Unfunded Mandates Reform Act of 1995
PL 104-4 (S.1), enacted 03/22/1995

109 STAT. 48 
PUBLIC LAW 104.-4—MAR. 22, 1995 
Public Law 104-4 
104th Congress 
An Act 
To curb the practice of imposing unfunded Federal mandates on States and local 
governments; to strengthen the partnership between the Federal Government 
and State, local and tribal governments; to end the imposition, in the absence 
Mar. 22, 1995 
of full consideration by Congress, of Federal mandates on State, local, and tribal 
rg jj 
governments without adequate funding, in a manner that may displace other 
essential governmental priorities; and to ensure that the Federal Government 
pays the costs incurred by those governments in complying with certain require-
ments under Federal statutes and regulations, and for other purposes. 
Unfunded 
Be it enacted by the Senate and House of Representatives 
of 
Mandates 
(he United States of America in Congress assembled. 
Reform Act of 
1995. 
SECTION 1. SHORT TITLE. 
2 u s e 1501 note. 
This Act may be cited as the "Unfunded Mandates Reform 
Act of 1995". 
2 u s e 1501. 
SEC. 2. PURPOSES. 
The purposes of this Act are— 
(1) to strengthen the partnership between the Federal 
Government and State, local, and tribal governments; 
(2) to end the imposition, in the absence of full consider-
ation by Congress, of Federal mandates on State, local, and 
tribal governments without adequate Federal funding, in a 
manner that may displace other essential State, local, and 
tribal governmental priorities; 
(3) to assist Congress in its consideration of proposed legis-
lation establishing or revising Federal programs containing 
Federal mandates affecting State, local, and tribal governments, 
and the private sector by— 
(A) providing for the development of information 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 the House of Representa-
tives before the Senate and the House of Representatives 
vote on proposed legislation; 
(4) to promote informed and deliberate decisions by Con-
gress on the appropriateness of Federal mandates in any 
particular instance; 
(5) to require that Congress consider whether to provide 
funding to assist State, local, and tribal governments in comply-
ing with Federal mandates, to require analyses of the impact 
of private sector mandates, and through the dissemination of 
that information provide informed and deliberate decisions by 
Congress and Federal agencies and retain competitive balance 
between the public and private sectors; 
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PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 49 
(6) to establish a point-of-order vote on the consideration 
in the Senate and House of Representatives of legislation 
containing significant Federal intergovernmental mandates 
without providing adequate funding to comply with such man-
dates; 
(7) to assist Federal agencies in their consideration of pro-
posed regulations affecting State, local, and tribal governments, 
b y -
(A) requiring that Federal agencies develop a process 
to enable the elected and other officials of State, local, 
and tribal governments to provide input when Federal 
agencies are developing regulations; and 
(B) requiring that Federal agencies prepare and con-
sider estimates of the budgetary impact of regulations 
containing Federal mandates upon State, local, and tribal 
governments and the private sector before adopting such 
regulations, and ensuring that small governments are given 
special consideration in that process; and 
(8) to begin consideration of the effect of previously imposed 
Federal mandates, including the impact on State, local, and 
tribal governments of Federal court interpretations of Federal 
statutes and regulations that impose Federal intergovernmental 
mandates. 
SEC. 3. DEFINITIONS. 
2 USC 1502. 
For purposes of this Act— 
(1) except as provided in section 305 of this Act, the terms 
defined under section 421 of the Congressional Budget and 
Impoundment Control Act of 1974 (as added by section 101 
of this Act) shall have the meanings as so defined; and 
(2) the term "Director" means the Director of the Congres-
sional Budget Office. 
SEC. 4. EXCLUSIONS. 
2 USC 1503. 
This Act shall not apply to any provision in a bill, joint resolu-
tion, amendment, motion, or conference report before Congress and 
any provision in 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 race, color, religion, sex, national 
origin, age, handicap, or disability; 
(3) requires compliance with accounting and auditing proce-
dures with respect to grants or other money or property pro-
vided by the Federal Grovemment; 
(4) provides for emergency assistance or relief at the 
request of any State, local, or tribal government or any official 
of a State, local, or tribal government; 
(5) is necessary for the national security or the ratification 
or implementation of international treaty obligations; 
(6) the President designates as emergency legislation and 
that the Congress so designates in statute; or 
(7) relates to the old-age, survivors, and disability insurance 
program under title II of the Social Security Act (including 
taxes imposed by sections 3101(a) and 3111(a) of the Internal 
Revenue Code of 1986 (relating to old-age, survivors, and 
disability insurance)). 
99-194 0-95-3:QL3Partl 
109 STAT. 50 
PUBLIC LAW 104-4-MAR. 22, 1995 
2 use 1504. 
SEC. 5. AGENCY ASSISTANCE. 
Each agency shall provide to the Director such information 
and assistance as the Director may reasonably request to assist 
the Director in carrying out this Act. 
TITLE I—LEGISLATIVE 
ACCOUNTABILITY AND REFORM 
SEC. 101. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM. 
(a) IN GENERAL.—^Title IV of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by— 
(1) inserting before section 401 the following: 
"PART A—GENERAL PROVISIONS"; and 
(2) adding at the end thereof the following new part: 
"PART B—FEDERAL MANDATES 
2 use 658. 
"SEC. 421. DEFINITIONS. 
"For purposes of this part: 
"(1) AGENCY.—^The term 'agency has the same meaning 
as defined in section 551(1) of title 5, United States Code, 
but does not include independent regulatory agencies. 
"(2) AMOUNT.—^The term 'amount', with respect to an 
authorization of appropriations for Federal financial assistance, 
means the amount of budget authority for any Federal grant 
assistance program or any Federal program providing loan 
guarantees or direct loans. 
"(3) DIRECT COSTS.—^The term 'direct costs'— 
"(A)(i) in the case of a Federal intergovernmental man-
date, means the aggregate estimated amounts that all 
State, local, and tribal governments would be required 
to spend or would be prohibited from raising in revenues 
in order to comply with the Federal intergovernmental 
mandate; or 
"(ii) in the case of a provision referred to in paragraph 
(5)(A)(ii), means the amount of Federal financial assistance 
eliminated or reduced; 
"(B) in the case of a Federal private sector mandate, 
means the aggregate estimated amounts that the private 
sector will be required to spend in order to comply with 
the Federal private sector mandate; 
"(C) shall be determined on the assumption that— 
"(i) State, local, and tribal governments, and the 
private sector will take all reasonable steps necessary 
to mitigate the costs resulting from the Federal man-
date, and will comply with applicable standards of 
practice and conduct established by recognized profes-
sional or trade associations; and 
"(ii) reasonable steps to mitigate the costs shall 
not include increases in State, local, or tribal taxes 
or fees; and 
"(D) shall not include— 
"(i) estimated amounts that the State, local, and 
tribal governments (in the case of a Federal intergov-
, s.^#*^ 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 51 
ernmental mandate) or the private sector (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 regula-
tions in effect at the time of the adoption of the 
Federal mandate for the same activity as is 
affected by that Federal mandate; or 
"(11) to comply with or carry out State, local, 
and tribal governmental programs, or private-sec-
tor business or other activities in effect at the 
time of the adoption of the Federal mandate for 
the same activity as is affected by that mandate; 
or 
"(ii) expenditures to the extent that such expendi-
tures will be offset by any direct savings to the State, 
local, and tribal governments, or by the private sector, 
as a result of— 
"(I) compliance with the Federal mandate; or 
"(II) other changes in Federal law or regula-
tion that are enacted or adopted in the same bill 
or joint resolution or proposed or final Federal 
regulation and that govern the same activity as 
is affected by the Federal mandate. 
"(4) DIRECT SAVINGS,—^The term 'direct savings', when used 
with respect to the result of compliance with the Federal man-
date— 
"(A) in the case of a Federal intergovernmental man-
date, means the aggregate estimated reduction in costs 
to any State, local, or tribal government as a result of 
compliance with the Federal intergovernmental mandate; 
and 
"(B) in the case of a Federal private sector mandate, 
means the aggregate estimated reduction in costs to the 
private sector as a result of compliance with the Federal 
private sector mandate. 
"(5) FEDERAL INTERGOVERNMENTAL MANDATE.—^The term 
'Federal intergovernmental mandate' means— 
"(A) any provision in legislation, statute, or regulation 
that— 
"(i) would impose an enforceable duty upon State, 
local, or tribal governments, except— 
"(I) a condition of Federal assistance; or 
"(II) a duty arising from participation in a 
voluntary Federal program, except as provided in 
subparagraph (B)); or 
"(ii) would reduce or eliminate the amount of 
authorization of appropriations for— 
"(I) Federal financial assistance that would 
be provided to State, local, or tribal governments 
for the purpose of compl)dng with any such pre-
viously imposed duty unless such duty is reduced 
or eliminated by a corresponding amount; or 
"(II) the control of borders by the Federal 
Government; or reimbursement to State, local, or 
tribal governments for the net cost associated with 
illegal, deportable, and excludable aliens, including 
court-mandated expenses related to emergency 
109 STAT. 52 
PUBLIC LAW 104-4—MAR. 22, 1995 
health care, education or criminal justice; when 
such a reduction or elimination would result in 
increased net costs to State, local, or tribal govern-
ments in providing education or emergency health 
care to, or incarceration of, illegal aliens; except 
that this subclause shall not be in effect with 
respect to a State, local, or tribal government, 
to the extent that such government has not fully 
cooperated in the efforts of the Federal Govern-
ment to locate, apprehend, and deport illegal 
aliens; 
"(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 State, 
local, and tribal governments under entitlement authority, 
if the provision— 
"(i)(I) would increase the stringency of conditions 
of assistance to State, local, or tribal governments 
under the program; or 
"(II) would place caps upon, or otherwise decrease, 
the Federal Government's responsibility to provide 
funding to State, local, or tribal governments under 
the program; and 
"(ii) the State, local, or tribal governments that 
participate in the Federal program lack authority 
under that program to amend their financial or pro-
grammatic 
responsibilities 
to 
continue 
providing 
required services that are affected by the legislation, 
statute, or regulation. 
"(6) FEDERAL MANDATE.—^The term 'Federal mandate' 
means a Federal intergovernmental mandate or a Federal pri-
vate sector mandate, as defined in paragraphs (5) and (7). 
"(7) FEDERAL PRIVATE SECTOR MANDATE.—^The term 'Fed-
eral private sector mandate' means any provision in legislation, 
statute, or regulation that— 
"(A) would impose an enforceable duty upon the private 
sector except— 
"(i) a condition of Federal assistance; or 
"(ii) a duty arising from participation in a vol-
untary Federal program; or 
"(B) would reduce or eliminate 
the amount of 
authorization of appropriations for Federal financial assist-
ance that will be provided to the private sector for the 
purposes of ensuring compliance with such duty. 
"(8) LOCAL GOVERNMENT.—^The term 'local government' has 
the same meaning as defined in section 6501(6) of title 31, 
United States Code. 
"(9) PRIVATE SECTOR.—^The term 'private sector' means all 
persons or entities in the United States, including individuals, 
partnerships, associations, corporations, and educational and 
nonprofit institutions, but shall not include State, local, or 
tribal governments. 
"(10) REGULATION; RULE.—^The term 'regulation' or 'rule' 
(except with respect to a rule of either House of the Congress) 
has the meaning of 'rule' as defined in section 601(2) of title 
5, United States Code. 
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PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 53 
"(11) SMALL GOVERNMENT.—The term 'small government' 
means any small governmental jurisdictions defined in section 
601(5) of title 5, United States Code, and any tribal government. 
"(12) STATE.—^The term 'State' has the same meaning as 
defined in section 6501(9) of title 31, United States Code. 
"(13) TRIBAL GOVERNMENT.—^The term 'tribal government' 
means any Indian tribe, band, nation, or other organized group 
or community, including any Alaska Native village or regional 
or village corporation as defined in or established pursuant 
to the Alaska Native Claims Settlement Act (85 Stat. 688; 
43 U.S.C. 1601 et seq.) which is recognized as eligible for 
the special programs and services provided by the United States 
to Indians because of their special status as Indians. 
"SEC. 422. EXCLUSIONS. 
2 USC 658a. 
"This part shall not apply to any provision in a bill, joint 
resolution, amendment, motion, or conference report before Con-
gress that— 
"(1) enforces constitutional rights of individuals; 
"(2) establishes or enforces any statutory rights that pro-
hibit discrimination on the basis of race, color, religion, sex, 
national origin, age, handicap, or disability; 
"(3) requires compliance with accounting and auditing 
procedures with respect to grants or other money or property 
provided by the Federal Government; 
"(4) provides for emergency assistance or relief at the 
request of any State, local, or tribal government or any official 
of a State, local, or tribal government; 
"(5) is necessary for the national security or the ratification 
or implementation of international treaty obligations; 
"(6) the President designates as emergency legislation and 
that the Congress so designates in statute; or 
"(7) relates to the old-age, survivors, and disability insur-
ance program under title II e
r
f
" the Social Security Act (including 
taxes imposed by sections 3101(a) and 3111(a) of the Internal 
Revenue Code of 1986 (relating to old-age, survivors, and 
disability insurance)). 
"SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES. 
2 USC 658b. 
"(a) IN GENERAL.—^When a committee of authorization of the 
Senate or the House of Representatives reports a bill or joint 
resolution of public character that includes any Federal mandate, 
the report of the committee accompanying the bill or joint resolution 
shall contain the information required by subsections (c) and (d). 
"(b) SUBMISSION OF BILLS TO THE DIRECTOR.—^When a commit-
tee of authorization of the Senate or the House of Representatives 
orders reported a bill or joint resolution of a public character, 
the committee shall promptly provide the bill or joint resolution 
to the Director of the Congressional Budget Office and shall identify 
to the Director any Federal mandates contained in the bill or 
resolution. 
"(c) REPORTS ON FEDERAL MANDATES.—Each report described 
under subsection (a) shall contain— 
"(1) an identification and description of any Federal man-
dates in the bill or joint resolution, including the direct costs 
to State, local, and tribal governments, and to the private 
sector, required to comply with the Federal mandates; 
109 STAT. 54 
PUBLIC LAW 104-4—MAR. 22, 1995 
"(2) a qualitative, and if practicable, a quantitative assess-
ment of costs and benefits anticipated from the Federal man-
dates (including the effects on health and safety and the protec-
tion of the natural environment); and 
"(3) a statement of the degree to which a Federal mandate 
affects both the public and private sectors and the extent to 
which Federal pa3niient of public sector costs or the modification 
or termination of the Federal mandate as provided under sec-
tion 425(a)(2) would affect the competitive balance between 
State, local, or tribal governments and the private sector includ-
ing a description of the actions, if any, taken by the committee 
to avoid any adverse impact on the private sector or the 
competitive balance between the public sector and the private 
sector. 
"(d) 
INTERGOVERNMENTAL MANDATES.—^If any 
of the Federal 
mandates in the bill or joint resolution are Federal intergovern-
mental mandates, the report required under subsection (a) shall 
also contain— 
"(1)(A) a statement of the amount, if any, of increase or 
decrease in authorization of appropriations under existing Fed-
eral financial assistance programs, or of authorization of appro-
priations for new Federal financial assistance, provided by the 
bill or joint resolution and usable for activities of State, local, 
or tribal governments subject to the Federal intergovernmental 
mandates; 
"(B) 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 
"(C) if funded in whole or in part, a statement of whether 
and how the committee has created a mechanism to allocate 
the funding in a manner that is reasonably consistent with 
the expected direct costs among and between the respective 
levels of State, local, and tribal government; and 
"(2) any existing sources of Federal assistance in addition 
to those identified in paragraph (1) that may assist State, 
local, and tribal governments in meeting the direct costs of 
the Federal intergovernmental mandates. 
"(e) PREEMPTION CLARIFICATION AND INFORMATION.—^When a 
committee of authorization of the Senate or the House of Represent-
atives reports a bill or joint resolution of public character, the 
committee report accompanying the bill or joint resolution shall 
contain, if relevant to the bill or joint resolution, an explicit state-
ment on the extent to which the bill or joint resolution is intended 
to preempt any State, local, or tribal law, and, if so, an explanation 
of the effect of such preemption. 
"(f) PUBLICATION OF STATEMENT FROM THE DIRECTOR.— 
"(1) IN GENERAL.—^Upon receiving a statement from the 
Director under section 424, a committee of the Senate or the 
House of Representatives shall publish the statement in the 
committee report accompanying the bill or joint resolution to 
which the statement relates if the statement is available at 
the time the report is printed. 
Congressional 
"(2) OTHER PUBLICATION OF STATEMENT OF DIRECTOR.— 
Record, 
If the statement is not published in the report, or if the bill 
publication. 
^j. jQJnt resolution to which the statement relates is expected 
to be considered by the Senate or the House of Representatives 
before the report is published, the committee shall cause the 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 55 
statement, or a summary thereof, to be published in the 
Congressional Record in advance of floor consideration of the 
bill or joint resolution. 
"SEC. 424. DUTIES OF THE DIRECTOR; STATEMENTS ON BILLS AND 
2 USC 658c. 
JOINT RESOLUTIONS OTHER THAN APPROPRIATIONS 
BILLS AND JOINT RESOLUTIONS. 
"(a) 
FEDERAL INTERGOVERNMENTAL MANDATES IN REPORTED 
BILLS AND RESOLUTIONS.—For each bill or joint resolution of a 
public character reported by any committee of authorization of 
the Senate or the House of Representatives, the Director of the 
Congressional Budget Office shall prepare and submit to the 
committee a statement as follows: 
"(1) CONTENTS.—If the Director estimates that the direct 
cost of all Federal intergovernmental mandates in the bill or 
joint resolution will equal or exceed $50,000,000 (adjusted 
annually for inflation) in the fiscal year in which any Federal 
intergovernmental mandate in the bill or joint resolution (or 
in any necessary implementing regulation) would first be effec-
tive or in any of the 4 fiscal years following such fiscal year, 
the Director shall so state, specify the estimate, and briefly 
explain the basis of the estimate. 
"(2) ESTIMATES.—^Estimates required under paragraph (1) 
shall include estimates (and brief explanations of the basis 
of the estimates) of— 
"(A) the total amount of direct cost of complying with 
the Federal intergovernmental mandates in the bill or joint 
resolution; 
"(B) if the bill or resolution contains an authorization 
of appropriations under section 425(a)(2)(B), the amount 
of new budget authority for each fiscal year for a period 
not to exceed 10 years beyond the effective date necessary 
for the direct cost of the intergovernmental mandate; and 
"(C) the amount, if any, of increase in authorization 
of appropriations under existing Federal financial assist-
ance programs, or of authorization of appropriations for 
new Federal financial assistance, provided by the bill or 
joint resolution and usable by State, local, or tribal govern-
ments for activities subject to the Federal intergovern-
mental mandates. 
"(3) ESTIMATE NOT FEASIBLE.—If the Director determines 
that it is not feasible to make a reasonable estimate that 
would be required under paragraphs (1) and (2), the Director 
shall not make the estimate, but shall report in the statement 
that the reasonable estimate cannot be made and shall include 
the reasons for that determination in the statement. If such 
determination is made by the Director, a point of order under 
this part shall lie only under section 425(a)(1) and as if the 
requirement of section 425(a)(1) had not been met. 
"(b) FEDERAL PRIVATE SECTOR MANDATES IN REPORTED BILLS 
AND JOINT RESOLUTIONS.—^For each bill or joint resolution of a 
public character reported by any committee of authorization of 
the Senate or the House of Representatives, the Director of the 
Congressional Budget Office shall prepare and submit to the 
committee a statement as follows: 
"(1) CONTENTS.—If the Director estimates that the direct 
cost of all Federal private sector mandates in the bill or joint 
109 STAT. 56 
PUBLIC LAW 104-4^MAR. 22, 1995 
resolution will equal or exceed $100,000,000 (adjusted annually 
for inflation) in the fiscal year in which any Federal private 
sector mandate in the bill or joint resolution (or in any nec-
essary implementing regulation) would first be effective or in 
any of the 4 fiscal years following such fiscal year, the Director 
shall so state, specify the estimate, and briefly explain the 
basis of the estimate. 
"(2) ESTIMATES.—^Estimates required under paragraph (1) 
shall include estimates (and a brief explanation of the basis 
of the estimates) of— 
"(A) the total amount of direct costs of complying with 
the Federal private sector mandates in the bill or joint 
resolution; and 
"(B) the amount, if any, of increase in authorization 
of appropriations under existing Federal financial assist-
ance programs, or of authorization of appropriations for 
new Federal financial assistance, provided by the bill or 
joint resolution usable by the private sector for the activi-
ties subject to the Federal private sector mandates. 
"(3) ESTIMATE NOT FEASIBLE.—If the Director determines 
that it is not feasible to make a reasonable estimate that 
would be required under paragraphs (1) and (2), the Director 
shall not make the estimate, but shall report in the statement 
that the reasonable estimate cannot be made and shall include 
the reasons for that determination in the statement. 
"(c) LEGISLATION FALLING BELOW THE DIRECT COSTS THRESH-
OLDS.—If the Director estimates that the direct costs of a Federal 
mandate will not equal or exceed the thresholds specified in sub-
sections (a) and (b), the Director shall so state and shall briefly 
explain the basis of the estimate. 
"(d) 
AMENDED BILLS AND JOINT RESOLUTIONS; CONFERENCE 
REPORTS.—If a bill or joint resolution is 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 reported by a committee of conference 
in amended form, and the amended form contains a Federal man-
date not previously considered by either House or which contains 
an increase in the direct cost of a previously considered Federal 
mandate, then the committee of conference shall ensure, to the 
greatest extent practicable, that the Director shall prepare a state-
ment as provided in this subsection or a supplemental statement 
for the bill or joint resolution in that amended form. 
2 use 658d. 
"SEC. 425. LEGISLATION SUBJECT TO POINT OF ORDER. 
"(a) IN GENERAL.—It shall not be in order in the Senate or 
the House of Representatives to consider— 
"(1) any bill or joint resolution that is reported by a commit-
tee unless the committee has published a statement of the 
Director on the direct costs of Federal mandates in accordance 
with section 423(f) before such consideration, except this para-
graph shall not apply to any supplemental statement prepared 
by the Director under section 424(d); and 
"(2) any bill, joint resolution, amendment, motion, or con-
ference report that would increase the direct costs of Federal 
intergovernmental mandates by an amount that causes the 
thresholds specified in section 424(a)(1) to be exceeded, unless— 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 57 
"(A) the bill, joint resolution, amendment, motion, or 
conference report provides new budget authority or new 
entitlement authority in the House of Representatives or 
direct spending authority in the Senate for each fiscal 
year for such mandates included in the bill, joint resolution, 
amendment, motion, or conference report in an amount 
equal to or exceeding the direct costs of such mandate; 
or 
"(B) the bill, joint resolution, amendment, motion, or 
conference report includes an authorization for appropria-
tions in an amount equal to or exceeding the direct costs 
of such mandate, and— 
"(i) identifies a specific dollar amount of the direct 
costs of such mandate for each year up to 10 years 
during which such mandate shall be in effect under 
the bill, joint resolution, amendment, motion or con-
ference report, and such estimate is consistent with 
the estimate determined under subsection (e) for each 
fiscal year; 
"(ii) identifies any appropriation bill that is 
expected to provide for Federal funding of the direct 
cost referred to under clause (i); and 
"(iii)(I) provides that for any fiscal year the respon-
sible Federal agency shall determine whether there 
are insufficient appropriations for that fiscal year to 
provide for the direct costs under clause (i) of such 
mandate, and shall (no later than 30 days after the 
beginning of the fiscal year) notify the appropriate 
authorizing committees of Congress of the determina-
tion and submit either— 
"(aa) a statement that the agency has deter-
mined, based on a re-estimate of the direct costs 
of such mandate, after consultation with State, 
local, and tribal governments, that the amount 
appropriated is sufficient to pay for the direct costs 
of such mandate; or 
"(bb) legislative recommendations for either 
implementing a less costly mandate or making 
such mandate ineffective for the fiscal year; 
"(II) provides for expedited procedures for the 
consideration of the statement or legislative rec-
ommendations referred to in subclause (I) by Congress 
no later than 30 days after the statement or rec-
ommendations are submitted to Congress; and 
"(III) provides that such mandate shall— 
Tennination 
"(aa) in the case of a statement referred to date, 
in subclause (I)(aa), cease to be effective 60 days 
after the statement is submitted unless Congress 
has approved the agency's determination by joint 
resolution during the 60-day period; 
"(bb) cease to be effective 60 days after the 
date 
the legislative 
recommendations 
of the 
responsible Federal agency are submitted to Con-
gress under subclause (I)(bb) unless Congress pro-
vides otherwise by law; or 
109 STAT. 58 
PUBLIC LAW 104-4—MAR. 22, 1995 
"(cc) in the case that such mandate that has 
not yet taken effect, continue not to be effective 
unless Congress provides otherwise by law. 
"(b) RULE OF CONSTRUCTION.—^The provisions of subsection 
(a)(2)(B)(iii) shall not be construed to prohibit or otherwise restrict 
a State, local, or tribal government from voluntarily electing to 
remain subject to the original Federal intergovernmental mandate, 
complying with the programmatic or financial responsibilities of 
the original Federal intergovernmental mandate and providing the 
funding necessary consistent with the costs of Federal agency assist-
ance, monitoring, and enforcement. 
"(c) COMMITTEE ON APPROPRIATIONS.— 
"(1) APPLICATION.—^The provisions of subsection (a)— 
"(A) shall not apply to any bill or resolution reported 
by the Committee on Appropriations of the Senate or the 
House of Representatives; except 
"(B) shall apply to— 
"(i) any legislative provision increasing direct costs 
of a Federal intergovernmental mandate contained in 
any bill or resolution reported by the Committee on 
Appropriations of the Senate or House of Representa-
tives; 
"(ii) any legislative provision increasing direct costs 
of a Federal intergovernmental mandate contained in 
any amendment offered to a bill or resolution reported 
by the Committee on Appropriations of the Senate 
or House of Representatives; 
"(iii) any legislative provision increasing direct 
costs of a Federal intergovernmental mandate in a 
conference report accompanying a bill or resolution 
reported by the Committee on Appropriations of the 
Senate or House of Representatives; and 
"(iv) any legislative provision increasing direct 
costs of a Federal intergovernmental mandate con-
tained in any amendments in disagreement between 
the two Houses to any bill or resolution reported by 
the Committee on Appropriations of the Senate or 
House of Representatives. 
"(2) CERTAIN PROVISIONS STRICKEN IN SENATE.—Upon a 
point of order being made by any Senator against any provision 
listed in paragraph (1)(B), and the point of order being sus-
tained by the Chair, such specific provision shall be deemed 
stricken from the bill, resolution, amendment, amendment in 
disagreement, or conference report and may not be offered 
as an amendment from the floor. 
"(d) DETERMINATIONS OF APPLICABILITY TO PENDING LEGISLA-
TION.—^For purposes of this section, in the Senate, the presiding 
officer of the Senate shall consult with the Committee on Govern-
mental Affairs, to the extent practicable, on questions concerning 
the applicability of this part to a pending bill, joint resolution, 
amendment, motion, or conference report. 
"(e) DETERMINATIONS OF FEDERAL MANDATE LEVELS.—For pur-
poses of this section, in the Senate, the levels of Federal mandates 
for a fiscal year shall be determined based on the estimates made 
by the Committee on the Budget. 
PUBLIC LAW 104^-4—MAR. 22, 1995 
109 STAT. 59 
"SEC. 426. PROVISIONS RELATING TO THE HOUSE OF REPRESENTA- 
2 USC 658e. 
TIVES. 
"(a) 
ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.—It 
shall not be in order in the House of Representatives to consider 
a rule or order that waives the application of section 425. 
"(b) DISPOSITION OF POINTS OF ORDER.— 
"(1) APPLICATION TO THE HOUSE OF REPRESENTATIVES.— 
This subsection shall apply only to the House of Representa-
tives. 
"(2) THRESHOLD BURDEN.—In order to be cognizable by 
the Chair, a point of order under section 425 or subsection 
(a) of this section must specify the precise language on which 
it is premised. 
"(3) QUESTION OF CONSIDERATION.—As disposition of points 
of order under section 425 or subsection (a) of this section, 
the Chair shall put the question of consideration with respect 
to the proposition that is the subject of the points of order. 
"(4) 
DEBATE AND INTERVENING MOTIONS.—^A question of 
consideration under this section shall be debatable for 10 min-
utes 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. 
"(5) EFFECT ON AMENDMENT IN ORDER AS ORIGINAL TEXT.— 
The disposition of the question of consideration under this 
subsection with respect to a bill or joint resolution shall be 
considered also to determine the question of consideration under 
this subsection with respect to an amendment made in order 
as original text. 
"SEC. 427. REQUESTS TO THE CONGRESSIONAL BUDGET OFFICE FROM 
2 USC 658F. 
SENATORS. 
"At the written request of a Senator, the Director shall, to 
the extent practicable, prepare an estimate of the direct costs of 
a Federal intergovernmental mandate contained in an amendment 
of such Senator. 
"SEC. 428. CLARIFICATION OF APPLICATION. 
2 USC 658g. 
"(a) IN GENERAL.—^This part applies to any bill, joint resolution, 
amendment, motion, or conference report that reauthorizes appro-
priations, or that amends existing authorizations of appropriations, 
to carry out any statute, or that otherwise amends any statute, 
only if enactment of the bill, joint resolution, amendment, motion, 
or conference report— 
"(1) would result in a net reduction in or elimination of 
authorization of appropriations for Federal financial assistance 
that would be provided to State, local, or tribal governments 
for use for the purpose of complying with any Federal intergov-
ernmental mandate, or to the private sector for use to comply 
with any Federal private sector mandate, and would not elimi-
nate or reduce duties established by the Federal mandate by 
a corresponding amount; or 
"(2) would result in a net increase in the aggregate amount 
of direct costs of Federal intergovernmental mandates or Fed-
eral private sector mandates other than as described in para-
graph (1). 
109 STAT. 60 
PUBLIC LAW 104-4—MAR. 22, 1995 
"(b) DIRECT COSTS.— 
"(1) IN GENERAL.—^For purposes of this part, the direct 
cost of the Federal mandates in a bill, joint resolution, amend-
ment, motion, or conference report that reauthorizes appropria-
tions, or that amends existing authorizations of appropriations, 
to carry out a statute, or that otherwise amends any statute, 
means the net increase, resulting from enactment of the bill, 
joint resolution, amendment, motion, or conference report, in 
the amount described under paragraph (2)(A) over the amount 
described under paragraph (2)(B). 
"(2) AMOUNTS.—^The amounts referred to under paragraph 
(1) are— 
"(A) the aggregate amount of direct costs of Federal 
mandates that would result under the statute if the bill, 
joint resolution, amendment, motion, or conference report 
is enacted; and 
"(B) the aggregate amount of direct costs of Federal 
mandates that would result under the statute if the bill, 
joint resolution, amendment, motion, or conference report 
were not enacted. 
"(3) EXTENSION OF AUTHORIZATION OF APPROPRIATIONS.— 
For purposes of this section, in the case of legislation to extend 
authorization of appropriations, the authorization level that 
would be provided by the extension shall be compared to the 
authorization level for the last year in which authorization 
of appropriations is already provided.". 
(b) TECHNICAL AND CONFORMING AMENDMENTS.—Section 1(b) 
of the Congressional Budget and Impoundment Control Act of 1974 
is amended— 
(1) by inserting "PART A—GENERAL PROVISIONS" before 
the item relating to section 401; and 
(2) by inserting after the item relating to section 407 the 
following: 
"PART B—^FEDERAL MANDATES 
"Sec. 421. Definitions. 
"Sec. 422. Exclusions. 
"Sec. 423. Duties of congressional committees. 
"Sec. 424. Duties of the Director; statements on bills and joint resolutions other 
than appropriations bills and joint resolutions. 
"Sec. 425. Legislation subject to point of order. 
"Sec. 426. Provisions relating to the House of Representatives. 
"Sec. 427. Requests to the Congressional Budget Office from Senators. 
"Sec. 428. Clarification of application.". 
SEC. 102. A S S I S T A N C E TO COMMITTEES AND STUDIES. 
The Congressional Budget and Impoundment Control Act of 
1974 is amended— 
2 use 602. 
(1) in section 202— 
(A) in subsection (c)— 
(i) by redesignating paragraph (2) as paragraph 
(3); and 
(ii) by inserting after paragraph (1) the following 
new paragraph: 
"(2) At the request of any committee of the Senate or 
the House of Representatives, the Office 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— 
«sgir-
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 61 
"(A) a significant budgetary impact on State, local, 
or tribal governments; 
"(B) a significant financial impact on the private sector; 
or 
"(C) a significant emplojmnient impact on the private 
sector."; and 
(B) by amending subsection (h) to read as follows: 
"(h) STUDIES.— 
"(1) CONTINUING STUDIES.—^The Director of the Congres-
sional Budget Office shall conduct continuing studies to enhance 
comparisons of budget outlays, credit authority, and tax 
expenditures. 
"(2) FEDERAL MANDATE STUDIES.— 
"(A) At the request of any Chairman or ranking mem-
ber of the minority of a Committee of the Senate or the 
House of Representatives, the Director shall, to the extent 
practicable, conduct a study of a legislative proposal 
containing a Federal mandate. 
"(B) In conducting a study on intergovernmental man-
dates under subparagraph (A), the Director shall— 
"(i) solicit and consider information or comments 
from elected officials (including their designated rep-
resentatives) of State, local, or tribal governments as 
may provide helpful information or comments; 
"(ii) consider establishing advisory panels of 
elected officials or their designated representatives, of 
State, local, or tribal governments if the Director deter-
mines that such advisory panels would be helpful in 
performing responsibilities of the Director under this 
section; and 
"(iii) if, and to the extent that the Director deter-
mines that accurate estimates are reasonably feasible, 
include estimates of— 
"(I) the future direct cost of the Federal man-
date to the extent that such costs significantly 
differ from or extend beyond the 5-year period 
after the mandate is first effective; and 
"(II) any disproportionate budgetary effects of 
Federal mandates upon particular industries or 
sectors of the economy, States, regions, and urban 
or rural or other t3T)es of communities, as appro-
priate. 
"(C) In conducting a study on private sector mandates 
under subparagraph (A), the Director shall provide esti-
mates, if and to the extent that the Director determines 
that such estimates are reasonably feasible, of— 
"(i) future costs of Federal private sector mandates 
to the extent that such mandates differ significantly 
from or extend beyond the 5-year time period referred 
to in subparagraph (B)(iii)(I); 
"(ii) any disproportionate financial effects of Fed-
eral private sector mandates and of any Federal finan-
cial assistance in the bill or joint resolution upon any 
particular industries or sectors of the economy. States, 
regions, and urban or rural or other types of commu-
nities; and 
109 STAT. 62 
PUBLIC LAW 104-4—MAR. 22, 1995 
"(iii) the effect of Federal private sector mandates 
in the bill or joint resolution on the national economy, 
including the effect on productivity, economic growth, 
full employment, creation of productive jobs, and inter-
national competitiveness of United States goods and 
services."; and 
2 use 632. 
(2) in section 301(d) by adding at the end thereof the 
following new sentence: "Any Committee of the House of Rep-
resentatives or the Senate that anticipates that the committee 
will consider any proposed legislation establishing, amending, 
or reauthorizing any Federal program likely to have a signifi-
cant budgetary impact on any State, local, or tribal government, 
or likely to have a significant financial impact on the private 
sector, including any legislative proposal submitted by the 
executive branch likely to have such a budgetary or financial 
impact, shall include its views and estimates on that proposal 
to the Committee on the Budget of the applicable House.". 
2 use 1511. 
SEC. 103. COST OF REGULATIONS. 
(a) SENSE OF THE CONGRESS.—It is the sense of the Congress 
that Federal agencies should review and evaluate planned regula-
tions to ensure that the cost estimates provided by the Congres-
sional Budget Office will be carefully considered as regulations 
are promulgated. 
(b) STATEMENT OF COST.—^At the request of a committee chair-
man or ranking minority member, the Director shall, to the extent 
practicable, prepare a comparison between— 
(1) an estimate by the relevant agency, prepared under 
section 202 of this Act, of the costs of regulations implementing 
an Act containing a Federal mandate; and 
(2) the cost estimate prepared by the Congressional Budget 
Office for such Act when it was enacted by the Congress. 
(c) COOPERATION OF OFFICE OF MANAGEMENT AND BUDGET.— 
At the request of the Director of the Congressional Budget Office, 
the Director of the Office of Management and Budget shall provide 
data and cost estimates for regulations implementing an Act 
containing a Federal mandate covered by part B of title IV of 
the Congressional Budget and Impoundment Control Act of 1974 
(as added by section 101 of this Act). 
SEC. 104. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET 
OFFICE. 
Section 403 of the Congressional Budget and Impoundment 
2 use 653. 
Control Act of 1974 is amended— 
(1) in subsection (a)— 
(A) by striking out paragraph (2); 
(B) in paragraph (3) by striking out "paragraphs (1) 
and (2)" and inserting in lieu thereof "paragraph (1)"; and 
(C) by redesignating paragraphs (3) and (4) as para-
graphs (2) and (3), respectively; 
(2) by striking out "(a)"; and 
(3) by striking out subsections (b) and (c). 
2 use 1512. 
SEC. 105. CONSIDERATION FOR FEDERAL FUNDING. 
Nothing in this Act shall preclude a State, local, or tribal 
government that already complies with all or part of the Federal 
intergovernmental mandates included in the bill, joint resolution, 
amendment, motion, or conference report from consideration for 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 63 
Federal funding under section 425(a)(2) of the Congressional Budget 
and Impoundment Control Act of 1974 (as added by section 101 
of this Act) for the cost of the mandate, including the costs the 
State, local, or tribal government is currently paying and any addi-
tional costs necessary to meet the mandate. 
SEC. 106. IMPACT ON LOCAL GOVERNMENTS. 
2 USC 1513. 
(a) FINDINGS.—^The Senate finds that— 
(1) the Congress should be concerned about shifting costs 
from Federal to State and local authorities and should be 
equally concerned about the growing tendency of States to 
shift costs to local governments; 
(2) cost shifting from States to local governments has, 
in many instances, forced local governments to raise property 
taxes or curtail sometimes essential services; and 
(3) increases in local property taxes and cuts in essential 
services threaten the ability of many citizens to attain and 
maintain the American dream of owning a home in a safe, 
secure community. 
(b) SENSE OF THE SENATE.—It is the sense of the Senate that— 
(1) the Federal Government should not shift certain costs 
to the State, and States should end the practice of shifting 
costs to local governments, which forces many local govern-
ments to increase property taxes; 
(2) States should end the imposition, in the absence of 
full consideration by their legislatures, of State issued mandates 
on local governments without adequate State funding, in a 
manner that may displace other essential government prior-
ities; and 
(3) one primary objective of this Act and other efforts 
to change the relationship among Federal, State, and local 
governments should be to reduce taxes and spending at all 
levels and to end the practice of shifting costs from one level 
of government to another with little or no benefit to taxpayers. 
SEC. 107. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES. 
2 USC 1514. 
(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 amendment in 
the Committee of the Whole containing any Federal mandate the 
direct costs of which exceed the threshold in section 424(a)(1) 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 man-
date 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 include in the report 
required by clause 1(d) of rule XI (relating to its activities during 
the Congress) of the Rules of the House of Representatives a sepa-
rate item identifying all waivers of points of order relating to 
Federal mandates, listed by bill or joint resolution number and 
the subject matter of that measure. 
SEC. 108. EXERCISE OF RULEMAKING POWERS. 
2USC1515. 
The provisions of sections 101 and 107 are enacted by Con-
gress— 
109 STAT. 64 
PUBLIC LAW 104^4^MAR. 22, 1995 
(1) as an exercise of the rulemaking power of the Senate 
and the House of Representatives, respectively, and as such 
they shall be considered as part of the rules of such House, 
respectively, and such rules shall supersede other rules only 
to the extent 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 each House. 
2 use 1516. 
SEC. 109. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Congressional 
Budget Office $4,500,000 for each of the fiscal years 1996, 1997, 
1998, 1999, 2000, 2001, and 2002 to carry out the provisions of 
this title. 
2 use 1511 note. 
SEC. 110. EFFECTIVE DATE. 
This title shall take effect on January 1, 1996 or on the date 
90 days after appropriations are made available as authorized under 
section 109, whichever is earlier and shall apply to legislation 
considered on and after such date. 
TITLE II-^REGULATORY 
ACCOUNTABILITY AND REFORM 
2 use 1531. 
SEC. 201. REGULATORY PROCESS. 
Each agency shall, unless otherwise prohibited by law, assess 
the effects of Federal regulatory actions on State, local, and tribal 
governments, and the private sector (other than to the extent that 
such regulations incorporate requirements specifically set forth in 
law). 
2 use 1532. 
SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY 
ACTIONS. 
(a) IN GENERAL.—^Unless otherwise prohibited by law, before 
promulgating any general notice of proposed rulemaking that is 
likely to result in promulgation of any rule that includes any 
Federal mandate that may result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector, of $100,000,000 or more (adjusted annually for inflation) 
in any 1 year, and before promulgating any final rule for which 
a general notice of proposed rulemaking was published, the agency 
shall prepare a written statement containing— 
(1) an identification of the provision of Federal law under 
which the rule is being promulgated; 
(2) a qualitative and quantitative assessment of the antici-
pated costs and benefits of the Federal mandate, including 
the costs and benefits to State, local, and tribal governments 
or the private sector, as well as the effect of the Federal 
mandate on health, safety, and the natural environment and 
such an assessment shall include— 
(A) an analysis of the extent to which such costs to 
State, local, and tribal governments may be paid with 
Federal financial assistance (or otherwise paid for by the 
Federal Government); and 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 65 
(B) the extent to which there are available Federal 
resources to carry out the intergovernmental mandate; 
(3) estimates by the agency, if and to the extent that 
the agency determines that accurate estimates are reasonably 
feasible, of— 
(A) the future compliance costs of the Federal mandate; 
and 
(B) any disproportionate budgetary effects of the Fed-
eral mandate upon any particular regions of the nation 
or particular State, local, or tribal governments, urban 
or rural or other types of communities, or particular seg-
ments of the private sector; 
(4) estimates by the agency of the effect on the national 
economy, such as the effect on productivity, economic growth, 
full emplojnnent, creation of productive jobs, and international 
competitiveness of United States goods and services, if and 
to the extent that the agency in its sole discretion determines 
that accurate estimates are reasonably feasible and that such 
effect is relevant and material; and 
(5)(A) a description of the extent of the agency's prior 
consultation with elected representatives (under section 204) 
of the affected State, local, and tribal governments; 
(B) a summary of the comments and concerns that were 
presented by State, local, or tribal governments either orally 
or in writing to the agency; and 
(C) a summary of the agenc5^s evaluation of those com-
ments and concerns. 
(b) PROMULGATION.—In promulgating a general notice of pro-
posed rulemaking or a final rule for which a statement under 
subsection (a) is required, the agency shall include in the promulga-
tion a summary of the information contained in the statement. 
(c) PREPARATION IN CONJUNCTION WITH OTHER STATEMENT.— 
Any agency may prepare any statement required under subsection 
(a) in conjunction with or as a part of any other statement or 
analysis, provided that the statement or analysis satisfies the provi-
sions of subsection (a). 
SEC. 203. SMALL GOVERNMENT AGENCY PLAN. 
2 USC 1533. 
(a) EFFECTS ON SMALL GOVERNMENTS.—Before establishing any 
regulatory requirements that might significantly or uniquely affect 
small governments, agencies shall have developed a plan under 
which the agency shall— 
(1) provide notice of the requirements to potentially affected 
small governments, if any; 
(2) enable officials of affected small governments to provide 
meaningful and timely input in the development of regulatory 
proposals containing significant Federal 
intergovernmental 
mandates; and 
(3) inform, educate, and advise small governments on 
compliance with the requirements. 
(b) AUTHORIZATION OF AppROPRiATiONS.^There are authorized 
to be appropriated to each agency to carry out the provisions of 
this section and for no other purpose, such sums as are necessary. 
SEC. 204. STATE, LOCAL, AND TRffiAL GOVERNMENT INPUT. 
2 USC 1534. 
(a) IN GENERAL.—^Each agency shall, to the extent permitted 
in law, develop an effective process to permit elected officers of 
State, local, and tribal governments (or their designated employees 
109 STAT. 66 
PUBLIC LAW 104-4—MAR. 22, 1995 
with authority to act on their behalf) to provide meaningful and 
timely input in the development of regulatory proposals containing 
significant Federal intergovernmental mandates. 
(b) MEETINGS BETWEEN STATE, LOCAL, TRIBAL AND FEDERAL 
OFFICERS.—The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to actions in support of intergovernmental commu-
nications where— 
(1) meetings are held exclusively between Federal officials 
and elected officers of State, local, and tribal governments 
(or their designated employees with authority to act on their 
behalf) acting in their official capacities; and 
(2) such meetings are solely for the purposes of exchanging 
views, information, or advice relating to the management or 
implementation of Federal programs established pursuant to 
public law that explicitly or inherently share intergovernmental 
responsibilities or administration. 
(c) IMPLEMENTING GUIDELINES.—No later than 6 months after 
the date of enactment of this Act, the President shall issue guide-
lines 
and 
instructions 
to Federal 
agencies 
for 
appropriate 
implementation of subsections (a) and (b) consistent with applicable 
laws and regulations. 
2 use 1535. 
SEC. 205. LEAST BURDENSOME OPTION OR EXPLANATION REQUIRED. 
(a) IN GENERAL.—Except as provided in subsection (b), before 
promulgating any rule for which a written statement is required 
under section 202, the agency shall identify and consider a reason-
able number of regulatory alternatives and from those alternatives 
select the least costly, most cost-effective or least burdensome alter-
native that achieves the objectives of the rule, for— 
(1) State, local, and tribal governments, in the case of 
a rule containing a Federal intergovernmental mandate; and 
(2) the private sector, in the case of a rule containing 
a Federal private sector mandate. 
(b) EXCEPTION.—^The provisions of subsection (a) shall apply 
unless— 
(1) the head of the affected agency publishes with the 
final rule an explanation of why the least costly, most cost-
effective or least burdensome method of achieving the objectives 
of the rule was not adopted; or 
(2) the provisions are inconsistent with law. 
(c) 0MB CERTIFICATION.—No later than 1 year after the date 
of the enactment of this Act, the Director of the Office of Manage-
ment and Budget shall certify to Congress, with a written expla-
nation, agency compliance with this section and include in that 
certification agencies and rulemakings that fail to adequately com-
ply with this section. 
2 use 1536. 
SEC. 206. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE. 
The Director of the Office of Management and Budget shall— 
(1) collect from agencies the statements prepared under 
section 202; and 
(2) periodically forward copies of such statements 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. 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 67 
SEC. 207. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY. 
2 USC 1537. 
(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 agencies to test innovative, and more 
flexible regulatory approaches that— 
(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 a combination thereof. 
SEC. 208. ANNUAL STATEMENTS TO CONGRESS ON AGENCY COMPLI- 
Reports. 
ANCE. 
No later than 1 year after the effective date of this title and 
2 USC 1538. 
annually thereafter, the Director of the Office of Management and 
Budget shall submit to the Congress, including the Committee 
on Governmental Affairs of the Senate and the Committee on 
Grovernment Reform and Oversight of the House of Representatives, 
a written report detailing compliance by each agency during the 
preceding reporting period with the requirements of this title. 
SEC. 209. EFFECTIVE DATE. 
2 USC 1531 note. 
This title and the amendments made by this title shall take 
effect on the date of the enactment of this Act. 
TITLE 
III—REVIEW 
OF 
FEDERAL 
MANDATES 
SEC. 301. BASELINE STUDY OF COSTS AND BENEFITS. 
2 USC 1551. 
(a) IN GENERAL.—^No later than 18 months after the date of 
enactment of this Act, the Advisory Commission on Intergovern-
mental Relations (hereafter in this title referred to as the "Advisory 
Commission"), in consultation with the Director, shall complete 
a study to examine the measurement and definition issues involved 
in calculating the total costs and benefits to State, local, and tribal 
governments of compliance with Federal law. 
(b) CONSIDERATIONS.—^The study required by this section shall 
consider— 
(1) the feasibility of measuring indirect costs and benefits 
as well as direct costs and benefits of the Federal, State, local, 
and tribal relationship; and 
(2) how to measure both the direct and indirect benefits 
of Federal financial assistance and tax benefits to State, local, 
and tribal governments. 
SEC. 302. REPORT ON FEDERAL MANDATES BY ADVISORY COMMISSION 
2 USC 1552. 
ON INTERGOVERNMENTAL RELATIONS. 
(a) IN GENERAL.—^The Advisory Commission on Intergovern-
mental Relations shall in accordance with this section— 
(1) investigate and review the role of Federal mandates 
in intergovernmental relations and their impact on State, local, 
tribal, and Federal government objectives and responsibilities, 
and their impact on the competitive balance between State, 
local, and tribal governments, and the private sector and con-
sider views of and the impact on working men and women 
on those same matters; 
109 STAT. 68 
PUBLIC LAW 104-4—MAR. 22, 1995 
(2) investigate and review the role of unfunded State man-
dates imposed on local governments; 
(3) make recommendations to the President and the Con-
gress regarding— 
(A) allowing flexibility for State, local, and tribal 
governments in complying with specific Federal mandates 
for which terms of compliance are unnecessarily rigid or 
complex; 
(B) reconciling any 2 or more Federal mandates which 
impose contradictory or inconsistent requirements; 
(C) terminating Federal mandates which are duplica-
tive, obsolete, or lacking in practical utility; 
(D) suspending, on a temporary basis. Federal man-
dates which are not vital to public health and safety and 
which compound the fiscal difficulties of State, local, and 
tribal governments, including recommendations for trigger-
ing such suspension; 
(E) consolidating or simplifying Federal mandates, or 
the planning or reporting requirements of such mandates, 
in order to reduce duplication and facilitate compliance 
by State, local, and tribal governments with those man-
dates; 
(F) establishing common Federal definitions or stand-
ards to be used by State, local, and tribal governments 
in complying with Federal mandates that use different 
definitions or standards for the same terms or principles; 
and 
(G)(i) the mitigation of negative impacts on the private 
sector that may result from relieving State, local, and tribal 
governments from Federal mandates (if and to the extent 
that such negative impacts exist on the private sector); 
and 
(ii) the feasibility of applying relief from Federal man-
dates in the same manner and to the same extent to 
private sector entities as such relief is applied to State, 
local, and tribal governments; and 
(4) identify and consider in each recommendation made 
under paragraph (3), to the extent practicable— 
(A) the specific Federal mandates to which the rec-
ommendation 
applies, including 
requirements 
of the 
departments, agencies, and other entities of the Federal 
Government that State, local, and tribal governments uti-
lize metric systems of measurement; and 
(B) any negative impact on the private sector that 
may result from implementation of the recommendation. 
(b) CRITERIA.— 
(1) IN GENERAL.—^The Commission shall establish criteria 
for making recommendations under subsection (a). 
(2) ISSUANCE OF PROPOSED CRITERIA.—^The Commission 
shall issue proposed criteria under this subsection no 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.—^No later than 45 days after the date 
of issuance of proposed criteria, the Commission shall— 
(A) consider comments on the proposed criteria received 
under paragraph (2); 
" ' ^ ^ " ^ ^ 
• 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 69 
(B) adopt and incorporate in final criteria any rec-
ommendations submitted in those comments that the 
Commission determines will aid the Commission in carry-
ing out its duties under this section; and 
(C) issue final criteria under this subsection. 
(c) PRELIMINARY REPORT.— 
(1) IN GENERAL.—No later than 9 months after the date 
of the enactment of this Act, the Commission shall— 
(A) prepare and publish a preliminary report on its 
activities under this title, including preliminary rec-
ommendations pursuant to subsection (a); 
(B) publish in the Federal Register a notice of availabil-
ity of the preliminary report; and 
(C) provide copies of the preliminary report to the 
public upon request. 
(2) PUBLIC HEARiNGS.^The Commission shall hold public 
hearings on the preliminary recommendations contained in the 
preliminary report of the Commission under this subsection. 
(d) FINAL REPORT.—No later than 3 months after the date 
of the publication of the preliminary report under subsection (c), 
the Commission shall submit to the Congress, including the 
Committee on Grovemment Reform and Oversight of the House 
of Representatives, the Committee on Governmental Affairs of the 
Senate, the Committee on the Budget of the Senate, and the 
Committee on the Budget of the House of Representatives, and 
to the President a final report on the findings, conclusions, and 
recommendations of the Commission under this section. 
(e) PRIORITY TO MANDATES THAT ARE SUBJECT OF JUDICIAL 
PROCEEDINGS.—In carrying out this section, the Advisory Commis-
sion shall give the highest priority to immediately investigating, 
reviewing, and making recommendations regarding Federal man-
dates that are the subject of judicial proceedings between the United 
States and a State, local, or tribal government. 
(f) DEFINITION.—For purposes of this section the term "State 
mandate" means any provision in a State statute or regulation 
that imposes an enforceable duty on local governments, the private 
sector, or individuals, including a condition of State assistance 
or a duty arising from participation in a voluntary State program. 
SEC. 303. SPECIAL AUTHORITIES OF ADVISORY COMMISSION. 
(a) EXPERTS AND CONSULTANTS.—For purposes of carrying out 
this title, the Advisory Commission may procure temporary and 
intermittent services of experts or consultants under section 3109(b) 
of title 5, United States Code. 
(b) DETAIL OF 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 department or agency to the 
Advisory Commission to assist it in carrying out this title. 
(c) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request of 
the Advisory Commission, the Administrator of General Services 
shall provide to the Advisory Commission, 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 Commission may, 
subject to appropriations, contract with and compensate government 
Publication. 
Federal Register, 
publication. 
PubUc 
information. 
2 use 1553. 
109 STAT. 70 
PUBLIC LAW 104-4—MAR. 22, 1995 
and private persons (including agencies) for property and services 
used to carry out its duties under this title. 
2 use 1554. 
SEC. 304. ANNUAL REPORT TO CONGRESS REGARDING FEDERAL 
COURT RULINGS. 
No later than 4 months after the date of enactment of this 
Act, and no later than March 15 of each year thereafter, the 
Advisory Commission on Intergovernmental Relations shall submit 
to the Congress, including the Committee on Grovernment Reform 
and Oversight of the House of Representatives and the Committee 
on Governmental Affairs of the Senate, and to the President a 
report describing any Federal court case to which a State, local, 
or tribal government was a party in the preceding calendar year 
that required such State, local, or tribal government to undertake 
responsibilities or activities, beyond those such government would 
otherwise have undertaken, to comply with Federal statutes and 
regulations. 
2 use 1555. 
SEC. 305. DEFINITION. 
Notwithstanding section 3 of this Act, for purposes of this 
title the term "Federal mandate" means any provision in statute 
or regulation or any Federal court ruling that imposes an enforce-
able duty upon State, local, or tribal governments including a 
condition of Federal assistance or a duty arising from participation 
in a voluntary Federal program, 
2 use 1556. 
SEC. 306. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Advisory 
Commission to carry out section 301 and section 302, $500,000 
for each of fiscal years 1995 and 1996. 
TITLE IV-JTJDICIAL REVIEW 
2 use 1571. 
SEC. 401. JUDICIAL REVIEW. 
(a) 
AGENCY 
STATEMENTS 
ON 
SIGNIFICANT 
REGULATORY 
ACTIONS.— 
(1) IN GENERAL.—Compliance or noncompliance by any 
agency with the provisions of sections 202 and 203(a) (1) and 
(2) shall be subject to judicial review only in accordance with 
this section. 
(2) LIMITED REVIEW OF AGENCY COMPLIANCE OR NONCOMPLI-
ANCE.—(A) Agency compliance or noncompliance with the provi-
sions of sections 202 and 203(a) (1) and (2) shall be subject 
to judicial review only under section 706(1) of title 5, United 
States Code, and only as provided under subparagraph (B). 
(B) If an agency fails to prepare the written statement 
(including the preparation of the estimates, analyses, state-
ments, or descriptions) under section 202 or the written plan 
under section 203(a) (1) and (2), a court may compel the agency 
to prepare such written statement. 
(3) REVIEW OF AGENCY RULES.—In any judicial review under 
any other Federal law of an agency rule for which a written 
statement or plan is required under sections 202 and 203(a) 
(1) and (2), the inadequacy or failure to prepare such statement 
(including the inadequacy or failure to prepare any estimate, 
analysis, statement or description) or written plan shall not 
'-'^lA^^ 
PUBLIC LAW 104-4—MAR. 22, 1995 
109 STAT. 71 
be used as a basis for staying, enjoining, invalidating or other-
wise affecting such agency rule. 
(4) 
CERTAIN 
INP^ORMATION AS PART OF RECORD.—Any 
information generated under sections 202 and 203(a) (1) and 
(2) that is part of the rulemaking record for judicial review 
under the provisions of any other Federal law may be consid-
ered as part of the record for judicial review conducted under 
such other provisions of Federal law. 
(5) APPLICATION OF OTHER FEDERAL LAW.—^For any petition 
under paragraph (2) the provisions of such other Federal law 
shall control all other matters, such as exhaustion of adminis-
trative remedies, the time for and manner of seeking review 
and venue, except that if such other Federal law does not 
provide a limitation on the time for filing a petition for judicial 
review that is less than 180 days, such limitation shall be 
180 days after a final rule is promulgated by the appropriate 
agency. 
(6) EFFECTIVE DATE.—This subsection shall take effect on 
October 1, 1995, and shall apply only to any agency rule for 
which a general notice of proposed rulemaking is promulgated 
on or after such date. 
(b) JUDICIAL REVIEW AND RULE OF CONSTRUCTION.—Except 
as provided in subsection (a)— 
(1) any estimate, analysis, statement, description or report 
prepared under this Act, and any compliance or noncom:pliance 
with the provisions of this Act, and any determination concern-
ing the applicability of the provisions of this Act shall not 
be subject to judicial review; and 
(2) no provision of this Act shall be construed to create 
any right or benefit, substantive or procedural, enforceable 
by any person in any administrative or judicial action. 
Approved March 22, 1995. 
L E G I S L A T I V E H I S T O R Y — S . 1 (H.R. 5) (S. 
169): 
H O U S E REPORTS: Nos. 104-1, Pt. 1 (Comm. on Rules) and Pt. 2 (Comm. on Gov-
ernment Reform and Oversight), both accompanying H.R. 5, 
and 104-76 (Comm. of Conference). 
SENATE REPORTS: Nos. 104-1 (Comm. on Governmental Affairs) and 104-2 
(Comm. on the Budget). 
CONGRESSIONAL RECORD, Vol. 141 (1995): 
Jan. 12, 13, 17-19, 23-27, considered and passed Senate. 
Jan. 19, 20, 23, 24, 27, 30, 31, Feb. 1, considered and passed House, amend-
ed, in lieu of H.R. 5. 
Mar. 14, 15, Senate considered and agreed to conference report. 
Mar. 16, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995): 
Mar. 22, Presidential remarks.