172 cosponsors
TABLE OF CONTENTS:
Title I: Review of Unfunded Federal Mandates
Title II: Regulatory Accountability and Reform
Title III: Legislative Accountability and Reform
Unfunded Mandate Reform Act of 1995 - Prohibits the application of this Act to any provision in a Federal statute or a proposed or final Federal regulation that: (1) enforces constitutional rights of individuals; (2) establishes or enforces any statutory rights that prohibit discrimination on the basis of race, religion, gender, national origin, or handicapped or disability status; (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; (5) is designated as emergency legislation or is necessary for national security or international treaty purposes; or (6) pertains to social security.
Title I: Review of Unfunded Federal Mandates - Directs the Advisory Commission on Intergovernmental Relations to investigate and review the role of: (1) unfunded Federal mandates in intergovernmental relations and their impact on State, local, tribal, and Federal Government objectives and responsibilities, on the competitive balance between States, local and tribal governments, on the private sector, and on working men and women; (2) unfunded State mandates imposed on local governments, the private sector, and individuals; and (3) unfunded local mandates imposed on the private sector and individuals.
(Sec. 101) Requires the Commission to make recommendations to the President and the Congress with regard to: (1) allowing flexibility where the terms of compliance are unnecessarily rigid or complex; (2) consolidating or simplifying unfunded Federal mandates in order to facilitate compliance; (3) terminating unfunded mandates which are duplicative, obsolete, or lacking in practical utility; (4) temporarily suspending those unfunded mandates which are not vital to public health and safety and which compound the fiscal difficulties of State, local, and tribal governments; and (5) establishing procedures to ensure that any relief from unfunded Federal mandates does not increase private sector burdens, and is applied to any private sector entities competing with State, local, and tribal governments in providing substantially similar goods or services to the public in the same manner and to the same extent as it is to such governments.
Title II: Regulatory Accountability and Reform - Requires each Federal agency to: (1) assess the effects of Federal regulations on State, local, and tribal governments and the private sector (other than to the extent that such regulations incorporate requirements specifically set forth in legislation), including specifically the availability of resources to carry out any Federal mandates in those regulations; and (2) seek to minimize those burdens that uniquely or significantly affect such governmental entities or the private sector, consistent with achieving statutory and regulatory objectives.
(Sec. 201) Directs each agency to permit elected officials and other representatives of State, local, and tribal governments to provide meaningful and timely input in the development of regulatory proposals containing significant Federal intergovernmental mandates.
Requires each agency, before establishing regulatory requirements, to develop plans for: (1) notifying small governments of such requirements; and (2) enabling their officials to provide appropriate input into the regulatory process.
Prohibits an agency from issuing a rule that contains a Federal mandate if the rulemaking record indicates two or more methods that could be used to accomplish the objective of the rule, unless: (1) the Federal mandate is the least costly method, or has the least burdensome effect, for State, local or tribal governments, and the private sector; or (2) the agency explains why the more costly or burdensome method of the Federal mandate was adopted.
(Sec. 202) Requires Federal agencies to prepare written statements before promulgating any final rule, or issuing a notice of proposed rulemaking likely to result in promulgation of a rule, containing a Federal mandate that may result in State, local, or tribal government and private sector expenditures, in the aggregate, of $100 million or more in any one year. Requires such statement to: (1) identify the provision of Federal law under which the rule is being promulgated; and (2) contain specified estimates and analyses.
(Sec. 204) Directs the Director of the Office of Management and Budget (OMB) to establish pilot programs in at least two agencies to test innovative approaches for reducing reporting and compliance burdens on small governments.
(Sec. 205) Requires annual Commission reports to the President and the Congress on Federal court rulings in the preceding calendar year which impose an enforceable duty on one or more State, local, or tribal governments.
(Sec. 206) Allows judicial review of agency actions only if such actions are subject to review under other Federal law.
Limits preliminary injunctive relief.
(Sec. 207) Requires the OMB Director to submit annual reports to the Congress on agency compliance with this title.
Title III: Legislative Accountability and Reform - Amends the Congressional Budget Act of 1974 with respect to unfunded Federal mandates, with applicability limited in the same manner as indicated before title I.
(Sec. 301) Includes tribal governments and the private sector within the purview of mandate analysis by CBO and congressional committees.
Requires authorization committees to provide the CBO Director with the text of any legislation ordered to be reported, identifying any Federal mandate in it.
Requires the report accompanying any reported legislation with a Federal mandate to contain certain information, including statements on whether the legislation is intended to preempt any State, local, or tribal law (and the reasons for such intention), as well as individual mandate descriptions, cost-benefit analyses, and statements regarding Federal financial assistance to State, local, and tribal governments for meeting mandate costs.
Requires the CBO Director, for each piece of reported legislation, to prepare and submit to the authorizing committee certain statements estimating the direct costs of mandate compliance and the amount of authorization or budget or entitlement authority for new or increased Federal financial assistance provided to State, local, or tribal governments to meet such costs, if the estimates indicate at least a $50 million per fiscal year direct cost of all intergovernmental mandates in the legislation , or a $50 million per fiscal year direct cost of private sector mandates. Requires the CBO Director to inform the committee of any Federal intergovernmental estimate of which it is not feasible to make a reasonable estimate. Subjects any legislation without estimates to a point of order.
Requires supplemental statements to be prepared by the CBO Director for legislation reported or passed in an amended form.
Provides that, at the request of any congressional committee, the CBO Director shall: (1) consult with and assist it in analyzing any proposed legislation that may have a significant budgetary impact on State, local, or tribal governments or significant financial or employment impact on the private sector; and (2) study any legislative proposal containing a Federal mandate.
Requires the CBO Director to conduct continuing studies to enhance comparisons of budget outlays, credit authority, and tax expenditures.
Requires any congressional committee that anticipates considering any legislative proposal establishing, amending, or reauthorizing any Federal program likely to have a significant budgetary impact on any State, local, or tribal government or financial impact on the private sector to provide its views and estimates on that proposal to the applicable budget committee.
Authorizes appropriations for FY 1996 through 2002 to CBO to carry out this title.
Makes it out of order for the House or Senate to consider: (1) any reported nonappropriations legislation unless it has a CBO Director report (not including supplemental statements); or (2) any reported nonappropriations legislation containing a Federal intergovernmental mandate with direct costs exceeding the thresholds specified by this Act, unless it provides for new or increased budget, entitlement, or direct spending authority or makes other specified arrangements for each fiscal year to ensure that all direct costs of such mandates are provided for in order for them to be effective, or that State, local, and tribal programmatic and financial responsibilities are reduced so they do not exceed the amount of Federal funding. Makes it out of order in the House to consider a rule or order that waives the application of such provisions.
Declares that any bill, joint resolution, amendment, or conference report reauthorizing appropriations shall not be out of order if its enactment: (1) would not result in a net increase in the aggregate amount of direct costs of Federal intergovernmental mandates; and (2) would not result in a net reduction or elimination of authorizations of appropriations for Federal financial assistance to State, local, or tribal governments for use in complying with any Federal intergovernmental mandate (or, in the case of any such net reduction or elimination, would reduce the duties imposed by the Federal intergovernmental mandate by a corresponding amount).
Requires the direct costs of a Federal mandate for a fiscal year to be determined based on estimates by the appropriate congressional budget committee.
Provides for the disposition of points of order.
(Sec. 302) Amends House rules with regard to the Committee of the Whole and Committee on Rules: (1) to make it always in order in the former, unless specifically waived according to the rule governing consideration of that measure, to strike from the portion of any bill open to amendment any Federal mandate whose direct costs exceed the prescribed threshold; and (2) to require the latter to include in its reports on waived points of order a separate item identifying all waivers of points or order relating to Federal mandates.
(Sec. 305) Repeals the State and Local Government Cost Estimate Act of 1981.
[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5 Introduced in House (IH)]
104th CONGRESS
1st Session
H. R. 5
To curb the practice of imposing unfunded Federal mandates on States
and local governments, to ensure that the Federal Government pays the
costs incurred by those governments in complying with certain
requirements under Federal statutes and regulations, and to provide
information on the cost of Federal mandates on the private sector, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 1995
Mr. Clinger, Mr. Portman, Mr. Condit, and Mr. Davis (for themselves,
Mr. Shays, Mr. McHugh, Mr. Mica, Mr. Horn, Mr. Zeliff, Mr. Burton of
Indiana, Mr. Schiff, Mr. Blute, Mr. Fox, Mr. Walsh, and Mr. Cunningham)
introduced the following bill; which was referred to the Committee on
Government Reform and Oversight, and in addition to the Committees on
Rules, the Budget, and the Judiciary, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To curb the practice of imposing unfunded Federal mandates on States
and local governments, to ensure that the Federal Government pays the
costs incurred by those governments in complying with certain
requirements under Federal statutes and regulations, and to provide
information on the cost of Federal mandates on the private sector, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Unfunded Mandate Reform Act of
1995''.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to strengthen the partnership between the Federal
Government and States, local governments, and tribal
governments;
(2) to end the imposition, in the absence of full
consideration by Congress, of Federal mandates on States, local
governments, and tribal governments in a manner that may
displace other essential State, local, and tribal governmental
priorities;
(3) to assist Congress in its consideration of proposed
legislation establishing or revising Federal programs
containing Federal mandates affecting States, local
governments, tribal governments, and the private sector by--
(A) providing for the development of 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 House of
Representatives before the Senate and House of
Representatives votes on proposed legislation;
(4) to promote informed and deliberate decisions by
Congress on the appropriateness of Federal mandates in any
particular instance;
(5) to establish a point-of-order vote on the consideration
in the Senate and House of Representatives of legislation
containing significant Federal mandates;
(6) to assist Federal agencies in their consideration of
proposed regulations affecting States, local governments, and
tribal governments, by--
(A) requiring that Federal agencies develop a
process to enable the elected and other officials of
States, local governments, and tribal governments to
provide input when Federal agencies are developing
regulations; and
(B) requiring that Federal agencies prepare and
consider better estimates of the budgetary impact of
regulations containing Federal mandates upon States,
local governments, and tribal governments before
adopting such regulations, and ensuring that small
governments are given special consideration in that
process; and
(7) to establish the general rule that Congress shall not
impose Federal mandates on States, local governments, and
tribal governments without providing adequate funding to comply
with such mandates.
SEC. 3. DEFINITIONS.
For purposes of this Act--
(1) the terms ``agency'', ``Federal financial assistance'',
``Federal private sector mandate'', ``Federal mandate'' (except
as provided by section 108), ``local government'', ``private
sector'', ``regulation'' or ``rule'', and ``State'' have the
meaning given those terms by section 421 of the Congressional
Budget Act of 1974; and
(2) the term ``small government'' means any small
governmental jurisdiction as defined in section 601(5) of title
5, United States Code, and any tribal government.
SEC. 4. LIMITATION ON APPLICATION.
This Act shall not apply to any provision in a Federal statute or a
proposed or final Federal regulation, that--
(1) enforces constitutional rights of individuals;
(2) establishes or enforces any statutory rights that
prohibit discrimination on the basis of race, religion, gender,
national origin, or handicapped or disability status;
(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 government, or tribal government or
any official of such a government;
(5) is necessary for the national security or the
ratification or implementation of international treaty
obligations; or
(6) the President designates as emergency legislation and
that the Congress so designates in statute.
TITLE I--REVIEW OF UNFUNDED FEDERAL MANDATES
SEC. 101. ESTABLISHMENT.
There is established a commission which shall be known as the
``Commission on Unfunded Federal Mandates'' (in this title referred to
as the ``Commission'').
SEC. 102. REPORT ON UNFUNDED FEDERAL MANDATES BY THE COMMISSION.
(a) In General.--The Commission shall in accordance with this
section--
(1) investigate and review the role of unfunded Federal
mandates in intergovernmental relations and their impact on
State, local, tribal, and Federal government objectives and
responsibilities; and
(2) make recommendations to the President and the Congress
regarding--
(A) allowing flexibility for State, local, and
tribal governments in complying with specific unfunded
Federal mandates for which terms of compliance are
unnecessarily rigid or complex;
(B) reconciling any 2 or more unfunded Federal
mandates which impose contradictory or inconsistent
requirements;
(C) terminating unfunded Federal mandates which are
duplicative, obsolete, or lacking in practical utility;
(D) suspending, on a temporary basis, unfunded
Federal mandates which are not vital to public health
and safety and which compound the fiscal difficulties
of State, local, and tribal governments, including
recommendations for triggering such suspension;
(E) consolidating or simplifying unfunded Federal
mandates, or the planning or reporting requirements of
such mandates, in order to reduce duplication and
facilitate compliance by State, local, and tribal
governments with those mandates; and
(F) establishing common Federal definitions or
standards to be used by State, local, and tribal
governments in complying with unfunded Federal mandates
that use different definitions or standards for the
same terms or principles.
(3) Identification of relevant unfunded federal mandates.--
Each recommendation under paragraph (2) shall, to the extent
practicable, identify the specific unfunded Federal mandates to
which the recommendation applies.
(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 not later than 60
days after the date of the enactment of this Act, and
thereafter provide a period of 30 days for submission by the
public of comments on the proposed criteria.
(3) Final criteria.--Not later than 45 days after the date
of issuance of proposed criteria, the Commission shall--
(A) consider comments on the proposed criteria
received under paragraph (2);
(B) adopt and incorporate in final criteria any
recommendations submitted in those comments that the
Commission determines will aid the Commission in
carrying out its duties under this section; and
(C) issue final criteria under this subsection.
(c) Preliminary Report.--
(1) In general.--Not 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
recommendations pursuant to subsection (a);
(B) publish in the Federal Register a notice of
availability 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.--Not 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
Government Reform and Oversight of the House of Representatives and the
Committee on Governmental Affairs of the Senate, and to the President a
final report on the findings, conclusions, and recommendations of the
Commission under this section.
SEC. 103. MEMBERSHIP.
(a) Number and Appointment.--The Commission shall be composed of 9
members appointed from individuals who possess extensive leadership
experience in and knowledge of State, local, and tribal governments and
intergovernmental relations, including State and local elected
officials, as follows:
(1) 3 members appointed by the Speaker of the House of
Representatives, in consultation with the minority leader of
the House of Representatives.
(2) 3 members appointed by the majority leader of the
Senate, in consultation with the minority leader of the Senate.
(3) 3 members appointed by the President.
(b) Waiver of Limitation on Executive Schedule Positions.--
Appointments may be made under this section without regard to section
5311(b) of title 5, United States Code.
(c) Terms.--
(1) In general.--Each member of the Commission shall be
appointed for the life of the Commission.
(2) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made.
(d) Basic Pay.--
(1) Rates of pay.--Members of the Commission shall serve
without pay.
(2) Prohibition of compensation of federal employees.--
Members of the Commission who are full-time officers or
employees of the United States may not receive additional pay,
allowances, or benefits by reason of their service on the
Commission.
(e) Travel Expenses.--Each member of the Commission shall receive
travel expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5, United States Code.
(f) Chairperson.--The President shall designate a member of the
Commission as Chairperson at the time of the appointment of that
member.
(g) Meetings.--
(1) In general.--Subject to paragraph (2), the Commission
shall meet at the call of the Chairperson or a majority of its
members.
(2) First meeting.--The Commission shall convene its first
meeting by not later than 45 days after the date of the
completion of appointment of the members of the Commission.
(3) Quorum.--A majority of members of the Commission shall
constitute a quorum but a lesser number may hold hearings.
SEC. 104. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.
(a) Director.--The Commission shall have a Director who shall be
appointed by the Commission. The Director shall be paid at the rate of
basic pay payable for level IV of the Executive Schedule.
(b) Staff.--With the approval of the Commission, and without regard
to section 5311(b) of title 5, United States Code, the Director may
appoint and fix the pay of such staff as is sufficient to enable the
Commission to carry out its duties.
(c) Applicability of Certain Civil Service Laws.--The Director and
staff of the Commission may be appointed without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates, except that
an individual so appointed may not receive pay in excess of the annual
rate payable under section 5376 of title 5, United States Code.
(d) Experts and Consultants.--The Commission may procure temporary
and intermittent services of experts or consultants under section
3109(b) of title 5, United States Code.
(e) Staff of Federal Agencies.--Upon request of the Director, 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
Commission to assist it in carrying out its duties under this title.
SEC. 105. POWERS OF COMMISSION.
(a) Hearings and Sessions.--The Commission may, for the purpose of
carrying out this title, hold hearings, sit and act at times and
places, take testimony, and receive evidence as the Commission
considers appropriate.
(b) Powers of Members and Agents.--Any member or agent of the
Commission may, if authorized by the Commission, take any action which
the Commission is authorized to take by this section.
(c) Obtaining Official Data.--The Commission may secure directly
from any department or agency of the United States information
necessary to enable it to carry out this title, except information--
(1) which is specifically exempted from disclosure by law;
or
(2) which that department or agency determines will
disclose--
(A) matters necessary to be kept secret in the
interests of national defense or the confidential
conduct of the foreign relations of the United States;
(B) information relating to trade secrets or
financial or commercial information pertaining
specifically to a given person if the information has
been obtained by the Government on a confidential
basis, other than through an application by such person
for a specific financial or other benefit, and is
required to be kept secret in order to prevent undue
injury to the competitive position of such person; or
(C) personnel or medical data or similar data the
disclosure of which would constitute a clearly
unwarranted invasion of personal privacy;
unless the portions containing such matters, information, or
data have been excised.
Upon request of the Chairperson of the Commission, the head of that
department or agency shall furnish that information to the Commission.
(d) Mails.--The Commission may use the United States mails in the
same manner and under the same conditions as other departments and
agencies of the United States.
(e) Administrative Support Services.--Upon the request of the
Commission, the Administrator of General Services shall provide to the
Commission, on a reimbursable basis, the administrative support
services necessary for the Commission to carry out its duties under
this title.
(f) Contract Authority.--The Commission may, subject to
appropriations, contract with and compensate government and private
agencies or persons for property and services used to carry out its
duties under this title.
SEC. 106. TERMINATION.
The Commission shall terminate 90 days after submitting its final
report pursuant to section 102(d).
SEC. 107. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Commission $1,000,000
to carry out this title.
SEC. 108. DEFINITION.
As used in this title, the term ``Federal mandate'' means any
provision in statute or regulation that imposes an enforceable duty
upon States, local governments, or tribal governments including a
condition of Federal assistance or a duty arising from participation in
a voluntary Federal program.
SEC. 109. EFFECTIVE DATE.
This title shall take effect 60 days after the date of the
enactment of this Act.
TITLE II--REGULATORY ACCOUNTABILITY AND REFORM
SEC. 201. REGULATORY PROCESS.
(a) In General.--Each agency shall, to the extent permitted by
subchapter II of chapter 5 of title 5, United States Code--
(1) assess the effects of Federal regulations on States,
local governments, tribal governments, and the private sector
(other than to the extent that such regulations incorporate
requirements specifically set forth in legislation), including
specifically the availability of resources to carry out any
Federal mandates in those regulations; and
(2) seek to minimize those burdens that uniquely or
significantly affect such governmental entities or the private
sector, consistent with achieving statutory and regulatory objectives.
(b) State, Local Government, and Tribal Government Input.--Each
agency shall develop an effective process to permit elected officials
(or their designated representatives) of States, local governments, and
tribal governments to provide meaningful and timely input in the
development of regulatory proposals containing significant Federal
intergovernmental mandates.
(c) Agency Plan.--
(1) In general.--Before establishing any regulatory
requirements that might significantly or uniquely affect small
governments, an agency shall have developed a plan under which
the agency shall--
(A) provide notice of the contemplated requirements
to potentially affected small governments, if any;
(B) enable officials of affected small governments
to provide input pursuant to subsection (b); and
(C) inform, educate, and advise small governments
on compliance with the requirements.
(2) Effects on private sector.--Before establishing any
regulatory requirements, agencies shall prepare estimates,
based on available data, of the effect of Federal private
sector mandates on the national economy, including the effect
on productivity, economic growth, full employment, creation of
productive jobs, and international competitiveness of United
States goods and services.
SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS.
(a) In General.--Before promulgating any final rule that includes
any Federal mandate that may result in the expenditure by States, local
governments, or tribal governments, in the aggregate, or the private
sector of at least $100,000,000 (adjusted annually for inflation) in
any 1 year, and before promulgating any general notice of proposed
rulemaking that is likely to result in promulgation of any such rule,
the agency shall prepare a written statement containing--
(1) estimates by the agency, including the underlying
analysis, of the anticipated costs to States, local
governments, tribal governments, and the private sector of
complying with the Federal mandates, and of the extent to which
such costs may be paid with funds provided by the Federal
Government or otherwise paid through Federal financial
assistance;
(2) estimates by the agency, if and to the extent that the
agency determines that accurate estimates are reasonably
feasible, of--
(A) the future costs of the Federal mandate; and
(B) any disproportionate budgetary effects of the
Federal mandates upon any particular regions of the
country or particular States, local governments, tribal
governments, urban or rural or other types of
communities, or particular segments of the private
sector;
(3) a qualitative, and if possible, a quantitative
assessment of costs and benefits anticipated from the Federal
mandates (such as the enhancement of health and safety and the
protection of the natural environment);
(4) the effect of Federal private sector mandates on the
national economy, including the effect on productivity,
economic growth, full employment, creation of productive jobs,
and international competitiveness of United States goods and
services;
(5) a description of the extent of the agency's prior
consultation with elected representatives (or their designated
representatives) of the affected States, local governments, and
tribal governments, and designated representatives of the
private sector;
(6) a summary of the comments and concerns that were
presented by States, local governments, or tribal governments
and the private sector either orally or in writing to the
agency;
(7) a summary of the agency's evaluation of those comments
and concerns; and
(8) the agency's position supporting the need to issue the
regulation containing the Federal mandates (considering, among
other things, the extent to which costs may or may not be paid
with funds provided by the Federal Government).
(b) Promulgation.--In promulgating a general notice of proposed
rulemaking or a final rule for which a statement under subsection (a)
is required, the agency shall include in the promulgation a summary of
the information contained in the statement.
(c) Preparation in Conjunction With Other Statement.--Any agency
may prepare any statement required by subsection (a) in conjunction
with or as part of any other statement or analysis, if the statement or
analysis satisfies the provisions of subsection (a).
SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE.
The Director of the Office of Management and Budget shall--
(1) collect from agencies the statements prepared under
section 202; and
(2) periodically forward copies of them to the Director of
the Congressional Budget Office on a reasonably timely basis
after promulgation of the general notice of proposed rulemaking
or of the final rule for which the statement was prepared.
SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY.
(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 on a combination thereof.
TITLE III--LEGISLATIVE ACCOUNTABILITY AND REFORM
SEC. 301. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.
Title IV of the Congressional Budget Act of 1974 is amended by--
(1) inserting before section 401 the following:
``Part A--General Provisions''; and
(2) adding at the end the following new part:
``Part B--Federal Mandates
``SEC. 421. DEFINITIONS.
``For purposes of this part:
``(1) Agency.--The term `agency' has the meaning stated in
section 551(1) of title 5, United States Code, but does not
include independent regulatory agencies, as defined by section
3502(10) of title 44, United States Code.
``(2) Director.--The term `Director' means the Director of
the Congressional Budget Office.
``(3) Federal financial assistance.--The term `Federal
financial assistance' means the amount of budget authority for
any Federal grant assistance or any Federal program providing
loan guarantees or direct loans.
``(4) 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
States, local governments, 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 Federal
financial assistance that would be provided to
States, local governments, or tribal
governments for the purpose of complying with
any such previously imposed duty unless such
duty is reduced or eliminated by a
corresponding amount; or
``(B) any provision in legislation, statute, or
regulation that relates to a then-existing Federal
program under which $500,000,000 or more is provided
annually to States, local governments, and tribal
governments under entitlement authority, if--
``(i)(I) the provision 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 otherwise
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
programmatic responsibilities to continue
providing required services that are affected
by the legislation, statute, or regulation.
``(5) Federal private sector mandate.--The term `Federal
private sector mandate' means any provision in legislation,
statute, or regulation that--
``(A) would impose an enforceable duty on the
private sector except--
``(i) a condition of Federal assistance; or
``(ii) a duty arising from participation in
a voluntary Federal program; or
``(B) would reduce or eliminate the amount of
authorization of appropriations for Federal financial
assistance that will be provided to the private sector
for the purpose of ensuring compliance with such duty.
``(6) Federal mandate.--The term `Federal mandate' means a
Federal intergovernmental mandate or a Federal private sector
mandate, as defined in paragraphs (4) and (5).
``(7) Federal mandate direct costs.--
``(A) Federal intergovernmental direct costs.--In
the case of a Federal intergovernmental mandate, the
term `direct costs' means the aggregate estimated
amounts that all States, local governments, and tribal
governments would be required to spend or would be
required to forego in revenues in order to comply with
the Federal intergovernmental mandate, or, in the case
of a provision referred to in paragraph (4)(A)(ii), the
amount of Federal financial assistance eliminated or
reduced.
``(B) Private sector direct costs.--In the case of
a Federal private sector mandate, the term `direct
costs' means the aggregate estimated amounts that the
private sector would be required to spend in order to
comply with a Federal private sector mandate.
``(C) Exclusion from direct costs.--The term
`direct costs' does not include--
``(i) estimated amounts that the States,
local governments, and tribal governments (in
the case of a Federal intergovernmental
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 regulations in
effect at the time of the adoption of a
Federal mandate for the same activity
as is affected by that Federal mandate;
or
``(II) to comply with or carry out
State, local governmental, and tribal
governmental programs, or private-
sector business or other activities
in effect at the time of the adoption of a Federal mandate for the same
activity as is affected by that mandate; or
``(ii) expenditures to the extent that they
will be offset by any direct savings to be
enjoyed by the States, local governments, and
tribal governments, or by the private sector,
as a result of--
``(I) their compliance with the
Federal mandate; or
``(II) other changes in Federal law
or regulation that are enacted or
adopted in the same bill or joint
resolution or proposed or final Federal
regulation and that govern the same
activity as is affected by the Federal
mandate.
``(D) Determination of costs.--Direct costs shall
be determined based on the assumption that States,
local governments, tribal governments, and the private
sector will take all reasonable steps necessary to
mitigate the costs resulting from the Federal mandate,
and will comply with applicable standards of practice
and conduct established by recognized professional or
trade associations. Reasonable steps to mitigate the
costs shall not include increases in State, local, or
tribal taxes or fees.
``(8) Local government.--The term `local government' has
the same meaning as in section 6501(6) of title 31, United
States Code.
``(9) Private sector.--The term `private sector' means
individuals, partnerships, associations, corporations, business
trusts, or legal representatives, organized groups of
individuals, and educational and other nonprofit institutions.
``(10) Regulation.--The term `regulation' or `rule' has the
meaning of `rule' as defined in section 601(2) of title 5,
United States Code.
``(11) State.--The term `State' has the same meaning as in
section 6501(9) of title 31, United States Code.
``SEC. 422. LIMITATION ON APPLICATION.
``This part shall not apply to any provision in a bill, joint
resolution, motion, amendment, or conference report before Congress
that--
``(1) enforces constitutional rights of individuals;
``(2) establishes or enforces any statutory rights that
prohibit discrimination on the basis of race, religion, gender,
national origin, or handicapped or disability status;
``(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 government, or tribal government or
any official of such a government;
``(5) is necessary for the national security or the
ratification or implementation of international treaty
obligations; or
``(6) the President designates as emergency legislation and
that the Congress so designates in statute.
``SEC. 423. DUTIES OF CONGRESSIONAL COMMITTEES.
``(a) Submission of Bills to the Director.--When a committee of
authorization of the House of Representatives or the Senate orders a
bill or joint resolution of a public character reported, the committee
shall promptly provide the text of the bill or joint resolution to the
Director and shall identify to the Director any Federal mandate
contained in the bill or resolution.
``(b) Committee Report.--
``(1) Information regarding federal mandates.--When a
committee of authorization of the House of Representatives or
the Senate reports a bill or joint resolution of a public
character that includes any Federal mandate, the report of the
committee accompanying the bill or joint resolution shall
contain the information required by paragraph (2) and, in the
case of a Federal intergovernmental mandate, paragraph (3).
``(2) Reports on federal mandates.--Each report referred to
in paragraph (1) shall contain--
``(A) an identification and description of each
Federal mandate in the bill or joint resolution,
including the statement, if available, from the
Director pursuant to section 424(a);
``(B) a qualitative assessment, and if practicable,
a quantitative assessment of costs and benefits
anticipated from the Federal mandate (including the
effects on health and safety and protection of the
natural environment); and
``(C) a statement of the degree to which the
Federal mandate affects each of the public and private
sectors and the extent to which Federal payment of
public sector costs would affect the competitive
balance between States, local governments, or tribal
governments and privately owned businesses.
``(3) Intergovernmental mandates.--If any of the Federal
mandates in the bill or joint resolution are Federal
intergovernmental mandates, the report referred to in paragraph
(1) shall also contain--
``(A)(i) a statement of the amount, if any, of
increase or decrease in authorization of appropriations
under existing Federal financial assistance programs or
for new Federal financial assistance, provided by the
bill or joint resolution and usable for activities of
States, local governments, or tribal governments
subject to Federal intergovernmental mandates; and
``(ii) a statement of whether the committee intends
that the Federal intergovernmental mandates be partly
or entirely unfunded, and, if so, the reasons for that
intention; and
``(B) a statement of any existing sources of
Federal financial assistance in addition to those
identified in subparagraph (A) that may assist States,
local governments, and tribal governments in paying the
direct costs of the Federal intergovernmental mandates.
``(4) Information regarding preemption.--When a committee
of authorization of the House of Representatives or the Senate
reports a bill or joint resolution of a public character, the
committee report accompanying the bill or joint resolution
shall contain, if relevant to the bill or joint resolution, an
explicit statement on whether the bill or joint resolution, in
whole or in part, is intended to preempt any State, local, or
tribal law, and if so, an explanation of the reasons for such
intention.
``(c) Publication of Statement From the Director.--
``(1) In general.--Upon receiving a statement (including
any supplemental statement) from the Director pursuant to
section 424(a), 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 to be included
in the printed report.
``(2) Other publication of statement of director.--If the
statement is not published in the report, or if the bill or
joint resolution to which the statement relates is expected to
be considered by the House of Representatives or the Senate
before the report is published, the committee shall cause the
statement, or a summary thereof, to be published in the
Congressional Record in advance of floor consideration of the
bill or joint resolution.
``SEC. 424. DUTIES OF THE DIRECTOR.
``(a) Statements on Bills and Joint Resolutions Other Than
Appropriations Bills and Joint Resolutions.--
``(1) 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
House of Representatives or the Senate, the Director shall
prepare and submit to the committee a statement as follows:
``(A) 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 such a Federal intergovernmental
mandate (or in any necessary implementing regulation)
would first be effective or in any of the 4 fiscal
years following such year, the Director shall so state,
specify the estimate, and briefly explain the basis of
the estimate.
``(B) The estimate required by subparagraph (A)
shall include estimates (and brief explanations of the
basis of the estimates) of--
``(i) the total amount of direct cost of
complying with the Federal intergovernmental
mandates in the bill or joint resolution; and
``(ii) the amount, if any, of increase in
authorization of appropriations or budget
authority or entitlement authority under
existing Federal financial assistance programs,
or of authorization of appropriations for new
Federal financial assistance, provided by the
bill or joint resolution and usable by States,
local governments, or tribal governments for
activities subject to the Federal
intergovernmental mandates.
``(2) Federal private sector mandates in reported bills and
joint resolutions.--For each bill or joint resolution of a
public character reported by any committee of authorization of
the House of Representatives or the Senate, the Director shall
prepare and submit to the committee a statement as follows:
``(A) If the Director estimates that the direct
cost of all Federal private sector mandates in the bill
or joint 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 necessary 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.
``(B) The estimate required by subparagraph (A)
shall include estimates (and brief explanations of the
basis of the estimates) of--
``(i) the total amount of direct costs of
complying with the Federal private sector
mandates in the bill or joint resolution; and
``(ii) the amount, if any, of increase in
authorization of appropriations under existing
Federal financial assistance 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 activities subject to the Federal
private sector mandates.
``(C) If the Director determines that it is not
feasible to make a reasonable estimate that would be
required under subparagraphs (A) and (B), 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.
``(3) Legislation falling below the direct costs
thresholds.--If the Director estimates that the direct costs of
a Federal mandate will not equal or exceed the threshold
specified in paragraph (1)(A) or (2)(A), the Director shall so
state and shall briefly explain the basis of the estimate.
``(4) Amended bills and joint resolutions; conference
reports.--If the Director has prepared the statement pursuant
to subsection (a) for a bill or joint resolution, and if that
bill or joint resolution is reported or passed in an amended
form (including if passed by one House as an amendment in the
nature of a substitute for the text of a bill or joint resolution from
the other House) or is reported by a committee of conference in an
amended form, the committee of conference shall ensure, to the greatest
extent practicable, that the Director shall prepare a supplemental
statement for the bill or joint resolution in that amended form.
``(b) Assistance to Committees and Studies.--
``(1) In general.--At the request of any committee of the
House of Representatives or of the Senate, the Director shall,
to the extent practicable, consult with and assist such
committee in analyzing the budgetary or financial impact of any
proposed legislation that may have--
``(A) a significant budgetary impact on State,
local, or tribal governments; or
``(B) a significant financial impact on the private
sector.
``(2) Continuing studies.--The Director shall conduct
continuing studies to enhance comparisons of budget outlays,
credit authority, and tax expenditures.
``(3) Federal mandate studies.--
``(A) At the request of any committee of the House
of Representatives or the Senate, the Director shall,
to the extent practicable, conduct a study of a
legislative proposal containing a Federal mandate.
``(B) In conducting a study under subparagraph (A),
the Director shall--
``(i) solicit and consider information or
comments from elected officials (including
their designated representatives) of States,
local governments, tribal governments,
designated representatives of the private
sector, and such other persons as may provide
helpful information or comments;
``(ii) consider establishing advisory
panels of elected officials (including their
designated representatives) of States, local
governments, tribal governments, designated
representatives of the private sector, and
other persons if the Director determines, in
the Director's discretion, that such advisory
panels would be helpful in performing the
Director's responsibilities under this section;
and
``(iii) include estimates, if and to the
extent that the Director determines that
accurate estimates are reasonably feasible,
of--
``(I) the future direct cost of the
Federal mandates concerned to the
extent that they significantly differ
from or extend beyond the 5-year period
after the mandate is first effective;
and
``(II) any disproportionate
budgetary effects of the Federal
mandates concerned upon particular
industries or sectors of the economy,
States, regions, and urban, or rural or
other types of communities, as
appropriate.
``(C) In conducting a study on private sector
mandates under subparagraph (A), the Director shall
provide estimates, 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 period referred to in
subparagraph (B)(iii)(I);
``(ii) any disproportionate financial
effects of Federal private sector mandates and
of any Federal financial 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
communities; and
``(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
international competitiveness of United States
goods and services.
``(c) Views and Estimates of Committees.--Any committee of the
House of Representatives or the Senate that anticipates that it will
consider any proposed legislation establishing, amending, or
reauthorizing any Federal program likely to have a significant
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 that
information in its views and estimates on that proposal to the
Committee on the Budget of the applicable House pursuant to section
301(d).
``(d) Views of Committees.--Any committee of the House of
Representatives or the Senate which anticipates that the committee will
consider any proposed legislation establishing, amending, or
reauthorizing any Federal program likely to have a significant
budgetary impact on the States, local governments, or tribal
governments, or likely to have a significant financial impact on the
private sector, including any legislative proposal submitted by the
executive branch likely to have such a budgetary or financial impact,
shall provide its views and estimates on such proposal to the Committee
on the Budget of its House.
``(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Congressional Budget Office to carry out this part
$4,500,000 for each of fiscal years 1996 through 2002.
``SEC. 425. POINT OF ORDER.
``(a) In General.--It shall not be in order in the House of
Representatives or the Senate to consider--
``(1) any bill or joint resolution that is reported by a
committee unless the committee has published the statement of
the Director pursuant to section 424(a) prior to such
consideration, except that this paragraph shall not apply to
any supplemental statement prepared by the Director under
section 424(a)(4); or
``(2) any bill, joint resolution, amendment, motion, or
conference report that contains a Federal intergovernmental
mandate having direct costs that exceed the threshold specified
in section 424(a)(1)(A), or that would cause the direct costs
of any other Federal intergovernmental mandate to exceed the
threshold specified in section 424(a)(1)(A), unless--
``(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 the Federal
intergovernmental mandates included in the bill, joint
resolution, amendment, motion, or conference report in
an amount that equals or exceeds the estimated direct
costs of such mandate; or
``(B) the bill, joint resolution, amendment,
motion, or conference report provides an increase in
receipts or a decrease in new budget authority or new
entitlement authority in the House of Representatives
or direct spending authority in the Senate and an
increase in new budget authority or new entitlement
authority in the House of Representatives or an
increase direct spending authority for each fiscal year
for the Federal intergovernmental mandates included in
the bill, joint resolution, amendment, motion, or
conference report in an amount that equals or exceeds
the estimated direct costs of such mandate; or
``(C) the bill, joint resolution, amendment,
motion, or conference report--
``(i) provides that--
``(I) such mandate shall be
effective for any fiscal year only if
all direct costs of such mandate in the
fiscal year are provided in
appropriations Acts, and
``(II) in the case of such a
mandate contained in the bill, joint
resolution, amendment, motion, or
conference report, the mandate is
repealed effective on the first day of
any fiscal year for which all direct
costs of such mandate are not provided
in appropriations Acts; or
``(ii) requires a Federal agency to reduce
programmatic and financial responsibilities of
State, local, and tribal governments for
meeting the objectives of the mandate such that
the estimated direct costs of the mandate to
such governments do not exceed the amount of
Federal funding provided to those governments
to carry out the mandate in the form of
appropriations or new budget authority or new
entitlement authority in the House of
Representatives or direct spending authority in
the Senate, and establishes criteria and
procedures for that reduction.
``(b) Limitation on Application to Appropriations Bills.--
Subsection (a) shall not apply to a bill that is reported by the
Committee on Appropriations or an amendment thereto.
``(c) Determination of Direct Costs Based on Estimates by Budget
Committees.--For the purposes of this section, the amount of direct
costs of a Federal mandate for a fiscal year shall be determined based
on estimates made by the Committee on the Budget, in consultation with
the Director, of the House of Representatives or the Senate, as the
case may be.
``(d) Determination of Existence of Federal Mandate by Government
Reform and Oversight and Governmental Affairs Committees.--For the
purposes of this section, the Committee on Government Reform and
Oversight of the House of Representatives or the Committee on
Governmental Affairs of the Senate, as applicable, shall have the
authority to make final determinations of whether a bill, joint
resolution, amendment, motion, or conference report contains a Federal
intergovernmental mandate.
``SEC. 426. 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(a)
to a bill or joint resolution reported by a committee of
authorization.''.
SEC. 302. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.
(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)(A) of the Unfunded
Mandate Reform Act of 1995, it shall always be in order, unless
specifically waived by terms of a rule governing consideration of that
measure, to move to strike such Federal mandate from the portion of the
bill then open to amendment.''.
(b) Committee on Rules Reports on Waived Points of Order.--The
Committee on Rules shall 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 separate 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. 303. EXERCISE OF RULEMAKING POWERS.
The provisions of this title (except section 305) are enacted by
Congress--
(1) as an exercise of the rulemaking powers of the House of
Representatives and the Senate, and as such they shall be
considered as part of the rules of the House of Representatives
and the Senate, 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
the House of Representatives and the Senate to change such
rules at anytime, in the same manner, and to the same extent as
in the case of any other rule of the House of Representatives
or the Senate, respectively.
SEC. 304. CONFORMING AMEMDMENT TO TABLE OF CONTENTS.
Section 1(b) of the Congressional Budget and Impoundment Control
Act of 1974 is amended by inserting ``Part A--General Provisions''
before the item relating to section 401 and by inserting after the item
relating to section 407 the following:
``Part B--Federal Mandates
``Sec. 421. Definitions.
``Sec. 422. Limitation on application.
``Sec. 423. Duties of congressional committees.
``Sec. 424. Duties of the Director.
``Sec. 425. Point of order.
``Sec. 426. Enforcement in the House of Representatives.''.
SEC. 305. TECHNICAL AMENDMENT.
The State and Local Government Cost Estimate Act of 1981 (Public
Law 97-108) is repealed.
SEC. 306. EFFECTIVE DATE.
This title shall take effect on October 1, 1995.
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DEBATE - The Committee of the Whole proceeded with 10 minutes of debate on the Martinez amendments en bloc.
DEBATE - The Committee of the Whole proceeded with 10 minutes of debate on the Pelosi amendment.
Mr. Clinger moved that the Committee rise.
On motion that the Committee rise Agreed to by voice vote.
Committee of the Whole House on the state of the Union rises leaving H.R. 5 as unfinished business.
Considered as unfinished business. (consideration: CR H906-954)
The House resolved into Committee of the Whole House on the state of the Union for further consideration.
Mr. Clinger moved that the Committee rise.
On motion that the Committee rise Agreed to by voice vote.
Committee of the Whole House on the state of the Union rises leaving H.R. 5 as unfinished business.
Considered as unfinished business. (consideration: CR H980-1006)
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The House resolved into Committee of the Whole House on the state of the Union for further consideration.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 5.
The previous question was ordered pursuant to the rule.
The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.
Mrs. Collins (IL) moved to recommit to Government Reform.
On motion to recommit Failed by voice vote. (consideration: CR H1006)
Passed/agreed to in House: On passage Passed by recorded vote: 360 - 74 (Roll no. 83).
Roll Call #83 (House)On passage Passed by recorded vote: 360 - 74 (Roll no. 83).
Roll Call #83 (House)The House took from the Speaker's table and moved to the consideration of S. 1, a similar measure to H.R. 5.