ‘‘Federal financial
assistance’’ means—
(A) the amount of budget authority (as de-
fined in section 3(2)(A) of the Congressional
Budget Act of 1974 (2 U.S.C. 622(2)(A))) of
any Federal grant assistance, and
(B) the subsidy amount (as defined as
‘‘cost’’ in section 502(5) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)(a)) of
any Federal program providing loan guarantees
or direct loans.
(4) OTHER DEFINITIONS.—
(A) AGENCY DEFINED.—The term ‘‘agen-
cy’’ has the meaning stated in section 551(1) of
title 5, United States Code, but does not in-
clude independent regulatory agencies, as de-
fined by section 3502(10) of title 44, United
States Code.
(B) DIRECTOR DEFINED.—The term ‘‘Di-
rector’’ means the Director of the Congressional
Budget Office.
(C) LOCAL GOVERNMENT DEFINED.—The
term ‘‘local government’’ has the same meaning
as in section 6501(6) of title 31, United States
Code.
(D) REGULATION
OR
RULE
DEFINED.—
The term ‘‘regulation’’ or ‘‘rule’’ has the mean-
ing of ‘‘rule’’ as defined in section 601(2) of
title 5, United States Code.
(E) SMALL GOVERNMENT DEFINED.—The
term ‘‘small government’’ means any small gov-
ernmental jurisdiction as defined in section
601(5) of title 5, United States Code, and any
tribal government.
(F) STATE DEFINED.—The term ‘‘State’’
has the same meaning as in section 6501(9) of
title 31, United States Code.
SEC. 4. EXCLUSIONS.
Anything in this Act to the contrary notwithstanding,
this Act shall not apply to—
(1) any provision in a bill or joint resolution be-
fore Congress and any provision in a proposed or
final Federal regulation that—
(A) enforces Constitutional rights of indi-
viduals;
(B) establishes or enforces any statutory
rights that prohibit discrimination on the basis
of race, religion, gender, national origin, or
handicapped or disability status;
(C) requires compliance with accounting
and auditing procedures with respect to grants
or other money or property provided by the
United States Government;
(D) provides for emergency assistance or
relief at the request of any State, local govern-
ment, or tribal government or any official of
any of them; or
(E) is necessary for the national security
or the ratification or implementation of inter-
national treaty obligations; or
(2) any legislation that the President designates
as emergency legislation and that the Congress so
designates in statute.
TITLE I—LEGISLATIVE
ACCOUNTABILITY AND REFORM
SEC. 101. DUTIES OF CONGRESSIONAL COMMITTEES.
(a) COMMITTEE REPORT.—
(1) REGARDING FEDERAL MANDATES.—When a
committee of authorization of the House of Rep-
resentatives or the Senate reports a bill or joint res-
olution of public character that includes any Federal
mandate, the committee shall issue a report to ac-
company the bill or joint resolution containing—
(A) an analysis, prepared in consultation
with the Director, including an identification
and description of any Federal mandates in the
bill or joint resolution, including the expected
direct costs to States, local governments, and
tribal governments required to comply with the
Federal mandate;
(B)(i) a statement of the amount, if any,
of increase in authorization of appropriations
under existing Federal financial assistance pro-
grams, or of authorization of appropriations for
new Federal financial assistance, provided by
the bill or joint resolution and usable for activi-
ties of States, local governments, or tribal gov-
ernments subject to the Federal mandates; and
(ii) a statement of whether the committee
intends that the Federal mandates be partly or
entirely unfunded, and, if so, the reasons for
that intention;
(C) a qualitative, and if possible, a quan-
titative assessment of costs and benefits antici-
pated from the Federal mandate (such as, but
not limited to, the enhancement of health and
safety and the protection of the natural envi-
ronment);
(D) any existing sources of Federal assist-
ance in addition to those identified in subpara-
graph (B)(i) that may assist States, local gov-
ernments, and tribal governments in meeting
the direct costs of the Federal mandates; and
(E) an identification of one or more of the
following: reductions in authorization of existing
appropriations, a reduction in direct spending,
or an increase in receipts (consistent with the
amount identified in subparagraph (B)(i)).
(2) REGARDING PREEMPTION.—When a com-
mittee of authorization of the House of Representa-
tives or the Senate reports a bill or joint resolution
of public character, the committee report accom-
panying the bill or joint resolution shall contain, if
relevant to the bill or joint resolution, an explicit
statement of whether or not the bill or joint resolu-
tion is intended to preempt any State, local, or tribal
law, and if so, an explanation of the reasons for en-
acting such preemption.
(b) SUBMISSION OF BILLS TO THE DIRECTOR.—
When a committee of authorization of the House of Rep-
resentatives or the Senate reports a bill or joint resolution
of a public character, the committee shall promptly pro-
vide the bill or joint resolution to the Director and shall
identify to the Director any Federal mandates contained
in the bill or resolution.
(c) PUBLICATION OF STATEMENT FROM THE DIREC-
TOR.—Upon receiving a statement (including any supple-
mental statement) from the Director pursuant to section
102(c), a committee of the House of Representatives or
the Senate shall publish the statement in the committee
report accompanying the bill or joint resolution to which
the statement relates if the statement is available soon
enough to be included in the printed report. If the state-
ment 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 Sen-
ate before the report is published, the committee shall
cause the statement, or a summary thereof, to be pub-
lished in the Congressional Record in advance of floor con-
sideration of the bill or joint resolution.
SEC. 102. DUTIES OF THE DIRECTOR.
(a) STUDIES.—
(1) As early as practicable in each new Con-
gress, any committee of the House of Representa-
tives or the Senate which anticipates that the com-
mittee will consider any proposed legislation estab-
lishing, amending, or reauthorizing any Federal pro-
gram likely to have a significant budgetary impact
on States, local governments, or tribal governments,
including any legislative proposal submitted by the
executive branch likely to have such budgetary im-
pact, shall request that the Director initiate a study
of the proposed legislation in order to develop infor-
mation that may be useful in analyzing the costs of
any Federal mandates and of any unfunded Federal